Environmental Footprints and Eco-design

of Products and Processes

Elena G. Popkova
Bruno S. Sergi Editors

Sustainable
Agriculture
Circular to Reconstructive, Volume 2
Environmental Footprints and Eco-design
of Products and Processes

Series Editor
Subramanian Senthilkannan Muthu, Head of Sustainability - SgT Group and API,
Hong Kong, Kowloon, Hong Kong
Indexed by Scopus
This series aims to broadly cover all the aspects related to environmental assessment
of products, development of environmental and ecological indicators and eco-design
of various products and processes. Below are the areas fall under the aims and scope
of this series, but not limited to: Environmental Life Cycle Assessment; Social Life
Cycle Assessment; Organizational and Product Carbon Footprints; Ecological,
Energy and Water Footprints; Life cycle costing; Environmental and sustainable
indicators; Environmental impact assessment methods and tools; Eco-design
(sustainable design) aspects and tools; Biodegradation studies; Recycling; Solid
waste management; Environmental and social audits; Green Purchasing and
tools; Product environmental footprints; Environmental management standards and
regulations; Eco-labels; Green Claims and green washing; Assessment of sustain-
ability aspects.

More information about this series at https://link.springer.com/bookseries/13340

Elena G. Popkova · Bruno S. Sergi
Editors

Sustainable Agriculture
Circular to Reconstructive, Volume 2
Editors
Elena G. Popkova Bruno S. Sergi
MGIMO University Harvard University
Moscow, Russia Cambridge, MA, USA

ISSN 2345-7651 ISSN 2345-766X (electronic)

Environmental Footprints and Eco-design of Products and Processes
ISBN 978-981-19-1124-8 ISBN 978-981-19-1125-5 (eBook)
https://doi.org/10.1007/978-981-19-1125-5

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Preface

This book is devoted to the urgent problem of sustainable agriculture. The main
idea behind this book is that agriculture has an important place in the Sustainable
Development Goals (SDGs) and its contribution to sustainable development goes far
beyond food security. The book reveals the hidden and understudied potential of agri-
culture to improve the environment through restorative environmental management
in support of the environmental agenda of the “Decade of Action”.
The book focuses on the significant potential of sustainable agriculture to compre-
hensively address the urgent environmental gaps of our time: to improve the environ-
ment and trigger the process of reverse (restoration) climate change. For this purpose,
a detailed empirical and case study of international experience in the development
of regenerative agriculture, with particular attention to the practices of developing
countries and, in particular, the Eurasian Economic Union (EAEU), was conducted.
We thank all of the authors, especially the members of the Sustainability and
Technology Leadership Consortium (Russia) - Rostov State University of Economics
(RSUE), Ufa State Petroleum Technological University (USPTU), Komsomolsk-na-
Amure State University, and Institute of Scientific Communications (ISC)—who
responded to our call for publication, during challenging times of the COVID-19
pandemic and crisis, and made high-quality scientific contributions to the book. We
also thank the editors of the book series and Springer Nature for their high-level
organizational and technical support.
We hope that the innovative perspective on sustainable agriculture presented in
the book will contribute to the systematic implementation of the SDGs, and that

v
vi Preface

the EAEU experience will serve as an example for other countries of the world,
encouraging them to develop regenerative agriculture.

Elena G. Popkova
Doctor of Science (Economics)
Professor
MGIMO University
Moscow, Russia
Bruno S. Sergi
Doctor of Science (Economics)
Professor
Harvard University
Cambridge, MA, USA
University of Messina
Messina, Italy
Introduction

The adopted Sustainable Development Goals predetermined three criteria of agri-

culture’s sustainability. 1st criterion—social. It consists in fighting poverty and
providing food security. A restraining factor on the path of bringing modern agricul-
ture in accordance with this criterion is unfavourable and changing climate condi-
tions. The Third (pre-digital) technological mode, which is widespread in agricul-
ture, allows creating and successfully using in agricultural entrepreneurship the tech-
nologies of production of agricultural goods in a favourable and unchanged natural
and climate environment: moderate (not droughty and not cold) climate, sufficient
humidity, the sufficiency of sunlight, and absence of climate anomalies.
The problem is that climate change makes the existing agricultural technologies
not applicable. On the territories that are traditionally favourable for agriculture,
there is a need for new agricultural technologies (due to the shift of the seasons).
Agricultural risks further increase, and productivity decreases, which reduces the
export potential of these territories’ agricultural products. Territories that are tradi-
tionally unfit for agriculture urgently require the development of their agricultural
productions for substituting imported food.
2nd criterion—economic. It consists in the development of agricultural
entrepreneurship and rural territories. Here agriculture is considered as an economic
sphere. Sustainable development envisages that the agricultural economy will
contribute to economic growth. However, the tendencies of recent years assigned
agriculture a secondary role in the sectoral structure of GDP. The problem is that
forced development of other spheres (service sphere and industry), as compared to
agriculture, further reduces the opportunities for its further progress. Provision of
food security becomes a public (unprofitable for private business) benefit, while in
the market economy, the government cannot replace business in a whole sphere,
which aggravates the issues of deficit, quality, and security of food.
From the economic point of view, farming is a profession (type of activities).
Sustainable agriculture must provide favourable conditions for the implementation of
the human potential of the employees who are involved in this process. In practice, the
prestige of living in rural territories further reduces in the course of rapid urbanisation.

vii
viii Introduction

Agriculture is based on manual, only partially mechanized, labour, and the created
jobs are not creative (knowledge-intensive) and envisage relatively low wages.
3rd criterion—ecological. It is connected to the reduction of environmental foot-
prints (reduction of damage to the environment) and the development of eco-design of
products and processes. Ecological costs of economic growth, which are growing and
reaching a critical level), require prompt reaction in the form of deep changes in the
economic activities. Circular agriculture, which has recently become popular around
the world, makes a significant—but insufficient for preventing the coming environ-
mental crisis—contribution to the reduction of environmental costs of economic
growth.
The problem is that agriculture is ecological by its nature, it deals minimal and
renewable damage to the environment; it is based on the use of renewable natural
resources. Unlike it, the industry does not use renewable natural resources and
produces a lot of waste. That’s why reduction of ecological costs in agriculture
does not allow compensating for these costs in the industry. There is a need for more
radical measures on environmental protection.
From the ecological position, it is necessary also to pay attention to the natural-
ness of agricultural products—eco-design of products and processes. The pre-digital
technological mode, which is preserved in agriculture, offers two alternatives for
agricultural products. The first one consists in the production of completely natural,
organic agricultural products—useful for consumers’ health, but connected to low
labour efficiency (deficit of food, its high cost). The second alternative consists in
agro-industrial production of synthesized food products, which are less useful for
health but imply higher labour efficiency (mass affordability with low prices).
In this second volume of the book, agriculture is studied with the help of the
noosphere approach with the systemic character of the social and economic compo-
nents. This allows determining its sustainability by all three criteria and ensuring
the scientific search for the prospects of agriculture’s development for its full corre-
spondence to all criteria. The solution, which is provided in the second volume of
the book, envisages the transition from circular agriculture to reconstructive agri-
culture. Reconstructive agriculture is treated as agrarian practices, which ensure the
improvement (reconstruction) of the environment by means of the transition to the
Fourth (digital) technological mode.
By the social criterion, this ensures the implementation of climate-smart tech-
nologies, which increase the adaptability of agriculture to climate change and allow
developing agricultural production on the territories with unfavourable natural and
climate conditions (e.g., droughty and northern territories). Reconstructive agricul-
ture based on vertical farms allows for a multiple increase of productivity, ensures
import substitution, and fully solves the problem of food security provision.
By the economic criterion, reconstructive land use ensures the large attractive-
ness of agriculture for non-commercial, green investments. Green farms, at which
reconstructive agriculture is implemented, allow turning rural territories on which
they are located into unique natural territories. Due to this, rural territories will be
treated as especially useful for health, i.e., they will become attractive for living and
eco-tourism (rural tourism). Vertical farms with a high level of automatization will
Introduction ix

allow making agricultural labour high-tech, knowledge-intensive, highly-efficient,

prestigious, and well-paid.
By the ecological criterion, damage that is dealt to the environment by industrial
productions could be reduced substantially and, in the long-term, covered by recon-
structive agriculture. Reconstructive agriculture also contributes to the development
of eco-design of products and processes. For the first time, instead of choosing an
alternative, there is access to naturalness (through the production of organic prod-
ucts at vertical farms) and high productiveness (due to the automatization of vertical
farms).
This second volume of the book considered—in a systemic way—the essence of
reconstructive agriculture and describes the applied issues of its start and implementa-
tion. Part I considers the financial & economic and legal foundations of the transition
to reconstructive agriculture. Part II is devoted to the organisational & managerial and
technological aspects of ensuring agriculture’s sustainability based on reconstructive
land use. Part III elaborates on reconstructive agriculture in sustainable development
and food security.
This second volume is multidisciplinary—it contains studies performed at the
intersection of various spheres of knowledge and poses interest for the representatives
of a wide range of disciplines, in particular economics (environmental economics,
regional economics—economics of rural territories, and agricultural economics),
management (public administration and corporate management), information and
communication technologies (in their application to the agricultural economics),
and environmental sciences.

Elena G. Popkova
Doctor of Science (Economics)
Professor
MGIMO University
Moscow, Russia
Bruno S. Sergi
Doctor of Science (Economics)
Professor
Harvard University
Cambridge, MA, USA
University of Messina
Messina, Italy
Contents

Financial & Economic and Legal Foundations of the Transition to

Reconstructive Agriculture
Land Property from a Position of Political Economy . . . . . . . . . . . . . . . . . . 3
Rafkat S. Gaysin and Rishat A. Migunov
Impact of Geoeconomics on the Availability of Financing
for Entities in the Agricultural Sector During the COVID-19
Pandemic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Zeinegul K. Yessymkhanova, Shakizada U. Niyazbekova,
Marina A. Abramova, Olga V. Zakharova, and Igor E. Grekov
Development of Rural Tourism Based on Green Technologies
in Kazakhstan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Ayagoz E. Zhansagimova, Elvira S. Nurekenova, Zhanat M. Bulakbay,
Ella V. Beloussova, and Seyit Ye. Kerimkhulle
Financial Provision of the Agro-industrial Complex of Kazakhstan:
Problems and Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Zhybek M. Omarkhanova, Shakizada U. Niyazbekova,
Vasiliy V. Varzin, Seyit Ye. Kerimkhulle, and Elvira S. Nurekenova
Development of Rural Green Tourism of Regions of Kazakhstan . . . . . . . 33
Bauyrzhan K. Zakiryanov, Aitolkyn Tl. Tleubayeva,
Ayagoz E. Zhansagimova, Shakizada U. Niyazbekova,
and Svetlana P. Anzorova
Financial and Credit Mechanisms for the Entrepreneurial
Potential Development of the Agricultural Sector of the Economy
in the Interests of Ensuring Food Security: The Experience
of Developing Countries and the Prospects of the Kyrgyz Republic . . . . . 39
Mukaddas A. Dzhorobaeva

xi
xii Contents

The Legal Regime of Land Resources as a Factor of Interstate

Integration of the Member Countries of the Eurasian Economic
Union . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Eleonora S. Navasardova, Roman V. Nutrikhin,
Tatyana F. Vysheslavova, Irina F. Dedyukhina, and Igor E. Nelgovsky
Analysis of International Legal and National Legal Support
for the Formation of a Single Environmentally Safe Space
in the EAEU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Anna R. Agabekyan, Oksana V. Zhdanova, Andrey N. Zakharin,
Tatjana N. Zinoveva, and Viktor V. Skorobogatov
Problems of Development of Environmental Legislation
in the States of the Eurasian Economic Union at the Present Stage . . . . . 63
Eleonora S. Navasardova, Aleksander A. Gaidashev,
Svetlana A. Lukinova, Vladimir Y. Maksimov, and Dmitriy O. Burkin
Gaps and Constraints in the Agricultural Production and Supply
Chains as a Source of Food Waste and Loss . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Elena B. Zavyalova, Dmitry D. Krykanov, and Kseniia A. Patrunina

Organisational & Managerial and Technological Aspects of

Provision of Agriculture’s Sustainability Based on Reconstructive
Land Use
The Role of the PRC in the Transformation of the World Food
Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Vera A. Tikhomirova
Features of Criteria of Profitability of Cotton–Textile Cluster . . . . . . . . . . 95
Gulchexra Dj. Khalmatjanova, Gulmira A. Yuldasheva,
and Gulnoza Kh. Rayimdjanova
A SWOT Analysis of Agricultural Improvement in Food-Importing
Countries: A View from the Standpoint of Sustainable Development
of Agricultural Entrepreneurship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
Aziza B. Karbekova, Zhandaraly Sadyraliev, Ainagul T. Mamyralieva,
and Aleksey V. Tolmachev
A Promising Approach to State Regulation of the Digital
Agricultural Economy in the Interests of Its Transition
to Reconstructive Agriculture and Sustainable Development . . . . . . . . . . . 117
Alexander A. Krutilin, Svetlana E. Karpushova,
Anastasia A. Sozinova, and Elena V. Sofiina
Investment Development and Competitiveness of Pig Breeding
in Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Vlada V. Maslova, Mikhail V. Avdeev, and Kirill A. Osipov
Contents xiii

Management, Marketing, Project Activities, and Technologies

of Reconstructive Agricultural Enterprises; Practical Implications
and Challenges for the Power Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
Alexandr P. Knyazev, Aziza B. Karbekova, Aleksey V. Tolmachev,
and Khabibulla K. Tagaev
Innovative Development of Agriculture Based on Disclosing
the Entrepreneurial Potential of Enterprises in the Agricultural
Sector: Patterns of Developing Countries and Peculiarities
of the Kyrgyz Republic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
Kubanych K. Toktorov, Mukaddas A. Dzhorobaeva,
and Shukurbek I. Kadyrov
Environmentally Friendly Technologies in Municipal
Infrastructure Projects as a Factor of Regional Sustainability . . . . . . . . . . 151
Svetlana B. Globa, Evgeny P. Vasiljev, Dmitry V. Zyablikov,
Nina M. Butakova, and Viktoria V. Berezovaya
Implementing the System for Submitting and Implementing
Improvement Proposals as a Lean Production Tool . . . . . . . . . . . . . . . . . . . 159
Tatyana A. Chekulina, Natalya A. Dumnova, Svetlana A. Orlova,
Irina A. Rykova, and Elena E. Uvarova
Green Human Capital: Problems and Development Strategy . . . . . . . . . . 171
Yury A. Goncharov

The Contribution of Reconstructive Agriculture to Sustainable

Development and Food Security
The Sufficiency of Circular Practices in Agriculture to Fight
Global Hunger and Ensure Food Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181
Elena V. Karanina, Victoria N. Ostrovskaya, Musa M. Usonov,
and Ekaterina A. Erokhina
Imbalances in Food Security of the World Countries as a Problem
of Sustainable Agricultural Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191
Aziza B. Karbekova and Kanikey T. Samieva
Systematic Assessment of the Sustainability of Circular Agriculture . . . . 199
Anarkan M. Matkerimova, Tolkunbek A. Kadyrov,
Aktalina B. Torogeldieva, and Yuliya A. Ogoreva
The Benefits of Reconstructive Agriculture for Food Security
and Rural Tourism in Present and Future: Innovations
and Sustainable Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
Tatiana A. Zabaznova, Elena S. Akopova, Anastasia A. Sozinova,
and Elena V. Sofiina
xiv Contents

A Framework for Reconstructive Digital Farming for Areas

with Unfavourable Climatic Conditions for Agricultural
Entrepreneurship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215
Larisa V. Shabaltina, Natalia V. Shchukina, Olga A. Surkova,
and Anastasia I. Smetanina
Agricultural Sector in the System of Food Security of Russia . . . . . . . . . . 223
Alsu R. Nabiyeva, Alexander E. Suglobov, and Alexander V. Tkach
Environmental and Economic Efficiency of Cultivating Sunflowers
in the Siberian Federal District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233
Sergei P. Vorobyov, Konstantin V. Solovyev, and Olesya M. Val
Comparative Analysis of the Economic Security of the Regions
and the Methodology of Its Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . 243
Nadezhda V. Kapustina, Evgeniya S. Tishchenko,
Natalia V. Ruzhanskaya, Alexander S. Astakhin,
and Svetlana A. Trufanova
Reconstructive Agriculture as a Mechanism for Environmental
Crisis Management and Epidemic Prevention: Technologies
and Project Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255
Anna N. Liberovskaya, Anastasia A. Sozinova, Elena V. Sofiina,
and Inna P. Bandurina
Development of Entrepreneurship in the Agricultural Machinery
Market in the Interests of Ensuring Agricultural Sustainability . . . . . . . . 263
Tatiana N. Litvinova and Olga M. Zemskova
Vertical Farms as a Promising Direction for the Development
of Sustainable Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273
Elena G. Popkova

Prospects of Reconstructive Agriculture’s Development

for Sustainable Development (Conclusion) . . . . . . . . . . . . . . . . . . . . . . . . . . . 279
About the Editors

Prof. Elena G. Popkova is Researcher at the Center for Applied Research and Chair
of “Economic Policy and Public-Private Partnership” at Moscow State Institute of
International Relations (MGIMO), Russia. Her research interests are in the area of
innovative economics, environmental safety, and management strategies. Currently,
she is Professor at Plekhanov Russian University of Economics.

Prof. Bruno S. Sergi teaches at Harvard University’s Extension School on the

economics of emerging markets and is Affiliated Faculty of Harvard Institute for
Quantitative Social Science. He is Associate Editor of The American Economist, and
his longstanding research interests center on the economics of emerging markets.
He teaches international economics at the University of Messina and is Scien-
tific Director of the International Center for Emerging Markets Research at RUDN
University—Moscow.

xv
Financial & Economic and Legal
Foundations of the Transition
to Reconstructive Agriculture
Land Property from a Position
of Political Economy

Rafkat S. Gaysin and Rishat A. Migunov

Abstract The paper focuses on the evolution of views on land property and contem-
porary approaches to the transformation of land relations. The authors pay particular
attention to studying the problems of distribution and use of land rents. Additionally,
the authors reveal the place and role of public and private land property in the system
of agrarian relations.

Keywords Rent · Land property · Justice · Effectiveness · Capital · Labor

JEL Classification Q15 · P16 · B22 · O13

1 Introduction

Many political–economic studies [1–5] devoted to agrarian problems focus on the

problem of land property and its economical implementation. The everlasting ques-
tions that have confronted thinkers in the past and remain unresolved in the present
are as follows:
1. How to ensure justice and equity in distributing and appropriating the most
important part of the national wealth—land? How to distribute the income
obtained by applying public labor to this land, taking personal and public
interests into account?
2. How to use this part of the national wealth effectively and efficiently?
Over the millennia of its development, humankind has not yet resolved the indi-
cated issues. Humanity has not achieved a harmony of private and public economic
interests neither in terms of socially just distribution and appropriation of land nor
from the position of its effective use. It is possible to harmonize such positions

R. S. Gaysin · R. A. Migunov (B)

Russian State Agrarian University—Moscow Timiryazev Agricultural Academy, Moscow, Russia
e-mail: migunovrishat@mail.ru

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 3
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_1
4 R. S. Gaysin and R. A. Migunov

through the correct construction of the system of institutions and institutional mech-
anisms for regulating the systems of land property rights and management of land
rent relations.

2 Materials and Methods

The research goal is to reveal the essence of land property from the perspective
of political economy. To achieve the research goal, the authors set and solved the
following tasks:
1. To reveal the essence of land property from the point of view of various
representatives of political economy;
2. To evaluate the different options for the distribution of land property rights
(private or public) in terms of their social efficiency;
3. To determine the impact of rent relations on the formation of different systems
of land property rights.
The research is based on the dialectical method, aimed at identifying the cause–
effect relations between land property in agriculture and the fairness of distributing
the benefits in economic systems.

3 Results

In the nineteenth century, a representative of classical political economy, Say [10],

put forward the theory of the three production factors. In this theory, he showed that
being the object of private property, each production factor (labor, capital, and land)
brings an income to its owner. The competitive mechanism leads to the fact that,
on average, proportionally equal “retention” income is created for equal costs of
these factors, as if the principles of justice and equality are implemented. However,
injustice and inequality are lying behind this apparent equality. The owner of capital
and labor may resentfully point out that justice has been violated. For example, this
is manifested in the fact that the landowner (i.e., a person who owns the land—a
unique limited resource) receives super profits (a super rent) along with the normal
income, unlike the owners of the other two production factors. Subsequently, the
neo-classics called this super rent an economic rent. K. Marx called it absolute land
rent and showed that it is a part of the rent paid to the landowner together with the
differential rent [7].
From the position of Say’s theory and later representatives of neoclassical theory,
this fact contradicts the principles of market equilibrium and the competitive equality
of all subjects of the market economy. In the nineteenth century, several scholars went
further and pointed to the socially unjust use of land, which is an object of national
property. Thus, they emphasized the unfair distribution, appropriation, and parasitic
Land Property from a Position of Political Economy 5

appropriation of the income obtained from the application of labor to the land by
landowners. In the existing land relations based on private land property, they saw
the alienation of the producers’ labor in the form of rents from society to landowners.
Speaking of the unjust, exploitative, and speculative nature of land relations, K.
Marx and the American social activist Henry George noted that a considerable part of
the income created there is taken from agriculture. Instead of increasing agricultural
production to meet the rapidly growing need of society for food, these profits went
to the parasitic consumption of landowners [2, 7].
To justify the 100% taxation of land rents, Henry George wrote, “Our basic social
institution is the denial of justice. Allowing one person to own the land on which
and from which other people feed, we make them slaves to the degree that increases
with the development of material production… A civilization thus founded cannot
continue. The eternal laws of the universe will not allow it” [2]. A similar statement
was also given by M. I. Tugan-Baranovsky, “Land rent is a tribute paid by society to
the landowner, who, as such, takes no part in the creation of his income” [11].
N. D. Kondratiev has a similar point of view, “Who creates rent? It is clear that
it is created by the whole society. It is created because the population is growing. It
is created because the workers laid the route for a streetcar, installed the telephone,
and built the houses. It is created because prices are going up. The rent is created
by common effort, but, in the meantime, it is appropriated by the owners of the
land. It is appropriated everywhere, not only in cities. Land prices are going up
everywhere. They rise the more, the more the demand for land increases… In this
way, the enormous values created by the combined efforts of cities and villages fall
into the hands of landowners. These owners and proprietors obviously play the land
like they play the stock market. It should not be that way. The rent should go into the
hands of society” [6].
The reformist way of transforming land relations proposed by Henry George,
characterized by the withdrawal of rents from landowners, proved unrealistic. The
government could not dare to take such a large-scale seizure of private income of the
landowners; that is, it could not “lift its hand” against the basis of the capitalist market
economy—private property. Already at that time, in the nineteenth century, economic
relations were marked with transformation, close intertwining, and merging of land
property with private capitalist property and late feudal economic relations with
capitalist ones, as well as the convergence of the subjects of these relations [2].
Based on the theory of absolute rent, K. Marx concluded that private land property
is the cause of the overpricing of agricultural products. If private property was elimi-
nated, there would be no absolute land rent and no alienation of rent by landowners. As
a result of inter-sectoral competition and the free flow of capital, prices and profits in
industry and agriculture would level off, agricultural products would become cheaper,
and the average profit of entrepreneurs would rise. On this basis, Marx justified the
conclusion about the necessity of nationalization of land and the expropriation of
large private land property. According to K. Marx, it was supposed to lead to the
complete elimination of relations of alienation, to the social liberation of people,
and to freedom from the oppression associated with the preservation of late feudal
6 R. S. Gaysin and R. A. Migunov

forms of alienation of labor and capitalist forms of exploitation. As a result of the

nationalization of land, the land rent passes into the hands of society [7].
An attempt to implement Marx’s ideas was made in Russia and several other
countries during the transition to a planned economy. “Private land property shall
be abolished forever; the land shall not be sold, purchased, leased, mortgaged, or
otherwise alienated. All land … become the property of the whole people and pass
into the use of all those who cultivate it” [12].
The nationalization of land eliminated the parasitic and unproductive use of land
rent. It is especially important that alienation of labor in the form of rent tribute to
landowners was eliminated. Moreover, the social liberation of people and liberation
from feudal–capitalist oppression was realized. The rents obtained by the government
were redistributed to meet the needs of society. The country’s land policy finally
seemed to be responding to the social interests.
At the same time, the further evolution of land rent relations showed that the
nationalization of the land was not enough to overcome the alienation of peasant
labor. For the rent to become the national wealth and for the state land property to
be economically realized as national property, the political institutions, including
the governmental ones, must change as well. These institutions must be formed and
developed as democratic, nationwide, and acting in the interests of the entire society.
Nevertheless, within the framework of the Stalinist model of socialist reorganization
of society, socioeconomic and political relations did not receive such development.
Moreover, voluntaristic and bureaucratic forms and methods of social management
led to the fact that alienation of labor within the framework of feudal–capitalist rela-
tions was replaced by the alienation of peasant labor by state bureaucratic structures.
This manifested in the fact that these structures started to withdraw not only the land
rent but also the surplus and almost all necessary products from the collective and
state farms, with all negative consequences.
With the beginning of the market transformation in the 1990s, there started discus-
sions about ways to reform land relations. Two main positions emerged from the
discussion. Some participants in the discussion defended the need to privatize land.
They argued that it is impossible to organize the transition to market forms of
economic management in the agricultural sector of the economy without private
land. Others considered it necessary to leave a considerable part of the land in public
property. Proponents of both points of view defended their positions, showing the
advantages and merits of the proposed way of reforming land ownership relations.
Among the proponents of state land property, there were also respected interna-
tional scholars. In particular, British economists F. Harrison, F. Day, and D. Kenneth,
in their publications in Russian economic journals, warned and cautioned against rash
and hasty solutions to this problem. They warned about the inadmissibility of tran-
sition to full private property, the need to preserve public land property, and the
advisability of developing long-term lease relations on public land [1–5].
K. Marx noted that “From the point of view of a higher economic and social
formation, the private land property by individuals would appear as ridiculous as the
private property of one man by another man. A whole society, a nation, and even
all simultaneously existing societies taken together are not owners of the land. They
Land Property from a Position of Political Economy 7

are only the owners who use it, and, as good fathers of the family, they must leave it
improved for the generations to come” [7]. That is, the forms of appropriation and
land property must be such that the income derived from the application of labor is
not alienated but used in accordance with its functional and economic purpose in the
interests of all members of society so that the use of land increases its return not only
for people living nowadays but also for future generations. Is it possible to do this
based on private land property?
To realize the principles of equality of rights and opportunities, there must be
equality of economic conditions on land and equality and fairness in the distribution
and use of the benefits and income generated on that land. Under the conditions of
the domination of private property in its generally accepted forms, these principles
do not apply to land and other natural resources. Private property leads to extreme
forms of inequality and social injustice. As noted above, this fact was stated by
Henry George, K. Marx, N. Kondratiev, and other scholars. Private land property
gives the landowners the right to dispose of the results of their labor and the labor
of people working on it (the alienation of rent) and the goods of nature (land and
its subsoil), which are not the products of labor. These natural goods, which are
the public domain and part of the national wealth, are exploited by landowners.
Legislative implementation of the right to exploit the land and natural resources and
the right of private ownership of these resources objectively creates processes of
increasing social tension in society. It aggravates contradictions associated with the
manifestation of increasing disparity and inequality of people. More and more land
and natural resources are inevitably concentrated in the hands of a minority of people.
The proponents of private land property justify their position by referring to the fact
that such a right allows implementing the principles of market economic efficiency,
which is manifested in the fact that the relationship of private ownership and related
relations of competition increases incentives for the rational use of land increasing
its productivity. This is argued using the facts of higher yields and high productivity
of production factors applied to land in countries with the private land property as
compared to the countries with public property on land (e.g., in the USSR).
In the USSR, the efficiency of production (return on land) was lower at the level of
economic entities than in countries with private ownership of land. However, where
is the evidence that public property of the land, rather than other conditions and
factors, is the cause of the lower returns? If public land is “attached” to forms of
management and forms of entrepreneurship encouraging productive, efficient use of
land, and other production factors, the rates of return on land can be quite high [8,
9]. The experience of Israel, Canada, the Netherlands, and other Western countries
shows that the rational use of land is not connected only with private property and
its purchase and sale.
In Israel, more than 90% of the land is owned by the government. The government
transfers these lands based on long-term lease agreements (up to 49 years) for use by
various farms, primarily collective farms. Various types of cooperative associations
are formed based on collective land lease. In Canada, about 90% of all land is publicly
owned.
8 R. S. Gaysin and R. A. Migunov

4 Discussion

Russia and the Western countries witness discussions about the social expediency
of private land property. Participants in these discussions raise concerns that private
property of land carries several economic, social, and political risks and threats.
These risks include the following:
1. With the efficient use of land at the level of the individual farm, private property
causes extreme irrationality in the distribution and use of land on the scale
of society at the level of the country and the world. Thus, it is impossible to
talk about the rational use of land when hundreds of millions of hectares of
agricultural land are taken out of circulation due to the lack of profitability of
their exploitation, especially in the conditions when almost a billion people on
the planet are starving. How can we speak of the rational and efficient use of
agricultural land under private ownership if such economic and legal relations
of land ownership cannot utilize the full land potential of the planet to save
the hundreds of millions of children dying on Earth from hunger or diseases
associated with malnutrition? Is it possible to meet humanity’s current and future
needs for food based on private land property? Will we be able to solve the world
food problem with this form of ownership and management?
2. The example of Russia also demonstrates the irrationality, wastefulness, and
mismanagement in the disposal and use of agricultural land resources on a
national scale in the context of attempts to emphasize private–proprietary land
relations. In Russia, where 20 million people are undernourished because they
have an average per capita income below the subsistence minimum, more than
30 million hectares of agricultural land are unused or abandoned. The surplus
of land arises not because the population’s needs are satiated but because food
cannot be profitably sold to poor malnourished people under private property
and market forms of farming.
3. Full and unrestricted private property rights do not solve the problem of equitable
and efficient use of land. To a large extent, this also depends on the formed system
of rent relations. Land rent should be socialized. That is, it should go to all of
society and be used primarily to meet the needs of citizens—residents of rural
and urban areas, rather than to enrich individual citizens.

5 Conclusion

The research shows the views of various representatives of the political economy on
land property in the agrarian sector.
The authors conducted an empirical evaluation of the public effectiveness of
different options for distributing land property rights (private or public).
The authors determined the degree of influence of rent relations on the formation
of different systems of land property rights.
Land Property from a Position of Political Economy 9

To neutralize the indicated risks and eliminate the threats mentioned above, it is
necessary to form such an institutional environment of land relations, which allowed
to keep a significant part of agricultural land in public property with the development
of a system of a long-term lease and cooperative relations. Private land property must
be limited and restricted to prevent land speculation, changes in the intended use of
agricultural land, and transformation of banks into large landowners when mortgaged
land passes into the hands of the pledgee (bank creditors). It is necessary to create an
effective lease system, state control over land use, and state support for agricultural
producers.

References

1. Day F (1994) What prevents land rent from becoming the basis for the formation of society’s
income in the West. Econ Organ Ind Prod 3:148–154
2. George H (1896) Progress and poverty: an inquiry into the cause of industrial depressions and
of increase of want with increase of wealth (Nikolaev SD Trans. from English). St. Petersburg,
Russian Empire (Original work published 1879)
3. Harrison F (1994) Russian model. AIC Econ Manage 5:55–60
4. Harrison F, Roskoshnaya T (1993) Land rent and the budget. Econ Organ Ind Prod 9:151–156
5. Kenneth, D. (1994). The law on land. AIC: Econ Manag 5:60–63
6. Kondratiev ND (1993) Dissenting opinion, vol 2. Nauka, Moscow
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capital, vol II. USSR, Politizdat
8. Migunov R (2016) The sustainability of economic growth in agriculture of Russia as a
result of incompleteness of institutional changes. In: Proceedings of ISD’ 2016: the agri-food
value chain: Challenges for natural resources management and society. Slovak University of
Agriculture in Nitra, Nitra, Slovakia, pp 129–136
9. Migunov R, Guziy S (2017) Model and practical proposals for changing institutional mech-
anisms for conducting commodity-purchasing interventions in the grain market in Russia.
In: Proceedings of ICoM’ 2017: managerial trends in the development of enterprises in
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10. Say J-B (1833) A treatise on political economy; or the production, distribution, and consumption
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Impact of Geoeconomics
on the Availability of Financing
for Entities in the Agricultural Sector
During the COVID-19 Pandemic

Zeinegul K. Yessymkhanova , Shakizada U. Niyazbekova ,

Marina A. Abramova , Olga V. Zakharova , and Igor E. Grekov

Abstract Problems of the availability of financing for the subjects of the agri-
cultural sector are one of the priority directions of the strategic development of
the national economy. In the context of digital transformation, the availability of
financing becomes a critical aspect in the increasing impact of geoeconomic influ-
ences. The impact of geoeconomic influences on economic processes has consid-
erably increased during the period of restrictive measures related to the COVID-19
pandemic. The paper investigates the impacts mentioned above on the accessibility
of various sources of financing for the subjects of the agricultural sector, in partic-
ular in the conditions of digital transformation of the leading agricultural branches
of the country. Based on the study of legal and practical aspects, the authors provide
recommendations for effective financial support of the subjects of the agro-industrial
complex of the country. Nowadays, it is critical to consider the direction of govern-
ment support in the agricultural market. The authors show the main financial instru-
ments and provide recommendations for further financial recovery of the agricultural
sectors of Kazakhstan.

Keywords Agricultural sector · Geoeconomics · Financing tools · Leasing ·

Investments · Innovation · Online lending · Agriculture · Agricultural producers ·

Z. K. Yessymkhanova
Turan-Astana University, Nur-Sultan, Kazakhstan
S. U. Niyazbekova (B) · M. A. Abramova · O. V. Zakharova
Financial University Under the Government of the Russian Federation, Moscow, Russia
e-mail: shakizada.niyazbekova@gmail.com
M. A. Abramova
e-mail: MAbramova@fa.ru
O. V. Zakharova
e-mail: OVZaharova@fa.ru
S. U. Niyazbekova
Moscow Witte University, Moscow, Russia
I. E. Grekov
Orel State University Named After I.S. Turgenev, Orel, Russia

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 11
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_2
12 Z. K. Yessymkhanova et al.

Rural microlending · COVID-19 pandemic · Digital transformation · Digital

technology

JEL Classification Q17 · R51 · J43 · N50

1 Introduction

The strengthening of geoeconomics allows Kazakhstan to solve the problems of

agriculture with a wide range of financing instruments (public and private sources of
financing). Government support to finance agriculture remains important along with
private investment and financing instruments, especially in crises. In this regard,
Kazakhstan needs to ensure more effective use of traditional funding sources and
modern alternative tools of financial support of the agricultural economy.

2 Literature Review

The popular function for determining the investment climate developed by J. M.

Keynes undoubtedly finds practical aspects in the implementation of the investment
policy of the country due to its focus on supporting investment and creating a favor-
able investment climate [13]. Other scholars have also noted the variable compo-
nents of investment in the structure of the country’s gross national product. Kazakh
researchers also note the emerging trends in this direction. Contemporary researchers
consider the problems of financing the agricultural sector, taking into account the
crisis phenomena and the realities of the digital transformation of the industry. Addi-
tionally, the current restrictions associated with the COVID-19 pandemics have made
significant adjustments to the tactical and strategic directions of further develop-
ment of the leading sectors of the agro-industrial complex (AIC) of the country
[4, 5, 11, 14, 16–18].

3 Methodology

The research is based on the consideration of issues and existing problems of access to
finance for the subjects of AIC in the context of digitalization. The issues of digital
transformation of agriculture are analyzed in a considerable number of scientific
research. Nevertheless, certain methods and approaches to the analysis of sources of
agricultural financing in the digital environment have now been formed in the national
economy of Kazakhstan. The methodological tools used during this research include
dialectical, system-functional, economic-statistical, and logical research methods.
Impact of Geoeconomics on the Availability of Financing … 13

4 Results

To a large extent, the increase in livestock production was influenced by financial

measures of government support. Thus, in recent years, more than half of the attracted
investment subsidies occurred in the livestock industry, while about 35% of invest-
ments was directed toward crop production. Moreover, a little more than 12% were
directed in the processing of these sectors.
An essential role in this direction is played by development institutions, who
finance the agricultural sector, such as subsidiaries of JSC “KazAgro,” carrying out
financing and lending to agricultural entities.
It should also be noted that the process of digitalization of agriculture is gaining
tremendous momentum. Over the past few years, to strengthen the digital transfor-
mation in the agricultural sector of Kazakhstan, the authorized government bodies
have carried out significant activities. The implementation of microlending within the
framework of the State Program for the development of productive employment and
mass entrepreneurship “Enbek” for 2017–2021 continues. The functions to guarantee
loans under the Program “Enbek” are carried out (Fig. 1).
The question of guaranteeing loans issued by second-tier banks to implement
projects in the agricultural sector has been worked out. The work has begun on
implementing insurance agent functions under the new voluntary system of insurance
in the agricultural sector. Moreover, insurance products were approved for which a
portion of insurance premiums is subsidized. Additionally, significant work has been
done to defer payments on projects affected by restrictive measures related to the
COVID-19 pandemic [1, 7–10, 12, 13].
Next, let us consider the processes of financing agricultural entities in Kazakhstan.
The primary sources of credit resources for entities of the agricultural industry are
subsidiaries of the holding, commercial banks, credit partnerships, and microfinance
institutions [2, 3, 6, 15, 19, 20] (Fig. 2).
A set of measures of the government program of the agro-industrial complex
were developed to involve second-tier banks and other private financial institutions
in lending to the agricultural sector. The created measures aim to further develop the

Fig. 1 Measures to enhance

digital transformation in
agriculture. Source Implementation of microlendin
within the framework of the State Mass Entrepreneurship “Enbek”
Compiled by the authors Program for the development of for 2017–2021
productive employment

Measures to enhance digital

transformation in agriculture
14 Z. K. Yessymkhanova et al.

Fig. 2 Primary sources of

credit resources for the
subjects of agriculture. Microfinance
Source Compiled by the organizations
authors

Commercial Subsidiaries
Sources of holding
banks companies

Credit
cooperatives

sectors of agriculture such as livestock and crop production, including the processing
of raw materials and products derived from the production of these sectors.

5 Conclusion

The AIC witnesses a digital transformation. The development of this direction gives
the agricultural sector of the country great opportunities to expand areas of activity in
terms of partnership and cooperation with various foreign contractors with minimal
costs. Customers whose businesses were affected by the restrictive measures related
to the COVID-19 pandemic were granted a deferral of loan repayments. The main
measures to combat the effects of the COVID-19 pandemic and support small and
medium-sized businesses implemented by the “Damu” Fund include the following:
• Reducing the interest rate on loans to 5%;
• Removal of industry restrictions;
• Increase in the amount of loans;
• Inclusion in large business;
• Portfolio guarantees;
• Restructuring in one day;
• Remote provision of services.
The measures taken to combat the consequences of the COVID-19 pandemic have
yielded significant results, with economic, social, and, in some cases, environmental
effects.
Additionally, at the 2021 AIC Forum, participants shared their experiences in over-
coming the challenges posed by the COVID-19 pandemic as part of their activities.
Similar to the “Damu” Fund, other development institutions have provided small and
medium-sized businesses with access to concessional lending. Development insti-
tutions that provide direct lending have granted deferrals on existing loans to small
Impact of Geoeconomics on the Availability of Financing … 15

and medium-sized businesses with no penalties. The commonality of approaches to

the measures taken to support small and medium-sized businesses in most countries
participating in the forum demonstrates the relevance of these measures.
Simultaneously, the authorized government bodies of Kazakhstan implement a
package of anticrisis measures, which includes support for small and medium-sized
businesses in the areas of tax incentives, expanding the coverage of government
support programs, and deferrals on loans.

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Development of Rural Tourism Based
on Green Technologies in Kazakhstan

Ayagoz E. Zhansagimova , Elvira S. Nurekenova ,

Zhanat M. Bulakbay , Ella V. Beloussova , and Seyit Ye. Kerimkhulle

Abstract Given the established algorithm of studying rural tourism as a specific

segment of the market of tourist services, let us build a scientific and methodological
approach to this research. The development of rural tourism as an organizational form
of entrepreneurship is characterized by an increase in the number of households in this
area of activity and the growing number of tourists who, for certain reasons, prefer this
form of recreation in the region. The authors define the concept of rural green tourism,
which is understood as a specific type of tourism activity that accumulates various
forms of the organization of tourism implemented in rural areas and impacts the
social, environmental, and economic development of rural areas of the region through
the rational use of available natural and human resources. The authors develop a
comprehensive scientific and methodological approach for studying rural tourism in
the region and form a matrix of research methods for the regional development of
rural tourism.

Keywords Rural tourism · Agriculture · Green technology · Region · Innovative

developments

JEL Classification Z32 · Z33 · Q18 · Q19

A. E. Zhansagimova
Kazakh Academy of Sport and Tourism, Almaty, Kazakhstan
E. S. Nurekenova
D. Serikbayev East, Kazakhstan Technical University, Ust-Kamenogorsk, Kazakhstan
Z. M. Bulakbay · S. Ye. Kerimkhulle
L. N. Gumilyov, Eurasian National University, Nur-Sultan, Kazakhstan
E. V. Beloussova (B)
Saken Seifullin Kazakh Agrotechnical University, Nur-Sultan, Kazakhstan
e-mail: bellav-ast@mail.ru

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 17
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_3
18 A. E. Zhansagimova et al.

1 Introduction

The effectiveness of the development of rural tourism in the regions of Kazakhstan

entirely depends on government regulation and the financial support of the entire
tourism sector. The regulation system of rural tourism has significant flaws due to
legislative imperfections in public policy in this area.
However, a positive trend lies in the increased participation of government agen-
cies and public organizations in improving the regulatory framework for the func-
tioning of rural tourism through the adoption of laws, projects, and programs. The
development of rural tourism as an organizational form of entrepreneurship is char-
acterized by an increase in the number of households in this area of activity and the
growing number of tourists who, for certain reasons, prefer this form of recreation.
Rural tourism solves the social and economic problems of the village, affecting
the sphere of employment of the rural population, especially women. Moreover, it
provides farmers with additional income and expands employment opportunities of
rural hosts in the production and service sectors. It is worth noting that employment
in the recreational industry is of a dual nature because many jobs are seasonal or
part-time. This phenomenon is negative in terms of the quality of jobs—the employ-
ment in the tourism industry is marked with a considerable number of part-time
workers. Therefore, significant funds are directed for creating prerequisites for the
continuation of the seasonal period and the expansion of employment.

2 Literature Review

A literature review provides an overview of sustainability and rural tourism and

highlights valuable content discussed by the authors, who also suggest directions for
future research. More and more researchers from developing countries are working
on the topic of sustainable rural tourism. Foreign scholars actively study the digi-
talization of the world economy and its implementation in various sectors of the
economy [2, 9, 11]. Scholars of the CIS countries also pay considerable attention to
the issues of ensuring sustainable development of tourism [1, 8, 10, 14, 16, 17].

3 Methodology

This research was based on a variety of methods to study the development of rural
tourism (Table 1).
Due to the lack of reliable statistical information and a unified accounting system
of activities of enterprises engaged in rural tourism, the analysis of various sources
of information shows significant discrepancies in the state of development of this
industry.
Table 1 Methods of research on the regional development of rural tourism
Research methods Theoretical Assessment Assessment of Analysis of Analysis of Identification of Formation of the Identification of
analysis of the of the natural the main economic the impact of promising areas institutional investment
development resource trends in the efficiency rural tourism of the infrastructure to opportunities
of rural potential of development of rural on rural improvement of stimulate for the
tourism the region of rural tourism employment the entrepreneurial development of
tourism in the facilities in in the region organizational activity in the rural tourism in
region the region and economic region the region
mechanism to
support rural
tourism
facilities
Economic-statistical + + + + + + +
method
Method of economic + + + + + + +
analysis
Synthesis
Abstract-logical + + + + + +
Computational and + + + +
structural analysis
Development of Rural Tourism Based on Green Technologies …

Grouping and zoning + + + +

Index analysis + + +
Induction + + +
Deduction + + +
Mapping + +
(continued)
19
Table 1 (continued)
20

Research methods Theoretical Assessment Assessment of Analysis of Analysis of Identification of Formation of the Identification of
analysis of the of the natural the main economic the impact of promising areas institutional investment
development resource trends in the efficiency rural tourism of the infrastructure to opportunities
of rural potential of development of rural on rural improvement of stimulate for the
tourism the region of rural tourism employment the entrepreneurial development of
tourism in the facilities in in the region organizational activity in the rural tourism in
region the region and economic region the region
mechanism to
support rural
tourism
facilities
Correlation method +
Surveys +
Multivariate analysis +
Systematization + + + + +
Source Developed by the authors based on [1, 3, 6, 8, 9, 12–17]
A. E. Zhansagimova et al.
Development of Rural Tourism Based on Green Technologies … 21

The following steps are required to increase the effectiveness of the development
of rural tourism:
• Improve the existing regulatory framework;
• Improve the system of information and advisory support;
• Create new sources of finance and investment;
• Develop a set of organizational and economic measures at the national and regional
levels.
The effectiveness of rural green tourism has a broad socioeconomic nature,
including the following [1, 3, 6, 8, 12, 13, 15, 17]:
• It allows rural residents to improve their personal financial and economic situation
and the financial situation of their families;
• It provides a solution to the problem of growing unemployment in rural areas;
• It allows getting additional funds to expand the main activity—agricultural
production.
The conducted analysis provides an objective assessment of the weaknesses and
threats to the development of rural tourism in the region. The consideration of
strengths allows us to identify the area’s potential and develop an effective strategy
for further change. Given the results of the SWOT analysis, the authors can recom-
mend the following measures for the further development of rural tourism in the
administrative areas of the region:
• To conduct certification and categorization of tourist accommodations (rural green
facilities);
• To develop regional programs to optimize traffic flows to improve accessibility in
remote areas of the Akmola Region;
• To create and expand effective methodological, information, and legal support for
the development of rural tourism;
• To organize periodic training and seminars on tourism for farmstead owners and
interested parties;
• To apply innovations in the form of a centralized computer network of reservations
in agricultural complexes and create a real database on the services of farmsteads.
SWOT analysis of the development of rural tourism in the Akmola Region has
shown that there are enough opportunities for the development of tourism, which is
investigated in this research. To verify the validity of the SWOT analysis, the authors
applied the survey method. The general methodology of questionnaire surveys
is developed in sufficient detail, but the methodological issues of questioning in
different areas of activity have their own peculiarities.
22 A. E. Zhansagimova et al.

4 Results

To collect the most reliable information about the functioning of the subjects of
rural tourism in the Akmola Region, the authors used the questionnaire method and
surveyed owners of farmsteads engaged in rural tourism. The survey was conducted
in the following ways: telephone surveys, email questionnaires, and interpersonal
communication [2, 3, 5, 7, 8, 11, 17].
A total of 83 owners of farmsteads in the Akmola Region were interviewed on
the created questionnaire. Thus, 95% of farmsteads in the Akmola Region provides
services in the form of a business entity and pay taxes, and only, 5% of farmsteads
provides services as private peasant farms. The majority of farmsteads (83%) engaged
in rural tourism refers to themselves as “rural tourism farmsteads,” 12%—as “guest
houses,” and 5% of respondents considers their farmstead a family farm.
It should be noted that 66% of farmsteads has less than ten places for guests. Only,
44% of surveyed owners of farmsteads has more than ten places for guests. This fact
indicates that the tourist facility is primarily a small family business with more of a
social component—getting rid of unemployment rather than making big profits.
Most farms (64%) do not use hired workers. Hired workers are observed only in
36% of farmsteads. Although most farmsteads have a small number of rooms, the
owners involve their family members in labor [1, 12, 17].
Most owners of farmsteads (96%) have higher education, of which only 12%
has education in tourism. Additionally, 85% of the employees also do not have the
appropriate education.
Some owners of farmsteads (46%) know English or Polish at a sufficient level.
Only, 62% of hired workers speaks a foreign language.
Almost, all of the surveyed owners of farmsteads plan to apply innovations:
• 2% of respondents plans to allow customers to pay for the obtained services with
bitcoins;
• 14% of respondents plans to use infrastructure innovations;
• 12% of respondents plans to use technological innovations;
• 28% of respondents plans to use social innovations;
• 36% of respondents plans to use environmental innovations;
• 8% of respondents plans to innovate their activities.
The majority of respondents uses the software in their activities. Thus, 28% of
respondents uses computer technology for booking, 46%—to promote their services,
4%—to manage their Web page. Only, 22% of respondents does not use the software.
The owners of farmsteads advertise through the Internet (22%), brochures (12%),
catalogs (9%), business cards (28%), television (6%), radio (4%), travel fairs (10%),
and Web sites (6%) [1, 2, 8, 12, 16, 17].
The services of travel agencies are used by 54% of the owners of farmsteads. Only,
12% of those surveyed has a quality certificate, and 64% uses quality standards. Also,
64% of surveyed owners of farmsteads participated in professional development
courses. Among the studied farmsteads, 36% passed expert quality control.
Development of Rural Tourism Based on Green Technologies … 23

All farmsteads provide additional services in the form of excursions, paddling,

fishing, horseback riding, etc. Most respondents named the problems that prevent
their business from thriving. These problems include the following:
• Poor infrastructure in the region (28%);
• Poor road infrastructure (26%);
• Lack of management culture in the tourism sector (12%);
• Bureaucracy of administrative procedures for creating and running a tourist
business (36%).
The conducted research allowed us to identify existing problems of the subjects
of rural tourism in the Akmola Region, thoroughly analyze the effectiveness of
farmstead, and develop proposals to improve the level of business efficiency in the
field of rural tourism on the example of the Akmola Region [1, 3, 5, 7, 8, 11–13, 16,
17].
The study of the dynamics of the entrepreneurial development of rural tourism
in the region in the Akmola Region revealed positive trends in such development
(Table 2).
As of early 2020, a comparison of the performance of rural tourism facilities in the
Akmola Region in 2019–2020 shows the growth of all indicators. Prospective devel-
opment of the industry is supported by the indicator of absolute growth of income
of rural tourism facilities from their activities, which amounted 6777 thousand KZT.
Rural tourism in the region is marked with uneven development in different areas
[3, 6–11, 13, 14, 17].

Table 2 Dynamics of the financial and economic performance of rural tourism facilities in the
Akmola Region for 2019–2020
Name Units of measurement 2019 2020 Growth
Absolute Relative (%)
Revenues of farmsteads thous. KZT 10,190 16,967 6777 60.1
from services provided
Costs thous. KZT 3047 10,283 7236 29.6
Profit thous. KZT 10,143 16,684 6541 60.8
Average income of one thous. KZT 44.3 59.5 15.2 74.5
tourist facility
Average costs of one thous. KZT 21.9 36.1 14.2 60.7
tourist facility
Average profit of one thous. KZT 22.4 23.4 1.0 90.5
tourist facility
Actual expenses of the KZT 117.2 104.4 −12.8 −10.9
tourist object on one
workday
Profitability % 30.0 61.6 31.6 48.7
Source Developed by the authors based on the data of the Bureau of National Statistics of the
Agency for Strategic Planning and Reforms of the Republic of Kazakhstan [4]
24 A. E. Zhansagimova et al.

The profitability of products for entrepreneurship in the field of rural tourism is

characterized by the indicator of its cost-effectiveness. This indicator is calculated
as the ratio of profit from the sale of products to its total cost of production. The
analysis of the profitability of rural tourism facilities in the Akmola Region, as the
primary indicator of efficiency, also shows high rates.
If we consider the average rural family, which can theoretically host tourists, with
its available housing stock, we see that the problem of seasonality in the tourist and
recreational sphere affects the life of peasants indirectly, rather than in direct relation
as with specialized tourist centers.
One of the main functions of the organizational and economic mechanism is the
formation of incentives, such as the rational use of natural resource potential of
the region, increasing the production of tourism products, upgrading the tourism
infrastructure in the region, spreading the range, improving the quality of tourist
goods, and services in rural tourism (Table 3) [1, 3, 6, 8, 12, 13, 15, 17].
The basic principles of business activities in rural tourism and cooperation
between public authorities, local government, and the private sector are determined
by several basic legislative and regulatory acts.

Table 3 Functions of the organizational and economic mechanism to stimulate and support subjects
of rural tourism on the principles of sustainable regional development
Types of function Essence
Planning Coordination of economic activities of subjects of rural tourism to
rationalize the use of natural resource potential in the region
Stimulation Applying new or strengthening the existing incentives to achieve the
economic, social, and environmental objective of the regional
development of rural tourism
Regulation and control Harmonization of interests, achieving compromises, and harmonization
of all processes related to farming in the field of rural tourism at the
regional level
Monitoring Determining the state of natural resource potential of the region and the
level of provision of regions with tourist resources
Accounting Accurate statistical registration of rural tourism facilities and indicators
of their activities; accounting of tourist resources, which is possible in
the form of the introduction of tourist-resource cadastres in the region
Standardization Development and installation of a set of mandatory rules, requirements,
and norms of doing business in the field of rural tourism
Certification Identification, verification, and documentation of the compliance of the
object of rural tourism with the established requirements
Categorization Assignment of a certain category for business entities in the field of
rural tourism
Audit Evaluating the effectiveness of rural tourism facilities in the region
Organization Improving the level of environmental, social, and economic knowledge
of subjects of rural tourism
Source Compiled by the authors based on [1, 8, 10, 12, 14, 16, 17]
Development of Rural Tourism Based on Green Technologies … 25

5 Conclusion

In the case of rural tourism, the problem of seasonality is not so relevant because
rural hosts diversify the sources of financial income and continue to live the ordinary
agricultural life (in this case, we are not talking about the owners of farmsteads with
a specialized focus on tourists, being mini tourist recreation centers).
Thus, the functioning of subjects of rural tourism, as well as any other subjects
of economic activity, is analyzed only based on their external results with the help
of clearly defined research criteria. The properly analyzed situation allows one to
choose effective instruments of influence to increase the level of development of
subjects of rural tourism and the tourism region.

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Financial Provision
of the Agro-industrial Complex
of Kazakhstan: Problems and Solutions

Zhybek M. Omarkhanova , Shakizada U. Niyazbekova ,

Vasiliy V. Varzin , Seyit Ye. Kerimkhulle , and Elvira S. Nurekenova

Abstract The paper focuses on the types and structure of funding of the agro-
industrial complex of Kazakhstan. The priority of agro-industrial development justi-
fies the provision of government support to agricultural producers. Kazakhstan has
less favorable natural and climatic conditions than Russia, Australia, the USA, the
European Union, and New Zealand, which causes the high cost of agricultural produc-
tion. Financial support of the agro-industrial complex is laid down in the govern-
ment programs and investment projects adopted by the Government of Kazakhstan. A
special role is given to JSC “KazAgro National Management Holding.” This company
is entrusted with issuing loans, investing in financial leasing of machinery and tech-
nology, and maintaining state grain reserves. Unfortunately, the peculiarities of agri-
culture reduce the interest of commercial banks in financing this industry. Therefore,
the authors develop measures to ensure the availability of financial resources for
agricultural producers.

Keywords Agro-industrial complex · Agriculture · GDP · Government support ·

Investments · Fixed capital · Borrowed capital · Credit · Microfinance
organization · Subsidy

JEL Classification Q13 · Q14 · G24 · P45

Z. M. Omarkhanova
Saken Seifullin Kazakh Agrotechnical University, Nur-Sultan, Kazakhstan
S. U. Niyazbekova (B)
Financial University Under the Government of the Russian Federation, Moscow, Russia
e-mail: shakizada.niyazbekova@gmail.com
Moscow Witte University, Moscow, Russia
V. V. Varzin
Kosygin State University of Russia, Moscow, Russia
S. Ye. Kerimkhulle · E. S. Nurekenova
L.N. Gumilyov Eurasian National University, Nur-Sultan, Kazakhstan
D. Serikbayev EAST-Kazakhstan State Technical University, Ust-Kamenogorsk, Kazakhstan

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 27
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_4
28 Z. M. Omarkhanova et al.

1 Introduction

The share of the agricultural sector in the GDP of Kazakhstan was 4.7% in 2020 and
4.3% in 2019. For comparison, the same indicator equaled 22.6% in 1980 and 34%
in 1990. The share of agriculture in Kazakhstan’s GDP steadily declined until 2010,
after which it stabilized at 4.3%.
The share of agriculture in Kazakhstan’s GDP is higher than in Russia: by 0.9%
in 2017, 1.1% in 2018, and 0.9% in 2019. These discrepancies occurred due to
government support, namely the JSC “KazAgro National Management Holding”
(KZAG) and its subsidiary Agrarian Credit Company (Fig. 1).
The main problems are technological backwardness, the use of outdated tech-
nology, the production of products with low added value, weak innovation activity
of the subjects of the agro-industrial complex, and other factors. The depreciation
of fixed assets in agriculture exceeds 60%. Agriculture has its peculiarities caused
by the long production cycle and seasonality of production. Due to these factors, the
nature of the formation of costs and stocks in agricultural organizations do not have
sources for continuous funding [13].
In this regard, the problem of attracting financial resources for implementing the
reproductive process in agriculture is relevant.

2 Literature Review

Many scientists and economists have devoted their works to the problems of research
of government and financial support of agricultural producers [3, 4, 7, 9, 11, 12].
Among the foreign scientists actively studying the issues of development and
financing of the agro-industrial complex, we should highlight such scientists as
[1, 5, 6, 14–16].

Fig. 1 Share of agriculture in the structure of GDP (%) in Kazakhstan and Russia. Source Compiled
by the authors based on the data of the Bureau of National Statistics of the Agency for Strategic
Planning and Reforms of the Republic of Kazakhstan [2]
Financial Provision of the Agro-industrial Complex … 29

In his works, Yuki G. Baba, a Japanese researcher, analyzed the relationship

between the government and finance in developing countries. He concludes that
excessive interference of national governments through government financial and
fiscal agencies leads to a decline in the effectiveness of financial institutions [1].
This concerned the allocation of budgetary funds to finance agriculture.
The empirical analysis conducted by Rey [14] showed that the public lending
system in developing countries is not always effective in attracting financing to rural
areas.

3 Methodology

The research is based on an empirical research method, consisting of a variety of

research methods, including the analytical approach, the method of deduction, statis-
tical analysis, and others. The analytical approach reviews the current state of agri-
culture in Kazakhstan and identifies the primary sources of funding for the agro-
industrial complex of Kazakhstan. The method of deduction allowed studying the
state of affairs in developed countries. A statistical approach was applied to identify
the growth dynamics and calculate its rate on the main indicators of activity in agri-
cultural finance. The application of these methods allowed the authors to carry out
this research and give the corresponding conclusions.

4 Results

The JSC “KazAgro National Management Holding” and Agrarian Credit Corporation
(ACC) played a critical role in activating investment activity in the industry.
According to the Bureau of National Statistics of the Agency for Strategic Plan-
ning and Reforms of the Republic of Kazakhstan, for 2014–2020, investment in fixed
capital in agriculture increased by 262.8 billion KZT (3.2 times) [2].
One of the sources of funding is debt capital.
Currently, the financial support of agricultural enterprises by banks is much lower
than it was two or three years ago.
By the beginning of July 2020, loans to agricultural enterprises amounted to 275.3
billion KZT—only 2% of the total loan portfolio of commercial banks. Meanwhile,
the amount of loans reached 644.8 billion KZT (4.7%) in 2018, 749.9 billion KZT
(5.6%) in 2017, and 710.1 billion KZT (5.4%) in 2016.
The decline in lending to agricultural entities by banks is due to several reasons,
including stringent requirements for the collateral base of borrowers, the lack of
effective instruments for hedging industry risks, and others. Additionally, banks lend
mainly to large enterprises, while 97.6% of the operating enterprises in the agricul-
tural sector are small, in most cases individual entrepreneurs. In general, agricultural
30 Z. M. Omarkhanova et al.

subjects and villagers do not have initial capital, possess no liquid collateral, and
often have no credit score [8, 11].
Under these conditions, microfinance organizations, whose activities are aimed
at supporting entrepreneurship, increasing the population’s welfare, and devel-
oping agriculture, become more accessible sources of borrowed funds for the agro-
industrial complex. The share of microcredits issued by microfinance organizations
to residents of rural areas for agricultural activities is higher than 50%.
In the first quarter of 2021, the loan portfolio of microfinance organizations of
the Republic of Kazakhstan amounted to 316.1 billion KZT, which is 35.6% higher
than in the same period last year (233 billion KZT).
As before, funding in the form of subsidies is a motivating factor for developing
agricultural production and processing.
The authors compared the volume of subsidies in livestock and crop production
and studied the main agricultural regions (the North Kazakhstan, Kostanay, and
Akmola Regions) for the distribution of subsidies. As a result of the analysis, the
authors have found that more than 60% of the subsidies are aimed at developing crop
production.
Leasing can be called an investment resource for updating the technical base
of agricultural production. Kazakhstan has already become one of the countries
actively developing the leasing industry. As a form of investment in the agricultural
sector of the economy, leasing contributes to the modernization of fixed assets in the
agriculture of Kazakhstan, thus ensuring the effective functioning of the industry. At
the beginning of 2020, Kazakhstan had more than 64 leasing companies, seven of
which provided leasing for the agricultural sector.
According to the Bureau of National Statistics of the Agency for Strategic Plan-
ning and Reforms of the Republic of Kazakhstan, the total value of financial leasing
contracts was 331.4 billion KZT in 2019, which is 47.1% higher than in 2018. The
total volume of leasing transactions in agriculture amounted to 115 billion KZT, of
which JSC “KazAgroFinance” accounted for 98.5 billion KZT, which was 85.7%
of the total volume of leasing in the agro-industrial complex of the Republic of
Kazakhstan.
The total value of financial leasing agreements in agriculture amounted to 76.2
billion KZT, of which the share of JSC “KazAgroFinance” was 63.0 billion KZT,
which was 82.7% of the total volume of leasing in the agricultural sector of
Kazakhstan.
In 2017, the total value of financial leasing agreements amounted to 224.1 billion
KZT, of which the share in the agro-industrial sector amounted to 63.2 billion KZT.
The volume of leasing transactions of JSC “KazAgroFinance” was 40.2 billion
KZT, which was 63.6% of the total volume of leasing in the agricultural sector
in Kazakhstan.
JSC “KazAgroFinance” has been the leader in the leasing market of the country
for twenty years. The primary mission of the company is to contribute to the technical
equipment of the agro-industrial complex of the Republic of Kazakhstan by providing
quality and competitive leasing services [10].
Financial Provision of the Agro-industrial Complex … 31

5 Conclusion

Thus, the financial problems of the agricultural sector include the following:
• Shortage and unavailability of credit facilities for rural producers;
• Low level of funding for the infrastructure of agricultural production;
• Disparity of prices for agricultural and industrial products, services, raw materials,
and food;
• Lack of funds and sufficient knowledge among the rural population to organize
their own business in the rural areas.

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Development of Rural Green Tourism
of Regions of Kazakhstan

Bauyrzhan K. Zakiryanov , Aitolkyn Tl. Tleubayeva ,

Ayagoz E. Zhansagimova , Shakizada U. Niyazbekova ,
and Svetlana P. Anzorova

Abstract In the Akmola Region, the development of rural green tourism is at a stage
of development. The existing problems include the low quality of accommodations,
lack of standards, lack of good roads and public transport, lack of parking lots or
their remote location from the sightseeing attractions, no signs for tourists along the
tourist route, and unclear or inadequate road signs. Tourist services are currently
spontaneous; there is a lack of quality food along the route and in tourist accom-
modation places. There is no state control—the procedure for external and internal
quality control of tourist services is not established. In turn, state control in the field
of tourism management is one of the effective tools for the sustainable development
of rural areas.

Keywords Rural tourism · Agriculture · Green technology · Region · Innovative

developments

JEL Classification Z32 · Z33 · Q18 · Q19

B. K. Zakiryanov
Kazakh Academy of Sport and Tourism, Almaty, Kazakhstan
e-mail: kazsport@inbox.ru
A. Tl. Tleubayeva · A. E. Zhansagimova
L. N. Gumilyov Eurasian National University, Nur-Sultan, Kazakhstan
S. U. Niyazbekova (B)
Financial University under the Government of the Russian Federation, Moscow, Russia
e-mail: shakizada.niyazbekova@gmail.com
Moscow Witte University, Moscow, Russia
S. P. Anzorova
Moscow Financial and Industrial University “Synergy”, Moscow, Russia
e-mail: anzorova@inbox.ru

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 33
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_5
34 B. K. Zakiryanov et al.

1 Introduction

Sustainable development is a new strategic imperative and long-term goal for firms,
nations, and society. Like other industries, tourism needs to be understood and
managed in the broader context of sustainability. The primary forms of interaction
between the government and business developed in the sphere of rural green tourism
in the regions of Kazakhstan are as follows:
• Public–private partnership;
• Cooperation on the development of the tourism cluster;
• Interaction of local authorities with self-regulatory organizations;
• Partnership at the local level to support initiatives of rural communities in the
development of social infrastructure in rural areas.

2 Literature Review

Considerable attention to the peculiarities of the development of sustainable tourism

was paid by Agafonov et al. [1], Baidalinova et al. [2], Burykin [3], Dulambayeva
and Marmontova [4], Iskakova et al. [5], Ivanova et al. [6], Kurmankulova et al. [7],
Maisigova et al. [8], Moldashbayeva et al. [9], Nurpeisova et al. [10], Proshin and
Gopeevtseva [11], Ribokene [12], Ribokene and Flerov [13], Rudyk [14], Solovyova
[15], Terekhova [16], Ugryumova et al. [17], Ushkulakova et al. [18], Zhansagimova
et al. [19].

3 Methodology

This research is based on a variety of methods of studying the development of rural

green tourism, in particular the abstract approach, theoretical analysis of the devel-
opment of rural green tourism, the analysis of economic efficiency of the facilities
of rural green tourism, SWOT analysis of tourist development of rural areas of the
Akmola Region, and the identification of promising directions for improving the
organizational and economic mechanism for supporting the facilities of rural green
tourism.

4 Results

Most legally operating estates choose to register a business entity and pay a single
tax. This way is simpler and more convenient because the general taxation system
provides for the payment of fees and insurance premiums.
Development of Rural Green Tourism of Regions of Kazakhstan 35

Table 1 Comparative analysis of the conditions for the development of tourism in rural areas of
Kazakhstan and the EU countries
No Presence/absence EU countries Kazakhstan
1 Free housing stock of a sufficiently Partially Houses with a sufficiently high
high level of comfort in rural areas comfort level in rural areas are rare:
The restrooms are located outside;
many villages have no Internet
connection and home appliances
2 Government support for enterprises + The existing programs are
of rural tourism generalized; that is, they are not
specifically aimed at the
development of rural areas based on
tourism
3 Regulatory and legal support + Partially
4 Introduction of information + Partially
technology
5 Creating of associations of rural + Partially
tourism enterprises
6 Advertisement and information + Partially
promotion
Source Compiled by the authors based on [3, 7]

The tourist center “Altyn Orman” for 260 places of seasonal types offers exciting
routes and the possibility to explore the nature of the Burabay National Park.
Let us consider the advantages and disadvantages of rural areas of the Akmola
Region, its development potential, and threats to development in more detail. For this
purpose, we compare the European concept with the Kazakh conditions of tourism
development in rural areas (Table 1).
Rural tourism is especially popular among the relatively large older European age
group of 50–70 years. The representatives of this group have more free time and
money than other groups. They are usually sophisticated travelers who like a rural
and quiet setting and are looking for new experiences.
A study of experts from developed countries found that more than 2500 envi-
ronmentally friendly hotels in the world and more than 5000 hotels invest in envi-
ronmental protection. When choosing a vacation destination, one-third of travelers
prefer hotels with installed solar or wind energy systems, low-flow water and shower
systems, and eco-friendly restaurants and produce from local farms. However, most
hotels and travel companies are not involved in any sustainability efforts [6].
In general, the low focus on providing high-quality services and low investment
in the training of guides, and the provision of additional services negatively affect
quality management. However, this activity is an essential tool for understanding
and satisfying tourists. Moreover, entrepreneurs do not set up feedback to check the
level of customer satisfaction.
The material and technical conditions and equipment of museums do not meet
modern standards and requirements. Due to insufficient funding, museums do not
36 B. K. Zakiryanov et al.

have the opportunity to modernize expositions and implement major exhibition and
cultural projects. A museum gift store is an important and integral part of a museum
that provides customers with the opportunity to buy “memories” of visiting a museum
or a separate exhibition. Nevertheless, museums in the Akmola Region often do not
have a gift store [4].
Thus, the State National Nature Park (SNNP) is a specially protected natural area
with the status of a conservation and scientific institution.
The development of rural green tourism in the territories of national parks
was investigated by the association of legal entities “Metropolitan Association of
Tourism” (Astana). The investigation results showed that only nine parks have on-
site parking lots (Charyn National Park, Zhongar-Alatau National Park, Burabay
National Park, Kolsay Lakes National Park, Altyn-Emel National Park, Bayanaul
National Park, Ile-Alatau National Park, Buiratau National Park, and Karkaraly
National Park). There are no parking spaces in the other three national parks (Sayram-
Ugam National Park, Katon-Karagay National Park, and Kokshetau National Park).
A summary of the availability of food facilities, accommodation, gift stores, and
parking is shown in Table 2.
The territories of the SNNP of Kazakhstan are not fully covered with necessary
catering facilities, gift stores, and parking lots. Nevertheless, there are publicly and
privately owned accommodations. The following problems are found in national
parks:

Table 2 Infrastructure on the territory of SNNP of Kazakhstan

No Name Food facilities Accommodation Gift stores Parking
1 Bayanaul National Park – + (private) – +
2 Ile-Alatau National Park + (private) + (private) – –
3 Karkaraly National Park + (private) + (private) + (public) +
4 Zhongar-Alatau National – + (public) – +
Park
5 Buiratau National Park – + (private) – +
6 Burabay National Park + (private) + (public) + (private) +
7 Kolsay Lakes National + (public) + (public) – +
Park
8 Kokshetau National Park – + (public) – +
9 Katon-Karagay National – + (public.) – –
Park
10 Charyn National Park + (public) + (public) + (public) +
11 Sayram-Ugam National + (private) + (public and private) – –
Park
12 Altyn-Emel National + (public) + (public) – +
Park
Source Compiled by the authors based on [8, 12]
Development of Rural Green Tourism of Regions of Kazakhstan 37

• Lack of electricity in some tourist centers, hotels, and foresters’ houses located
in the park;
• Lack of graders to improve the surface of the dirt road between facilities;
• Lack of water resources for the inhabitants of the national park;
• Lack of transport for traveling within the national park for tourists;
• Absence of signs along the roads leading to the territory of the national park;
• Lack of observation decks;
• Lack of environmental literacy among Kazakh tourists (i.e., tourists leave
garbage).

5 Conclusion

Thus, in the Akmola Region, routes to different places of the regions are not devel-
oped. There are no specialized signs on the roads and no entertainment, leisure, and
other structures. Moreover, first aid centers for the population, accommodation facil-
ities, and other facilities are not located in all necessary locations. Nevertheless, all
indicated factors contribute to the organization and coordination of the development
of rural green tourism at the national and regional levels.

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Financial and Credit Mechanisms
for the Entrepreneurial Potential
Development of the Agricultural Sector
of the Economy in the Interests
of Ensuring Food Security: The
Experience of Developing Countries
and the Prospects of the Kyrgyz Republic

Mukaddas A. Dzhorobaeva

Abstract This chapter is devoted to the financial aspects of entrepreneurial activities

in the agricultural sector of the economy. It studies the experience of the COVID-19
pandemic and crisis and their influence on the financing of agriculture, as well as
the results in the sphere of provision of food security. Trend analysis is used to study
the tendencies (trends) of financing of agriculture in developing countries on the
whole and the Kyrgyz Republic in particular, as well as their consequences for food
security. A profile of using the financial and credit mechanisms of development of
the entrepreneurial potential of the economy’s agricultural sector is formed in the
interests of provision of food security in developing countries on the whole and the
Kyrgyz Republic in particular. For this, the relevant statistics of the World Bank,
WIPO, IMD, the World Economic Forum, and the Economist Intelligent Unit for
2019–2021 are used. The growth of the use of the financial and credit mechanisms
in 2021 (in the conditions of the COVID-19 pandemic and crisis) as compared to
2019 (before the COVID-19 pandemic and crisis) is determined. The most effective
financial and credit mechanisms of development of the entrepreneurial potential of
the economy’s agricultural sector in the interests of provision of food security in
developing countries are described, and recommendations for the most effective use
(and acceleration) of these mechanisms in the Kyrgyz Republic are offered.

Keywords Financial and credit mechanisms · Development of entrepreneurial

potential · Agricultural sector of economy · Provision of food security ·
Experience of developing countries · Perspectives of the Kyrgyz Republic

JEL Classification A10 · O13 · Q01 · Q18

M. A. Dzhorobaeva (B)
Osh State University, Osh, Kyrgyzstan
e-mail: mukaddas270471@mail.ru

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 39
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_6
40 M. A. Dzhorobaeva

1 Introduction

The COVID-19 pandemic is without a doubt one of the most serious governance
issues of our day, not only because of the frightening worldwide infection rate and
mortality toll but also because of the economic and social destruction that is being felt
in nations all over the world. The first instances of COVID-19 in Kyrgyzstan were
discovered on March 18, 2020. The Kyrgyz Republic, like many other countries,
established border restrictions with neighboring countries and halted all international
and internal flights [3].
The Kyrgyz Republic, like other countries, has placed a high priority on avoiding
deaths, treating ill people, and limiting the spread of disease. Falling salaries and
rising food costs are putting people’s access to food in danger along with reduced
government consumption owing to decreased budget income, as well as falling private
spending on non-food commodities and services [21].
When considering poverty reduction and food security, keep in mind that agricul-
ture plays a far larger role. Nations have previously been divided into groups based
on indications of food security. Their main point was that trade policies affect both
the global and local food supply. With this project, we want to have a positive impact
not only on the conversation around malnutrition’s causes but also on how best to
address the hunger crisis in each country’s unique context [20].

2 Method

This chapter uses a qualitative approach to collect and evaluate data, which is more
suited for dealing with new events. These ties in with both our objective and the
interpretation were given by the researchers. The point similarity hierarchy dictates
that clusters be created hierarchically, with lower-ranking clusters being subsumed
by higher-ranking clusters. As a result of the study’s substantive criteria and literature
evaluation, a set of agricultural sector indicators were selected as well as causes of
food insecurity.
Formal criteria were used to choose the indicators for the investigation. Two
characteristics were eliminated from further research due to a strong correlation.
The results were then tested for robustness to the addition or absence of various
markers in the next phase. For this, researchers are data independent and rely mostly
on current ones since it aims to identify the reality of what transpired in line with
rules and procedures [7].
Our document selection sample is mostly focused on ‘where’ and ‘whom’. The
timing of document release and publication should not be an issue in sampling
because policy and plan documents in urban development cover time and construct
future development road maps.
Financial and Credit Mechanisms for the Entrepreneurial … 41

3 Literature Review

Agriculture is one of Kyrgyzstan’s most important economic sectors, accounting

for around 22% of the country’s GDP and employing approximately 35% of the
workforce. Despite this optimistic start, development in agriculture, as well as the
general economy, has slowed in recent years [13].
Farming has seen a major decline in rural labor owing to travel limitations,
resulting in a drop in agricultural output and rural earnings. As a result, many house-
holds’ food intake has decreased, and a large number of people have reported being
unable to purchase adequate food [10].
Although the agricultural industry has a favorable age structure, the level of human
capital in the agricultural sector is poor, and many of those engaged in agriculture
lack appropriate skills. Because of the coordinated consultation process and partici-
patory approach among diverse stakeholders, food security and nutrition are unique
documents in terms of defined goals and priorities, analysis of finance requirements,
and accountability, including monitoring and evaluation of program performance
[12].
A Food Availability Assessment, which took into account natural resources,
climatic changes, and production restrictions, found a considerable deficiency in
key basic foodstuffs such as wheat, wheat flour, and animal products. The health
crisis caused by the COVID-19 epidemic has resulted in a severe economic catas-
trophe in the Kyrgyz Republic, with the country’s economy slowing and budgetary
spending rising [11].
A large proportion of money was spent on food leaves households with little
room for other needs like education and health care, limiting their potential to rise
out of poverty. In 2019, 46% of the population was predicted to consume less than
2100 kcal per day, meaning that the poor do not satisfy their daily appropriate energy
consumption. This chapter analyzes the development of the agricultural sector and
food security in Kyrgyz after the pandemic hit [22].
Since the early 1990s, Southeast Asia has had the greatest reduction in under-
nourishment of any area. With food becoming increasingly difficult to get, nutritional
security is anticipated to deteriorate, adding to the regions 61 million undernourished
people, and micronutrient deficiencies are already a constant problem [14].
Around 20% of Kyrgyz inhabitants, or 1.2 million people, lived on less than USD
1.2 per day. While little study has been conducted into the effects of the COVID-
19 epidemic on nutrition in the region, restricted food access will likely lead to
deteriorating nutrition in the region [1].

4 Results

The COVID-19 pandemic revealed the vulnerability of Asia and Pacific food systems.
Many countries worked quickly to keep agricultural supply chains running when the
42 M. A. Dzhorobaeva

epidemic began, including classifying agriculture and food as vital industries. The
economic downturn caused by the pandemic has had a severe influence on vulnerable
employment, which is more prevalent in developing nations.
Despite the lower economic risk rating, agricultural workers are more vulner-
able to job loss or reduced working hours due to disruptions in agriculture supply
networks. There are no social security or unemployment benefits for seasonal or
temporary agricultural workers, which is why agriculture is the region’s principal
business and accounts for 37% of total employment [7].
Domestic lockdowns and international port restrictions have also impacted the
food supply chain. Rice and wheat stock-to-use ratios, which indicate the intensity
of price pressure, have stayed substantially above 2007–2008 food crisis levels for
several years [9].
Food consumption is stable and exhibits signs of robustness on the demand side.
The significant economic slowdown, as well as increasing job and income losses,
would disproportionately affect impoverished countries and individuals. As food
demand diminishes, lower food prices may hurt farmers and the agricultural sector.
Given that peak planting and harvesting, seasons have either begun or are nearing;
the extension of lockdowns and travel restrictions might cause serious disruptions in
the food supply chain [23].
An interruption in logistics might put pressure on farmers to sell their goods fast,
limiting their access to better-priced markets. An interruption in logistics might put
pressure on farmers to sell their goods fast, limiting their access to better-priced
markets [18]. Farm revenues may also be harmed if the food services industry, which
accounts for a significant portion of crop demand, stays closed or constrained, and
exports are disrupted by fewer shipments.

4.1 Implemented Policies

Food trade restrictions, if implemented by additional nations, might exacerbate food

insecurity, as shown during the 2007–2008 food crises. Groups of nations, such as
the G20 and the Association of Southeast Asian Nations (ASEAN), have pledged
to work together to ensure food security by committing not to erect needless trade
barriers or disrupt global food supply systems [24].
An increase in free trade agreements (FTAs) during the 2007–2008 food price
crisis would also contribute to a decrease in trade obstacles. There are some recent big
trade deals, including the Comprehensive and Progressive Trans-Pacific Partnership
Agreement and the Regional Comprehensive Economic Partnership. World Health
Organization, World Trade Organization, and FAO issued a joint statement in March
calling for more international cooperation in food and agriculture [17].
In June 2019, the government formally approved the Food Security and Nutri-
tion Program of the Kyrgyz Republic (2019–2023) to improve the country’s nutri-
tional status, ensure consistency of food supply in the domestic market [4] and
ensure compliance with the export market consumer quality and consumer protection
standards [15].
Financial and Credit Mechanisms for the Entrepreneurial … 43

4.2 Policy Implications

Smallholder farmers may be offered immediate help to increase their access to

markets. A range of domestic policy measures is required to protect consumers and
public health, as well as to ensure the security of supply chains for manufacturers
and commerce [8].
Smallholder farmers may be offered immediate help to increase their access to
markets. To protect consumers and public health, domestic initiatives are required,
as are supply chain security for producers and the macroeconomic policies as well
as regional partnerships.
During lockdowns, it is vital to increase social protection program coverage,
reduce eligibility conditions, and boost benefits to ensure that people who are dispro-
portionately affected by COVID-19’s health and economic consequences get the aid
they need. Solutions to food poverty that are longer-term should take climate change,
environmental degradation, and declining natural resources like water and arable land
into account [5].
In some developing countries, increased adoption of agricultural techniques such
as remote sensing, burdensome regulatory environments, rising agricultural labor
costs, and limited availability, as well as strategy discrepancies across sectors,
will help address scaling constraints such as a lack of financial or community
collaboration, burdensome regulatory environments [16].

5 Discussion

As long as free trade exists, countries should cooperate to prevent food shortages
and price hikes. The Asian Development Bank (ADB) may assist in the maintenance
and construction of such a regional food reserve and the establishment of a special
food security fund. This calls for a more rapid shift to farming based on agricultural
technology, as well as the growth of value chains and automation [2].
Emerging countries should take advantage of the COVID-19 situation to initiate or
continue long-overdue agricultural reforms. Asia’s growing nations will have to adapt
to this new environment if they want to make their agricultural sector more compet-
itive as the shift to digital agriculture and automation progresses. Farmers must be
taught market-favored quality standards, production, and postharvest processing, as
well as a quality input supply system, to allow for this decentralized selling [6].
When future and cost prediction models are connected to farmers’ production
planning and increasing usage of controlled, electronic invoicing, supply chains are
stabilized, needing less government involvement, and price risks for both farms
are decreased. This is particularly important to note. Lawmakers should support
legislation to ensure that poor and smallholder farmers benefit from new commercial
prospects by promoting fair labor practices, openness in the market, computerized
land use planning, as well as quality control in the food supply chain [1].
44 M. A. Dzhorobaeva

A joint effort by FAO and the government will help boost nutrition literacy and
encourage sustainable farming practices among rural residents and farmers in the
country. Educating women and children about food safety and nutrition is a priority
for organizations working to improve the health of communities. There are initiatives
to ensure food security and good nutrition under the Kyrgyz Republic’s Unity, Trust,
and Creation Program, the government’s long-term national development plan [19].

6 Conclusions

Socioeconomic development is occurring in extremely uneven ways throughout the

world, with huge surpluses in some areas and persistent food shortages in others, all of
which contribute to global hunger and malnutrition. According to the conclusions of
these studies, emerging countries with strong agricultural GDP contributions, adverse
weather conditions hindering agricultural output, and insufficient infrastructure have
the greatest food security challenges.
Incorporating both macroeconomic and macroeconomic drivers into the research
would have provided far more thorough foundations for developing multidimensional
growth plans targeted at enhancing food security.

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The Legal Regime of Land Resources
as a Factor of Interstate Integration
of the Member Countries of the Eurasian
Economic Union

Eleonora S. Navasardova , Roman V. Nutrikhin ,

Tatyana F. Vysheslavova , Irina F. Dedyukhina , and Igor E. Nelgovsky

Abstract The article is devoted to the analysis of land legislation and the practice of
its application in the countries of the Eurasian Economic Union (EAEU). The norms
on land and other natural resources in the constitutions of the EAEU member states
are considered. Legislative gaps and shortcomings of the regulatory regulation of
land relations in the EAEU countries have been identified. The emphasis is placed
on identifying significant problems, first of all, in the legislation of the Russian
Federation. The relevant norms of Russian legislation are compared with similar
norms adopted in other EAEU states. Such a comparative analysis is especially
important due to the fact that interstate integration stimulates foreign investment
activities, including those related to the use of land and other natural resources.
There are extremely significant differences in the relevant legislation of the partner
countries within the Union, while in some of them there are clear preferences for their
citizens and legal entities to the detriment of residents of other EAEU states, which in
modern conditions becomes unreasonable obstacles to achieving the economic goals
of rapprochement of countries and the formation of a Union-wide geopolitical space.
Restrictions on the rights of foreign citizens and legal entities are established in land
law and in other branches of environmental management in all countries of the Union
without exception. Despite the obvious relevance of this issue, nothing has yet been
done within the framework of the EAEU to improve the internal systems of land
and natural resource law in order to promote the economic integration of the EAEU
countries. The paper identifies the relevant problems and makes recommendations
to the legislators of the Union states. The article notes that common approaches to
regulating the use and protection of land have already taken shape in some of the
EAEU countries. Based on this, it is proposed to strengthen the role of supranational

E. S. Navasardova (B) · R. V. Nutrikhin · T. F. Vysheslavova

North Caucasian Federal University, Stavropol, Russia
e-mail: navasardova@yandex.ru
I. F. Dedyukhina
Stavropol State Agrarian University, Stavropol, Russia
I. E. Nelgovsky
North-West Branch of the Russian State University of Justice, Saint Petersburg, Russia

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 47
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_7
48 E. S. Navasardova et al.

regulation of these relations within the EAEU by developing a system of international

legal acts and harmonizing the national legislative systems of the member states of
the Union on this issue.

Keywords Harmonization of legislation · The Eurasian Economic Union · The

EAEU · Land legislation

JEL Classification O17 · Q2

1 Introduction

The Eurasian Economic Union (EAEU) was established in 2014 as a regional inter-
national organization aiming at the economic integration of the member states by
ensuring the free movement of goods, services, and labor resources between them, as
well as conducting a unified or coordinated policy in various sectors of the economy.
Currently, five states are full members of this international organization—Armenia,
Belarus, Kazakhstan, Kyrgyzstan, and Russia.
At first glance, the goal of interstate integration within this governmental organi-
zation is purely economic in nature and has little to do with the scope of the norms of
natural resource and environmental law. However, a closer look at these problematic
areas indicates that there is much common ground between them since it is natural
resources that are the basis of economic development, and, therefore, the success
of their economic integration largely depends on the convergence and improvement
of the relevant branches of legislation and practice of its application in the member
states [4].
This problem must be given the most serious consideration since environmental
requirements and prohibitions, in our opinion, are in some cases legal obstacles to
the economic integration of the EAEU countries. On the one hand, these restrictions
are quite natural since they are intended, first of all, to ensure the sustainable devel-
opment of the EAEU member states and the Union as a whole so that economic tasks
are not implemented to the detriment of public interests. On the other hand, such legal
barriers should be used by states reasonably and in good faith and not only for the
purpose of creating a favorable regime for their economic entities. Natural resource
and environmental standards should achieve their goal without placing unnecessary
obstacles to economic development. In this regard, it is very important to reach
the very balance between environmental and economic interests, which is much
discussed in international legal documents and national legal acts of different coun-
tries. It cannot be said that these relations are perfectly balanced in the legal space
of the EAEU. There is still a lot of work to be done to improve natural resource,
environmental, and related standards both within the Union as a whole and in each
of its member countries individually.
The Legal Regime of Land Resources as a Factor … 49

2 Materials and Method

This study is based on the analysis of the legal norms of the EAEU, as well as the
national legislation of its member states on the protection and rational use of land.
The problematic aspects of the practice of applying Union and national legal norms
in the EAEU countries are considered. The research is conducted in accordance
with the standards of the latest scientific approaches in the field of jurisprudence,
using modern general scientific and private scientific methods applied within the
framework of an interdisciplinary, integrated approach.
The authors focus on the high dynamics of formation of the integration law of
the EAEU, as well as current changes in the modern national environmental and
natural resource legislation of the Union states. In many countries in the post-Soviet
space, there are significant shortcomings and sometimes simply the lack of a clearly
formulated state policy in the field of environmental protection and rational use of
natural resources. The shortcomings of such a policy entail insufficiency and incon-
sistency of the newly adopted norms. The authors, firstly, identify such shortcomings
and indicate their possible negative consequences in the practice of law enforcement.
Secondly, by synthesizing norms in this area and finding their common denominator,
the authors identify weaknesses in the legislation on land and natural resources in
order to correct them. Thirdly, the authors propose solutions to existing and poten-
tial problems in the EAEU countries, simultaneously considering the possibility of
receiving such solutions by other states at the stage of their economic integration
within the Union.

3 Results

An important circumstance is that in all the Constitutions of the EAEU member states,
the norms on the legal regime of natural resources are placed in the initial sections
establishing the fundamental principles of state building (in the first section “Funda-
mentals of the constitutional system” of the Constitutions of Belarus and Kyrgyzstan;
in the first chapter “The basis of the Constitutional system” of the Constitutions of
Armenia and Russia; in the first section “General Provisions” of the Constitution
of Kazakhstan). All this indicates the great importance of these provisions for the
state systems of the countries under consideration. In all of them, without exception,
the regulation of the protection and rational use of natural resources is proclaimed a
special concern of the state. At the same time, it should be noted that the Constitu-
tions of some EAEU countries establish exclusive state ownership of certain types of
natural resources, and also exclude the possibility for foreign citizens to acquire some
of them as property. In fact, such restrictions take place in all the EAEU countries—
where they have not been constitutionally enshrined, they have been incorporated
into other laws.
50 E. S. Navasardova et al.

In particular, the Russian Federation has not provided in its constitution any restric-
tions for foreign citizens regarding their ownership of natural resources. In part 3 of
article 62, on the contrary, it says that foreign citizens and stateless persons enjoy
equal rights with Russian citizens, except in the cases specifically prescribed by legis-
lation or an international act. However, in paragraph 2 of article 5 of the Land Code
of the Russian Federation (the RF Land Code), foreign citizens, stateless persons
and foreign legal entities (non-residents of the Russian Federation) are allocated to
a separate category of subjects of land legal relations, and this is done for a reason.
Paragraph 3 of article 15 of the RF Land Code defines that these special subjects of
law are prohibited from owning land plots in border territories, the list of which is
established by the President of the country in accordance with the legislation on the
state border, as well as in other special territories in accordance with federal laws.
Paragraph 5 of article 35 of the RF Land Code empowers the President of Russia
to establish an additional list of certain types of buildings and structures, for which
foreign individuals and legal entities, as well as stateless persons are not entitled to
purchase, even if they are the owners of these buildings and structures. Paragraph 4
of article 39.4 of the RF Land Code excludes for non-residents of the Russian Feder-
ation the possibility of acquiring land plots from public ownership on a gratuitous
basis, while some Russian legal entities and individuals have such a right. As you can
see, the list of restrictions is very impressive although none of them is established
by the Constitution of the Russian Federation.
However, the restrictions under consideration in Russia are not limited to the Land
Code. Article 3 of the Federal Law No. 101-FZ of 24.07.2002 “On the Turnover of
Agricultural Lands” (hereinafter—Law No. 101-FZ) excludes the transfer of owner-
ship of lands of this category throughout the country to non-residents of the Russian
Federation, giving them the opportunity to use such lands only on the right of lease.
Moreover, this provision is so essential for the Russian legislator that he even puts it
among the fundamental principles of agricultural land turnover (subparagraph 5 of
paragraph 3 of article 1). Exceptions are provided only for cases directly specified
in the Federal Law No. 119-FZ of 01.05.2016 “On the peculiarities of providing
citizens with land plots that are in state or municipal ownership and located on the
territories of constituent entities of the Russian Federation that are part of the Far
Eastern Federal District and on making changes to individual Legislative Acts of the
Russian Federation.”
In Law No. 101-FZ, foreign legal entities (which should be understood as a legal
entity registered on the territory of another state) are also equated with such legal
entities in whose authorized (pooled) capital the share of foreign citizens, foreign
legal entities, stateless persons is more than 50% (call them “legal entities with
foreign capital”). The identification of this new category of persons in Law No. 101-
FZ creates certain problems in the interpretation of the norms of Russian land law. The
RF Land Code does not contain the term “legal entity with foreign capital” for entities
with limited land rights, indicating among the latter only foreign citizens, stateless
persons, and foreign legal entities. Thus, it seems difficult to understand whether
“foreign legal entities” in the RF Land Code and Law No. 101-FZ are concepts that
differ in scope and content. In addition, it should be determined whether the category
The Legal Regime of Land Resources as a Factor … 51

of “legal entities with foreign capital” is considered to relate to the above or whether
they should be separated, as is done in Law No. 101-FZ. It depends on whether
the restriction in the right for “legal entities with foreign capital” applies only to
the acquisition of agricultural land or also lands of all categories in border territories
(they are not explicitly mentioned in paragraph 3 of Article 15 of the RF Land Code).
In Russian law enforcement and judicial practice, “legal entities with foreign
capital” are actually identified with “foreign legal entities,” which does not neces-
sarily follow from the literal interpretation of the law. In view of the importance of
this issue for the further economic integration of Russia with other states within the
framework of the EAEU, it would be necessary to bring these norms of the RF Land
Code and Law No. 101-FZ on the restriction of land rights of non-residents of the
Russian Federation into line with each other. In this matter, as always when it comes
to the limitation of rights, these specific rules require the greatest possible clarity and
terminological accuracy for their uniform interpretation in the future and in order to
avoid contradictions, including in international courts, which should also be taken
into account when building legal relations with a foreign element.
It should be noted that this ambiguous situation with terminology has developed
because in Russia, in fact, the same relations regarding agricultural land are regulated
by two different and very voluminous legal acts of equal validity—the RF Land
Code and Law No. 101-FZ, the latter has long been unsuccessfully criticized in
the Russian science of land law. In order to avoid such contradictions, it would be
correct to integrate the norms of Law No. 101-FZ into the Land Code of the Russian
Federation, where they could become an organic part of Chap. 14 “Agricultural
lands.”
However, this is not only a Russian problem since the legislation of all the
EAEU member states, without exception, declares the restriction of the land rights
of foreigners without proper reservations. Meanwhile, this problem is by no means
far-fetched. Many citizens of the EAEU states, for well-known historical reasons,
once had common citizenship of the USSR [1], and some of them, due to different
life circumstances, currently have citizenship of two EAEU states at once. It is also
known that dual citizenship is most often held by the most economically active people
connected with business and who are potential subjects of investment activity on the
territory of one, two, or more EAEU member states [5]. Given these circumstances,
it would be highly desirable to eliminate in advance all possible discrepancies related
to dual citizenship in land and other natural resource legislation, not only in Russia,
but also in all countries of the Union without exception.
In this context, the problem of the land rights of Belarusian citizens in Russia
deserves special attention since cooperation between these states is developing not
only within the framework of the EAEU but in a closer format of the Union State,
which was formed on the basis of the Treaty on the Union of Belarus and Russia of
02.04.1997 and the Treaty on the Creation of a Union State of 08.12.1999. Economic
and political integration between these countries is also based on a number of other
bilateral agreements, among which an important place is occupied by the Agreement
between the Russian Federation and the Republic of Belarus dated 25.12.1998 “On
Equal Rights of Citizens.” Article 2 of this agreement declares equal rights for citizens
52 E. S. Navasardova et al.

of Russia and Belarus to participate in economic activities in both countries. In

accordance with article 6, Russia and Belarus ensure the equal right of their citizens
to acquire, own, use, and dispose of property on their territories. Based on this
document, it can be concluded that citizens of Belarus in Russia should not be subject
to any restrictions on their property rights, including the acquisition of ownership of
land and other natural resources, since, the ratified international treaty equates them
with Russian citizens.
This conclusion is reached, for example, by E. Y. Barkhatova, who, referring to the
1998 Treaty between Russia and Belarus “On Equal Rights of Citizens,” writes that
“since no regulatory legal act concerning land legislation provides for restrictions on
the provision of land plots to Russian citizens in border territories, it is accordingly
illegal to restrict Belarusian citizens in the right to grant them ownership of such land
plots < … > Therefore, citizens of the Republic of Belarus can acquire agricultural
land on an equal basis with Russian citizens” [2].
However, in practice, the problem is not so easy to solve. In order to make these
norms of the interstate agreement more effective in the field of land relations, they
must be integrated into the national land legislation. Both the RF Land Code and Law
No. 101-FZ had been adopted later than the Agreement between Russia and Belarus
dated 25.12.1998 “On Equal Rights of Citizens” (in 2001 and 2002, respectively),
but neither these legal acts nor the Federal Law No. 137-FZ dated 25.10.2001 “On
the Introduction of the Land Code of the Russian Federation” gave any preferences
in terms of land ownership for citizens of Belarus over other foreign citizens. The
emergence of ownership of a land plot in Russia is impossible without the state
registration of this right. The Russian legislation on cadastral registration, in turn,
also does not contain any special rules on the procedure for acquiring land for citizens
of Belarus in comparison with other foreigners. Thus, although international norms
on equal rights for citizens of Russia and Belarus in the acquisition of property are
declared, but, in the area of land rights, they cannot be implemented in practice due
to insufficient domestic legislative support.
Emphasizing the importance of this fundamental relationship between interna-
tional and national law in relation to natural resource relations, T. I. Makarova writes:
“We observe a special relationship between international environmental law and
national environmental law, which can be traced in the legal regulation of environ-
mental relations. In this regard, there are clear signs of interconditionality, in which
the recognition of the need for legal support of a particular group of public relations
at the international level inevitably entails appropriate regulatory consolidation in
national legislation using mechanisms inherent in the domestic law of states” [3].
The absence of such a relationship between some international norms is ratified
by Russia, and its national land law gives rise to the described inconsistencies. This
is one of the urgent problems of integrating the norms of international treaties into
national natural resource law and bringing its norms into line with international law.
It seems that in the course of further economic integration of those EAEU countries
whose legislation stipulates restrictions on the natural resource rights of foreigners,
this problem will become more and more widespread, and therefore, it already needs
to develop possible algorithms for its more or less effective solution.
The Legal Regime of Land Resources as a Factor … 53

In Belarus itself, the issue of land ownership is no less difficult for Russians. In
accordance with article 12 of the Land Code of the Republic of Belarus No. 425-Z of
23.07.2008, foreigners and stateless persons can become owners of land in Belarus
only in one exceptional case: if they are relatives of the testator, when they inherit
land plots granted to the testator in private ownership, unless otherwise established
by legislative acts. The note to article 12 of the Land Code of the Republic of Belarus
states that for the purposes of this norm, relatives are understood to be close relatives
of the testator; other persons who are related to the testator, having common ances-
tors before the great-grandfather and great-grandmother; parents, children, adoptive
parents, adopted children, siblings, grandfather, grandmother, grandchildren of the
testator’s spouse. Foreign legal entities, as a general rule, land plots on the territory
of Belarus are leased (articles 17, 37). As for agricultural land, in accordance with
article 37 of the Land Code of the Republic of Belarus, they are provided to citizens
of the Republic of Belarus not for ownership but only for lease or inheritable posses-
sion for life, while Belarusian legal entities are also on the right of lease, as well
as permanent or temporary use. The right of private ownership of land in Belarus,
despite its legislative consolidation, has not been widely spread in the country at all,
so there is hardly any prospect of granting such a right to Russians.
Thus, the land legislation has not yet undergone any significant changes under
the influence of integration processes within the EAEU, neither in Russia nor in
Belarus. The same applies to the other states of the Union, in the land legislation
of which similar restrictive norms are fixed. Paragraph 3 of article 4 of the Land
Code of the Republic of Armenia dated 02.05.2001 states that in accordance with
the Constitution of the Republic of Armenia, foreign citizens and stateless persons
cannot have ownership rights to land in the Republic of Armenia; they can only
be land users. It is interesting to note that although a similar provision had been
contained in the Constitution of Armenia since 2005, it was absent for a long time
in the Land Code itself and was introduced there only in 2018.
Paragraph 4 of article 23 of the Land Code of the Republic of Kazakhstan dated
20.06.2003 No. 442-II allows foreigners, stateless persons, and foreign legal entities
(non-governmental) to have privately owned land plots provided for construction or
built up with industrial and non-industrial, including residential, buildings and their
complexes, including land intended for the maintenance of buildings (structures
and constructions) in accordance with their purpose. Non-residents of Kazakhstan
are not allowed to own land destined for agricultural production and afforestation.
The peculiarity of the Kazakh legislation is that it completely excludes the right of
ownership of land located on border territories, not only for non-residents, but also
for citizens of Kazakhstan married to non-residents, as well as for legal entities with
any foreign participation.
The most severe restrictions for foreign citizens in terms of land use are adopted
in the legislation of Kyrgyzstan. Article 5 of the Land Code of the Kyrgyz Republic
No. 45 dated 06.02.1999 does not allow non-residents of the country to own land
plots of either agricultural or any other purpose—both within the boundaries of the
settlement and outside it. The only exception is when the ownership of a plot arises as
a result of foreclosure on a mortgage loan, but even then a foreign person is obliged to
54 E. S. Navasardova et al.

alienate such a plot within two years. In the border territories of Kyrgyzstan, foreign
persons are prohibited from owning land plots not only in ownership but even in
temporary use.

4 Conclusion

Thus, the land legislation has not yet undergone any significant changes under the
influence of integration processes within the EAEU, neither in Russia nor in Belarus.
The same applies to the other states of the Union, in the land legislation of which
similar restrictive norms are fixed. Despite the obvious relevance of this issue, nothing
has been done within the Union to improve the national systems of natural resource
law in order to promote the economic integration of the EAEU countries.
Restrictions on the rights of foreign citizens and legal entities are established not
only in the land but also in other natural resource sectors, which is observed not only
in Russia, but in all the EAEU member states without exception. Despite the obvious
relevance of this issue within the Union, nothing has been done yet to improve the
national systems of natural resource law in order to promote the economic integration
of the EAEU countries. In this regard, we believe that the adjustment of the norms of
land law, taking into account the integration processes that have begun, can become
an effective tool for these changes for the benefit of all the EAEU states, their present
and future generations.

Acknowledgements The work was carried out with the financial support of the RFBR, project
20-511-00015 Bel_a “Legal problems of the formation of a single environmentally safe space of
the member states of the Eurasian Economic Union.”

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ness of environmental law. In: The priority directions of development of environmental, land
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Analysis of International Legal
and National Legal Support
for the Formation of a Single
Environmentally Safe Space in the EAEU

Anna R. Agabekyan , Oksana V. Zhdanova , Andrey N. Zakharin ,

Tatjana N. Zinoveva , and Viktor V. Skorobogatov

Abstract In the twenty-first century, the intensive growth of production and

consumption in the world, the increase in anthropogenic pressure on the environ-
ment, accompanied by its deterioration, has an impact on the sustainability and
consistency of the main areas of interaction between states. The main issue on the
agenda for any modern state has become the formation of a security space at the
national, regional, and global levels. In these conditions, regional economic inte-
gration is associated with problems in the field of nature management and environ-
mental protection, economic development of society, mutual influence of economic,
and environmental spheres and is also determined by the state of national and inter-
national legislative frameworks of environmental security. The development of the
Eurasian economic integration should take into account the provision of environ-
mental safety as a component of improving the quality of life of the population of
the member states, sustainable development of the Eurasian Economic Union. The
intention to create conditions for solving the tasks of comprehensive moderniza-
tion and increasing the competitiveness of the economies of the member states of
the Union, the functioning of the common market of goods, services, capital, and
labor resources in the EAEU space determines the need for unification or harmo-
nization of legal norms within the limits and volumes provided for by regulations
of various levels. In this regard, the analysis of the international legal and national
legal basis for the formation of environmentally safe space at the EAEU level is
becoming particularly relevant. The article discusses the prerequisites for the forma-
tion of a single environmentally safe space in the context of regional integration of
the member countries of the Eurasian Economic Union. The current state and possi-
bilities of improving the international legal national legal support for the formation

A. R. Agabekyan · A. N. Zakharin (B) · T. N. Zinoveva · V. V. Skorobogatov

North Caucasian Federal University, Stavropol, Russian Federation
e-mail: colobichin@yandex.ru
A. R. Agabekyan
e-mail: a_agabekyan@inbox.ru
O. V. Zhdanova
Stavropol State Agrarian University, Stavropol, Russian Federation
e-mail: ocsana2006@list.ru

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 55
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_8
56 A. R. Agabekyan et al.

of the environmental safety space of the EAEU member states are analyzed. To date,
international and interstate cooperation at the EAEU level has a legal basis that does
not yet provide a unified legal regulation of relations in the environmental sphere
and requires further development of the Union’s law and harmonization of acts of
national legislation of the participating countries in the field of environmental safety.

Keywords Environmental safety · The Eurasian Economic Union · Harmonization

of legal regulation · Common space

JEL Classification K32

1 Introduction

Currently, the challenges and risks that arise in the member countries of the Eurasian
Economic Union (the EAEU, the Union) and lead to the formation of problems
in the environmental sphere include the need for legal support of environmental
safety, effective interaction between government agencies on the regulation of envi-
ronmental relations [9]. Environmental safety is recognized as a complex and not
fully studied subject of legal regulation. The lack of a unified regulatory framework
determines the need to harmonize Russian legislation based on the principles of
environmental and biological safety and the doctrine of national security.
The cooperation of the member States of the Union in the environmental sphere
is predetermined by the presence of cross-border contradictions, the large extent of
common borders, and their common historical past. The lack of coordinated legal
approaches at the EAEU level in the field of environmental safety regulation is
explained by the underdevelopment of unified mechanisms, the multiplicity, declar-
ative, and inconsistent nature of the application of the norms of national legislation
regulating the relevant relations [10].

2 Materials and Method

The study of the issues of legal support for the formation of a single environmentally
safe space in the legislation of the EAEU and the member states of the Union is based
on the use of logical, systemic, comparative legal, formal legal, and other methods
of scientific cognition.
The use of a combination of these methods allowed us to conduct a comprehensive
analysis of the international and national levels of legal provision of environmental
safety, formulate proposals for improving the current legislation.
Analysis of International Legal and National Legal Support … 57

3 Results

The conclusion of the Agreement on the Formation of the Eurasian Economic Union
(Agreement) dated 29.05.2014 contributed to establishing of regulatory conditions
for free trade, functioning of the single market within the borders of the EAEU
member states. Much attention in this document is paid to the creation of a single
economic space, the introduction of uniform mechanisms for regulating the economic
sphere based on the principles of a market economy, and the harmonization or unifica-
tion of legal norms. Despite the desire of the member states of the Union to ensure the
harmonization of legislation declared in the Agreement of 29.05.2014, the economic
regulation of environmental protection in the norms of the legislation of the member
states still has significant differences [5].
The issues of forming a single environmentally safe space of the EAEU member
states are not directly regulated in the Agreement. Despite this, the formation of a
“single economic space” and a “single common market” as a set of economic relations
at the Union level, in which the free movement of goods, services, capital, and labor
is guaranteed, inevitably penetrates into the sphere of environmental relations [6].
From a legal point of view, this problem can be considered with the participation of
States interested in developing international and national ways and means of solving
environmental safety problems [8].
In mutual trade, the EAEU member States are granted the right to establish restric-
tions by regulatory legal acts of national legislation if they are necessary for environ-
mental protection (Article 29 of the Agreement). If there is such a reason, Section XI
of the Agreement also allows the introduction of sanitary, veterinary-sanitary, and
quarantine phytosanitary measures by the legislation of the participating countries.
Their development and application are carried out both as an independent direction
and in the implementation of a coordinated policy in other areas of integration interac-
tion. In section XXI of the Agreement, environmental friendliness is also among the
principles of ensuring economic integration and the formation of a single space. The
objectives of the coordinated policy in accordance with this principle are to ensure
safety, reduce the negative impact on the environment and human health (Article
86 of the Agreement). The requirements to ensure environmental safety, taking into
account the state environmental policy when carrying out gas transportation activi-
ties, regulating the functioning and development of common markets for gas, oil, and
petroleum are mentioned in Annexes No. 20, No. 22, and No. 23 of the Agreement.
The technical regulations of the Union are used as one of the forms of suprana-
tional regulation provided for by the Agreement. The objectives of their adoption are
exhaustively set out in article 52 of the Agreement and include the protection of life,
human health, other living organisms, environmental protection, energy efficiency,
and conservation of resources. The implementation of technical regulations as docu-
ments of direct action contributes to the unification of safety requirements and rules
for the circulation of products manufactured on the territory of the EAEU (Article
53 of the Agreement).
58 A. R. Agabekyan et al.

Thus, the technical regulations “On the safety of wheeled vehicles” fix the require-
ments for environmental safety for various environmental classes of vehicles and
internal combustion engines. The norms contained therein comply with the rules
of the UN “Agreement concerning the adoption of uniform technical prescriptions
for wheeled vehicles, equipment, and parts which can be fitted and/or be used on
wheeled vehicles and the conditions for reciprocal recognition of approvals granted
on the basis of these prescriptions.”
The technical regulations of the Customs Union “On the safety of packaging” and
“On the safety of machinery and equipment” [11] are recognized as significant for
ensuring environmental safety.
The documents adopted in the process of forming the legal framework of the
Customs Union and the Eurasian Economic Space and aimed at deepening further
cooperation of the EAEU member states on environmental management and environ-
mental protection continue to operate in the EAEU space. Among them is the Deci-
sion of the Customs Union Commission of 17.08.2010 No. 343 (ed. of 21.06.2019)
“On issues of technical regulation in the Customs Union.”
Considerable experience of bilateral and regional cooperation in the field of legal
provision of environmental safety has been accumulated by the member countries
of the Commonwealth of Independent States (the CIS). During the existence of this
integration association, many regulatory legal acts have been adopted concerning
key aspects of environmental protection and environmental safety. In the form of
Resolutions of the CIS Interparliamentary Assembly, the following model laws were
adopted: “On Environmental Safety” (Law No. 22-18) of 15.11.2003 No. 22-18; “On
Ensuring the environmental safety of motor Transport” of 29.11.2013 No. 39-5; “On
Protecting the population and the Environment from noise, infrasound, ultrasonic,
and vibration effects of various generating sources” of 29.11.2013 No. 39-5; “On
Environmental Audit” of 29.11.2013 No. 39-5; “On environmental safety of trans-
portation of petroleum products through pipelines” of 27.11.2020 No. 51-10, and
others.
The importance of uniform regulation of this area of social relations is primarily
explained by the uneven development of the legislation on environmental safety of
the CIS member states. The adoption of common regulatory legal acts will contribute
to the formation of the basis of national legislation, the application of unified defi-
nitions of key concepts, the creation of prerequisites for environmental safety of
sustainable socioeconomic development of states, the achievement of environmental
safety regulation harmonized with international standards (Article 1 of Law No. 22-
18), the development of international cooperation in this area (Article 3 of Law No.
22-18).
Model Law No. 22-18 defines the concept of environmental safety as a set of
requirements of a political, legal, economic, technological nature, combined in order
to create conditions for the protection of the environment and the basic legitimate
interests of man and citizen from the potential harmful consequences of economic
and other activities and emergencies of both natural and anthropogenic nature in the
present and future.
Analysis of International Legal and National Legal Support … 59

This document, among the principles and guarantees of ensuring environmental

safety, also refers to the mandatory inclusion of sections on environmental safety
in the conclusions of the state and public environmental expertise of projects and
other documentation containing the justification of the planned economic and other
activities, the implementation of which will entail undesirable social, economic, and
other consequences (Article 3).
Article 50 of Law No. 22-18 establishes the rules defining the hierarchy of inter-
national and domestic acts applicable to relations in the field of environmental safety.
Thus, in case of inconsistency between the norms of an international treaty that has
direct effect and an internal act, priority is given to the rules of such an international
treaty.
A further step in the convergence of approaches to the development of environ-
mental cooperation of the CIS states was the signing of the draft Interstate Agree-
ment on the formation of a Unified Information System of the CIS member states on
protection from biological hazards and the convention on the conservation of agro-
biodiversity of 7.06.2016. Along with other important tools with the help of which
the implementation of the goals of these documents is achieved, the harmonization
of legislation and legal norms in the relevant areas is also recognized. The develop-
ment of uniform approaches, the adoption of legislative, and other regulatory legal
acts governing the collection, conservation, study, and use of genetic resources of
agrobiodiversity, and other activities create prerequisites for subsequent interaction
and coordination of actions in the field of legal support for the organization of the
system of international environmental safety in the Commonwealth of Independent
States.
Another interstate entity with a high level of integration is the Union State of
the Republic of Belarus and the Russian Federation. In Article 18 of the Treaty of
December 08, 1999 “On the Establishment of the Union State,” the subjects of joint
jurisdiction of the Union State and the participating states include environmental
protection, actions to ensure environmental safety. The implementation of a coor-
dinated policy in the field of environmental safety and environmental protection is
being developed in bilateral documents of Russia and Belarus (for example, the
Action Program of Russia and Belarus on the implementation of the provisions of
the Treaty on the Establishment of the Union State). S. A. Bogolyubov considers it
possible to use its provisions as a model for the development of environmental policy
directions of other international associations [3].
From the point of view of the content of the international legal personality of
the EAEU, the regulation of environmental safety is an exception to the directions
of the coordinated policy in the economic spheres defined by the law of the Union
and therefore is regulated by the normative legal acts of the member States. The
need to ensure environmental safety is indicated in the strategic planning documents
adopted by the EAEU member states. In particular, paragraph 83 of the Decree of the
President of the Russian Federation dated 02.07.2021. No. 400 as one of the tasks
of the state policy is the development of international cooperation in the field of
environmental protection, involving the reduction of environmental risks in border
areas. The principle of “greening” the economy and environmental protection is taken
60 A. R. Agabekyan et al.

as the basis for the formation of the national development model of Kazakhstan. The
emphasis on the introduction of tools to support the green economy is also provided
for in the program of socioeconomic development of the Republic of Belarus for
2021–2025.
The laws of the member states of the EEC fix the definition of environmental safety
as a basic concept, which is for the most part identical. In the legislation of Russia,
on the basis of Article 1 of Federal Law No. 7-FZ of 10.01.2002 (ed. 02.07.2021),
environmental safety is characterized as a state of protection of the natural environ-
ment and vital human interests from the possible negative impact of economic and
other activities, natural and man-made emergencies, and their consequences.
According to A. P. Anisimov, the interpretation of environmental safety given in
Article 1 of the CIS Model Law No. 22-18 is broader in comparison with legal defini-
tions in the regulatory legal acts of the EAEU member states. However, even a broad
approach to the consideration of the concept of environmental safety does not allow
us to answer the question of its relationship with such a concept as environmental
protection [2].
In the preamble of the Law of the Republic of Belarus of 26.11.1992 No. 1982-XII
(ed. of 18.06.2019, with amendments. from 18.12.2019), environmental protection
is explicitly recognized as an indispensable condition for ensuring environmental
safety, sustainable economic, and social development of society.
According to Article 2 of the Law of the Kyrgyz Republic dated 08.05.2009 No.
151 (ed. 08.07.2019) “General technical regulation on ensuring environmental safety
in the Kyrgyz Republic,” general environmental safety requirements are implemented
at the stage of design and implementation of economic activities at various facilities,
in the process of production, storage, transportation, and disposal of products. Along
with this, this regulatory legal act establishes the foundations of technical regulation
in the field of environmental safety, principles and measures to ensure it, and control
over their compliance. The norms of Russian legislation provide for administrative,
civil, and criminal liability for non-compliance with these requirements [7].
The term “ensuring environmental safety” is not disclosed in the regulatory legal
acts of the environmental legislation of the Republic of Kazakhstan; however, as in
Russian legislation, it is not devoid of normative content, as it gives the subjects of
activities leading to the emergence of potential environmental hazards the obligation
to comply with both general and special requirements [1].
According to Article 1 of the Law of the Republic of Belarus of 26.11.1992 No.
1982-XII (ed. of 18.06.2019, with amendments. dated 18.12.2019) “On Environ-
mental Protection,” the wording of the concept of “environmental safety require-
ments” contains an indication of the possibility of their consolidation in technical
regulatory legal acts and regulations in the field of environmental protection. This
can be considered as a reference to the technical regulations being developed at the
EAEU level.
According to O. A. Khotko, there are prerequisites for the formation of a new
ecological and legal space on the territory of the EAEU. According to the researcher,
the formation of a common model of legal support in the field of environmental
Analysis of International Legal and National Legal Support … 61

safety at the association level will provide certain advantages for the development
of legal regulation and a higher level of harmonization of legislation [4].

4 Conclusion

As the conducted research has shown, currently, the legal regulation of relations
regarding environmental safety in the EAEU space is based on documents of both
national and interstate levels. An effective transition to the formation of legal support
for a single environmentally safe space is a long term, difficult process for both
supranational structures and state bodies of the member states of the Union. Despite
this, the formation of an environmentally safe space should be among the significant
areas of cooperation between the member states of the Union, the development of
which will contribute to achieving the goals of regional economic integration. For
this purpose, it is necessary to develop and implement agreed legal measures that are
based on the principles and requirements of the harmonization of the legislation of
the EAEU and are adopted taking into account the norms of the law of the member
states of the Union in the field of environmental safety.
The insufficiency of existing regulatory legal acts at the national and international
levels for the formation of legal support for environmental safety makes it urgent to
harmonize the regulatory framework of the EAEU and other interstate integration
associations (the CIS, the Union State). With this approach, the development of
a common system of legal support for environmental safety will not only gain an
economic effect but will also contribute to achieving the goals of national security
and sustainable development, improving the quality of life of the population of the
EAEU member states.

Acknowledgements The article was prepared within the framework of the scientific project No.
20-511-00015, carried out with the financial support of the Russian Foundation for Basic Research.

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Problems of Development
of Environmental Legislation
in the States of the Eurasian Economic
Union at the Present Stage

Eleonora S. Navasardova , Aleksander A. Gaidashev ,

Svetlana A. Lukinova , Vladimir Y. Maksimov , and Dmitriy O. Burkin

Abstract The article is devoted to the analysis of environmental legislation and

some of its corruptogenic factors in the countries of the Eurasian Economic Union
(EAEU). The analysis of the current legal norms that are conducive to corruption
is carried out. Practical recommendations aimed at overcoming this negative trend
have been developed. The authors recognize the existence of attempts by individual
social groups to lobby their commercial interests in the field of lawmaking, which
at the present stage leads to the de-ecologization of national legislation in a number
of the EAEU countries. Similar trends of de-ecologization of the norms of environ-
mental protection and natural resources legislation in different EAEU countries are
revealed. The problem of corruption in the field of natural resources management
and environmental protection is investigated comprehensively in order to show how
this negative social phenomenon reduces the effectiveness of state environmental
policy. The study provides the most typical examples of corruption-related norms of
environmental and natural resource legislation and provides recommendations for
improving the effectiveness of its anti-corruption expertise. The paper substantiates
the need to apply a risk-based approach to any planned changes in the environmental
and natural resource legislation of the EAEU countries. The regulatory legal acts of
the EAEU member states in the field of natural resource relations should be finalized
or supplemented to contain explicit provisions concerning the legal regulation of
the use of natural resources, including by foreign legal entities. They should estab-
lish preferences for economic entities registered in the EAEU member states. This
concerns both the natural resource legislation and the legislation on investment activ-
ities. The article reveals a large number of legal problems to be eliminated in the
ecological and natural resource sphere of the EAEU and provides recommendations
for improving the relevant norms at the international and national levels.

E. S. Navasardova (B) · A. A. Gaidashev · S. A. Lukinova · D. O. Burkin

North Caucasian Federal University, Stavropol, Russia
e-mail: navasardova@yandex.ru
V. Y. Maksimov
Stavropol State Agrarian University, Stavropol, Russia

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 63
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_9
64 E. S. Navasardova et al.

Keywords Improvement of legislation · Anti-corruption expertise · The Eurasian

Economic Union · The EAEU · Environmental law

JEL Codes O17 · Q2

1 Introduction

Our research is based on the analysis of the legal norms of the Eurasian Economic
Union (the EAEU) and the legislation of its member countries on environmental
protection and rational use of natural resources. Along with the existing EAEU law
and national law, the article examines the practice of its application, as well as the
current and prospective rule-making. The article is aimed at identifying problem-
atic issues in the legal regulation of these relations, which hinder effective inter-
state integration and rapprochement within the framework of a joint environmental
management economy and generate various threats to the environmental well-being
and security of citizens in the EAEU countries.
Currently, we are investigating status of integration of legal regulation of rational
use of natural resources and environmental protection in the legislation of the EAEU,
the problems of its application and prevention of corruption in the environmental and
natural resource sphere.
Despite the fact that the main objectives of the rapprochement of states within
the EAEU are not environmental, but economic, the first of these aspects cannot be
ignored, since the achievement of the most important economic goals depends on
the harmonization of natural resource legislation within the union, in particular, in
the field of energy, agriculture, mining and movement of minerals, etc. At the same
time, there is currently a discrepancy between legal approaches to environmental
management in different EAEU countries and the lack of a unified environmental
policy, which can become a serious obstacle to their further integration [2]. The
most successful work in this direction should be recognized as the development
of union standards on ensuring medical and epidemiological welfare, quarantine
phytosanitary and veterinary and sanitary safety of the union. A lot has been done
in the field of waste management on the territory of the EAEU. However, there are
areas not yet covered by either supranational regulation or the revision of relevant
norms within the legal systems of the EAEU member states in the interests of their
joint integration, for example, in the field of land, forest, mountain, faunal relations.

2 Materials and Method

Special emphasis in this article is placed on the identification of corruptogenic factors

of environmental and natural resource legislation in the EAEU, as well as on corrup-
tion manifestations in the practice of its application. The study aims to analyze the
Problems of Development of Environmental Legislation … 65

current legal norms that are conducive to corruption, as well as to develop practical
recommendations aimed at overcoming such negative trends. The authors recog-
nize the existence of attempts by individual social groups to lobby their commer-
cial interests in the field of lawmaking, which at the present stage leads to the
de-ecologization of national legislation in a number of the EAEU countries. The
problem of corruption in the field of natural resources management and environ-
mental protection is investigated comprehensively in order to show how this negative
social phenomenon reduces the effectiveness of the state environmental policy as a
whole. The article provides the most typical examples of corruption-related norms
of environmental and natural resource legislation and provides recommendations for
improving the effectiveness of its anti-corruption expertise.
The article examines specific examples of rule-making and law enforcement prac-
tices that generate negative, socially dangerous consequences for the environment.
The authors analyze the reasons for this state of affairs, on the basis of which they
identify those norms of environmental and natural resource legislation in the EAEU,
the imperfection of which leads to undesirable results. These norms and situations
from law enforcement practice are assessed not only from the standpoint of the pres-
ence of corruptogenic factors in them, but also from the point of view of the inability
of the EAEU member states to achieve the planned socially significant goals of regu-
lating relations in the field of environmental management, which ultimately leads to
deterioration of the environment as a whole and poses threats to the environmental
well-being and safety of citizens.

3 Results

A very significant problem that remains difficult to overcome and stands in the way
of effective integration of the EAEU member states in the environmental and natural
resource sphere is the presence of corruption-causing factors in the relevant national
legislation, as well as corruption manifestations in the practice of its application.
Corruption is one of the key challenges to the successful development of states in
the post-Soviet space in the twenty-first century. It generates not only economic
and social stagnation [4]. With regard to environmental protection and rational use
of natural resources, corruption also contributes to the plundering and depletion of
state natural resources, thereby posing a threat to environmental safety as such.
These issues have long been the object of close attention of both Russian and
foreign scientists [1]. At the same time, the corruptogenic factors of environmental
legislation and corruption manifestations in the field of environmental management
are studied less often and to a much lesser extent than similar problems in the field of
public administration in general or, for example, in law enforcement. However, this
negative social phenomenon has still been studied extremely poorly, including due to
the high latency of this kind of crime, the lack of reliable statistics and the possibility
of an adequate assessment of the damage caused by corruption manifestations to
ecological and natural resource public interests.
66 E. S. Navasardova et al.

If we consider the situation from a broader point of view, then we should raise the
question of identifying corruptogenic factors that reduce the effectiveness of state
environmental policy in the EAEU member states. At the same time, we consider
the state environmental policy as a systematic, purposeful activity of all elements of
the state mechanism for organizing the rational use of natural resources and environ-
mental protection, ensuring environmental safety and environmental law and order
to guarantee everyone’s right to a favorable environment and create an eco-oriented
model of economic development. By the term “corruptogenic factors”, we mean: (1)
individual cases and opportunities for officials to abuse their powers both in personal
and other private interests, that is, in favor of certain social groups and business
structures to the detriment of the interests of society related to environmental protec-
tion, rational use of natural resources and their fair distribution; (2) defects of the
current and developing environmental and natural resource legislation that reduce its
effectiveness and contribute to the corruption manifestations of the first group.
Environmental and natural resource norms affect the interests of business, which
often considers relevant legal prohibitions and regulations as barriers and obstacles in
achieving its commercial goals. The task of the state in formulating and implementing
state policy in this area of relations is to find an optimal balance between promoting
economic development and protecting the interests of society in order to preserve
nature, as well as the rational use of its resources in the interests of present and future
generations. In turn, business structures, often having much more influence than civil
society institutions, try to secure a significant advantage for themselves in this fragile
balance. All over the world, businesses are actively lobbying their interests in the
development of environmental and natural resource legal norms, not to mention the
scope of their application.
In recent years, not only in Russia, but also in other countries in the post-Soviet
space, there has been a clear trend toward de-ecologization of the relevant legislation.
Previously existing prohibitions, many of which go back to the nineteenth century,
when the current EAEU countries were still subject to a single law [3], are no longer
effective, and the established ecological and natural resource legal institutions are
undergoing noticeable deformation, which does not improve the situation in this
area, but opens up new opportunities for construction, resource processing and other
businesses. Law enforcement practice also suffers from significant shortcomings that
do not contribute to the effective achievement of the goals of environmental protection
and rational use of natural resources declared by the government. All this leads
to the conclusion that the environmental policy in a number of the EAEU countries
is not satisfactory, and the main threat is posed by various corruptogenic factors of
the current national legislation, serious flaws in lawmaking and law enforcement
practice.
In our opinion, the following measures can contribute to improving the situation
in this area:
• theoretical study of the fundamentals of state environmental policy in legal, polit-
ical, economic, sociological and other aspects, as well as analysis of corruptogenic
factors affecting the reduction of its effectiveness;
Problems of Development of Environmental Legislation … 67

• identification of the corruption component in the sphere of land, forest, water,

mining and other natural resource relations, as well as in the field of waste
management of production and consumption, urban development and in the resort
sector;
• search for corruptogenic factors in the current and progressing environmental (in
a broad sense) legislation;
• assessment of the validity and effectiveness of the anti-corruption expertise of
draft regulatory legal acts in the designated area;
• studying the corruption component in the law enforcement practice of state
authorities and local self-government bodies in the studied area of relations;
• generalization of judicial practice in corruption cases on natural resource and
environmental disputes;
• formulation of conclusions and proposals aimed at reducing corruption risks in
the legislative and law enforcement sphere of the relations under consideration.
The obvious de-ecologization of natural resource legislation in a number of the
EAEU member states is the most important indicator of corruption in the field of
public relations on environmental protection and the use of natural resources. In
our opinion, this is a consequence of lobbying by certain social groups of their
commercial interests in the field of lawmaking, which leads to a deterioration in the
legal regulation of these relations, to environmental degradation.
The experience accumulated in Russia of anti-corruption expertise of normative
legal acts of ecological and natural resource orientation (including with the partic-
ipation of the authors of this study) allowed us to identify individual, recurring
corruptogenic factors, the elimination of which in other EAEU member states can
improve the quality and level of developed acts, reduce the degree of social tension in
the field of environmental protection and management, minimize conflict situations
in the field of law enforcement, to use system resources efficiently in the implemen-
tation of environmental regulations. In our opinion, when drawing up regulations,
appropriate recommendations should be taken into account, which could provide a
primary analysis of the documents being drafted with an emphasis on the possible
manifestation of corruptogenic factors and prevent their inclusion in the law.
The objectives of the anti-corruption expertise of normative acts and drafts in
the environmental and natural resource sphere can be defined as follows: (1) assis-
tance to the developers of acts through expert recommendations containing indi-
cations of controversial theses, explanations and proposals to remedy them; (2)
improving the quality of normative acts within the framework of internal control
of their content and structure; (3) deleting provisions in the texts of documents that
create factors that contribute to corruption when drawing up acts; (4) informing
the developers of normative acts about the opinions and arguments of representa-
tives of the expert community about the analyzed texts; (5) creating prerequisites
for discussing problems, exchanging opinions, developing common approaches to
understanding corruptogenic factors between experts, authorities and all interested
parties within the framework of representative events, including public discussions
of draft normative acts.
68 E. S. Navasardova et al.

In Russia, anti-corruption expertise of regulatory legal acts and their projects is

carried out in accordance with legislative acts of both federal and regional signifi-
cance. When conducting an anti-corruption examination of documents, experts are
guided by: Federal Law No. 172-FZ of 17.07.2009 “On Anti-Corruption Exami-
nation of Regulatory Legal Acts and Draft Regulatory Legal Acts”, Decree of the
Government of the Russian Federation of 26.02.2010. No. 96 “On Anti-Corruption
Expertise of Regulatory Legal Acts and Draft Regulatory Legal Acts”, as well as
the “Rules for Conducting Anti-Corruption Expertise of Regulatory Legal Acts and
Draft Regulatory Legal Acts” and “Methodology for Anti-Corruption Expertise of
Regulatory Legal Acts and Draft Regulatory Legal Acts” approved by this resolu-
tion. Several constituent entities of the Russian Federation have developed their own
norms aimed at identifying corruptogenic factors in official acts of the regional level.
Every provision of a regulatory legal act or its draft should be subjected to anti-
corruption expertise. Based on the results of such an examination, proposals should
be formulated on ways to eliminate all identified corruptogenic factors. The proposals
formulated in this way are of a recommendatory nature.
It is necessary to pay attention to the common, recurring shortcomings of the
environmental legislation of Russia and other EAEU countries, which will give us
the opportunity to focus on those most common points that increase the level of
corruptogenic factors in the relevant acts.
For example, in 2018, Article 17 of Federal Law No. 33-FZ of 14.03.1995
“On Specially Protected Natural Territories” was supplemented with paragraph 4
regarding the obligation of citizens and legal entities who have been granted a land
plot for recreational activities within the boundaries of the national park to annu-
ally carry out measures to ensure the prevention of harm to animals, plants and the
environment, compliance with the regime of the national park. Meanwhile, the term
“annually” has an established meaning “with a frequency of once a year”. Obvi-
ously, the periodicity of such measures cannot be considered sufficient to ensure
truly effective prevention of harm to animals, plants and the environment. Therefore,
in this context, the term “annually” should be replaced by “regularly”. At the same
time, these citizens and legal entities could be required to provide an annual report
on relevant activities from the approved list (probably in a form also approved by the
federal executive authority which is responsible for national parks).
In general, it is important to pay special attention to procedural aspects in the
regulations of ecological and natural resource orientation, the shortcomings of which
serve as a favorable ground for the creation of many corruption schemes. The absence
of one or more significant elements of the order, their inaccuracy and incompleteness,
culture of silence on important details or circumstances relevant to a particular person,
entails the complexity or even complete impossibility of exercising the right.
For example, the legal acts of the EAEU countries provide for such an important
element of the procedure as the communication of information to a person through
instructions such as: “…informs the applicant”, “… notifies the applicant”, although
the appropriate mechanism is not established. This indicates both the incomplete-
ness of the procedure and the possibility of limiting a person’s right to timely and
complete receipt of information. In such cases, it is necessary to indicate the method
Problems of Development of Environmental Legislation … 69

of informing (e.g., on paper by mail or in electronic form), the deadline for deliv-
ering such a message, as well as other relevant data, which will give the procedure
completeness in the field of exercising the right of a person to receive information
in a timely and complete manner.
The same applies to cases when regulatory legal acts do not quite explicitly regu-
late the procedure for publishing reports, as well as other information about the
activities of state authorities and local self-government bodies. For example, some-
times there are such formulations: “The annual plan approved by the Ministry for
conducting inspections by the control body notified to the concerned legal entities
and individual entrepreneurs by posting the inspection plan on the official website
of the Ministry, or in another accessible way”.
The alternative way of communicating information to interested persons envis-
aged in the mentioned above formulation means that this information may or may
not be published on the website of a public authority under the pretext of communi-
cating relevant information to interested persons “in another accessible way”. This
is an obvious corruptogenic factor, the neutralization of which must be provided for
in the regulations on the mandatory publication of relevant information on the activi-
ties of public authorities and local self-government bodies (reports, inspection plans,
etc.) on their official websites on the Internet information and telecommunications
network.
In addition, such norms quite often do not specify the period during which the
relevant information about the activities of public authorities should be made public.
This circumstance represents such a corruptogenic factor as the incompleteness of
administrative procedures.
Environmental and natural resource legislation is changing very dynamically
almost all the countries of the EAEU. In the context of interstate integration, the role
of access to up-to-date legal information in other EAEU member states is increasing
for citizens and organizations whose staff does not have lawyers trained in other
national legal systems, as well as there is no access to foreign legal reference systems
operating offline.
It is clear that the active integration of countries within the EAEU requires
providing high-quality and open online access to their environmental and any other
legislation in the global information and telecommunications system. In this regard,
the technologies of online representation of the current legal norms of the Republic of
Kazakhstan and the Russian Federation should be recognized as the most advanced.
Remote access to the legal norms of interest to us is least provided by the Republic
of Armenia, whose normative acts presented on the Internet are difficult to assess for
relevance and compliance with their current version. But in the context of transna-
tional integration, there is a clear need not only to provide Internet access to the
relevant legislation in the field of environmental protection and natural resources of
all countries of the union, without exception, but also to publish this legislation in
all official languages of the EAEU. Otherwise, a citizen of a member state of the
EAEU simply loses an elementary opportunity to navigate the legislative norms of
other states of the union that affect his rights and legitimate interests, which increase
70 E. S. Navasardova et al.

the risk of corruption when citizens interact with foreign public authorities and their
officials.
It is important to note that in order to reduce the corruption of the sphere of envi-
ronmental protection and natural resource, the member states of the EAEU should
provide access to their legislation on the Internet in the languages of other states of
the union. In addition, the legal norms presented in this way in remote access should
be regularly updated taking into account all accepted changes and additions.
Currently, the EAEU member states publish laws amending the regulations on
environmental protection and the use of natural resources in the Internet. However,
it is with this type of acts that it is most difficult to work. Especially for a person
who is not familiar with the original legal act, who is poorly oriented in a foreign
legal system. The analysis of such provisions, which correct not only the norm, but
also, possibly, the entire document, often does not make it possible to realize the
impact of the formulated changes and additions on other theses of the act, as well
as to preserve the internal logic and consistency of the already established act and
its new provisions. There may be a contradiction between previously established
requirements and new ones (e.g., by introducing a new term or a new time frame),
which has the potential to create corruptogenic factors.
So, in the course of amending the legislation, developers sometimes use links to
paragraphs of the document that have not yet been corrected and are not available for
analysis. Such situations exclude the possibility of their comprehensive verification,
comparison of related provisions, assessment of the presence or absence of important
positions, etc.
In this regard, when publishing amendments and additions to the legislation online,
it seems advisable to make the obligatory reference to the full text of the document
in the previous edition in order to ensure the possibility of their comparison. Inde-
pendent search by the participants of legal relations for a document that has been
amended and supplemented is undesirable due to the obvious difficulties associated
with this, as well as the possibility of making mistakes. During the online publication
of the amended regulations, it is necessary that three texts are available at once in the
intertextual “bundle”: (1) the previous text of the document; (2) the list of changes
and additions made to it; (3) the already modified and supplemented document in
the final up-to-date form.
In addition, it seems desirable to publish on the Internet a table illustrating the
content of the changes made to the law of an environmental and natural resource
nature. In one column of the table, the previous version of the relevant norm should
be presented, and in the other column next to it, its new version. This would help all
interested parties to compare the transformed legal norms more effectively in order
to identify and analyze the essence of the changes made to them. Along with this,
it would be desirable to publish separate tables containing the full text of the norms
excluded from the existing legal acts.
Problems of Development of Environmental Legislation … 71

4 Conclusion

The proposed approaches will enable a broader assessment of the internal consistency
of legal acts in terms of the components used in them—terms, concepts, the status
of participants, regulated procedures, deadlines, etc. These measures will allow to
establish the presence or absence of corruptogenic factors. This is important both for
the addressees of legal norms, namely participants in the relevant legal relations of
a transnational nature, and when conducting an anti-corruption examination of the
environmental legislation of the EAEU countries in order to further improve it.
The recommendations developed to eliminate the identified weaknesses of the
regulatory framework and to establish common approaches to the legal regulation of
environmental protection and rational use of natural resources in the legislation of the
EAEU member states are aimed at harmonizing national legal systems, at applying
identical mechanisms for influencing environmental relations in all the countries of
the union. Ultimately, this will create conditions for more effective development of
this sphere of public relations within the boundaries of the unified legal field of the
EAEU.

Acknowledgements The work was carried out with the financial support of the RFBR, Project
20-511-00015 Bel_a “Legal problems of the formation of a single environmentally safe space of
the member states of the Eurasian Economic Union”.

References

1. Klyukovskaya IN, Galstyan IS, Lauta ON, Mayboroda ET, Cherkashin EY (2016) International
organizations on fighting against corruption: Legal means and methods of their implementation
in national legal systems. J Adv Res Law Econ 7(7):1734–1743
2. Malko AV, Isakov NV, Mazurenko AP, Smirnov DA, Isakov IN (2018) Legal policy as a means
to improve law making process. Astra Salvensi 6(1):833–842
3. Navasardova ES, Nutrikhin RV, Zinovyeva TN, Shishkin VA, Joludeva JV (2018) Codification
of the Natural Resource Legislation in the Russian Empire. J Adv Res Law Econ 9(1):183–193
4. Smirnov DA, Strus KA (2015) General scientific analysis of implementation of principles of
law in the contemporary Russian legal basis. Indian J Sci Technol 8(Specialissue10):1–11
Gaps and Constraints in the Agricultural
Production and Supply Chains
as a Source of Food Waste and Loss

Elena B. Zavyalova, Dmitry D. Krykanov, and Kseniia A. Patrunina

Abstract The twelfth point of the UN Sustainable Development Goals aimed at

halving per capita global food waste and food loss by 2030 is measured by food loss
and food waste indices. The ambitious task is implemented in three ways: regulatory
impact, changes in social attitude, and the introduction of new technologies and busi-
ness processes in the field of Agricultural and Food Technologies (AgriFoodTech).
This study attempts to assess the potential impact of AgriFoodTech on the food
production and supply chain. There are several breakpoints and bottlenecks along
the food and production chains, which influence the extent of unintentional food
losses on a scale of up to 30% at certain stages. Technological impacts on production
and supply chains are assumed to be more cost-effective than large-scale regulatory
changes and attempts to change end-user habits. This work aims to study the effect
of AgriFoodTech tools on reducing food waste and loss in supply chains.

Keywords Agricultural production · Supply chains · Waste management · Food

loss · Food waste · AgriFoodTech · Consumer waste

JEL Classification O130

1 Introduction

Even though there are public debates over growing food waste throughout the supply
chain, the issue is still underestimated. The Food and Agriculture Organization of the
United Nations reports that about 1.3 billion tons have been wasted in 2011, which
was one-third of all food produced for humans. And by now, the problem is growing:

E. B. Zavyalova · D. D. Krykanov · K. A. Patrunina (B)

MGIMO University, Moscow, Russia
e-mail: k.patrunina@yandex.ru
E. B. Zavyalova
e-mail: e.zavyalova@inno.mgimo.ru

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 73
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_10
74 E. B. Zavyalova et al.

Boston Consulting Group estimates by 2030 annual food waste and loss will be 2.1
billion tons worth $1.5 trillion [3].
Such loss and waste have extensive environmental and social effects. Economi-
cally, they mean reduced income for farmers and increased expenses for consumers.
Environmentally, food loss and waste diminish natural ecosystems. The problem
received international attention in 2011 when the OECD countries developed green
growth strategy [4]. This strategy proclaimed food waste reduction as a means of
food supply increase and climate improvement. The global impact of food waste
found a reflection in the UN Sustainable Development Goals, which target to halve
food waste by 2030. Assuming the fact that globally food loss and waste happen
between farm and consumer, they influence not only hunger problem solutions but
also greenhouse gas emissions.

2 Methodology

The research question is the following: whether gaps and constraints for food waste
management are equally positioned along the whole agri-food supply chain rather
than predominantly on the consumer side. The instruments of analysis include supply
chain modeling based on Michael Porter’s value chain theory and market data
synthesis based on the open-source data from research agencies and commercial
reporting.

3 Literature Review

This research harnesses the concepts of value and supply chain both from academic
and business perspectives. The model of value chain construction is derived from
the original works of Michael Porter [14] on the conceptual side and by Kaplinsky
and Gereffi [11] on the global scale. The decomposition approach is derived from
the works of Durufle and Farbe [7], which is used by FAO as a means of agricultural
value and supply chain analysis [8]. The empirical data are derived from research
agencies such as ReFED [15] and AgFunder [1], as well as from various corporate
reports.
Gaps and Constraints in the Agricultural Production … 75

4 Results

4.1 Food Waste and Food Loss Categories

Food loss and waste can be defined as quantitative and qualitative food reduction
throughout the supply chain. Food waste and loss can happen due to various reasons:
from bad weather to overbuying. Food loss has a wider meaning and includes food
that is uneaten at homes or spoils during transportation. Food loss happens at every
stage of food production. Food waste occurs at the stages of retailers and end users.
To summarize, the difference between food waste and food loss is the following:
Food loss happens during the processes in the supply chain when it gets spoilt or
lost. In the value chain, it refers to the stages of production, storage, processing, and
distribution. Food waste is more a behavioral problem and occurs at the final stage of
the food supply chain—retail and consumption—however, it does not get consumed.
Food loss and waste differ in developed and developing countries: Food waste
during production and processing is more peculiar for developing countries, whereas
in developed countries, more food is wasted during the consumption stage. This fact
can be explained by poor farmer training, weak technologies, and infrastructural
problems such as faulty cooling equipment in low-income countries. The main causes
of food waste in developed countries are a lack of coordination between actors in the
supply chain and consumer habits.
Food loss and food waste can be classified into two categories: avoidable
and unavoidable. Avoidable food waste (damaged stocks, for example) could be
prevented, while unavoidable food waste includes inedible food. The issue of how to
quantify food loss and waste is a matter of discussion: It can be expressed in calories,
weight, volume, or value. Differences in measurement hinder the comparison of the
data when different sectors of the food chain are considered.

4.2 Cause of Problems

Lack of awareness. The lack of awareness about the extent of food waste and loss
consider not only consumers but also food producers, service providers, and other
actors involved in the food supply chain. The improvement of harvesting techniques
could help farmers minimize losses during and after harvest. Supply chain infras-
tructure. Cold chain infrastructure is especially crucial for developing markets since
its inclusion could reduce the food waste problem by $150 billion annually. Supply
chain efficiency. Digital supply chain tools are essential to match the supply and
demand, track loss and waste, enable dynamic pricing. Coordination. Collabora-
tion between actors within the value chain could reduce costs by $60 billion annu-
ally. Policy improvements. To encourage efficient consumption uniform regulation,
industry standards are needed.
76 E. B. Zavyalova et al.

4.3 Food Waste Regulation Example

California can be a good example of food waste and loss regulation: Assembly Bill
#954 was established in 2017 and paved the way toward strict borders between
“quality date” and “safety date,” which potentially can reduce approximately 5.5
million tons [5] of food for California.
There also exists AB 1219, which regulates donations made to end users, not
only food banks and non-profit organizations. All food donations are possible if they
are assumed as appropriate for consumption regardless of recommended date labels.
New regulation AB #954 also deals with date label standards and introduces mild
wording for it, such as “best if used or frozen by…”.

4.4 Agri-food

A food value chain is a movement of food products along the supply chain and
includes actors and their value-added activities [9]. Actors include the producers that
grow and trade food commodities, the processors, the distributors, the consumers,
government and non-governmental organizations. The food supply chain shows the
process and stages of how food is delivered to consumers. A traditional approach
toward the food supply chain as “farm to fork” does not represent the modern path
anymore.
Roughly speaking, the modern agri-food supply chain (Picture 1) can be separated
into two streams. The upstream route goes from farm to retailer; the downstream route
covers the stages from the retailer to the consumer. The complexity of a modern
food supply chain multiplies problems that are inherent to every stage of that chain,
starting from overproduction and harvest loss on the farm through logistical food
deterioration and to imbalanced demand on the retail side (underconsumption) that
leads to food waste. The biggest impact of food waste still lies on the “fork” side.
Though a significant amount of food waste is covered by the consumers themselves,
reengineering the rest of the chain still can significantly reduce food waste and
stimulate new measures on the consumer side (Fig. 1).
According to the data of the United Nation’s Food and Agriculture Organization
(FAO), around 1/3 of the global food production is lost and wasted1 [13], which is
1.3 billion tons of food per year [10]. The economic effect of food waste is estimated
at roughly $1 trillion worldwide [12].
The statistics above are valid for developed countries (Table 1) since food waste
issues for developing countries have different nature and can be tackled with more
convenient tactics and instruments rather than AgriFoodTech.

1According to Oliver Wyman, "Food loss is defined as the mass of edible product meant for human
consumption that is redirected from human consumption upstream of retail in the food chain,
whereas food waste is the loss occurring at the retail level and downstream."
Gaps and Constraints in the Agricultural Production … 77

Fig. 1 Transformation of supply chain stages. Source Compiled by the authors

Volume and sources of food waste are expectedly different by country. For
example, British consumers waste 19% [18] of all the food bought, while in Germany
the numbers surge up to 61% [16].
An estimated possible economic effect of modern AgriFoodTech of $423 bn
theoretically can help to mitigate around 42% of current food waste volume. Though
the greatest amount of waste lies on the consumer side, it seems difficult to predict
the strong effects of AgriFoodTech on this end of the supply chain since consumers
are mostly driven behaviorally rather than technologically.
Though these effects are considerable, the implementation of AgriFoodTech
carries large capital expenditures on all the participants of the AgriFood supply chain
(including final consumers). According to ReFED research, around $14 billion of
investments is needed annually to close the technological gap between the current
situation and modern AgriFoodTech efficiency limit and reduce the gross volume
of food waste generation by 45 mln tons per annum (the equivalent of 2 bn extra
meals). However, according to AgFunder data, the first half of 2021 demonstrated
only $3.1 bn investments in midstream AgriFoodTech [6] that drastically falls short
of the amount of investments needed to start tackling the food waste issue. Moreover,
reducing the current volume of food waste by half by 2030 is even more complicated
as the world population (and thus the gross generated food waste) is expected to
reach 8.5 bn [17] people by the target year (18% growth compared to 2021). Conse-
quently, food waste management shall not only tackle current issues but consider
future demographic growth in Asia and Africa, and consumer shifts.
The analysis of the technologies on the supply chain shows that it is possible to
mitigate a significant amount of food waste with AgriFoodTech instruments without
changing consumer behavior (Picture 2). This tactic can be accompanied by special
food waste regulation on the national level and nudging social techniques that will
smoothly push people toward more sustainable consumption. This two-sided tech-
nological and socio-regulatory approach may significantly cut the amount of food
waste in the next several years (Fig. 2).
78 E. B. Zavyalova et al.

Table 1 Stages, issues, and volume of food waste and instruments of mitigation
Stage Key issues Volume of food waste Instruments of
mitigation and their
effects
On-farm (harvesting) Farmer issues: crops 12–21% Novel instruments of
left in fields after ~$190 bn crop protection (incl.
harvesting, biopesticides),
non-optimal timing of AI-assisted harvesting,
harvesting, crops time-release
damages by birds or biologicals
rodents, poor ~50% mitigation
harvesting techniques ~$95 bn
Storage Storage issues: 9% Controlled atmosphere
improper storage, poor ~$90 bn (e.g., ozone-enriched)
techniques, spillage, storage rooms
pests, contamination, ~30% mitigation
natural drying ~$27 bn
Processing (primary Processing and 1–10% Thermal processing,
and secondary) and production issues: ~$50 bn dehydration (“DaaS”
production overproduction, (drying-as-a-service.)
excessive disposal, technologies), novel
spillage, improper natural, and synthetic
packing, undeveloped preservatives
transport ~20% mitigation
infrastructure, ~$10 bn
contamination
Packaging and Packaging and 2% Customizable “smart”
distribution distribution issues: ~$20 bn packaging
packaging damage, ~50% mitigation
rodents damages ~$10 bn
Transportation Transport issues: 17% Closed cold chain
spoilage, poor ~$170 bn logistics
handling, lack of ~80% mitigation
cooling ~$136 bn
Retail supply Retail issues: improper 5% Inventory management
purchases, overstock, ~$50 bn systems, B2B and B2C
improper storage, food marketplaces,
improper handling smart kitchen, food
life cycle management
systems, dynamic
pricing systems across
the demand curve
~40% mitigation
~$20 bn
(continued)
Gaps and Constraints in the Agricultural Production … 79

Table 1 (continued)
Stage Key issues Volume of food waste Instruments of
mitigation and their
effects
Retail storage Retail issues: improper 2–26% Development of large
demand forecast, ~$130 bn stores networks with
improper presentation, higher stock turns
stock criteria, cosmetic (rather than the small
standards ones), advanced
storage chambers
(70% of stage’s loss
reduction)
~50% mitigation
~$65 bn
Consumers Overbuying, improper 3–61% C2C marketplace for
(households, storage, unclear ~$300 bn surplus food, food
restaurants) best-before dates sharing networks, food
labels, cosmetic life cycle management
standards, systems, smart
overcooking, poor shopping systems,
storage, surplus food, waste-to-fertilizer
edible food discarded technologies
with inedible ~20% mitigation
~$60 bn
Source Compiled by the authors based on: WRI analysis based on FAO 2011. Global food losses
and food waste-extent, causes, and prevention. Rome: UN FAO; World Economic Forum, Driving
Sustainable Consumption; 2012 Study by Stuttgart University, sponsored by German Federal
Ministry of Food and Agriculture; Roy. n.d. “On-farm storage technology can save energy and
raise farm income.” Presentation

Fig. 2 Food waste structure on the supply chain. Source Compiled by the authors based on: supply
chain cause 40% of food waste in North America. URL: https://www.supplychaindive.com/news/
developed-countries-food-waste-consumer-level-supply-chain/558023/ (Accessed: 5 November
2021)
80 E. B. Zavyalova et al.

5 Solution

Many companies are paving the way toward optimizing supply chains by applying
digital and analytics technologies (Table 2). For example, agricultural players are
building digital twins of their physical supply chains with all elements of the supply
chain included to run virtual simulations, which helps to optimize the processes and
save significant costs.
A good example of supply chain optimization is the Portuguese company Sonae,
which made steps to reduce fruit and vegetable waste and loss. These projects helped
the company to reduce waste across the supply chain by 1/3, which could cost $10
million per year [2]. First, Sonae expanded the borders on what was appropriate
in some categories (for example, the size and aesthetic requirements of fruits and
vegetables). Second, the company launched a marketplace to connect producers
with processors since some vegetables and fruits are impropriated for retail stores;
however, they can be used by processors in juice, natural flavoring, or additives
production. Third, Sonae conducted a networking meeting for producers and proces-
sors and held a “too-good-to-waste” campaign for consumers to stimulate sales of
fruits and vegetables that remain invisible for buyers, for example, single bananas.

Table 2 Practices for

Practices for prevention Practices for reuse
prevention and reuse
Packaging Alternative use
• Revise product standards • Develop secondary resellers
• Standardize date labels • Connect with animal feed
• Reduce portion sizes and clothes producers
Operational efficiency Food repurposing
• Demand forecasting • Development of byproducts
• Supply chain optimization • Repackage practices
• Improve produce handling
processes
Consumer education Donation
• Conduct household Development of donation
education campaigns contacts
• Food management apps Standardize donation
• Launch social media regulations
platforms Launch of platforms to meet
supply and demand
Regulation
• Improve produce and
packaging standards
• Standardize date labels
• Extend expiration dates
Source Compiled by the authors based on: BCG. A recipe
to reduce food loss and waste. URL: https://www.bcg.com/pub
lications/2020/recipe-to-reduce-food-loss-and-waste (Accessed: 7
November 2021)
Gaps and Constraints in the Agricultural Production … 81

6 Conclusion

The research has shown that a significant amount of food waste management oppor-
tunities worth $423 bn lies along the supply chain excluding the consumer side.
These gaps can be partly covered with new digital instruments of AgriFoodTech
with possible mitigation of 43% of the current food waste volume. However, the
amount of investments in the technological sector needed to use this opportunity of
$14 bn per year is much higher than the current amount of private investments in
the upstream AgriFoodTech sector ($3.1 bn) in 2021. That is why there is a strong
need for government incentives to booster the effect of AgriFoodTech to tackle the
issue of food waste and loss with modern technologies rather than sole regulatory
measures.

Data Availability More about the difference between food waste and food loss and edible and
inedible food waste is available on https://figshare.com/ with the identifier https://doi.org/10.6084/
m9.figshare.17075699.
More about food surplus in the USA is available on https://figshare.com/ with the identifier
https://doi.org/10.6084/m9.figshare.17075468.
More about cumulative investments in midstream AgriFoodTech is available on https://figshare.
com/ with the identifier https://doi.org/10.6084/m9.figshare.17075672.
Investment source for food waste programs, percentage of food wasted by category, as well
as food waste amount by country, are graphically presented and available, respectively, on https://
figshare.com/ with the identifier https://doi.org/10.6084/m9.figshare.17075678, https://doi.org/10.
6084/m9.figshare.17075684, https://doi.org/10.6084/m9.figshare.17075687 respectively.
More about innovative businesses (startups) in the sphere of food waste management (key area,
solution and website) is available on https://figshare.com/ with the identifier https://doi.org/10.6084/
m9.figshare.17075699.

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 Organisational & Managerial
and Technological Aspects of Provision
of Agriculture’s Sustainability Based
on Reconstructive Land Use
The Role of the PRC
in the Transformation of the World Food
Market

Vera A. Tikhomirova

Abstract Having passed a long way from hunger to a high level of food self-
sufficiency and, at the same time, being the most populated state on the planet,
the People’s Republic of China occupies a significant place in the world market
of agricultural products. The “double circulation” policy pursued by the Celestial
Empire is aimed at a re-orientation from the import of food products with high added
value to the purchase of mainly raw materials for its subsequent processing using
internal resources. The imbalances in domestic demand and supply in China have
a significant impact on the world market for agricultural products. In this article,
the author analyzes the degree of China’s influence on the world market of meat
and meat products in light of the current political situation, examines innovations in
the development of China’s own seed and breeding fund, and also suggests possible
directions for expanding the export of Russian food.

Keywords China · Food security · Export · Import · Self-sufficiency · Meat

market · Forage crops

JEL Classification F10 · F15 · F52 · F53 · O13 · O53

1 Introduction

The coronavirus pandemic forced the world community to look at food turnover from
a new angle, identify the benchmarks of existing imbalances, and also launched new
trends in cross-border trade. The growth of the world’s population, accompanied by
the increasing role of the economies of developing countries, is expected to stim-
ulate the global demand for meat and meat products over time, which will grow
exponentially, largely due to the countries of the Asia-Pacific region.

V. A. Tikhomirova (B)
Moscow International Academy, Moscow, Russia
e-mail: vera-t@myrambler.ru
FSBI “Agroexport”, Moscow, Russia

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 85
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_11
86 V. A. Tikhomirova

Meat is a unique food product containing a large number of important microele-

ments and vitamins necessary for the formation and maintenance of the immune
system of the human body. The globalization of all aspects of human life has increased
the level of availability of these products to people around the world [1].
The world meat market is clearly structured and divided into various segments,
each with its own volume and trends. Currently, there is a restructuring of supply and
demand for food products, and at the same time, the degree of loyalty to imported
food is changing. The restructuring of the global food market creates new product
niches in which Russian-made food can be competitive and gain popularity in new
markets, primarily in the most significant import market of our time—the PRC.
China is not only one of the world’s leading exporters of food, but also the largest
importer of food. In the structure of the country’s commodity balance, imports of
agricultural products exceed exports by 45% [2]. This circumstance, first of all, is
due to the lack of areas suitable for agriculture. According to various estimates, only
1/3 of the territory of the PRC is located in the zone of comfortable farming. These
resources are objectively insufficient for complete self-sufficiency in food for a fifth
of the world’s population [3].
Based on the above, we can conclude that the permanently arising imbalances in
supply and demand in the segment of food products in the domestic market of China
initiate the transformation of the structure of the global food market. In the context
of this study, the author focuses on studying the mechanism of self-sufficiency of the
PRC with pork, predicts the further development of this industry in the context of
the increasing politicization of food turnover, and also identifies the most promising
directions for expanding the export of domestic agricultural products to China.

2 Methodology

The methodological basis of the research is a wide range of scientific methods and
approaches. In the course of his work, the author used statistical and comparative
methods, as well as an indicative approach when processing data sets from inter-
national and national statistical databases. Then, based on the systemic method, he
compared the results obtained with the corresponding domestic scientific studies. In
addition, the author carried out a structural analysis of the regulatory framework for
the problem under study. The complex application of the stated methodology makes
it possible to identify existing contradictions and propose possible options for their
solution.

3 Results

The modern era was marked by the rapid growth of the economies of Asian countries,
the locomotive of development of which, by right, can be called the People’s Republic
The Role of the PRC in the Transformation of the World Food … 87

of China. The growth of disposable incomes of the population in the region entailed
the transformation of the prevailing model of consumer behavior for centuries and
was expressed in the restructuring of demand for basic food categories [4]. In many
ways, it is the factor of China, due to the extraordinary capacity of the country’s
domestic market, that has caused an increase in global demand for meat products,
the total volume of purchases of which in the foreign market has increased by almost
a third over the past decade and as of the beginning of 2020 is estimated by ITC
Trade Map in USD 135.3 billion [2].
As can be seen from Fig. 1, starting in 2016, mainland China began to lead
in the segment, exceeding the volume of purchases in Japan, Germany, and the
USA in terms of import value. Over the five years, the country has increased the
import of meat products by 70.3%, and by the end of 2020, the import of meat from
the PRC exceeds the same indicator of Japan by 66.5%, the USA—by 69.2%, and
Germany—by 76.9%.
This phenomenon is primarily due to a reduction in China’s self-sufficiency in
pork due to the wide occurrence of African swine fever (ASF) in the state. The
epizootic that broke out at the end of 2017 led to disastrous consequences for the
Chinese agro-industrial complex. In the course of the campaign to combat the spread
of the disease, the national livestock of animals decreased by 29.7% to the lowest
value in the last 20 years at 310.4 million heads [6].
Figures 2 and 3 clearly demonstrate that at the end of 2020, China still has not
fully overcome the consequences of the ASF epidemic. Although the country was
able to restore the animal population, production is still stagnating and, at present,
has not yet returned to pre-crisis levels. Given the above, the PRC will continue to
be forced to increase imports of this category of food.

35

30

25

20

15

10

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

China Japan USA Germany

Fig. 1 Dynamics of demand for meat products from world importers (2010–2020), billion US
dollars. Source Compiled by the author based on [2, 5]
88 V. A. Tikhomirova

600

500

400

300

200

100

Pig population at the end of the year

Fig. 2 Dynamics of the Chinese livestock of pigs 2001–2020 (million heads). Source Compiled
by the author based on [6]

Fig. 3 Ratio of imports to 70

self-sufficiency in pork in the
PRC (thousand tons). Source
Compiled by the author 60
based on [6]
50

40

30

20

10

Self-sufficiency Import

It is important to note that China’s dependence on pork supplies is often exagger-

ated. The analysis of the official statistics of the PRC, illustrated in Fig. 3, demon-
strates the country’s insignificant dependence on pork purchases abroad. Thus, even
though Chinese importers have increased their purchases over a decade by a record
95.4% to 4.39 thousand tons, imported products occupy only 10.7% of the country’s
domestic market. This proportion is quite consistent with the high level of self-
sufficiency, typical for most countries [7]. Thus, the Food Security Doctrine of the
The Role of the PRC in the Transformation of the World Food … 89

Fig. 4 Structure of countries

importing pork to the PRC
17% 19%
market in 2019 (thousand
tons). Source Compiled by
the author based on [6] 8%

16%
8%

9%
12%
11%

Spain Germany USA

Brazil Canada Denmark

Netherlands Others

Russian Federation adopted in 2021 established the maximum allowable share of

imported meat products in the commodity resources of the state at the level of 15%
[8]. At the same time, as of the end of 2019, self-sufficiency in meat and meat prod-
ucts in Russia is significantly higher than the established threshold value and amounts
to 92.6% [3].
Multiple growth in Chinese demand for this food category has become a serious
challenge for the global pork industry and provoked an increase in supply in the
main exporting countries. To prevent the PRC’s total dependence on one supplier, the
state, when conducting foreign economic activity, focuses on the maximum possible
diversification of sources of imports (see Fig. 4).
Currently, the supply of pork in the Chinese market is 17.6% less than in the pre-
crisis period, and the country’s leadership is focused on a comprehensive solution to
this issue. Following the policy of “double circulation” announced in May 2020 by
President of the People’s Republic of China Xi Jinping, the state, while developing
the industry, prioritized the development of domestic production over purchases of
finished products [9]. This approach is expected to ensure the national security of
the state in the face of the growing politicization of the world food trade.
In connection with the above-described aspect of the Chinese national agrarian
policy, the author, according to the logic of the study, considers it important to pay
attention not only to the peculiarities of the formation of the Chinese domestic pork
market, but also to trace the key factors influencing this process.
It is widely known that the pork industry is most dependent on access to the fodder
base, the costs of which make up the “lion’s share” of the production cost of finished
products [10, 11]. In the production of feed, the key ingredients are grain and oilseed
processing products.
China is the world’s largest grain producer. However, due to a lack of agricultural
land, the state is forced to import significant amounts of soybeans and corn for the
needs of the rapidly developing livestock industry.
90 V. A. Tikhomirova

Fig. 5 Ratio of imports with 140

self-sufficiency in soybeans
in the PRC (million tons).
Source Compiled by the 120
author based on [6]
100

80

60

40

20

Self-sufficiency Import

Let us start with an analysis of the Chinese soybean market. Oilseed cakes have a
high nutritional value and are one of the most important ingredients in the production
of feed base. According to official statistics (see Fig. 5), China’s self-sufficiency in
soybeans is five times lower than the volume of imports of these products. So, at the
end of 2020, the PRC imported 100.33 million tons of soybeans, which is 15% more
than in the previous period and became a record volume for world trade [5].
China’s dependence on imports of high-protein and fiber-rich corn is not so critical.
However, it should be noted that at the end of 2020, this figure almost tripled, and
self-sufficiency over the past six years, with rare exceptions, remained at the level of
260 million tons (see: Fig. 6).
Comparing the data on the pork, soybean, and corn markets, we can conclude that
at present China is more dependent on the purchase of feed base for pork production
than on imports of livestock products. This circumstance allows the formation of
added value within the state and stabilizes the trade balance.
At the same time, it should be noted that despite the obvious advantages, the
approach described above forms a dependence on access to the raw material base
and entails an increase in world prices in the segment. So, Figs. 7 and 8 illustrate
the fact that the supply of soybeans and maize is characterized by a low degree of
differentiation by the source of imports. In particular, for the import of soybeans,
China is more than 57% dependent on supplies from Brazil, for the import of corn—
86% from Ukraine.
In 2020, China signed trade agreements with the USA and the EU. The conclusion
of the trade deal with the USA entailed a commitment from the Chinese side to
increase purchases of pork, which was implemented during 2020.
The Role of the PRC in the Transformation of the World Food … 91

Fig. 6 Ratio of imports with 300

self-sufficiency in corn in the
PRC (million tons). Source
Compiled by the author 250
based on [6]
200

150

100

50

Self-sufficiency Import

Fig. 7 Structure of countries 2.26 2.07 0.73

importing soybeans to the
PRC market in 2019 (million 8.79
tons). Source Compiled by
the author based on [6]

17.01

57.68

Brazil USA Argentina

Canada Uruguay Russia

The potential of the investment agreement concluded at the end of 2020 between
the PRC and the EU is great. However, this deal has not yet been ratified. Due to this
circumstance, the possible prospects for implementation are not yet amenable to a
balanced assessment.
At the beginning of 2021, the State Council of the People’s Republic of
China adjusted the national agricultural policy toward the maximum possible self-
sufficiency in meat, soybeans, and corn by developing an independent national seed
92 V. A. Tikhomirova

Fig. 8 Structure of countries 3% 1%

importing corn to the PRC 3%
market in 2019 (million 7%
tons). Source Compiled by
the author based on [6]

86%

Ukraine USA Laos Myanmar Russia

base of highly productive agricultural plants, as well as a livestock breeding fund

with improved genetic agents [9].
China is systematically working to reduce dependence on imports of strategic
food products and is interested in achieving the highest possible level of food self-
sufficiency. However, this is a lengthy process, which certainly does not exclude
imports.
To maintain national security, China will be forced to permanently sabotage the
food import market. The rising cost of basic feed ingredients in the global market
is forcing the Chinese livestock industry to seek alternative sources of protein and
nutrients.
Under the circumstances, the Russian Federation, which has a developed agro-
industrial complex and has the greatest prospects for increasing food in the world,
has the opportunity in the long term to increase food, including the Chinese market.
This method in the long term will be global climatic changes, which, according to the
forecast of the French association Le Demeter, by 2080, by reducing the permafrost
in Siberia, will increase the country’s grain potential from 100 to 150 million tons per
year to 1 billion tons. It is expected that in the future, Russia will contain several crops
of wheat, barley, rye, corn, and soybeans [12]. The expansion of agricultural land in
Russia will undoubtedly increase the supply of Russian feed wheat and oilseeds to
the Chinese market in the future.

4 Conclusion

The crisis in global economic relations caused by the epidemic of new coronary
pneumonia revealed the imbalances in the global economic structure. The concept
of an “agrarian economy” is no longer a household name. Countries around the world
are striving to increase the highest possible self-sufficiency in key food categories
The Role of the PRC in the Transformation of the World Food … 93

to stabilize trade balances and minimize the risk of undersupply. At the same time,
in the context of a total restriction of cross-border movement of goods, it was the
food turnover that was able to show steady growth. The countries that had previ-
ously developed competitive production of agricultural products turned out to be
less dependent on the risks of shortages.
The shortage of pork in the PRC over the past two years accelerates food inflation
and negatively affects the overall economic development of the country. In the long
term, China will struggle to increase yields of soybeans and corn, which are key to
increasing self-sufficiency in pork, a critical source of protein for Chinese consumers.
Due to objective factors, Russia has great potential in the Chinese market of forage
crops. The progressive introduction of areas in the eastern part of the country into
crop rotation will increase the production of soybeans, corn, barley, and feed grain.

References

1. Revenko LS (2003) World food market at the present stage: diss. doc. economic sciences:
08.00.14; MGIMO. 406 p
2. ITC Trade Map. Trade Statistic for International Business Development. Official Internet portal
of the International Trade Center. https://www.trademap.org/Index.aspx. Accessed 18 Mar 2021
3. Tikhomirova VA (2019).Ensuring food security: international and Russian experience: diss.
cand. economic sciences: 08.00.14; RUDN. 190 p
4. Erokhin VL (2019) Food security of China: current state and strategic guidelines. Mark
Logistics 5(25):12–35
5. General Administration of Customs People’s Republic of China. Official Internet portal of the
General Customs Administration of the PRC. http://english.customs.gov.cn/statics/report/pre
liminary.html. Accessed 25 Mar 2021
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Statistics of China. https://data.stats.gov.cn/easyquery.htm?Cn=C01. Accessed 17 Mar 2021
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and prospects. Bulletin of the Peoples’ Friendship University of Russia. Ser Econ 28(4):751–
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8. Decree of the President of the Russian Federation dated January 21, 2020, No. 20 “On the
approval of the Doctrine of food security of the Russian Federation” [Electronic resource].
Official Internet portal of the President of the Russian Federation. http://kremlin.ru/acts/bank/
45106. Accessed 19 Mar 2021
9. Opinion of the CPC Central Committee and the State Council of the People’s Republic of China
on comprehensive assistance to the revival of the countryside and accelerating the moderniza-
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China. http://www.gov.cn/xinwen/2021-03/06/content_5590842.htm. Accessed 27 Mar 2021
10. Pork production will be based on the efficient use of feed (2020). Agrarian Sci 3:27–28
11. Shundalov BM (2019) The main production trends and factors of reducing the material
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2021
Features of Criteria of Profitability
of Cotton–Textile Cluster

Gulchexra Dj. Khalmatjanova , Gulmira A. Yuldasheva ,

and Gulnoza Kh. Rayimdjanova

Abstract The paper discusses the need for a current level of economic development
in the practice of creating and using completely new forms of organizing produc-
tion, ensuring the sustainability of economic development of regional systems, and
increasing efficiency by using standard methods and management tools.

Keywords Cluster · Cotton-textile clusters · Agriculture · New technologies ·

Competitiveness · Economic efficiency · Infrastructure

JEL Classification N50 · O13 · Q15

1 Introduction

At a meeting held on February 4, 2020, President of the Republic of Uzbekistan

indicated the need to determine the legal status of clusters, conduct their selection,
and introduce transparent mechanisms for proper relations with farmers [5].
The decision to allocate an excessive amount of land to 27 clusters for growing
cotton was criticized since these clusters could not cultivate these areas. In turn, some
clusters with a production capacity of 500 thousand tons of cotton were given less
land than necessary.
The president stressed that the level of deep processing, the volume of investment,
and the sufficiency of funds in settlements with farmers should be the main criteria
for selecting clusters [5].
It is planned to establish cooperatives with the participation of farmers in cotton
fields, where the cluster has not yet been created. Simultaneously, ginneries in those
areas should be given to farmers to establish cooperatives, and the income from value
added is distributed among the members of the cooperative farmers.
The cluster system in agriculture includes the stages from cultivating crops to
producing finished products.

G. Dj. Khalmatjanova (B) · G. A. Yuldasheva · G. Kh. Rayimdjanova

Fergana State University, Fergana, Uzbekistan
e-mail: gulchexra1777@mail.ru

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 95
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_12
96 G. D. Khalmatjanova et al.

According to experts, about 50% of the economies of many of the world’s leading
countries have already switched to the cluster method. For example, there are more
than 2000 clusters in the EU, covering 38% of the workforce. The full cluster method
is used in industry in Denmark, Finland, Norway, and Sweden. More than 50% of
the existing businesses in the USA have switched to a cluster system, and the goods
they produce account for 60% of the country’s GDP.
In these countries, farms are often integrated into a voluntary cluster system.
Farmers perform various tasks in this process until the finished product is produced.
The current level of economic development is becoming necessary in creating
and using entirely new forms of organization of production, ensuring the sustain-
ability of economic development of regional systems, and increasing the efficiency
of economic entities by using standard methods and management tools.
This situation requires international and Uzbek scientists to focus their research
on the formation and development of new mechanisms of economic integration,
ensuring the achievement of multiplicative and synergistic effects. Economic indus-
trial clusters in particular regions are now one of the best ways of shaping productive
forces.

2 Materials and Methods

Creating a new management system and clusters of enterprises and organizations that
produce the final product and are located close to each other is the way to integrate
into the economies of small countries.
Currently, the clusters aim to connect the same type of industrial enterprises
operating in cities, districts, and regions. With these industrial enterprises, a single
technological chain of education, science, engineering, consulting, standardization,
certification, and other services is created. Moreover, the creation of clusters allows
for producing competitive goods and organizing innovative ways of production.
Additionally, such an essential aspect as employment is also manifesting itself.
Thus, the deepening of globalization and integration in the global economy
encourages comprehensive research on the internal strengths and weaknesses of
agricultural enterprises and their external opportunities and risks in the market. One
of such advantages is the establishment of an agro-industrial group by the cluster
method [3].
The cluster method is widely applied as a driving force increasing the competi-
tiveness of the economic group, region, and country. The primary indicators of the
cluster method are as follows:
• Group’s ability to increase its share in foreign markets;
• Presence of favorable conditions (raw materials, skilled personnel, infrastructure,
centers for training, and scientific institutions) in the region;
• Opportunity for participants to work effectively in a group and other features in
return for strong incentives from the government.
Features of Criteria of Profitability of Cotton–Textile Cluster 97

The term “cluster” is a French word that means “connection,” “group,” or

“meeting” in Uzbek.
In recognizing the “cluster theory” of the prominent scientific schools (American,
British, and Scandinavian) in the 1980s, it is vital to remember their three most
important confessions.
This group can also include the currently considered value-added and cluster chain
interrelationships, as well as regional training concepts.
Several Uzbek and foreign authors have considered the theoretical issues of the
cluster. Therefore, we currently can identify clusters and distinguish aspects that
differ in the classification, scope, direction, etc.
In general, a “cluster” is a specific combination of individual elements that form
one whole to ensure the performance of certain functions. The unity of these elements
works more effectively than each element separately.
Many authors noted significant advantages of economic clusters over other forms
of business organization. One of the founders of the idea of economic development
was A. Marshall. In his work “Principles of Economics,” A. Marshall studied the
British industry. Nevertheless, in this work, A. Marshall did not include any specific
terms to describe “localized production” or “industrial zones” [4].
However, to describe their characteristics, it is necessary to remember the system
of clusters with a high division of labor between enterprises.
In turn, A. Marshall identified the organizational features of clusters as the
only new form of organization of productive forces that placed organizational and
economic conditions and spread synergistic effects. In his works, he highlighted
economic structures that are sustainable in a particular field and are based on the
accumulation of many similar small enterprises [4].
The author indicated that “environmental impact” or “external economy” are
unplanned income and by-products in doing business. He noted that the main focus
is made on the high efficiency of implementing ideas aimed at creating new economic
interests and creating a single business structure in a single economic space as a result
of the specialization of economic entities [4].
Based on this interpretation, a cluster of enterprises is a geographical or industrial
concentration that interacts with the suppliers of equipment and raw materials and
provides the effect of an “external economy” resulting from the formation of narrowly
specialized groups of workers.
According to the authors, who have used the term “cluster” or similar definitions
and studied the problems of technological communication between different indus-
tries, a cluster brings together companies from different fields of activity to produce
a finished product [3].
Prototypes of the “cluster” concept were also indicated during the study of
development trends of the leading Swedish corporations [1].
Thus, while discussing Dahmen’s “development blocks” [1], A. E. Shastitko
argues that clusters are a form of organization of economic activity. “A theoret-
ical question and empirical observations emphasize the importance of establishing
a link between the development opportunities of certain sectors of the economy and
the high results achieved in others” [6].
98 G. D. Khalmatjanova et al.

3 Results and Discussion

Based on the transformation of clusters, we can divide them based on two main
characteristics.
First, the activities of enterprises and firms associated with the cluster must be
related to the market for the same type of goods. These activities include the chain of
purchase and sale of goods, the addition of departments and services, special costs,
technology or facilities, and other links.
The second characteristic is that clusters are groups of enterprises that are inex-
tricably linked to each other and located close to each other. As a result, as economic
and social ties between them stabilize, and their competitiveness develops, creating
sufficient value and increasing sales opportunities in the market.
These clusters will have to withstand intra-industry competition in the Uzbek and
global markets.
In this regard, innovative economic development, especially if the old methods of
economic development are insufficiently profitable, will be of great benefit if cluster
theory is practically applied [2].
In this context, we can recognize clusters as a new economic system fully meeting
the requirements of national and regional development for accelerating the innova-
tive activity of enterprises, increasing their competitiveness, and resisting the strong
impact of global competition.
The government’s role in forming and developing clusters is of great importance.
The use of clusters in developed countries is based on extensive experience in
organizing, developing, and managing innovative economies.
Currently, agro-industrial clusters based on the latest technologies operate in
almost all states of the USA (e.g., the largest agro-industrial clusters operate in
Washington, Oklahoma, and Louisiana, the leading wine production facilities are
located in California).
High-performance clusters can be found in IT-based clusters in Silicon Valley,
and cinematography clusters are found in Hollywood. In Europe, high-tech agro-
industrial clusters are thriving.
For example, the Agropolis Association was established in 1986 in France. The
association aimed to coordinate the activities of agricultural enterprises and educa-
tional and research institutions to enter the European and global market of innovative
technologies.
Since 2001, the Stockbridge Technology Center, an innovative agribusiness cluster
in the UK, has been conducting research and training programs in home farming,
horticulture, and gardening. The center has modern greenhouses and high-tech labo-
ratories ranging from 12 to 1000 square meters on an irrigated area of 70 hectares,
controlled by 40 computers.
Austria pays considerable attention to the specialization of clusters, the promotion
of cooperation between agro-industrial and research enterprises, the reduction of
barriers in the management of innovative programs, and the formation of competitive
centers.
Features of Criteria of Profitability of Cotton–Textile Cluster 99

In Danish agriculture, livestock is more important than agriculture. Agricultural

products are more used for food. The role of milk production in animal husbandry is
higher than meat production, which explains the presence of milk clusters (e.g., the
well-known cluster “Dairy Vertical”).
Over the past 30 years, the Chilean government has taken bold steps to increase its
market share by joining the wine industry and expanding the ranks of large companies
equipped with modern technology. For this purpose, the government established a
wine cluster. It included affiliated network associations, educational institutions,
government agencies and departments, research centers, online media, suppliers,
and subcontractors.
Prominent European companies have returned to the country with their invest-
ments, new technologies, and marketing and export opportunities. As a result, Chile
ranks fifth in the world market for wine exports.
Russia implements more than 200 projects on the establishment and develop-
ment of clusters in all economic sectors, including the agro-industrial complex. The
“Regional-industrial cluster development program” of the Ministry of Economic
Development of the Russian Federation aims to promote the institutional develop-
ment of clusters and increase the competitiveness of cluster participants. It should
be noted that the strategy of creating favorable conditions for the development of
clusters has been implemented [2].
Nowadays, the cluster “Biocomplex” (Tomsk Region, Russia) creates new high-
yielding soft and ostrich wheat and varieties resistant to fungal diseases. Further, it
is planned to create “AgroPARK,” which includes deep grain processing, biotech-
nology, and petrochemical production (672 experimental sites of the research station,
17 types of oats for brewing (included in the register of Russian achievements)), the
agro-industrial brand “Kalina Malina” in the Kemerovo Region (7 shops and 40
farmers) and “Biotechnology” cluster in the Vologda Region (together with “Fos-
AGRO”). In general, the process of establishing other similar modern agricultural
clusters has accelerated.
Currently, the strongest development rates of clusters can be observed in the UK,
the Netherlands, Germany, the USA, Denmark, France, Italy, Finland, and India.
Denmark, Finland, and Sweden fully work with industrial clusters.
The following highest cluster structures operate in:
• Light industry in Switzerland, Austria, Italy, Denmark, India, Korea, Pakistan,
PRC, and Turkey;
• Chemical and machinery industries in Germany;
• Food and cosmetics industry in France.
The cluster formation process is rapidly forming and developing in PRC,
Singapore, Japan, and other countries.
Until recently, Germany developed regional clusters without government support.
Nevertheless, in 2003, the authorities started to pay increased attention to initiatives
concerning clusters. This change was primarily due to high-tech manufacturing. The
country aims to connect the potential of regional production, research centers, and
other sources.
100 G. D. Khalmatjanova et al.

The analysis of international and Uzbek secondary literature provided many

definitions of the concept of “cluster”:
• Cluster—a group of interconnected and interrelated enterprises in a particular
area;
• Cluster—a group of enterprises located in one territory and forming a unified
production chain.
• Cluster—a set of companies, organizations, and institutions that are inextricably
linked and complement each other, operating in particular regions.
• Cluster—a group of functional enterprises that are horizontally and vertically
interconnected.
• Cluster—a set of interconnected and complementary enterprises, collective farms,
and private research institutes.
• Cluster—a group of commercial and non-commercial organizations aiming to
ensure the competitiveness of each enterprise operating in a cluster group.
• Cluster—an industrial complex, which is based on regional intensity and unites
suppliers of goods and raw materials, as well as large manufacturing companies
connected to the technological chain.
President Sh. M. Mirziyoev noted that the formation of clusters in all sectors and
industries is an urgent task.
The formation of cluster systems in several areas will increase the financing of
research projects, improve their quality, and enhance technical support for their activ-
ities. Moreover, it will allow for participation in foreign investment projects, training
scientific and pedagogical staff, and improving the skills and experience of scientific
and pedagogical staff. In general, cluster systems open up new opportunities [2].
Additionally, training and research centers in the cluster system in the regions will
provide vast opportunities and conditions for creating new scientific and method-
ological developments, their short-term testing, training and further motivation of
researchers and specialists, and creating new products under the Uzbek brand. It is
planned to establish research centers to train international cluster coordinators and
councils to implement cluster projects in the country.
Nowadays, the organization of clusters in the textile and light industry of the
Republic of Uzbekistan is planned on a national basis and on the basis of the clusters’
content, based on the specific and appropriate economic and social conditions of the
regions [2].
The cotton–textile cluster includes the light industry and many other sectors such
as agriculture, food, pharmaceuticals, and construction [2].
The need to find effective ways to produce raw cotton in Uzbekistan is due to
the limited use of the existing potential of land productivity, which is proved by the
comparison of some indicators of agriculture in developed countries and Uzbekistan.
For example, the Netherlands has a population of 16 million people; the country
possesses 1.038 million hectares of arable land (60% of which is developed near the
sea); the share of agricultural production equals $131 billion. In turn, Uzbekistan has
a population of more than 34 million people and 4.4 million hectares of arable land,
but the share of agricultural production equals $13.2 billion.
Features of Criteria of Profitability of Cotton–Textile Cluster 101

The primary consumer of Uzbek raw cotton is the textile industry. This industry
plays a critical role in the industrial complex, and its development is directly
connected with the cotton industry.
The integrated system in the textile industry covers the whole production process:
from cultivating and primary processing of raw cotton to its subsequent processing
and production of finished products (i.e., yarn, knitwear, fabrics, and garments) in
cotton mills.
According to the President, based on modern requirements, the creation of compet-
itive products with high added value based on new, modern approaches to the
economy is almost impossible.
The Resolution of the President of the Republic of Uzbekistan “On measures
to establish a modern cotton–textile cluster in the Syrdarya region” (September 15,
2017 No PP-3279) was a big step to the active development of the textile and knitwear
industry.
According to the resolution, 18,000 hectares of land in the Mirzaabad district and
5000 hectares in the Khavas district have been allocated to the joint venture Vek
Cluster, LLC. In these areas, it is planned to export finished products at fixed prices
based on labor contracts with farms and analytical marketing of finished products with
a foreign value in foreign markets. The Resolution of the President of the Republic
of Uzbekistan “On the program of measures for the development of the textile and
knitwear industry in 2017–2021” (December 21, 2016 No PP-2687) indicates that
these tasks are to be fulfilled in full.
Accordingly, comprehensive measures aimed to increase the export potential of
producers which were identified based on the Decree of the President of the Republic
of Uzbekistan “On measures to accelerate the development of the textile and knitwear
industry” (December 14, 2017 No PF-5285). During the past period, the country
created the necessary legal framework and favorable conditions for developing the
textile and clothing industry. To support privatized enterprises in the Republic of
Uzbekistan, the State Committee for Competition Development, Uzpakhtasanoat
JSC, and Uztextile Industry Association registered 16 ginneries and 68 ginners in
the cotton and textile clusters and assessed their future. The most important directions
of further reform of the textile industry were identified, and a roadmap for further
expedited development of clustering of the textile and clothing industry in Uzbekistan
was developed [2].
The above decisions served as the basis for establishing a closed chain “production
of raw cotton—processing—finished products” based on the cluster structure of an
active type unfamiliar to the national economy.
It is not about the cultivation of traditional raw materials by cotton-growing farms
but about the processing of primary cotton raw materials and cotton stalks in cotton
processing, oil production, and other enterprises, as well as the creation of high
value-added products.
By-products of cotton processing and oil separation (cotton spinning waste, shrot,
and shellac) are further used in the livestock complex. The waste of the livestock
complex is used to produce heat and electricity in the biogas plant.
102 G. D. Khalmatjanova et al.

The establishment of an industrial cluster as a pilot project in accordance with the

Decree of the President of the Republic of Uzbekistan includes the following:
• Further deepening of qualitative structural changes and reduction of government
involvement in agriculture;
• Stimulating foreign investment in implementing a unified cluster approach to the
innovative development of the agro-industrial complex;
• Introducing deep processing of agricultural raw materials and efficient methods
of growing raw cotton;
• Radical improvement of agricultural productivity and wages.
This industrial cluster aims to produce competitive regional products with high
value added and, on this basis, to comprehensively address diverse regional problems
(e.g., rational use of labor and material resources, budget replenishment, export
opportunities, and social issues).
A natural question arises from the above considerations, “What does the cotton–
textile cluster we are considering mean?”.
Based on the analysis, the cotton–textile cluster is a complex of enterprises inte-
grated into a single technological chain, which allows to deepen the integration of
science, education, and production and ensures the effective introduction of new
technologies into practice.
The president has repeatedly stated that it is necessary to have a material interest
in turning raw materials into finished products and has focused on the ways to achieve
this. In this way, it is possible to have ten times more material wealth in the present
period. Therefore, the deepening of the integration of education and production and
the introduction of the latest technologies are also of particular importance.
A cluster can be described as a “development that revolves around a single chain.”
If industrial production of raw material comes first, the first phase of these processes
includes the process from preparing the land for planting to harvesting.
The second stage involves the primary processing of raw materials—the
processing of crops such as fiber and seeds. It is also used in the construction industry
for the production of building materials from cotton stalks.
The third stage is critical since it involves deep processing. The primary raw cotton
material becomes the finished product. It is also used to manufacture fiber yarn and
fabrics, ready-made garments, vegetable oil from seeds, laundry soap, pet food, and
pharmaceuticals. Biogas is produced from cotton twigs in greenhouses.
In the fourth stage, the first and fourth steps form an actual chain (i.e., they are
inextricably linked). That is, the obtained feed will be used to create a living reserve
complex used for the production of meat and milk for the food industry. Its processing
will provide more than 30 types of finished products and allow putting them on sale.
The livestock sector allows agriculture to be directly enriched with sufficient
amounts of natural fertilizers. Additionally, there is the possibility of obtaining
biogas, as a result of which another branch of the cluster will be the development of
greenhouses.
To get a high yield in agriculture, it is important to choose the correct variety.
If the variety is good, the harvest will be qualitatively and quantitatively good. In
Features of Criteria of Profitability of Cotton–Textile Cluster 103

this sense, the creation of varieties suitable for the climatic and soil conditions of
the republic is one of the most critical tasks. After all, the varieties introduced into
production must be productive, meet the requirements of the world market, and have
a resistance to diseases and pests.
In the 1990s, the volume of deep processing of cotton fiber in Uzbekistan increased
from 7 to 50%. According to estimates, the bulk of cotton fiber grown in Uzbekistan
will be deeply processed in Uzbekistan in the coming years. The cluster facilitates
this process. Local textile products significantly contribute to creating new types that
are in great demand in domestic and foreign markets. Investments in the industry
and modern technologies ensure the quality of products and their competitiveness
and further increase their export potential.
One of the priorities in developing the country’s economy is the enrichment of
the domestic market with domestically produced organic food products.
Food security comes to the fore in the current fast-growing world. The need to
increase the production of food products, especially dairy products, is measured by
the growth of incomes, the growth of food culture, and the high demand for these
products.
Based on the above conditions and the ideas put forward by President Sh.
Mirziyoyev, a cluster system was introduced in Uzbekistan.
The presidential initiative served as the basis for creating the first cotton and
textile clusters in Bukhara and Syrdarya regions in 2017. The first positive results
have already been achieved.
In 2018, Uzbekistan adopted the Resolution of the Cabinet of Ministers of the
Republic of Uzbekistan “On measures to introduce modern forms of organization
of cotton and textile production” (January 26, 2018, No. 53). According to it, the
development of market relations between farms, other agricultural producers, and
textile enterprises, as well as innovative methods of organizing the production of
raw cotton and textiles, will be promoted by the Council of Ministers and regional
administrations of the Republic of Karakalpakstan. It is planned to organize cotton
and textile production in the regions to test the harvest.
It was decided to organize this production based on a direct contract between the
enterprises of the cotton and textile industry and farms for the cultivation and timely
supply of raw cotton.
The resolution provides for the efficient and rational use of land, water, and other
natural resources in cotton and textile production, increasing efficiency and timely
collection of raw cotton without destroying it, and deep processing and production
of high value-added products. These indicators are intended to ensure an increase in
production.
Most importantly, the cotton industry does not account for the objects of taxation
of cash and property, as well as the distribution of net income, which are not related
to the turnover from the sale of their products received and provided by cotton and
textile producers and farms.
The facts mentioned above provided the organizers of cotton–textile production
with the right to place cotton varieties independently, considering regional conditions,
104 G. D. Khalmatjanova et al.

science-based exchange, the introduction of water and resource-saving technologies,

and adherence to cleanliness.
It is also planned to improve the legal framework governing the production of raw
cotton in 2021 and prepare proposals to form a market mechanism for organizing
the production and supply of raw cotton, considering the cluster’s organization.
Under the decision mentioned above, large-scale work is being carried out in this
process. Most importantly, the experience of the cluster, which began in the Bukhara,
Syrdarya, and Navoi regions, is growing throughout the country. Particularly, the
construction of production facilities in the cluster system has begun in the Samarkand,
Tashkent, Surkhandarya, Jizzakh, Kashkadarya, and other regions.
The newly established cotton and textile clusters are achieving positive results
due to the new organization of production and the involvement of modern equipment
and technology. The improvement of work processes in clusters allowed creating
2150 additional jobs in the Kashkadarya region.
The presidential report of September 12, 2018, sets the task to provide complete
processing of cotton grown in the country in 2020 during the establishment of cotton–
textile clusters.
Therefore, it is necessary to pay special attention to establishing cotton–textile
clusters for the widespread introduction of market relations in agriculture. The
future of agriculture depends in many ways on the clusters. Clusters should be the
locomotive of the rapid development of agriculture.

4 Conclusion

The conducted research allows the authors to draw several conclusions on the devel-
opment of clusters. First, the clustering method provides common interests between
the manufacturer and the processor.
Second, the creation of a complete production chain involves all processes from
sowing seeds to growing cotton, primary and deep processing, production, and sale
of finished products.
Third, the cluster members show initiative in solving the problems accumulated
in the industry in exchange for attracting industry to the countryside.
Fourth, by providing employment and increasing the income of the rural
population, a favorable environment is created for its prosperous life.
Features of Criteria of Profitability of Cotton–Textile Cluster 105

References

1. Dahmen E (1950) Entrepreneurial activity and the development of Swedish industry, 1919–1939.
Stockholm, Sweden
2. Khalmatjanova GD, Mannopova MS (2021) Priority areas in agricultural development in the
Republic of Uzbekistan. In Bogoviz AV (ed) The challenge of sustainability in agricultural
systems. Springer. Cham, pp 49–54. https://doi.org/10.1007/978-3-030-73097-0_7
3. Kutsenko ES (2012) Dependence on the previous development of the spatial location of economic
agents and the practice of assessing agglomeration effects. J New Econ Assoc 2(14):10–26
4. Marshall A (1993) Principles of economics. Progress, Moscow, Russia. (Original work published
1983)
5. President of the Republic of Uzbekistan (2020, February 4) Development of cluster activities in
agriculture. Retrieved from https://president.uz/en/lists/view/3342
6. Shastitko AE (2009) Clusters as a form of spatial organization of economic activity: theory and
practical observations. Baltic Region 2:9–31. https://doi.org/10.5922/2074-9848-2009-2-2
A SWOT Analysis of Agricultural
Improvement in Food-Importing
Countries: A View from the Standpoint
of Sustainable Development
of Agricultural Entrepreneurship

Aziza B. Karbekova , Zhandaraly Sadyraliev, Ainagul T. Mamyralieva,

and Aleksey V. Tolmachev

Abstract This chapter focuses on the problem of food deficit (problem of global
hunger), which is an important part of food security and is reflected in the SDGs
(SDG 2). To determine the importance of this problem in the modern global economic
system, a sample of countries, which are the largest food importers, is created. Based
on this sample, the method of regression analysis is used to determine the impact
of agriculture’s sustainability on the successfulness of solving the problem of food
deficit in countries where this problem is the most urgent. The authors determine the
target goals (control values of the indicators) of sustainable development of agricul-
ture for overcoming food deficit and for import substitution in countries of the sample.
For the best information and empirical support for import substitution, the quanti-
tative analysis is supplemented with qualitative analysis—SWOT analysis is used
to study the current problems (barriers) and perspectives of developing agriculture
in countries that import food. A view from the positions of sustainable develop-
ment of agricultural entrepreneurship allows evaluating macro-level and micro-level
problems of the agrarian economy of food importers and suggesting policy and
management implications. Due to this, the materials of this chapter form a practical
guide for import substitution in food-importing countries.

Keywords SWOT analysis · Agriculture · Food-importing countries · Sustainable

development · Agricultural entrepreneurship

JEL Classification L26 · O13 · O18 · Q01

A. B. Karbekova (B) · Z. Sadyraliev · A. T. Mamyralieva

Jalal-Abad State University, Jalal-Abad, Kyrgyzstan
e-mail: aziza-karbekova@mail.ru
A. V. Tolmachev
Kuban State Agrarian University Named After I.T. Trubilin, Krasnodar, Russia

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 107
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_13
108 A. B. Karbekova et al.

1 Introduction

Despite multiple efforts to address the global hunger problem, food insecurity and
malnutrition continue to be severe issues in many countries. Although achieving food
security is desirable regardless of the political system or socio-economic conditions,
it is a top priority in the developing world, where population growth, coupled with
increased intensity of environmental events such as floods, droughts, and extreme
temperature or rainfall variability, frequently poses a threat to food security. Further-
more, increasing food costs, combined with economic inequalities, may significantly
affect food access and availability for poor households as a result of increased food
demand and reduced agricultural output. Poverty, war and violence, natural catas-
trophes, climate change, and population increase, among other factors, are believed
to be the main causes of hunger and malnutrition. According to the most recent data
from the United Nations Food and Agriculture Organization (FAO), the agricultural
sector plays a critical role in increasing food availability and ensuring food security.
However, while there is widespread consensus that global food demand will rise
in the future decades, there is ambiguity about global agriculture’s ability to meet
this demand through greater food production. Improved food security, as a result of
increased agricultural output and a wider range of agricultural land use, appears to be
a viable approach to eradicating hunger. However, existing technology and expertise
will not allow low-income developing countries to produce all of the food required in
2020 and beyond. It demonstrates the importance of increasing investments in agri-
cultural research and extension systems in both developed and developing countries
to boost agricultural productivity per unit of a land and agricultural worker.

2 Methods

2.1 SWOT Analysis

Strengths
• In developing countries, agriculture tends to be the main employment source for
the inhabitants, it is the major source of income for the people, and their livelihood
is highly based on it.
• Existence of rich but unexploited natural resources.
• The underlying factors for good agricultural production: appropriate climate,
microclimatic and land conditions, and diverse biological resources.
• Having established an agricultural legacy, which contributes to strategic planning
and promises that agriculture will be a key industry in the future.

Weakness
• Lack of investments and subsidies to farmers.
A SWOT Analysis of Agricultural Improvement in Food-Importing … 109

• Low entrepreneurial skills and low knowledge about innovation because the new
generation is not sufficiently passionate about agriculture
• Lack of infrastructure and not having easy access to local as well as international
markets makes it difficult for farmers to sell as well as get good value for their
crops.

Opportunity
• Introduce new technologies and move forward from conventional techniques of
farming.
• Educational programmes and training opportunities can help produce more crops
efficiently
• Loans and subsidies grants to the small and medium enterprises.

Threats
• The economy is already in a debt crisis which makes it difficult to spare substantial
funds for agriculture sector.
• New technology and methods of farming continue to emerge around the world,
and developing economies find it difficult to cope with it
• Mismanagement and bad policies due to lack entrepreneurial skills have a bad
and discouraging impact on the farmers.

3 Literature Review

For as long as anybody can remember, hunger has burdened countless people around
the world. Food security is being threatened by increasing competition for natural
resources, the emergence of climate change and natural disasters, poverty, illiteracy,
and diseases [18]. In the research [12], using AI and human brains at the same
time, Industry 4.0’s advantages will be put to use by social entrepreneurship until
2030, when it will decline from full automation. Despite social entrepreneurship’s
growing development in Russia and Asian countries (with an average share of 2.6%
in their GDPs in 2018), it makes only a minor contribution to the development of
socio-economic systems [13].
New age ailments do not include hunger chronicles from even prehistoric civiliza-
tions, document accounts of depopulation and migration, as well as information on
malnutrition and extreme stunting [4]. Around the world, in addition to India, nations
including Egypt, Western Asia, China, Greece, Rome, and North-East Africa have
all been gripped by hunger. In modern times, hunger is intolerable and uncalled for
because of the modern world’s extraordinary improvement in production power and
political development [4]. Unfortunately, it is a fact that in a global community that
is becoming closer by the day, hunger and undernourishment are still prevalent [17].
Current estimates put the number of hungry people in the globe at 925 million [8]. It
110 A. B. Karbekova et al.

is believed that almost 870 million people were undernourished between 2010 and
2012. In other words, this figure represents one out of every eight persons on the
planet.
Changes in temperature and rainfall have already negatively impacted crop yields,
and future projections indicate substantial reductions in yields and nutritional quality
of cereal crops globally for 2 °C of global warming, with particularly severe impacts
on maize in Sub-Saharan Africa [3, 9, 10, 14, 16].
According to the most recent research from Food and Agriculture Organization of
the United Nations (FAO) data, around 13% of the population in developing countries
suffers from malnutrition, and feeding the sustainability 2020, world’s population
is a challenge that is likely to become even more difficult [6]. In 2018, the global
population surpassed 7.6 billion people, and by 2050, it is expected to reach 9.2
billion, with a 59–102% increase in food demand. As a result of the foregoing, it
appears that increasing agricultural production by 60–70% is required to feed the
world’s population in 2050 [11].
In a report of the UN environmental programme discussing the measures to
achieve sustainable economic growth, the green economy takes a macroeconomic
strategy, with a particular focus on investments, job creation, and skills [2]. Sustain-
able improvements in consumption patterns and production patterns are encour-
aged through multi-stakeholder partnerships. Ecological scarcity and environmental
dangers are considerably reduced in green economy [15]. A green economy is
characterized by governmental and private investments that reduce carbon emis-
sions, improve energy and resource efficiency, as well as avoid biodiversity loss and
ecological services from being lost.

4 Results

In countries, agriculture has always been crucial in providing food security and
boosting overall prosperity. However, food production has decreased in recent
decades, and the country has struggled to maintain self-sufficiency in food produc-
tion. Additionally, the speed of development in the agricultural and food industries
is rather sluggish compared to the rest of the economy. A strong agricultural sector
is vital to combating hunger and poverty. The development of agriculture is a big
contributor to reducing poverty in any country. Out of the 17 goals laid out by the
UN 2030 Agenda for Sustainable Development, countries must meet three of them.
The goals are to eradicate poverty, make sure that food is plentiful, and promote
sustainable agriculture. To achieve these objectives, it is necessary to highlight the
difficulties of securing long-term food security and to evaluate obstacles for economic
and political support.
A SWOT Analysis of Agricultural Improvement in Food-Importing … 111

5 Discussion

According to the dictionary, “hunger” refers to “discomfort or stressful sensation

caused by want of food”, but that definition only addresses the problem from one
perspective. To adequately address the broader issue, you need to defeat not only the
pain and discomfort of hunger, but also the issue of food deprivation and the other
problems it causes, such as debilitation, fatigue, morbidity, and possibly even death
[4, 5].
In 2019, from the latest data available, an estimated 135 million people in 55
countries were facing severe hunger, according to the study [1], which was released
in 2017. This was the greatest number of people recorded in the report. There were
118 million cases in 53 countries in 2018.
In the backdrop of the COVID-19 pandemic, the 2019 increase in food crises and
acute hunger is even more worrisome. The research also warns that a further spread
of the disease to developing countries will cause disruptions in access to food and
cause new food crises [7].
Reducing poverty, accelerating economic growth and development, and
combating climate change are all meant to be part of it. For the well-being and
quality of life of Africans as a result, living costs will rise. There are just three things
that matter: food, energy, and water. Many poor communities rely on soils, woods,
and fisheries to survive, to provide support for one’s way of life.
Technological advances are needed to facilitate work, as urbanization is one of the
most interactive sectors and has a significant impact on the environment, as well as
being closely linked to economic, social, and other fields and because urbanization
is the basic symbol of civilization progress in cities around the world. The following
illustrates the relevance of technology in urbanization.
As technology, population, and urbanization progress, the form of the urban
system changes, especially in cities and more developed regions. Global urbaniza-
tion is also causing change and expansion in the world’s cities. In cities, there is a
pattern. Knowledge and technology economies are driving the urbanization trend.
50% of the national outcomes of the developed nations come from it.
The fast development of transportation and communication technologies led to
shorter distances between cities and fewer inhabitants in each metropolis, resulting
in a shortage of space in urban regions. Because of the technology and connectivity
accessible in these smaller towns, more technology is required to carry out municipal
tasks in smaller cities, bringing their work and services up to par with those of larger
cities. In terms of progress, these are the advantages of modern technology and
knowledge.
112 A. B. Karbekova et al.

5.1 Land Uses

The availability of technology and modern technologies helped to know the best
spatial prediction for service, industrial, and other uses. Among the advantages of
technology is that it helped to recognize the spatial prediction for land uses.
To achieve a sustainable future, cities and urbanization must be made more energy
efficient and resource efficient, while improving the quality of life and promoting
smart urban growth.
Sustainability goals for cities and neighbourhoods are primarily achieved through
meeting basic needs and providing essential elements of urban life. Social character-
istics such as satisfaction, awareness, and cooperation are important aspects of city
life, insisting on public participation in decision-making and sharing personal expe-
riences. In addition, there is the issue of urban sustainability. The official decision-
making processes, as well as citizen behaviour, help to achieve this. Changes in
energy, land use, and other aspects of urban infrastructure identified the framework
of urban management and transportation networks.
Sustainability in cities has many advantages, including smart planning, which
improves the ability of government entities to offer services and citizen participa-
tion in decision-making processes. When all social, economic, and environmental
challenges are taken into consideration, urban sustainability is attained.

5.2 Use of Green Economy and Sustainable Development

The green economy employs a macroeconomic strategy to create long-term economic

growth, with a special focus on investments, job creation, and skills. Multi-
stakeholder partnerships are encouraging long-term reforms in consumption and
production habits.
In a green economy, ecological scarcity and environmental risks are greatly
decreased. A green economy is defined by public and private investments that reduce
carbon emissions, increase energy and resource efficiency, and prevent biodiversity
loss and the loss of ecological services. There are a few things that may be done to
encourage and support these investments. Nature should be preserved or promoted
as a key economic asset and source of public benefit, as needed. Is there a connection
to Africa? Africa’s developing countries rely largely on natural resources to thrive.
As a result, natural capital assets are essential to economic activities and livelihoods.
Millions of people rely on rich soil, forests, fisheries, and other natural resources
to survive. The exploitation of these resources has boosted economic growth rates
in recent years. The most powerful in the world Africa continues to struggle with
poverty, unemployment, and underemployment as a result of its economic perfor-
mance, particularly among the youth. The continent’s young population is rapidly
growing. Along with climate change, desertification, and other environmental threats,
environmental degradation is a huge threat to our future economic progress. These
A SWOT Analysis of Agricultural Improvement in Food-Importing … 113

dangers come from both inside and outside the company. Natural capital, which is
critical for wealth development, is under increasing strain at a time when African
countries must meet expanding demands for water, food, and health while reducing
poverty and stimulating economic activity to create jobs. How might the African
people profit more effectively from Africa’s natural resources? In what ways can
Africa’s economies benefit from the industrial expansion that creates more jobs,
produces higher outputs with lower inputs, and improves their competitiveness? In
what ways may climate change, desertification, and external shocks in the inter-
national economy be reduced, if not abolished all together? African countries are
facing several problems as they transition to a green economy. In a green economy,
resources can be mobilized for low-emission and climate-resilient development.
It is supposed to entail reducing poverty, accelerating economic growth and devel-
opment, and combating climate change, priorities that complement one other but
are equally important. For Africans’ well-being and quality of life, as a result, the
cost of living will rise. Everything boils down to three things: food, energy, and
water, investing in natural resources or protecting natural resources through govern-
mental initiatives. Soils, woodlands, and fisheries are vital to the survival of many
disadvantaged communities to back up one’s way of life.

5.3 Sustainable Development and the Eradication of Poverty

Despite impressive economic growth over the past few years, the continent of Africa
still faces chronic poverty and inadequate human development as major obsta-
cles. While six of the top ten fastest expanding economies were African, seven
are predicted to be there in five years, indicating a rise in the standard of living
and welfare for Africans. It is all about food, energy, and water. Protecting natural
resources through public policies or investing in natural resources, many impover-
ished communities rely on soils, woods, and fisheries to survive to support one’s way
of life.
No matter how much and how fast a large majority of the African people have been
able to rise out of poverty, in comparison with other places of the world, poverty is
low towards inclusiveness. A green economy must address issues such as economic
growth and making it more responsive to poverty eradication goals. Another concern
is how green economy transition might boost chances for economic development,
assist structural transformations to increase productivity and value creation, as well
as address distributional implications.

6 Conclusions

The world’s socio-economic growth patterns are highly unequal, with massive
surpluses on the one hand and perennial food shortages on the other, contributing
114 A. B. Karbekova et al.

to hunger and malnutrition. Maintaining food security is a challenge that dispropor-

tionately affects developing countries with low per capita GDP, which are frequently
plagued by poor agricultural circumstances and infrastructure shortcomings. Two
major causes of food insecurity can be found using cluster analysis. The physical
and/or economic scarcity of food is the cause in some areas (clusters composed of
Sub-Saharan Africa and South-Eastern Asia). Others, in turn, face societal inequities
in terms of nutrition (countries affected by this problem include oil producers with
various economic development levels, located in different continents, such as Iraq,
Angola, Nigeria, or Ecuador).
Food security challenges are particularly frequent in developing countries with
a large agricultural GDP share, a lack of infrastructure, and poor weather condi-
tions hampering agricultural productivity, according to these analyses. It is worth
mentioning that having a lot of arable land per person does not always mean you will
have a lot of malnutrition. As a result, higher production and imported goods may
be able to compensate for the scarcity of agricultural land.
Less developed countries may lack both supply and demand side incentives to
increase economic and agricultural performance. The vicious circle of poverty and
a lack of capital must be highlighted. Because of food insecurity, the international
community must address worldwide hunger as the basis for providing development
aid (rather than only on the impacts). Food aid that encourages production and market
development to improve food security, as well as infrastructure, may be beneficial.
Food aid is not the only method to help, though.

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nsuring_Food_Security_in_Developing_Countries_Considerations_in_the_Context_of_the_
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10408398.2011.578764
A Promising Approach to State
Regulation of the Digital Agricultural
Economy in the Interests of Its Transition
to Reconstructive Agriculture
and Sustainable Development

Alexander A. Krutilin, Svetlana E. Karpushova , Anastasia A. Sozinova ,

and Elena V. Sofiina

Abstract This chapter offers a scientific concept of “digital agricultural economy,”

which is treated as a totality of agricultural practices, which envisage an active use
and foundation on the capabilities of the digital economy: digital personnel, smart
technologies, and telecommunication infrastructure. Based on a sample of countries
with the most developed agricultural economy (the largest share of agriculture in the
structure of GDP, according to the World Bank in 2020), the authors determine the
contribution of various measures of state regulation of the digital economy (according
to IMD) to the increase of fertility of the soil, increase of added value in agriculture
(according to the World Bank), and the fight against climate change (according
to Numbeo). For this, we use the methods of correlation and regression analysis,
which allow selecting the measures of state regulation of the digital economy that
contribute the most (positively) to the transition of digital agricultural economies to
reconstructive agriculture and their sustainable development. The simplex method
is used based on the obtained regression models to determine the Pareto optimum
at which the complex use (combination) of the measures of state regulation of the
digital economy allows achieving the largest results in the sphere of reconstructive
agriculture.

A. A. Krutilin · S. E. Karpushova
Sebryakovsk Branch of Volgograd State Technical University, Mikhailovka, Russia
e-mail: kotyra84@bk.ru
A. A. Sozinova (B)
Vyatka State University, Kirov, Russia
e-mail: aa_sozinova@vyatsu.ru
E. V. Sofiina
State – Financed Federal State Educational Institution «Kirov Agricultural Sector Advanced
Training Institution» (SF FEI Kirov ASATI), Kirov, Russia
Federal State Budgetary Scientific Institution «Federal Research Center of Agrarian Economy and
Social Development of Rural Areas – All – Russian Research Institute of Agricultural
Economics» (FSBSIFRC AESDRA VNIIESH), Moscow, Russia

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 117
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_14
118 A. A. Krutilin et al.

Keywords State regulation · Digital agricultural economy · Transition to

reconstructive agriculture · Sustainable development

JEL Classification A10 · O13 · Q01

1 Introduction

The application of digital technologies to integrate agricultural output from the

paddock to the customer is known as digital agriculture. The application of digital
technologies to integrate agricultural output from the paddock to the customer is
known as digital agriculture. Based on the derived regression models, the simplex
approach is used to find the Pareto optimum at which the complex usage (combina-
tion) of state control of the digital economy allows obtaining the best outcomes in the
field of reconstructive agriculture. Through tracking systems and the identification
of damaged goods, digital technology may help guarantee the safety of agricul-
tural commodities, whether they are raw or processed. Food safety is improved,
and food waste is reduced with the use of these instruments. These technologies
assist in guarantee appropriate handling and processing of food items. This chapter
examines a viable strategy for governmental regulation of the digital agricultural
economy in the interest of its transition to reconstructive agriculture and long-term
growth. The goal of this study is to model disproportions in the growth of Russia’s
regional economy and to establish possibilities and proposals for overcoming them
and attaining economic equilibrium.

2 Methods

The authors make a distinction between the main responsibilities of government

management of the green economy and the obligations of eco-oriented businesses
to offer sustainable development in the interests of society. Systemic solutions are
required to deal with these problems, such as enhanced ecological culture, infor-
mation support for companies, the creation of highly effective internal ecological
control systems, and the improvement of ecological indicators. Smart eco-control
based on information and communication technologies used in electronic agriculture
should fulfill these responsibilities, guaranteeing stimulation of leading agricultural
economy directions, and control and restraint of negative variables in the area of agri-
cultural economization. A variety of state-regulated digital economy techniques are
compared to see which has the most positive effect on soil fertility, agriculture-added
value, and mitigating climate change. Business models should take into account the
unique social, economic, and financial features of each area. For smart cities, consis-
tent and reasonable technology, infrastructure, and services are required. Smart cities
are the opposite of megacities.
A Promising Approach to State Regulation of the Digital Agricultural Economy … 119

These techniques enable us to choose the state regulation of the digital economy
measures that are most (positively) conducive to the transition of digital agricultural
economies to reconstructive agriculture and their long-term development. We use
correlation and regression analysis methods to do this.

3 Literature Review

To various people, the term “digital agriculture” denotes different things. Most impor-
tantly, it represents a chance to develop new goods and services that connect farmers
with companies and customers. However, when asked what governments can do
to speed up digital agriculture, our initial enthusiasm typically fades. Governments
must develop the infrastructure necessary for a digital economy, such as assigning and
licensing bandwidth in the electromagnetic spectrum so that mobile phone networks
can reach the most remote rural areas of a country [8]. Increased efficiency and new
markets and possibilities are possible with digital agriculture. It will revolutionize
farming by using robots and high tech equipment to make better decisions, manage
more precisely, and automate actions [4]. In recent years, the fast advancement of
information and communication technology, as well as the flood of digital data, has
created new prospects for economic progress and social transformation. Modern
agricultural equipment and new sensor-equipped gadgets have enabled automated
data collecting on farms. Unsurprisingly, technological developments have altered
the parameters for agricultural data administration. Uncertain ownership and residual
decision rights over agricultural data, as well as privacy concerns about the use of
both personal and non-personal data acquired on farms, emerge as major regulatory
problems. The same statistics that may inform and guide farming choices can also
be exploited by agricultural technology providers and data firms to strengthen their
businesses and market position, at the expense of farmers and rural communities.
Farmers are most concerned about possible misuses of agricultural data obtained in
their fields [7].
Farmers’ adoption of digital technology is also unequal, either because some
farmers lack the cash to acquire contemporary machinery or because they lack the
digital skills to use data goods and services or both. Furthermore, economies of size
and breadth tend to limit farmers’ market access to data goods and services. As a
result, while digital agriculture has the potential to make farming systems smarter,
it may also result in new social and economic disparities in rural regions.
Cloud-based “smart eco-controlling” for storing and processing massive amounts
of accounting data, as well as the blockchain, could be a solution to the problem at
hand. As a result, data on the environmental impact of business can be more broadly
generalized. As part of the implementation of the sustainable development and green
economy policies, the eco-controlling procedures for agricultural complex organi-
zations developed represent criteria and principles for utilizing digital technology’s
potential [13].
120 A. A. Krutilin et al.

The European Union is attempting to provide a clear set of rules and regulations
for the developing digital economy because such data monopolies may jeopardize
both agri-food sector competitiveness and the supply of some essential public goods
through agriculture. In Africa, there are several exceptional instances of forward-
thinking, innovative governmental policy, legislation, and investment in digital agri-
culture [11]. Governments have a chance to use digital technologies to provide agri-
cultural extension and other rural services. Private entrepreneurs typically do not
rush in to engage in these sectors since the commercial potential is deemed poor,
particularly in highly fragmented smallholder networks and rural marketplaces [1].
On the other hand, Russia’s regional economy is unbalanced, with significant
structural disparities. These disparities are the result of a lack of attention paid to
the unique characteristics of regional economic systems during the formulation and
execution of regional economic management plans.
For the years 2008–2015, we gathered a panel that included 75 Russian regions.
The data used in this study came from the Federal State Statistics Service’s database
[12].
Governments may also invest in digital agriculture by assuming risks that private
investors are less willing to take. This frequently takes the form of governments
purchasing digital services from private firms while bearing the risks of investing in
an industry that is so vulnerable to weather and price shocks. Because not everyone
will profit from digital agriculture, public policy will be critical in ensuring that
people on the other side of the digital divide are not left out. It will be accounted
for, through complicated taxes, competition, trade, finance, social protection, and
rural development policies [2].
Three policy aspects are directly affected by digitalization. To begin, an instrument
can target inputs like technology, fertilizer fees, behavior like the buffer strips. It may
also target outputs like quotas for nitrate emission. Second, digitization has a direct
impact on location specificity policy, which is aided digitally by georeferencing.
Thirdly, digital databases and monitoring have a direct impact on intertemporal flex-
ibility, which entails intertemporal changes to regulated quantities and tax or subsidy
price levels [3].

4 Results

Traditional agricultural policy’s analog technology is not simply replaced by digital

agriculture policy. It offers some new choices for agricultural policy, such as innova-
tive approaches to dealing with problems. In the information and analytical interac-
tion chain, business is the weak link because of the absence of scientific and method-
ological resources and skills. A new generation of “smart technologies,” based on
the implementation of predetermined, rule-based processes, takes center stage in our
society. The digital revolution, on the other hand, is affecting the whole value chain of
agriculture. The Bayer Company has started investing in computerized agricultural
services that can utilize remote sensing to monitor plant development and the effect
A Promising Approach to State Regulation of the Digital Agricultural Economy … 121

of pesticides or genetically modified seeds in real time as an example. However, at the

opposite end of the value chain, farmers may now access a variety of environmental
factors, including rainfall, temperature, evaporation, vegetation, and more, through
satellite images and near-real-time data. The agricultural equipment industry, on
the other hand, has experienced the most dramatic shift as a result of digital trans-
formation. By combining and integrating the aforementioned advances, intelligent
machines are at the center of farming’s digital revolution. “Precision farming,” for
example, is the term given to the process of treating farmland square-foot precisely
using telemetry, sensors, data, satellite location, and other technological tools [9].

5 Discussion

The existing implementation of policies regarding technologies is generally aligned

since agricultural policy instrument options and design specifications are limited to
what is judged practicable in light of prevalent discourses, administrative resources,
political limitations and technology. Similarly, designs of taxes, regulations, and
tradable quotas might integrate digital technology benefits, such as farm management
[5].
The first argument is that agricultural policy digitalization demands the employ-
ment of digital technologies in the agricultural sector. Subsidies for the use of digital
technology in policy instruments increase the chance of participation. We discovered
that important digital technologies improve monitoring by providing uniform data
across records that are georeferenced when possible. As a result, a very important
policy problem is determining whether to invest in specialized technology for certain
instruments that encourage diversity and learning or in less complex but broader in
scope technologies.
Second, we predicted that agricultural policy goals and difficulties, such as infor-
mation asymmetries and varied sources of farming and its consequences, would
persist. The digitization of agricultural policy may also present new issues, such as
ensuring that the actors involved are capable of implementing appropriate digital
technology. To some extent, digitization alleviates these difficulties, especially when
it allows for learning and flexibility.
Third, data supply, exchange, and analysis, as well as the associated advantages
and dangers, are important for the development of digitalized agricultural policy
tools. Data domains are often influenced by digital technology applications for an
agricultural policy that improves the visibility of farms and the settings in which
they operate. It may aid in instrument redesign and instrument selection to provide
behavioral insights and accurately portray behavior. In this case, voluntary measures
enable the gathering of data that farmers may be reluctant to offer otherwise. The data
in question are no longer kept secret [6]. Others are accessible or maintained by the
various private domains, like a technology provider, or they become decentralized
in a blockchain.
122 A. A. Krutilin et al.

Participation in digitalized agriculture policy instruments may be limited if

farmers refuse to provide over farm data domains. Thus, automation is more likely to
occur when data and laws are explicit, which may necessitate the removal of partic-
ular data and agricultural techniques. Furthermore, the environmental and behavioral
data that are gathered and linked via digital technologies must be analyzed [14].
The fourth argument is that when considering the policy environment of instru-
ment selection and design that is responsive to digitalization, legal and political
viability emerges. As systems become increasingly reliant on digitalized data supply
and analysis, one outcome might be complex policy-making entanglements with digi-
talization. Because digitalized policy instruments should be more politically viable,
the potential for digitalizing subsidies should be substantial when farmers and other
policy stakeholders benefit from digitalization. However, in the absence of supporting
framework legislation, legal viability may be very speculative. As shown by Internet
search trends, opportunities for a real-time evaluation and involvement into policy
conception and creation may be leveraged to a greater extent throughout the policy
cycle [10].

6 Conclusion

The following analysis illustrates the impact of digitalization on the key aspects of
agricultural policy designs and instruments. It provides an analysis of the choices
and designs of digitalized agricultural policy instruments, which can help policy-
makers to discover alternative policy instruments and designs that arise as a result of
digitalization.
The examples we provide are illustrative and not complete. Agriculture’s problems
and agricultural policy aims may vary in the future and other contexts. Our research
yielded two important policy messages. For starters, because agriculture is complex,
policy instruments will continue to be varied, and digitalization does not favor certain
policy instruments. It does, however, broaden their design possibilities. It makes
it easier to customize tools to specific agricultural issues, enhancing agricultural
policy’s efficiency and efficacy.
Experimentation and strategic learning are especially important as digital agri-
cultural policy shifts away from direct intervention in agricultural production and
toward information governance, in which the government simply uses, prescribes,
or incentivizes the use of digital technology to generate and disseminate agricul-
tural data. The question of whether farmers, interest groups, and the government is
prepared and capable of dealing with the repercussions of more extensive digitization
of agricultural policy is a key subject for both research and policy.
A Promising Approach to State Regulation of the Digital Agricultural Economy … 123

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the-art review. Agric Syst 180:102763
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social entrepreneurship in Russia. J Intellect Capital 12(4):565–581. https://doi.org/10.1108/
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11. Schebesta H (2020) The game-changing potential of the EU’s Farm to Fork Strategy. Nat Food
1:586–588
12. Sergi B (2019) Modelling economic growth in contemporary Russia. Emerald Publishing
Limited, Messina
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of power. Profile Books, London
Investment Development
and Competitiveness of Pig Breeding
in Russia

Vlada V. Maslova , Mikhail V. Avdeev , and Kirill A. Osipov

Abstract The paper analyzes some aspects of investment development of pig

breeding in Russia. The authors emphasize that government support aimed at
constructing new high-tech pig farms allowed to reconstruct and modernize the
existing farms and lay down a new production base of Russian pig breeding. As
a result, significant progress had been made by 2020 in terms of increasing produc-
tion to 4.3 million tons, increasing exports, and reducing imports. Additionally,
the country has reached complete self-sufficiency in pork meat. Nevertheless, there
remains import dependence on pig embryos, veterinary vaccines, and premixes. The
analysis of competitiveness based on the analysis of average producer prices and
average export prices, as well as the calculation of the Balassa (RCA) and Lafay
(LFI) indices, showed that Russian producers are not competitive enough compared
with the world leaders in production and exports in terms of production and supply
of products to the world market. However, a positive trend is a decrease in export
prices and the growth of RCA and LFI indices. Further investment development of
the industry and growth of the products’ competitiveness will require implementing
a set of measures to ensure the growth of productivity, increase the genetic poten-
tial of the livestock, introduce modern technologies, and increase the efficiency of
processing.

Keywords Agriculture · Pig breeding · Investment · Competitiveness · Prices ·

Consumption · Export · Import

JEL Classification Q1 · Q17 · E22

V. V. Maslova (B) · M. V. Avdeev · K. A. Osipov

Federal Research Center of Agrarian Economy and Social Development of Rural
Areas—All-Russian Research Institute of Agricultural Economics, Moscow, Russia
e-mail: maslova.ec-fin@vniiesh.ru

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 125
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_15
126 V. V. Maslova et al.

1 Introduction

The meat subcomplex is one of the main life-sustaining sectors of the agro-industrial
complex (AIC), which affects the food supply level and determines the population’s
complex nutrition.
The global pork market has seen significant growth in recent years. The FAO
estimates that global production in 2020 will reach 109.2 million tons, down 0.8%
from the previous year [1]. China, the USA, Germany, Spain, and Brazil are the
world’s leaders in terms of production volumes. In 2019, Russia ranked sixth in the
world. Nevertheless, Russia surpassed Brazil on this indicator in 2020 due to the
increase in the volumes of pork production to 4.3 million tons.
Pork accounts for over 36% of the world’s meat production. It is noted that an
average person yearly consumes 16 kg of pork, 15 kg of poultry, and 9 kg of beef.
Preferences vary significantly from country to country. At the same time, the overall
state of the global pork market in the past few years has been marked with unstable
production, which is caused mainly by the reduced production of pork in China.
In 2020, global pork exports totaled $37.0 billion. The leaders in export shipments
are the following countries:
• Spain ($6.5 billion or 17% of world exports);
• The USA ($6.0 billion or 16% of world exports);
• Germany ($4.7 billion or 13% of world exports);
• Canada and Denmark ($3.1 billion or 8% of world exports each).
The volume of Russian pork exports in 2020 reached the highest value in recent
history and amounted to 129.6 thousand tons worth $265 million. The main share
of pork exports of the Russian Federation came from the newly opened markets of
Vietnam (45% of exports in value terms), Ukraine (23%), and Belarus (17%).
Countries leading in terms of pork imports in 2020 include China (32% of imports
or $11.9 billion), Japan (12% of imports or $4.5 billion), and Italy (6% of imports or
$2.1 billion). The volume of pork imports in Russia decreases annually, and in 2020,
this indicator dropped to $130 million.

2 Materials and Methods

To study the investment development and competitiveness of pig breeding in Russia,

the authors used a complex of methods, including grouping, comparative analysis,
expert assessments, and economic and statistical methods. The competitiveness anal-
ysis was based on a comparison of average producer prices and export prices in
Russia and the main pork exporting countries. We also analyzed the Balassa index of
revealed comparative advantage (RCA), which characterizes the country’s competi-
tiveness in terms of the value of exports, and the Lafay index (LFI), which measures
the contribution of certain groups of commodities to the country’s normalized trade
balance.
Investment Development and Competitiveness of Pig Breeding … 127

The information base of the study was the statistical data of international and
Russian organizations such as FAO, UN Comtrade, Federal State Statistics Service of
the Russian Federation (Rosstat), Ministry of Agriculture of the Russian Federation,
and other official sources of information.

3 Theoretical Aspects of Investment Development

A considerable number of researchers from different countries study the issues of

investment development of the agricultural sector. Given the growing population and
increasing need for food, there is a need to attract additional investment resources
into the agricultural sector. Only investment can ensure sustainable growth in the
economy and the agricultural sector, which, in turn, is necessary for providing food
security.
One of the key aspects of investment development is the formation of sources of
investment resources. Researchers in India emphasize the need to increase public
investment in agriculture [2]. While there has been an increase in public and private
investments in the agricultural sector in India, it is still insufficient, and investment
in agricultural research accounts for less than 1% of GDP.
Japanese researchers K. Phetsavong and M. Ichihashi conclude that private invest-
ment plays the greatest role in ensuring economic growth, with foreign direct
investment being the second most important factor. Public investment, if signifi-
cantly increased, reduces the positive impact of foreign direct investment—there is a
crowding-out effect. The calculations on the example of developing Asian countries
have shown that the negative effect of public investment is observed when their share
in GDP exceeds 5%–8% [3].
Polish researchers emphasize that investment processes depend on the production
profile. According to the above data, the least effect of investment was observed
in non-specialized farms, whose disparate activities complicate the achievement of
production and economic goals. The most intensive reconstruction of production
assets was demonstrated by pig farms [4].
The inflation rate is one of the critical factors in terms of activating the investment
process and increasing investment activity in the economy and in certain industries.
On the example of investment in machinery and equipment, J. Madsen concludes
that inflation restrains investment activity [5].
Brazilian researchers conclude that investment in infrastructure increases the
overall productivity of production factors and improves the profitability and
competitiveness of Brazil’s agricultural sector [6].
128 V. V. Maslova et al.

4 Results

The meat market in Russia has undergone significant negative transformations due
to the formation of a market economy. There has been a significant reduction in
livestock and poultry, with meat production declining by more than half, which has
led to a decrease in per capita consumption of meat and meat products from 75 kg
(in 1991) to 45 kg (in 2000).
With the adoption of Federal Law “On the development of agriculture” (December
29, 2006 No. 264-FZ) [7] and the beginning of the first “State program for the
development of agriculture and regulation of markets in agricultural products, raw
materials, and food” (2008–2012) (State program), the situation in livestock has been
radically changing. Significant public support, including the support provided by the
mechanism of concessional lending, provided an inflow of significant investments
in the industry, which led to an increase in production, especially in fast payback
livestock sub-industries (i.e., poultry and pork sub-industries) [8]. Meat production
increased from 4.4 million tons in slaughter weight in 2000 to 7.1 million tons in
2010, with pork production rising from 1.6 million tons to 2.3 million tons. As a
result, consumption of meat and meat products increased to 69 kg per capita. Poultry
meat (25 kg) and pork (20 kg) began to dominate the structure of meat consumption.
Thus, between 2008 and 2012, the public support measures allowed establishing an
essentially new, advanced production base of pig breeding.
Public support for pig breeding in 2013–2020, carried out within the framework of
the second State program [9], was also aimed at building new high-tech pig breeding
complexes and reconstructing and modernizing the existing farms. Considerable
budgetary resources were allocated to subsidize a part of interest rates on loans and
compensate a part of direct costs incurred [10].
From 2008 to 2020, pig production doubled from 2.7 million tons to 5.5 million
tons in live weight; sales grew threefold. Such dynamics were due to a significant
transformation in the production structure. Thus, the share of pig production in
agricultural organizations increased from 42% in 2008 to 89% in 2020. In turn,
the production of pigs in household farms significantly decreased. These facts led to
a significant increase in the marketability of production (Fig. 1).
Over the past five years (2016–2020), 117 new pork complexes were commis-
sioned, and 38 facilities were reconstructed, totaling 155 facilities. It should be noted
that the growth rate of new facilities slightly decreased compared to the previous
five-year period (2011–2015) due to the saturation of the Russian market with pork
products. In 2011–2015, 181 pig farms were commissioned and reconstructed. The
highest rates of commissioning new pig farms were observed in 2008–2010 due to
the significant public support of this direction in the form of concessional lending.
At that time, 305 new and modernized objects were introduced.
In the last three years, 2.9 million places for pigs were commissioned. As a result,
the number of pigs in the Russian Federation increased to 25.8 million by 2020
(Fig. 2).
Investment Development and Competitiveness of Pig Breeding … 129

Fig. 1 Dynamics of pig production and sales in 2008–2020, thousand tons. Source Compiled by
the authors based on [11]

Fig. 2 Dynamics of commissioning places for animals in pig breeding in 2005–2019, thousand
units. Source Compiled by the authors based on [12]

In 2020, pork production reached 4.3 million tons, and its imports almost entirely
decreased, while pork exports increased to 130 thousand tons. It should be noted that
pork imports reached 0.6 million tons in 2010. The increase in the production of pigs
for slaughter occurs mainly in the regions with integrated formations implementing
large investment projects. Therefore, the main increase in the production of pigs for
slaughter was obtained on newly built and modernized complexes and pig farms.
Currently, meat consumption in Russia is about 75–77 kg per person per year, of
which pork is 28 kg. That is, Russia has reached full self-sufficiency in pork meat.
Therefore, the task of import substitution could be considered solved if there was no
significant import dependence on pig embryos, veterinary vaccines, and premixes.
Therefore, the further development of import substitution in the pork sub-sector
should be aimed at solving these problems.
Pork exports almost doubled in the last five years and amount to about 170–190
thousand tons (Table 1). In 2020, Russia became a net exporter of pork. According
130 V. V. Maslova et al.

Table 1 Dynamics of pork meat export and import volumes (code 0203 of the EAEU Commodity
Nomenclature of Foreign Economic Activity) in the Russian Federation in 2016–2020
Indicator 2016 2017 2018 2019 2020
Tons
Export 18,716 27,280 33,655 59,379 129,581
Import 258,719 281,200 61,289 78,990 6387
Balance − 240,003 − 253,920 − 27,634 − 19,611 123,194
Thousand USD
Export 41,051 61,401 68,106 131,990 265,059
Import 628,089 813,277 171,575 241,082 12,292
Balance − 587,038 − 751,876 − 103,469 − 109,092 252,767
Source Compiled by the authors based on [13]

to the National Union of Pork Producers, Russia can increase exports to 400–500
thousand tons of pork in 2024–2025.
Full self-sufficiency in pork meat means that any additional production volumes
carry risks of oversaturation of the domestic market. Therefore, the development of
exports will be a driver for the further development of the sub-sector.
The development of production and export of pork products is possible only by
increasing their competitiveness in domestic and foreign markets. In this regard, it
is advisable to determine the competitiveness of domestic products. The complexity
of this economic category leads to different approaches to its understanding and
different methods of its evaluation [14]. The factors influencing competitiveness
may include the technological level of enterprise development, costs, production
costs, quality, prices, domestic and foreign market conditions, public support, etc.
In this research, the authors use the valuation approach based on price indicators at
different levels of their formation (production and export) and the index of revealed
comparative advantage of B. Balassa (RCA). The RCA index is used to estimate
the country’s exports. This index is calculated as the ratio of exports of a particular
type of product to the country’s total exports; then, the resulting ratio is compared to
similar figures for other countries [15, 16].
However, in terms of competitiveness, it is also necessary to consider the volume
of imports for the studied products. In this regard, it is advisable to analyze the Lafay
index, which allows determining the contribution of certain commodity groups in
the country’s trade balance [17]. If the Lafay index takes a value greater than zero,
the product is considered competitive in the world market; a negative value indicates
non-competitiveness.
The analysis of the competitiveness of Russian pork at the level of its production
showed that the average producer prices for pigs in live weight equaled $1464 per
ton in 2019. This figure is almost 40% lower than in 2014 when the price of Russian
producers was 50%–80% higher than those of major exporters of these products.
Therefore, Russia could not compete with the leading suppliers to the foreign market.
In 2019, the imbalance leveled off somewhat—the countries of the top five exporters
Investment Development and Competitiveness of Pig Breeding … 131

Table 2 Dynamics of producer prices for pigs in live weight and export prices in Russia and major
exporting countries in 2016–2020, USD per ton
Country Prices 2016 2017 2018 2019 2020
The USA Producer prices 1087 1171 1107 1133 n/d
Export prices 2619 2644 2538 2591 2545
Spain Producer prices 720 813 813 944 n/d
Export prices 2382 2673 2645 2977 3032
Germany Producer prices 1269 1420 1299 1500 n/d
Export prices 2322 2623 2466 2794 2749
Canada Producer prices 1069 1183 1086 1158 n/d
Export prices 2485 2606 2524 2684 2653
Denmark Producer prices 1043 1155 1016 1231 n/d
Export prices 2332 2509 2331 2779 2818
Russia Producer prices 1402 1654 1589 1464 n/d
Export prices 2193 2251 2024 2223 2046
Source Compiled by the authors based on [13, 18]

(the USA, Spain, Canada, and Denmark) formed producer prices at 20%–30% lower
than Russian prices. Only Germany had the prices at a level comparable to Russia
(Table 2). Thus, despite a decline, producer prices in Russia were significantly higher
than those of the world’s major exporters, indicating the low competitiveness of pork
at the production level.
In 2020, Russian export prices for chilled or frozen pork (code 0203 of the EAEU
Commodity Nomenclature of Foreign Economic Activity) amounted to $2,046 per
ton, while global average prices were $2,775 per ton. In the USA, Spain, Germany,
Canada, and Denmark, export prices were 20%–30% higher than the Russian average,
indicating a certain level of competitiveness of Russian products and the possibility
of expanding foreign markets when dealing with African swine fever and the opening
of new markets (Table 2).
It should also be noted that Russian export prices are formed at a level almost two
times higher than producer prices, which indicates a certain reserve for optimization
of logistics costs and traders’ services.
Thus, at the production level, Russian producers are significantly inferior in
competitiveness to major suppliers of pork to the world market. However, Russian
products are competitive in terms of export prices.
Calculation of the RCA coefficient for pork showed that Denmark was the leader
in 2016–2020 (an identified competitive advantage of 13.5–16.5) between the major
global exporters. A high Balassa index was also formed in Spain (7.1–9.6) (Fig. 3).
In Russia in 2020, the RCA indicator was 0.4, increasing fourfold compared with
2016. However, this level still indicates the low competitiveness of Russian pork in
the global market.
132 V. V. Maslova et al.

Fig. 3 Dynamics of RCA indices for pork in Russia and the top five exporting countries in 2016–
2020 (code 0203 of the EAEU Commodity Nomenclature of Foreign Economic Activity). Source
Compiled by the authors based on [13]

Table 3 Dynamics of LFI indices for pork in Russia and the top five exporting countries in 2016–
2020 (code 0203 of the EAEU Commodity Nomenclature of Foreign Economic Activity)
Country 2016 2017 2018 2019 2020
Spain 0.582 0.596 0.553 0.729 1.002
The USA 0.111 0.113 0.108 0.131 0.175
Germany 0.086 0.086 0.075 0.093 0.101
Canada 0.251 0.252 0.223 0.240 0.335
Denmark 1.298 1.270 1.132 1.170 1.363
Russia − 0.157 − 0.162 − 0.026 − 0.031 0.035
Source Compiled by the authors based on [13]

The calculated Lafay index for pork in Russia took negative values in 2016–2019,
indicating that the country imports significantly more of this product than it supplies
to world markets. Simultaneously, the value of the indicator takes a positive value in
2020, which was due to the increase in the volume of exports and the reduction of
imports (Table 3).
Among the countries leading in the production and supply of these products to the
world market, the highest value of the Lafay index is noted in Denmark and Spain.

5 Conclusion

The analysis revealed positive trends in the development of pig breeding in Russia.
Nevertheless, Russian pork producers currently have an insufficient level of compet-
itiveness at the production level and in terms of supply volumes to the world market.
Investment Development and Competitiveness of Pig Breeding … 133

Simultaneously, a positive trend is a decrease in the level of export prices and the
growth of RCA and LFI indicators.
To further ensure investment development and increase the competitiveness of
pig breeding products, it is necessary to develop measures for the functioning of an
effective organizational and economic mechanism. The primary attention should be
paid to the tools and levers to open new markets, compliance of domestic products
with veterinary requirements of importing countries, and improving the efficiency of
pork production to increase its competitiveness in the domestic and foreign markets
by increasing productivity, increasing the genetic potential of livestock, introducing
modern technologies, increasing efficiency of processing, and forming sales network.

References

1. Food and Agriculture Organization of the United Nations (FAO) (2020) Overview of global
meat market developments in 2020. Retrieved from http://www.fao.org/3/cb3700en/cb3700en.
pdf. Accessed 17 Sept 2021
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J Econ Soc Dev XII(2):45–51
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growth: Evidence from developing Asian countries (IDEC Discussion paper 2012). Hiroshima,
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012.pdf. Accessed 20 Sept 2021
4. Koloszko-Chomentowska Z, Sieczko L (2017) Investments in agriculture—case of Poland. In:
Proceedings of the 16th international scientific conference “Engineering for Rural Develop-
ment”. University of Agriculture, Jelgava, Latvia, pp 1509–1514. Retrieved from https://www.
tf.llu.lv/conference/proceedings2017/Papers/N340.pdf. Accessed 6 Sept 2021
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10.1111/1467-9485.5004002
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productivity in Brazilian agriculture: 1985–2004. Rev Bras Econ 63(2). https://doi.org/10.
1590/S0034-71402009000200002
7. Russian Federation (2006) Federal law “On agricultural development” (December 29, 2006
No. 264-FZ). Moscow, Russia
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consultant, Moscow, Russia
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cultural development and regulation of markets of agricultural products, raw materials, and
food” (July 14, 2012 No. 717). Moscow, Russia
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import substitution. Herald Russ Acad Sci 5:478–485
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Retrieved from http://www.gks.ru. Accessed 6 Sept 2021
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mcx.gov.ru. Accessed 31 May 2021
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trade.un.org. Accessed 7 Sept 2021
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Eurasian Economic Union. Agriculture 9(3):61. https://doi.org/10.3390/agriculture9030061
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15. Balassa B (1965) Trade liberalization and revealed comparative advantage. Manchester School
Econ Soc Stud 33(2):99–123. https://doi.org/10.1111/j.1467-9957.1965.tb00050.x
16. Balassa B (1977) “Revealed” comparative advantage revisited: an analysis of industrial coun-
tries, 1953–1971. Manchester School Econ Soc Stud 45(4):327–344. https://doi.org/10.1111/
j.1467-9957.1977.tb00701.x
17. Lafay G (1992) The measurement of revealed comparative advantages. In Dagenais MG, Muet
PA (eds) International trade modeling. Chapman & Hill, London, pp 209–234.
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2021
Management, Marketing, Project
Activities, and Technologies
of Reconstructive Agricultural
Enterprises; Practical Implications
and Challenges for the Power Industry

Alexandr P. Knyazev, Aziza B. Karbekova , Aleksey V. Tolmachev ,

and Khabibulla K. Tagaev

Abstract This chapter develops a complex of applied recommendations for orga-

nizing and developing reconstructive farming of agricultural companies. This
complex includes, first, recommendations in the sphere of management. Attention is
here paid to the problem of human resources management, which becomes more
important due to the increase of digitalization, which is necessary for the tran-
sition of agricultural companies to reconstructive agriculture. The leading smart
technologies—robots, AI, and big data—largely reduce the agricultural companies’
need for personnel and increase the need for digital personnel, the conditions and
character (functions) of which work are specific. This chapter develops the applied
recommendations for mitigating the social consequences of the transition of agri-
cultural companies to reconstructive agriculture and farming. Special attention is
paid to the challenges for energetics due to the growth of the need for automatized
agricultural productions for energy and the perspectives of transition to alternative
energy. Second, recommendations in the sphere of marketing, aimed at the increase
of competitiveness of the products of agricultural companies, which implement the
practices of reconstructive land use, in local and global markets. Main attention is paid
to online marketing as a perspective marketing tool. Also, successful projects (case
examples) based on the wide analysis of the international experience of reconstructive
land use in agricultural entrepreneurship are considered.

A. P. Knyazev (B)
Sebryakovsk Branch of Volgograd State Technical University, Mikhailovka, Russia
e-mail: alex_knjasev@mail.ru
A. B. Karbekova
Jalal-Abad State University, Jalal-Abad, Kyrgyzstan
A. V. Tolmachev
Kuban State Agrarian University Named After I.T. Trubilin, Krasnodar, Russia
K. K. Tagaev
Batken State University, Batken, Kyrgyzstan

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 135
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_16
136 A. P. Knyazev et al.

Keywords Management · Marketing · Project activities · Technologies ·

Reconstructive farming · Agricultural companies · Practical implications ·
Challenges for energetics

JEL Classification A10 · O13 · Q01

1 Introduction

Agricultural companies in this century have an increased need for smart technology
that can be applied in farming. Smart technology allows agricultural companies to
deliver better results from the same pieces of land. This means more profits for the
company; on the other hand, smart technology enables agriculture companies to
reduce labor personnel and resource wastage. There are many benefits that farmers
could reap from the use of technology in their farms. In current world trends, tech-
nology holds the key to successful agriculture. However, there is also the need to
shift from traditional farming methods to reconstructive farming methods.
Reconstructive agricultural practices enable farmers to incorporate their skills,
knowledge, and technology to achieve high quality and quantity yields. This chapter
will focus on the social consequences of transitioning to reconstructive agriculture.
On another note, the increased need for automatized agricultural machinery is another
factor to consider; almost all farms now use modern gadgets that allow them to
reduce the need for labor and increase productivity. This paper will make relevant
recommendations for agricultural companies in the sphere of marketing to have a
competitive advantage over other competing companies; this will enable companies
to fully conform to reconstructive land use in both local and international markets.
This paper will give special attention to online advertising and marketing based on
data from other successful companies.

2 Methods

To investigate all the highlighted problems as stated above, the study uses a mixed-
method research design. The study uses secondary data from scholarly sources and
peer-reviewed academic articles. The data collected relates to the development of
sustainable farming systems in reconstructive agriculture. Data on much agricultural
farming is provided, but while giving a closer analysis to various articles, one realizes
that each farmer uses the technology corporates well with their farm. This shows that
not all technology can be used in any given land. Farmers have to research what
materials they need and prepare for how they will incorporate these technological
developments into their lands.
Using the wrong technology could lead to catastrophic losses. However, vice versa
can profit a farmer by a big margin. For example, if a farmer is planting rice that does
Management, Marketing, Project Activities, and Technologies … 137

well in water, they need to incorporate the right technology to ensure the soil moisture
is always high. Farmers, therefore, need to learn about the right technology that suits
their farms, then proceed and implement them. Data from the OECD shows that out
of 200,345 farmers who were taught how to integrate technology into their small
farms, 174,300 farmers reported increased profits in their yields that year 2012 [7].
These farmers were compared to another group of 340,789 farmers in the neighboring
region who were given technological gadgets such as moisture monitors, but they
were not taught how to use them. The second group of farmers showed a significant
decrease in their yield quantities and qualities [4]. This study used both qualitative
and quantitative studies that relate to the topic of how technology can be incorporated
into farming to enable reconstructive agriculture in farming marketing and managing
agricultural practices.

3 Literature Review

Reconstructive agriculture offers agriculture companies a chance to run their farms

without disruptions from various challenges. Agriculture companies experience chal-
lenges such as increased temperatures that destroy certain crops. Agriculture compa-
nies are also affected by the changing rainfall patterns; this makes it hard for agricul-
ture companies to run their farms normally since they cannot predict weather seasons.
Agriculture companies are also affected by extreme weather events; extreme weather
events have become more frequent in the last five decades [6]. Lastly, agriculture
companies are affected by water shortages; farmers across the world complain they
lack water to sustain their crops. These challenges have become a serious problem,
but reconstructive agriculture offers agriculture companies various solutions that
enable them to continue farming regardless of weather seasons. Each agricultural
company can now increase their productivity and reduce labor personnel if they
apply reconstructive agricultural practices to their farms [3]. Reconstructive farming
offers solutions such as improved traceability of modified agricultural seedlings that
easily thrive even in extreme conditions.
In a study conducted by the organization for economic cooperation and develop-
ment (OECD), the application of reconstructive agriculture is the key to achieving
sustainable farm systems [7]. Each farmer wants their farm to produce more yields
but still maintain solid fertility even in unhealthy soils [12, 13]. Farmers have to turn
to reconstructive farming to enable their lands to heal and recover from infertility.
Results from OECD research study show that adopting reconstructive agricultural
practices with adequate technology boosts farm produce [7]. The application of
reconstructive agricultural practices allows the farmers to improve the dissemination
of technology into the right channels; these increases produce, making the farm more
fertile regardless of the regions and harsh conditions the farm had been exposed to
earlier [9]. The study by the OECD also shows that governments can influence the
application of reconstructive agriculture and especially technology to regions of their
countries.
138 A. P. Knyazev et al.

Technology offers farmers various solutions, for instance, detection of disease,

weeds, and pests that destroy produce. Smart farming, which is also called precision
farming, is an agricultural practice whereby farmers incorporate adequate technolo-
gies into their work, thus improving their productivity. Precision agriculture provides
farmers with global positioning system (GPS) drones and sprayers [8]. These will
help spray crops with fertilizers. Farmers can also use satellite imaging to detect
which crops have been affected by pests; this will enable them to respond faster to
pests. On the other hand, satellite imagining can be used in viewing farms easily
without going around. This will enable farmers to inspect their crops within a short
time and respond effectively.
Technology allows farmers to buy and plant genetically modified seedlings. These
seedlings are pest-resistant in major cases; this allows farmers to harvest better
produce. Modified seedlings grow quickly compared to normal crops, which take
longer to grow [2]. If farmers can access these seedlings and learn how to handle
them, they could harvest within shorter periods. On another note, genetically modi-
fied crops produce more yields; in current times with high populations, producing
high-quality food is of the essence, but producing much food is of higher impor-
tance. Reconstructive farming allows farmers to learn how they can mix crops that
fertilize each other [14]. This means that farmers can plant crops that complement
each other and allow each other to grow faster and with more produce. The issue of
energy is highly considered in this practice; farmers have to consider how they can
channel energy from the sun to benefit them, and they can also use certain plants
to protect each other [1]. For example, in traditional farming, farmers could use
mulching to protect sensitive seedlings from direct sunlight; however, reconstructive
agriculture enables farmers to use greenhouses as nurseries from seedlings. When
these seedlings are transferred to unprotected areas, farmers can still use technology
to measure soil moisture and the effects of certain sun exposure on crops by using
satellite imagery.

4 Results

This study had established that for both small-scale and large–scale farmers to
embrace reconstructive agriculture, the government has to influence them. Govern-
ments can influence their farmers to adopt new technology and modern farming
methods by giving them the necessary tools. Governments that cannot give to their
farmers should aim at reducing taxation for farm raw materials; this will encourage
farmers to pursue agriculture with a passion [11]. This study has also established that
farmers need help assessing technology suitable for their farms, especially in remote
areas where farmers are illiterate. Lastly, this study has established that agricultural-
related technology is dependent on farmers’ preferences, while farmers are also
dependent on technology that developers bring to the market. Thus, this correlation
should be unified to enable them to work together; for instance, manufactures should
collaborate with farmers to produce farm tools that work in the subject’s land.
Management, Marketing, Project Activities, and Technologies … 139

Reconstructive agriculture offers to reuse everything in a farm, and the highest

advantage farmers have by using the reconstructive method is that they will not
waste and resources; in fact, they will save on a lot of raw materials and money in
this method [16]. Reconstructive agricultural farming allows farmers to have a self-
sustaining cycle of resources; for example, harvesting a lot of rainwater and reusing
it in the farm or channeling water from rivers to sustain farms during dry seasons
also.
Farmers should apply reconstructive agriculture depending on their region,
climate, and other factors that affect them, such as development. However, developing
countries must realize that technology is better than traditional farming because they
will reap tremendous benefits. Reconstructive agriculture allows farmers to incor-
porate technology into their previously built knowledge; through this, farmers will
harvest more food in a shorter time [2]. On the other hand, farmers can use recy-
cling processes in their farms; for example, livestock waste can be used as manure
in farms, but since these methods are outdated, and farmers can buy genetically
modified seedlings that will grow faster than convert manure to biogas which can be
used as energy to keep greenhouses warm. However, the challenge with this proposal
is that it is expensive for small-scale farmers; however, it would favor large-scale
companies [5].
Various scholars have also demonstrated that reconstructive farming is proving to
be flexible regardless of the farmer’s location [15]. Reconstructive agriculture would
enable farmers to resolve energy issues that regularly depress agricultural companies.
Reconstructive farming would allow farmers to use little energy, and even then, they
could produce half of this energy; for instance; in the above paragraph, a clear
recycling system explained how farmers could use livestock waste as manure which
will be converted to biogas which can be used to warm greenhouses in cold regions,
and the same energy can be used to marinating cooling facilities for succulent and
perishable goods.

5 Discussion

Since many farmers are dependent on governmental assistance to purchase tools and
raw materials on the farm, the government’s agricultural sector should be developing
programs to teach farmers how they can buy cheaper raw materials and farm gadgets.
Governments in developing countries should also develop educative programs to
teach farmers how they can market their produce [10]. Many farmers have good
products, but they sell them at poor rates, thus depressing them more; however, if
the government could develop sustainable systems to constantly educate farmers
on marketing and market changes, then there would be greater hope for farmers.
Farmers need to develop better networks among themselves so that they can educate
each other, and they could use social media platforms such as Facebook, WhatsApp
groups, and others. The role of education in farming is so great that this study could
140 A. P. Knyazev et al.

not emphasize enough on benefits of having educated farmers who can incorporate
modern technology into their practice.

6 Conclusion

This study has established that farmers can create sustainable farming by applying
reconstructive agricultural practice and incorporating necessary technology in their
farms. However, the essence of this study cannot be eliminated as it has enabled
the establishment of very relevant data for agricultural companies. All agricultural
companies should consider their regions, climate changes, soil type, and texture;
this will enable them to develop better strategies for advanced farming. On the other
hand, agricultural companies need to remain educated on the constantly evolving
technology. With adequate education, farmers both on a small scale and large scale
can learn valuable knowledge on improving their productivity. Lastly, this study
recommends:
(1) That governments should support farmers, and this can be done when
local governments develop teaching programs that educate farmers on new
technology and how they can incorporate modern technology into their
practice;
(2) Farmers should work together with manufacturers to customize gadgets to their
preferences, farmers should collaborate with manufacturers of farm tools, and
this will enable manufacturers to design tools that farmers can easily use. This
would result in highly applicable tools since farmers can easily adopt gadgets
that they understand how to use on the farm;
(3) Farmers should learn continually; education should be a consistent process for
farmers so that they can learn about the dynamic technology in reconstructive
agriculture.

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Innovative Development of Agriculture
Based on Disclosing the Entrepreneurial
Potential of Enterprises
in the Agricultural Sector: Patterns
of Developing Countries and Peculiarities
of the Kyrgyz Republic

Kubanych K. Toktorov, Mukaddas A. Dzhorobaeva,

and Shukurbek I. Kadyrov

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of the production factors of the agricultural sector’s enterprises. Based on the theory
of entrepreneurship (in particular, the essential ideas of J. Schumpeter) and the
key essential characteristics of entrepreneurship as a scientific category, which is
connected to the manifestation of innovative activity, the authors study the specifics
of the practical implementation of this characteristic in the activities of the agricul-
tural sector’s enterprises. Based on the materials of “The Global Innovation Index
2021” by WIPO, the authors study the innovative development of agriculture based
on the disclosure of entrepreneurial potential of the agricultural sector’s enterprises;
also, the common regularities among developing countries with special attention to
the experience of the Eurasian Economic Union (EAEU) and the specifics of the
Kyrgyz Republic are determined. The authors describe the barriers on the path of the
innovative development of agriculture based on the disclosure of the entrepreneurial
potential of the agricultural sector’s enterprises, which are peculiar for developing
countries on the whole. Based on this, recommendations in the sphere of state and
corporate management, aimed at the systemic overcoming of the described barriers
in the Kyrgyz Republic, are offered.

Keywords Innovative development · Agriculture · Disclosure of entrepreneurial

potential · Enterprises of the agricultural sector · Regularities of developing
countries · Specifics of the Kyrgyz Republic

JEL Classification A10 · O13 · Q01

K. K. Toktorov (B) · M. A. Dzhorobaeva

Osh State University, Osh, Kyrgyzstan
e-mail: toktorovk70@mail.ru
S. I. Kadyrov
Batken State University, Batken, Kyrgyzstan
e-mail: shurik_87.07@inbox.ru

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 143
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_17
144 K. K. Toktorov et al.

1 Introduction

Within the developing smart city phenomena, cultural subtlety, human behaviour, and
social identity demand more consideration. The writers examine research studies on
the topic of urban identity development and the key variables that influence it. The
creation of a smart urban environment is emphasized as a crucial aspect of a modern
growing metropolis. The current conversation on smart cities is preoccupied with
technical capabilities and progress. The authors stress the importance of functional
and content components in the creation and usage of smart technologies; the content
components must take into consideration the uniqueness and psychological charac-
teristics of the region. Cities are reduced to a one-dimensional business model and a
set of measures in global rankings [16].
This chapter investigates the significance of implementing innovative technology
growth initiatives through public–private partnerships. The types of risks in PPP
projects are discussed, as well as the likelihood of their emergence depending on the
stage of implementation of the innovative project, which includes: the formation of
PPP policy; preparatory and commercialization of the results of joint activities; and
monitoring and control over project execution. The modern city is the city of media;
various digital networks and media technologies exist in it and have long ceased to
be merely advertising and communication tools; instead, they now dictate to citizens
a way of life and ideas of time and space, as well as influencing city planning and
architectural fashion [9].

2 Methods

This chapter employs a qualitative technique for data gathering and analysis, as this
is preferable when the phenomenon is novel. This is related to our goal and the
researchers’ position concerning the data. For this, researchers are independent of
data and rely mostly on existing ones, since it attempts to determine the truth of what
has occurred in accordance with policies and programmes. Documents of various
kinds can assist the researcher in discovering meaning, developing knowledge, and
discovering insights related to the study topic. It may be used in conjunction with
other research techniques as well as a stand-alone method. Documents comprise text
and images that were captured without the assistance of a researcher and come in a
variety of formats [3].
Our sample for document selection is mostly based on ‘where’ and ‘whom’. The
timing of document release and publication should not be a problem in sampling
since policy and plan papers in urban development encompass a time range and
establish the development road maps for the future.
In actuality, this criterion takes effect after the document’s timetable has been
completed and replaced with the new one. The majority of major strategy and policy
publications are available in both English and Kyrgyz [1].
Innovative Development of Agriculture Based on Disclosing … 145

3 Literature Review

In comparison to other emerging areas, developing Asia has seen a slower drop in
agricultural employment share relative to production share; rapid rise in labour and
land productivity; and a change in agricultural output from conventional to high-value
goods. The Kyrgyz Republic is a mountainous, landlocked nation in Central Asia
with a low-middle income. It has abundant natural resources such as minerals, woods,
arable land, and pastures, and it has a large potential for agricultural growth. Given
that, agriculture is still the major employer in many large Asian nations; discussions
about structural reform must include this industry [4].
A plan that emphasizes the importance of agriculture in development can assist the
poor find their way out of poverty by improving agricultural livelihoods, increasing
skilled jobs in rural regions, increasing market access for smallholders, and estab-
lishing efficient value chains [18]. Governments may continue to implement price
policies and subsidies, but their emphasis should shift away from supplanting market
forces and towards ensuring predictability of agricultural investments, protecting
poor households, upgrading along the agriculture value chain, and addressing
externalities, blockages, and coordination failures in private and public investments.
The mix of emerging Asia’s agricultural production has moved from conventional
to high-value items [7]. Kyrgyzstan, however, has a high rate of poverty. Over 60%
of the rural population is impoverished or at risk of falling into poverty.
Kyrgyzstan’s location and terrain make it extremely sensitive to climate change.
The shift in agricultural output composition happened as part of a larger diversifica-
tion known as the agribusiness transition, which involved input suppliers (logistics
businesses, farm equipment manufacturers, and other business service providers).
Because contemporary market infrastructure has not yet been completely created to
replace it, the collapse of the Soviet Union in 1991 necessitated the reorganization
of formerly centralized agricultural systems [12].
Over the previous two and a half decades, the KR’s general economic progress
has been hampered by a series of economic and political problems. Some feel that
the global financial crisis in 2008, which resulted in many migrants returning home,
contributed to the deterioration. The 2008–2009 economic condition and food crisis
resulted in political upheaval in 2010. Poverty levels in the country remain high. In
2015, the national poverty rate was 32.1% [11].
During the transition era, agriculture was the first sector to recover from the
economic downturn. Smallholders make up the vast bulk of Kyrgyz farmers. The
first aim was to increase fair and sustainable returns for smallholders by enhancing
services and creating livestock product value chains that enable rural producers,
mostly smallholders, to benefit from market possibilities. During times of heavy
unemployment and urban-to-rural migration, the restructuring of large-scale state
farms into small-scale farms enabled agriculture to serve as a ‘safety net’ for a
substantial proportion of the Kyrgyz population.
146 K. K. Toktorov et al.

The move from subsistence to commercial farming was anticipated once the tran-
sition reforms were enacted and the economy stabilized, but it appears to be hampered
by several unsolved market failures and inadequate governance [15].
Conservation agriculture has been recognized as a promising intervention for the
production of wheat, sunflower, barley, maize, potato, and sugar beets [14]. It has
the potential to prevent soil deterioration, increase productivity and resilience, and
lower production costs. In the northern area, technology for maize and sugar beet
cultivation has just been trialled. In addition, FAO has conducted a cultivation pilot
experiment on roughly 300 hectares of wheat. Furthermore, cover crops including
leguminous species, [17] the use of organic fertilizers, the development of local and
stress-tolerant cultivars, and integrated pest control methods have been recognized
as viable approaches across major production systems. Smallholder farmers use the
technology at a rate of approximately 30%.
There are now around six hundred and seventy-six greenhouse farms with a total
area of 65 hectares and a production capacity of 2,166 tonnes of produce per year.
This amount is inadequate [6]. Out of season, when farmers do not harvest from the
fields but solely from greenhouses, the domestic market receives no more than 20%
of the entire output necessary. Incorporating big data analysis and modelling is also
critical to enabling informed decision-making in the immediate and long term [2].
Water-saving technology is essential for farmers’ well-being. Although some
small-scale farmers have already used drip irrigation technology, wider adoption may
be achieved with an inclusive strategy that brings together stakeholders from across
the crop and livestock value chains. Promotion of rotational grazing systems, building
of pastureland infrastructure, breed selection, and waste management measures are
all relevant CSA activities for livestock production. Long-term application of these
strategies has the potential to increase agricultural productivity and soil fertility [10].
Catalysing agricultural growth in livestock by shifting away from input-driven
exports of unprocessed commodities towards value addition sustainable production,
agricultural innovation, food quality and safety, inclusive and comprehensive value
chain development [8] and resilience to climate change, natural disasters, and other
external shocks is regarded as a genuine opportunity for rural transformation.
Initially, these changes appeared to have resulted in a favourable reaction in
economic development, particularly in the agricultural sector. For the first time
since independence, GDP expanded at 5.7% in 1996, the budget and current account
deficits were shrinking by 1997, and the country was gradually heading towards
macroeconomic stability [5].

4 Results

Two different measures are used to estimate the real exchange models. The robust-
ness of the results was further confirmed by multiple model parameters. Hansen’s
J-test was used to check for over-identifying constraints in the 2SLS and GMM 3SLS
Innovative Development of Agriculture Based on Disclosing … 147

estimates, with p-values greater than 0.05 indicating that the instruments were appro-
priately removed from the model. When the coefficient for this variable is positive
and substantial, growth in terms of trade leads to a real exchange rate appreciation of
the Kyrgyz som. In the majority of the model estimates, the trade openness variable
has a positive significant influence on the real exchange rate. This indicates that all
else being equal, less limited trade led to an increase in the Kyrgyz Republic’s actual
exchange rate.
The negative and significant impact of remittances on agriculture may also be
explained by the fact that out-migrated labour was primarily from rural regions where
they were previously employed in agriculture [19]. The sector is anticipated to shrink
owing to remittances due to the appreciation of the real currency rate, out-migration
of labour, and the likely transfer of labour towards non-tradable.

5 Discussion

When considering the influence of remittances on recipient nations’ economic

growth, we must bear in mind the numerous ways in which this process might occur,
among which the Dutch disease characteristics are only one. Absolute deindustrial-
ization was a natural part of the transition process in the Kyrgyz Republic, as it was
in many other former Soviet Union nations.
Remittances may have helped to stabilize the Kyrgyz economy by responding to
local economic and political volatility and balancing out income shocks. However, it
is unclear whether this occurred as a result of remittance investment in that industry
or as a result of the Kyrgyz som’s devaluation against the Russian rouble. Agricultural
exports must have worsened as a result of significant structural issues in the industry,
such as underinvestment, a lack of machinery and other inputs, low productivity, and
undeveloped value chains.
Overall, the results show that Kyrgyz exports lost worldwide competitiveness as a
result of remittances when the exchange rate with the US dollar is taken into account.
Remittances, on the other hand, appear to have led to a genuine depreciation of the
Kyrgyz versus the Russian. Our findings indicate which industries have improved
and which have worsened as a result of the huge increase in remittances.

6 Recommendations

Since its independence, the Kyrgyz Republic’s agricultural sector has been heavily
influenced not just by government policies in this area, but also by some important
changes in the macroeconomic environment. The purpose of this chapter is to elabo-
rate on government agricultural policies as well as certain significant macroeconomic
developments to have a better understanding of how these policies and economy-wide
148 K. K. Toktorov et al.

trends influenced agricultural development in the Kyrgyz. There were several sepa-
rate policy acts for certain years or a few years that were later changed. The regression
findings show that a considerable portion of the price rise in the importable sector
gets passed on to the exportable industry as an implicit tax [13].
When one considers the consequences of WTO admission for agricultural trade
development in Kyrgyzstan, one can observe that structural changes in agricultural
trade have been significant since entry. Accession to the WTO does not appear to have
increased access to new export markets. Furthermore, the diversification of agricul-
ture and food product trade exports was significantly lower than that of imports. The
major cause for this is the agro-processing industry’s low competitiveness owing to
a lack of technology. Prohibitively high trade costs as a result of undeveloped infras-
tructure, being a landlocked country, corruption, and small size create a significant
obstacle to Kyrgyz exports, particularly agricultural exports.
A significant policy conclusion of both studies on international migration is that
the government should foster and encourage the investment of workers’ remittances
in productive industries, such as agricultural and animal production.

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BS (ed) Exploring the future of Russia’s economy and markets: towards sustainable economic
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ness of rural areas: formation, assessment, growth reserves aspects. In: IOP conference series:
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Environmentally Friendly Technologies
in Municipal Infrastructure Projects
as a Factor of Regional Sustainability

Svetlana B. Globa , Evgeny P. Vasiljev , Dmitry V. Zyablikov ,

Nina M. Butakova , and Viktoria V. Berezovaya

Abstract The aim of the work is to study the main aspects of the sustainable func-
tioning and development of life support systems, which make it possible to form a
stable, safe, and comfortable working and living environment for residents of the
region. The authors believe that measures for the development of individual engi-
neering systems (water supply, heat supply, sanitation, electricity, and gas supply)
should be part of a comprehensive strategic project as components in order to form a
unified, technologically feasible, and economically affordable integrated approach to
the development of life support systems, taking into account the possibility of inter-
changeability of certain types of energy resources, requirements for energy efficiency
and energy conservation of municipal resources, application of a unified territorial
development plan.

Keywords Environmentally · Friendly technologies · Municipal infrastructure

projects · Regional sustainability · Engineering systems

JEL Classification Q48 · Q56 · Q57 · Q53 · O33 · L97

1 Introduction

Recently, there has been an active introduction and evaluation of the characteristics
and indicators of sustainable development. At the state and regional levels, programs

S. B. Globa (B) · E. P. Vasiljev · D. V. Zyablikov · N. M. Butakova · V. V. Berezovaya

Siberian Federal University, Krasnoyarsk, Russia
e-mail: sgloba@sfu-kras.ru
D. V. Zyablikov
e-mail: DZyablikov@sfu-kras.ru
N. M. Butakova
e-mail: nbutakova@sfu-kras.ru
V. V. Berezovaya
e-mail: VVBerezovaya@sfu-kras.ru

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 151
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_18
152 S. B. Globa et al.

and strategies for sustainable development are being adopted. It also changes the
attitude of society in terms of environmental quality requirements—residents of
both large cities and small settlements think about a more environmentally friendly,
comfortable, and favorable living environment.
An important role for the sustainable development of a region and ensuring the
quality of life of the population is played by the high quality of public services
and their accessibility for residents of all its territories. It is also necessary to ensure
reliable and uninterrupted functioning of housing and communal infrastructure facil-
ities, along with increasing their environmental friendliness, energy efficiency, and
economic efficiency from the point of view of the integrated development of modern
engineering life support systems [1, 4, 14, 15].
The state of municipal engineering infrastructure largely determines the current
characteristics and potential of the residential sector and public utilities. Thus, the
quality of communal water supply networks determines the availability, purity and
temperature of the supplied water, continuity, and serviceability of water disposal
[3, 5].
The activities of municipal enterprises also have an impact on the environment.
Thus, water from surface and underground sources is used for domestic and industrial
water supply purposes. In turn, wastewater treatment is often insufficient due to the
deterioration of water purification facilities, as well as the use of outdated wastewater
treatment technologies. Thus, about half of the volume of discharge of polluted
wastewater into natural water bodies in Russia is carried out by enterprises of housing
and communal services [2, 13].
Operating boiler houses of centralized heat supply systems emit a large amount
of pollutants and harmful substances into the atmosphere. Household and industrial
waste placed in organized landfills and illegal dumps pollute the soil due to the lack
of organization of sorting, recycling, and safe disposal of waste.

2 Materials and Methods

The condition and development of municipal infrastructure are influenced by its

actual state, as well as factors shaping current and future needs: the level of civil and
industrial; population size and its change; industrial development.
Recently, there has been a trend of mass housing construction in large cities
without taking into account the affordability of utility services. This has led to an
increase in imbalances, obsolescence of existing infrastructure, and accidents [11].
The housing and utility sector is one of the most difficult elements of the func-
tioning of the territory. It is necessary to ensure uninterrupted supply of heat, water,
electricity, and gas to all types of buildings, provide their proper quality and safety,
and minimize the negative impact on the environment. This requires a large amount
of repair, cleaning, and preventive work on engineering networks and structures, the
efficiency of emergency services, a high level of public utilities management [2].
Environmentally Friendly Technologies in Municipal … 153

The main components of the municipal infrastructure are water and energy
facilities, including water supply and sanitation systems, electricity, heat, and gas
supply.
It seems important to highlight the most pressing problems of the development
of municipal infrastructure:
• morally and technically outdated equipment and technologies that do not meet
modern requirements in the field of environmental protection and environmental
safety;
• outdated structures built 40–50 years ago that require repair, reconstruction and
modernization, the introduction of digital technologies and automation;
• obsolescence of existing pipelines, treatment facilities and energy sources,
limiting their potential capacity and throughput;
• a high percentage of internal corrosion of pipes, causing contamination, and
deterioration of water quality after its purification;
• high level of losses and unaccounted-for water consumption due to low network
capacity and their high level of wear and tear;
• low indicators and imperfection of technologies of water treatment, processing,
and disposal of used water resources;
• constantly emerging unauthorized dumps of household and industrial waste,
which must be eliminated and further placed on landfills without sorting and
the possibility of recycling;
• the need for construction of the site for the use, decontamination, and disposal
of waste in order to reduce the negative impact on the environment and ensure
environmental safety;
• high volumes of accumulated litter on the streets caused by the melting snow cover
during the winter period, as well as high dustiness in the summer due to untimely
and incomplete street cleaning, improper arrangement of lawns and coverings;
• lack of a high-quality storm water system, leading to abnormal ingress of storm
water and meltwater into the domestic sewage system;
• lack of a unified approach to separate waste collection, sorting and recycling;
• the increasing complexity of repairing the utility infrastructure, due to the high
density of buildings, the impossibility of long-term traffic restrictions on pipe
sections;
• increase in the probability of man-made accidents due to non-compliance or
absence of a special regime of economic activity in the protected areas of
dangerous municipal infrastructure facilities (gas pipelines, etc.).
The conducted research has shown that most of the problems of the current state
and prospective development of municipal infrastructure are interrelated and have an
impact on the ecological status of the environment and the standards and quality of
peoples’ lives—the main characteristics of sustainable development of the territory.
In addition, the shortage of clean drinking water has been increasing recently, the
provision of which is one of the goals of sustainable development. Therefore, it is
important to ensure reliable and uninterrupted functioning of housing and communal
154 S. B. Globa et al.

infrastructure facilities, ensuring safety and preservation of the environment through

the use of nature-saving technologies at all stages of the life cycle.
Thus, without solving the problem of comprehensive modernization and devel-
opment of municipal infrastructure, it is impossible to provide:
• the needs of innovative development of the economy and social sphere;
• the increase of the energy efficiency of public utilities, reliable and uninterrupted
operation of the main life support systems;
• a high level of quality of public services provided, taking into account environ-
mental requirements;
• the long-term sustainable development of housing, civil and industrial construc-
tion in the region.

3 Results

The main principles of forming a program for the development of utility infrastructure
for the sustainable development of the region should be:
• the use of technologies that ensure the standard quality of resources entering build-
ings (water, gas, heat, energy) and the reduction of utility accidents; environmental
and sanitary-epidemiological safety of the territory;
• application of energy-efficient and energy-saving materials and technologies;
• development of alternative energy sources that minimize environmental pollution;
• accounting for emerging agglomerations and the development of satellite cities.
Schemes for the long-term development of heat supply, water supply, and sani-
tation systems must comply with territorial planning documents and the program
for the integrated development of municipal infrastructure systems of the territory,
taking into account power supply schemes, gas supply, as well as development plans
for adjacent territories [6–10, 12].
Moreover, there are two possible ways to solve the problem:
(1) An integrated approach to providing the territories of the municipality with
municipal resources of appropriate quality in the volume necessary for
intensive development.
Strengths of this method:
• systematic, comprehensive provision of built-up territories with communal
resources, in accordance with their priority and the order of precedence
determined by the master plan;
• development of engineering systems in accordance with the approved
schemes of heat, gas, electric water supply, and sanitation to ensure the
long-term development of the region, taking into account long-term plans;
• updating the technical base; improving reliability, preventing accidents in
the operation of systems;
Environmentally Friendly Technologies in Municipal … 155

• satisfaction of the need to obtain a communal resource, improvement of

the comfort of living of the population by increasing the engineering
arrangement of territories;
• ensuring the possibility of using interchangeable energy resources and alter-
native energy sources to provide utilities of appropriate quality in remote
areas;
• the possibility of technological connection of new consumers in the planned
terms.
The weaknesses of this option include:
• high cost of construction of new and reconstruction of existing facilities,
the installation of new utility systems;
• there is a potential risk that the requested capacity will exceed the network
capacity during the reconstruction of facilities for an extended period of
time;
• the lengthy of registration of initial-permissive documentation (including
registration of land plots for the construction of line structures, state
expertise of project documentation).
2. Maintenance of engineering structures in a safe operational condition by
carrying out capital and routine repairs, connection of capital construction facil-
ities being put into operation in accordance with the submitted applications for
connection (technological connection) at the expense of developers.
The strengths in this case include:
• low investment costs, ensuring minimum operating parameters of resource
supply systems;
• maintenance of utilities of the city in working condition.

Weaknesses of this method:

• shortage of utility resources to meet the long-term needs of new connections;
• non-compliance of the quality of water supply and sanitation services with
modern requirements;
• high proportion of dilapidated and emergency utility infrastructure;
• insufficient provision of environmental safety of the territory;
• lack of development of the heat supply system, deterioration of the hydraulic
parameters of heating networks in the long term;
• the slowdown in the pace of development of buildings due to the lack of
reserve capacity.
We will highlight the main scenarios for the modernization of municipal
infrastructure for various types of territories.
(1) For existing residential areas.
Such territories are characterized by the highest degree of physical and
moral deterioration of networks; high density of engineering communications;
deficits in the capacity of network infrastructure.
156 S. B. Globa et al.

Measures are needed to reduce the level of deterioration of communications

and increase the capacity of the network infrastructure; improve the quality of
public services; implementation of programs for the development of built-up
areas.
(2) For new urban districts and complex building development of the territories.
Such territories are experiencing a shortage of free capacity and are characterized by a high
cost of connection to communal systems. In this connection, it is necessary to create modern
energy-efficient resource supply systems; switching to new energy sources.

(3) For remote territories and territories not provided with communal infrastruc-
ture.
Such territories are often characterized by aggressive use and waste of natural
resources (e.g., heating with firewood, coal or burning of petroleum products); lack
of technologies for cleaning, sorting and disposal of waste, environmental pollution.
Investments are needed to ensure equal access to high-quality public services for
all residents, the creation of new resource supply systems.
Solving the problem will lead to the following effects:
• improving the reliability of life support engineering systems, their economic
efficiency and environmental safety;
• balanced provision of resources for all areas and facilities, energy security;
• ensuring the pace of development of the territories of the region, increasing invest-
ment attractiveness, the absence of restrictions related to connection to utilities,
their availability for new construction;
• improvement of tariff and investment policy;
• ensuring the rational use of resources;
• reduction of losses in the production and transportation of resources;
• improvement of the ecological state of the environment;
• improving the quality of life of the population.

4 Conclusion

The communal infrastructure provides satisfaction of vital needs of the population.

The development of public utility infrastructure contributes to overcoming territorial
imbalances, ensuring equal conditions for the comfortable life of residents of various
territories of the region.
It is the degree of development of communal infrastructure that is one of the
dominant factors in improving the quality of life of the population. The level of
development of municipal infrastructure is the most important factor of activity in
both production and the social sphere, as well as a factor in the formation of the
territorial structure of the economic complex of the region.

Acknowledgements The research was carried out within the framework of the research grant
of the Krasnoyarsk Regional Foundation for the Support of Scientific and Scientific-Technical
Environmentally Friendly Technologies in Municipal … 157

Activities on the topic “Development of models of financial support for investments in the municipal
infrastructure of the region, taking into account the best Russian and world practices and features
of the spatial and territorial development of the Krasnoyarsk Territory,” No. CF-835, agreement on
the procedure for targeted financing No. 226 dated 20.04.2021.

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Implementing the System for Submitting
and Implementing Improvement
Proposals as a Lean Production Tool

Tatyana A. Chekulina , Natalya A. Dumnova , Svetlana A. Orlova,

Irina A. Rykova , and Elena E. Uvarova

Abstract Associated with the implementation of regulatory and legislative acts and
post-pandemic development, the transformation of conditions for developing the
production environment in enterprises has led to the necessity of using tools to modify
the system of production enterprises. The system for submitting and implementing
improvement proposals serves as this toolkit. This system is a tool of lean produc-
tion methodology. Lean methodology forms the basis for implementing improvement
proposals. Nevertheless, it does not emphasize the algorithm of actions. This feature
determines the relevance of the topic, which consists of developing the issue of
introducing a system for submitting and implementing improvement proposals in
production. The research purpose is to consider the system of submitting and imple-
menting improvement proposals as a tool of lean production at the enterprise level.
The authors consider the stages of introducing a system of implementing improve-
ment proposals in the enterprise. The authors also offer a system of efficiency and
diagnostics of the improvement project in the enterprise. The peculiarities of risk
formation in the process of project improvements are highlighted. The authors imple-
ment several research tools, including adaptation, practical application-experiment,
design, the transformation of internal changes, visualization, grouping, comparison,
benchmarking, and identification of risks.

Keywords Lean production · Proposal system · Production process · Risks ·

Technological process · Employee KPI

JEL Classification E20 · E27 · D91

1 Introduction

Continuous improvement is the basis for the sustainable development of the enter-
prise’s production system. It unlocks the potential and professional development of

T. A. Chekulina (B) · N. A. Dumnova · S. A. Orlova · I. A. Rykova · E. E. Uvarova

Orel State University of Economics and Trade, Orel, Russia
e-mail: oreloguet@yandex.ru

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 159
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_19
160 T. A. Chekulina et al.

enterprise employees, increases the efficiency of production and support processes,

improves product quality and customer satisfaction, strengthens product competi-
tiveness, and increases business sustainability. The continuous improvement process
is aimed at shaping the thinking style and daily behavior of employees of the enter-
prise and developing a corporate culture of continuous improvement. To implement
this process, it is established that employees performing standard operations on a
daily basis should have their own algorithm of understanding and know the way
to improve it. Continuous improvement of processes helps employees make work
activities safer, more convenient, and more efficient.
An improvement proposal is a technical or organizational solution that is new and
useful to the company and involves a change in the existing way of performing or
organizing work and in the design of products or equipment used [1]. As a tool of
lean production, improvement proposals allow for the following:
1. Strengthening the role and importance of employees in production facilities and
offices while reducing costs and increasing the profits of enterprises [2];
2. Implementing creative initiatives aimed at improving technical and economic
potential [3];
3. Reducing inventories and losses that significantly impact the achievement of
the company’s goals [4].
Despite the sufficient elaboration and importance, the tool for implementing the
system for submitting and implementing improvement proposals in the enterprises of
the Russian Federation is used quite rarely. This condition is caused by the absence
of the following:
1. Culture of improvement and change management at the corporate level;
2. Algorithm for implementing improvement projects;
3. Systems for motivating employees to offer ideas that have an economic and
technological effect on the company.
The elimination of the barriers indicated above will allow enterprises to focus
on the possibility of using this tool of lean production to apply the knowledge of
employees to identify bottlenecks that form the key losses and minimize the profits
of enterprises. This condition determines the relevance of the chosen research topic.
The paper aims to consider the system for submitting and implementing improve-
ment proposals as a tool of lean production at the enterprise level. The research
objectives are as follows:
• To consider the stages of introducing the system for implementing improvement
proposals within the enterprise;
• To propose a system for evaluating the effectiveness of the improvement project
at the enterprise;
• To assess the role of risk during the implementation of improvements.
Implementing the System for Submitting and Implementing … 161

2 Materials and Methods

The methodological basis of the research is approbative. On the one hand, the system
for implementing improvement proposals is implemented in the activities of several
large economic entities (e.g., Rosatom Corporation). In this case, the research tools
are methods of adaptation, practical application of experiment, design, and transfor-
mation of internal changes [5]. On the other hand, the fragmentation of approaches
to the system for implementing improvement proposals has led to the formation of
public demand for a unified representation and understanding of lean production tools
to implement and streamline the production and technological process of enterprises.
In this case, the instrumental features will be manifested through the application of
the method of visualization, grouping, comparison, staging, and identification of
risks [6, 7].

3 Discussion

It is necessary to note that the system for submitting and implementing improvement
proposals is a universal tool [8]. This feature shows the multifactorial applicability
of the system for submitting and implementing improvements to various areas and
processes of design and production activities. From the models presented above, in
terms of design and production activities, let us consider the process of implementing
a system for submitting and implementing improvement proposals as a lean manu-
facturing tool. To date, the system for submitting and implementing improvement
proposals is presented in the methodology of the national project “labor produc-
tivity” [9]. Despite the elaborateness of this methodology, the applicability of the
considered toolkit is limited to the following:
1. Narrow focus of algorithmic proposals within industrial activities;
2. Specialized activities aimed at systematizing flow conditions limit the applica-
bility of the considered toolkit.
Thus, it is proposed to introduce the author’s system for implementing improve-
ment proposals within the enterprise (Fig. 1).
The identified system for implementing improvement proposals within the
enterprise is based on a four-step algorithm:
1. Identifying the problem and submitting proposals for the project;
2. Diagnostics of the process improvement project;
3. Risk assessment of the process improvement project;
4. Implementation of improvements in the enterprises’ activities.
162 T. A. Chekulina et al.

1. Identifying the problem and Conducting an internal survey, creating a card of the
submitting proposals for the improvement project, and creating info centers for
project improvement project

2. Diagnostics of the process Analyzing business entities and compiling a matrix of

improvement project the current and ideal state

3. Risk assessment of the process Forming the risk pool of the improvement project
improvement project

4. Implementation of Introducing measures to implement and consolidate

improvements in the enterprises’ changes
activities

Fig. 1 Stages of introducing the system for implementing improvement proposals within the
enterprise. Source Compiled by the authors

4 Results

Thus, the stage of identifying the problem and submitting proposals for implementing
the project in the enterprise plays an important role in the system of improvement
proposals. The measure to identify problems is multifactorial; it is constructed on
two prerequisites—an analysis of the current situation and an internal questionnaire.
The analysis of the current situation within the enterprise is based on obtaining
relevant information that allows building a decomposed system of goals and results
in the context of the implementation of project and production activities [10]. If
the system of improvement proposals is introduced in the areas of services, then
the group of analysis indicators should be correlated following the objectives of
this direction of the national economy. To study and analyze the current state of
the production enterprise, the authors propose using the indicator base proposed in
the order of the Ministry of Finance of Russia “On approval of the methodology
for calculating the aggregate added value received in the territory of an industrial
park, industrial technopark, or technopark in the field of high technology” (June
16, 2017, No. 94n) (value-added indicator) [11], a process running time, work-in-
process, company revenue for the reporting period, product labor intensity, fund
of time worked by production workers, the current labor intensity of the product,
product output per employee, labor efficiency of production workers, and defect rate
factor. The indicators highlighted above will help us form a holistic picture of product
development.
After analyzing the current state, it is expected to implement internal question-
naires to enterprise employees. The internal questionnaire system is a key link
Implementing the System for Submitting and Implementing … 163

in getting improvement proposals to the project office—the system from internal

customers—employees of enterprises. The internal questionnaire may ask questions
regarding:
• Satisfaction with the current state of the processes (e.g., “Are you satisfied with
the communication between the workshop and the management structures?”);
• Focusing on problems (e.g., “Are quality requirements always fulfilled according
to the standard?”);
• Project management (e.g., “What area of activity at the company can you identify
as a bottleneck?”).
These questions broaden the understanding of the problems existing in production
processes in enterprises. As internal customers of the production process, employees
can provide valuable suggestions on optimizing this process. Additionally, it is neces-
sary to delineate the allocated tools. To a greater extent, the tool of analysis of the
current situation is formed by employees of the management unit; the internal ques-
tionnaire is conducted among production workers who know the problems in their
areas. The system of internal questioning shows the first barrier associated with
change and the lack of desire among production workers to participate in addi-
tional activities, including project activities. In this case, the system of improvement
proposals requires a focus on the administrative and regulatory mechanisms within
the measure. Simply put, a system of improvement proposals should be enshrined in
the order of the enterprise and, in some cases, the standard.
The next activity in the phase of problem identification and project proposal is
creating the card of an improvement project. This step is implemented after the
analysis of the current state of the enterprise and the opinions of the internal clients
confirmed by a questionnaire. A project card is made to identify a problem, the
solution to which is fixed in the form of the implementation of project activities.
The project card is a structured, customer-approved project idea, which aims to meet
the needs of the internal client and the rationale for the choice of regulation of this
solution. The focus of the project card is based on checking the correctness of the
data filled in the blocks: “involved persons and project framework”—justification
of the project roles of internal customers, “justification of choice”—focus on the
problem as a key factor for improvement and “key events”—alignment of stages and
activities to implement the actions of the project activities. To form a project card, it is
necessary to formulate the project’s objectives and indicators of its implementation
(goals are correlated with the principles of SMART and the indicators—with the
current position of the company). To fix the indicators in the project, the authors set
the target values defined as the potential opportunity to solve the problems stated in
the rationale for selecting the project. When implementing this activity, it is necessary
to reduce the level of errors in the drafting of the project card, namely
• No standard template is used;
• The choice of project topic is not related to the overall goal of the company;
• The set goal does not solve the key production problem;
• The boundaries of the project are not clearly marked;
164 T. A. Chekulina et al.

• No quantitative indicators;
• The end consumer is not clearly defined;
• Risks are reduced to production losses.
The actualization of the formed actions is reflected in the info center of the
enterprise. Info center allows tracking the project’s progress, implementing specific
measures to optimize the process, and evaluating progress in achieving the project’s
objectives. As part of the use of the info center, it is necessary to fix the following
rules that allow applying this tool as the main block of relevant information:
1. Place an information board in the unit together with the project implementation;
2. Hold project meetings on improvements only near the info center;
3. Identify those responsible for filling the info centers;
4. Info center needs to visualize everything that helps the team of the improvement
project to make better and smarter decisions.
The second stage of introducing the system to implement improvement proposals
within the enterprise is the diagnosis of the project to improve processes. At this
stage, it is necessary to collect all information about the current state of the produc-
tion process, identify current problems, analyze their causes, and draft solutions to
improve the project’s state. The second stage stems from a comprehensive analysis
that achieves the ambitious goals of the project.
Conducting an analysis of business entities and compiling a matrix of the current
and ideal state is based on the study of processes from the stage of procurement of
production materials to the stage of product sales. The analysis of business entities
in the production enterprise requires the assessment of the following:
• Movement of material flows;
• Rules of the movement of material flows and information accompanying it in the
direction from the previous operation to the next one;
• Processes of receiving information from the customer;
• Processes of picking and shipment of finished products to the customer;
• Ways of storing finished products;
• Stocks in operations and warehouses of raw materials and finished products;
• Transportation methods.
The composition of the current state matrix is regulated through the construction
of processes following the indicators calculated based on the analysis of business
entities. The ideal state system consists solely of operations that create value for
implementing the project. The ideal state matrix allows developing and displaying
an improvement process that eliminates all current problems. The matrix of the
ideal state serves as a reference tool to which the company strives under all given
conditions. The primary tool of the ideal state matrix is the result of brainstorming,
which simulates the best state. Comparing the matrix of the ideal and current state
allows completing the list of problems and identifying those problems that can be
solved during the project period.
Implementing the System for Submitting and Implementing … 165

Building a KPI for a particular employee is based on a strategy relevant to the

company. The evaluation stage analyzes managers’ performance in terms of meeting
their KPIs. The analysis results may be reflected in adjustments to the company’s
strategy, considered in the development of a business plan for the next period, and
affect the manager’s career prospects. The assessment calculated based on the results
of the KPI is the basis for calculating the amount of bonus. The result of selecting
and building KPIs for a particular employee is the establishment of the perimeter of
employee actions.
The formation of a schedule plan for the improvement process is conditioned by
establishing clear boundaries for the projects’ implementation. This section should
form a schedule plan of the goal-setting process with deadlines and those respon-
sible for each stage of the process. The schedule plan is differentiated into three
sections: “importance,” “correlations,” and “changes.” The “importance” schedule
plan is governed by the implementation of priority activities for the project team
that implements it and for the enterprise. The “correlations” schedule plan allows
focusing on activities that allow including solutions to related problems in the project.
The “changes” schedule plan indicates the corrected, deleted, and added activities
in the project. The result of the formation of the schedule plan of the improve-
ment process is a system of bonus payments to employees. The system of bonuses
for forming a schedule plan for the improvement process is designed to increase
productivity at the enterprise through material incentives for employees. The bonus
process should be based on transparent principles understandable to all employees
of the company: objectivity, predictability, adequacy, and timeliness. The authors
suggest the following formula for calculating bonuses:

x 1 = p x + k + oz , (1)

where
x1 employee bonus formula,
px basic remuneration,
k bonus percentage,
oz percentage of bonus on improvements.
The third stage of the efficiency system is the diagnosis of production and techno-
logical processes. The highlighted stage aims to identify problems, develop a system
of the current state, and assess the effectiveness of actions within the project’s frame-
work. The system of the current state is built on the monitoring of deviations of
quantitative or qualitative parameters, characterizing the process as a control object
from the target indicators of the project. The algorithm for diagnostics of production
and technological processes includes the following:
1. Collection of actual target values for the process and each stage of the process
(according to the project card);
2. Analysis of the main indicators of production and technological processes and
accounting for their fluctuations;
166 T. A. Chekulina et al.

3. Identification of deviations with subsequent consideration of the worst and best

values of the indicators;
4. Determination of the causes of deviations from the target values;
5. Proposals for eliminating deviations;
6. Posting the results on the info center.
The current condition must be monitored at least three times at intervals of 1–
2 weeks to diagnose. At least ten measurements of the production and technological
process are performed as part of the diagnostics of the current state. These measure-
ments are needed to refine the sample to analyze the information and determine the
maximum and minimum values. Subsequently, measures within the framework of the
ideal state map are optimized for production and process diagnostics. The purpose
of the ideal state map is to develop and display the production and process flow, from
which losses are eliminated, minimizing the company’s profit. At this stage, the ideal
technological and production flow map is formed as an exemplary system that allows
achieving the benchmark indicators within the drawn flow sample. As a result of the
ideal map, a list of solutions developed at the stage of forming a schedule plan for
the improvement process is supplemented.
The next step in the system for submitting and implementing proposals is the
assessment of the risks of the improvement project. As part of assessing the adequacy
of the formulated solutions and their impact on related production and technological
processes, the authors propose using the algorithm presented in Fig. 2.
The creation of a list of all solutions proposed should begin with the selection of
problems to be solved in the short, medium, and long terms. First, it is necessary to
assess the possible negative consequences of implementing proposals on developing
and introducing a plan of action to reduce these risks. The next stage of the assessment
is the identification of risks of the solutions proposed to achieve all target parameters
at each stage of the process. As part of the implementation of this task, it is required to

Assessment of risks from improvements implemented in project activities

1. Making a list of suggested solutions for each problem at each stage of the process

2. Assessing the risks of proposed solutions to achieve all target parameters at each
stage of the process

3. Identifying who and what is affected by the proposed solution

4. Identify risks together with the experts responsible for the areas affected by the
proposed decisions

5. Developing measures to offset risks

Fig. 2 Role of risks in the improvement project. Source Compiled by the authors
Implementing the System for Submitting and Implementing … 167

adjust the formed schedule plan and transform it into an action plan. An action plan is
a document that includes the entire list of activities developed in diagnosing the target
state and included in the schedule plan, with a timeline and the responsibility for their
implementation. The action plan allows distributing tasks on the work between the
members (participants) of the enterprise or project team, adjusting for risks. The
frequency of monitoring is established to track the implementation of the action
plan. This condition allows for the diversification of risks according to the specified
criteria and minimizing losses caused by external circumstances. Thus, highlighting
the role of risks can determine who and what is affected by the proposed decision.
The adjustment of the schedule plan following the risks takes place jointly with
the experts responsible for the areas affected by the decisions made. The experts are
internal clients, competent employees in a particular field. To implement the expert
transformation of the schedule plan, the following algorithm is used:
• Adjusting the start and end dates of the implementation of improvements
following the periods of achievement of results;
• Assignment of persons responsible for the results, the establishment of a field of
“notes” to minimize the risks of decisions;
• Consolidation of activities in accordance with the planned effect.
The last block of highlighting the role of risks involves the development of
measures to offset the risks.
The final step in implementing a system for suggesting improvement is the imple-
mentation of measures to implement and consolidate the changes. This stage is based
on the transfer of ideas into the framework of the production and technological cycle.
For this purpose, the results of the submission and implementation of improvement
proposals are shown to the process owner or project customer, orienting him or her
to the process of diagnosis, the development of the target state of the process, and the
achievements of the developed measures. Highlighted conditions-results are placed
on the info center where meetings are held—changes following the client’s request.

5 Conclusion

The research on the implementation of the system for submitting and implementing
improvement proposals as a tool of lean production led to the following conclusions.
Currently, the system of implementing proposals is formed in the context of the
basic framework, which allows connecting the concept of lean production with tools
of change management and project management. An improvement proposal is a tech-
nical or organizational solution that is new and useful to the company and involves
changes in the existing way of doing or organizing work and in the design of products
or equipment used. The focus on suggestions for improvement is produced in the
methodology of the Federal Center of Competence, which implements the national
168 T. A. Chekulina et al.

project “Labor Productivity.” Nevertheless, the lack of precise algorithms for submit-
ting and implementing improvement proposals leads to the deformation of this tool
and the impossibility of using it in manufacturing enterprises.
An essential feature of implementing improvement proposals is the consideration
of risks, which allows minimizing or eliminating losses in the framework of produc-
tion and technological processes. The identification of risks is based on the author’s
algorithm, which includes the following:
1. Making a list of suggested solutions for each problem at each stage of the
process;
2. Assessing the risks of the proposed solutions to achieve all target parameters at
each stage of the process;
3. Determining the impact of the proposed solutions on the end-user;
4. Identifying risks together with the experts responsible for the areas affected by
the decisions;
5. Developing measures to compensate for risks.

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Accessed 9 Nov 2021
Green Human Capital: Problems
and Development Strategy

Yury A. Goncharov

Abstract The formation and development of a green economy significantly changes

the face of the workforce and creates a need for the development of new and adaptation
of existing professional skills. It is advisable to refer to green skills like knowledge,
skills, values, and attitudes necessary for the transition to a green economy, which
together form green human capital. Its scarcity can pose a serious barrier to environ-
mental progress, delaying and slowing down-related technological, and economic
transformation. The paper aims to determine the tasks and structure of the national
strategy for the development of green human capital in close interaction between
the state, business, and employees, relying on international experience, including
the relevant developments of UNESCO-UNEVOC, a specialized UNESCO center
for technical vocational education and training. It seems desirable to develop an
appropriate roadmap, adapt the vocational education system, financial, and regula-
tory framework for the proposed activities. Based on the results of the study, the
work outlines the contours of the corresponding roadmap and national strategy for
the development of green capital, provides approximate stages and objectives of this
strategy.

Keywords Human capital · Green human capital · Green skills · Greening of

workplaces · Green economy · Soft skills

JEL Classification J24 · E24

1 Introduction

The contradiction between the ever-growing demand for goods and services and the
rapid depletion of available resources can only be resolved through a fundamental
change in the process of production, distribution, exchange, and consumption.

Y. A. Goncharov (B)
MGIMO University, Moscow, Russia
e-mail: yu.goncharov@inno.mgimo.ru

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 171
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_20
172 Y. A. Goncharov

Along with the concept of a green economy, the concept of green human capital
with all its components (green skills, green jobs, etc.) has received a certain amount
of popularity in recent years. Unfortunately, the literature that adequately covers
these concepts is still not sufficient. First of all, we can mention here the works of
Chinese authors [3–5, 11] as well as [6, 12] (a useful literature review).
In Russia, the phenomenon of the “green” economy, as shown by a closer exam-
ination, is not sufficiently supported by theoretical developments, which means that
there are no supporting regulatory legal acts, not enough personnel to implement it,
and appropriate technologies are not being developed [1]. The discussion in national
science literature is limited to a dozen articles [2, 8–10], etc.
It is advisable to refer to green skills like the knowledge, skills, values, and atti-
tudes necessary for the transition to a green economy—together they form green
human capital (a set of green skills inherent in the country’s workforce). Green jobs:
jobs created with the preservation or restoration of the quality of the environment in
mind. Greening jobs: the process of adapting existing professions to the needs of a
green economy.
Under the Paris Agreement of the UN Framework Convention on Climate Change,
several sustainable development goals have been set. The most important of these is
the link between education, training, social partnership, and environmental protec-
tion. According to the Sustainable Development Goals of Agenda 2030, all learners
must acquire the knowledge and skills necessary to promote sustainable develop-
ment. The document clearly indicates that the labor force must have the appropriate
skills; therefore, changes must be made in education and training. The Sustainable
Development Goals assume that all workers will have the knowledge, skills, and
values necessary for sustainable development.

2 Materials and Methods

For the transition to broad practical activities for the development of a “green”
economy, it is necessary to theoretically and methodologically describe the emerging
problems, propose mechanisms for their solution, followed by a significant reduction
in the negative aspects of their implementation.
The work employs mainly empirical, analytical, and comparative methods, taking
into account the experience of several countries in the implementation of strategies
for accumulating green human capital.
The study is based on materials from open sources, developments of UNESCO-
UNEVOC, relevant reports, and documents of international organizations.
Green Human Capital: Problems and Development Strategy 173

3 Results

The impact that sustainable development has on employment is mixed. Employment

and education are undergoing the following changes: firstly, a decrease in demand
for some professions and an increase in demand for others. Secondly, many existing
professions and industries require changes in the production process that are consis-
tent with the goals of sustainable development, which, in turn, leads to changes in
vocational training. Third, the development of a green economy itself creates new
professions, which require reforms in the education and training system.
The leading sectors in which this kind of change will be required are the agro-
industrial complex, energy, construction, transport, waste processing, as well as some
sectors of the processing industry. In particular, a huge potential for employment,
with millions of jobs, is emerging in clean energy. On the other hand, it is obvious
that the transition to a green economy also entails job losses, especially in dirty
industries. In this regard, it is necessary to minimize the negative effects related to
employment and support the retraining of labor resources.
The coal industry is a typical example of an industry in need of fundamental
changes due to the transition to a green economy. Fortunately, it has accumulated
significant global experience in retraining workers. The transition from large-scale
use of coal to new ecological production takes up to 25 years and includes the creation
of new jobs, the economic recovery of the affected region, and large-scale invest-
ments. Based on the inevitable reduction in coal production and use, it is necessary to
start implementing appropriate measures today. The Limburg region in the Nether-
lands is an example of a successful transformation. The transfer of approximately
75,000 coal workers to other jobs took place over 10 years. A significant percentage
of workers was forced to undergo retraining and move to another job—often in the
same companies where they worked before. Naturally, this implied that companies,
in turn, had to significantly diversify their activities.
At the same time, the lack of planning for such changes leads to serious risks of
unemployment, bankruptcy, falling economic growth, and tax revenues. For example,
in the UK, the lack of such planning in the coal industry has led to the fact that even
30 years later, the former coal-mining regions show unemployment rates significantly
higher than the national average. It should be understood that the financial costs of
preplanned retraining are usually lower than further losses from the absence of such
planning.
Changes in the structure of employment are not only a consequence of the transi-
tion to a green economy but also an important factor in its success. Lack of relevant
skills can represent a significant barrier to progress. Supporting the transition of the
labor force and the labor market to a green economy brings triple benefits: in the
areas of environmental protection, social tension reduction, and economic growth.
The need to adapt jobs to a green economy is present in a variety of industries,
from agriculture and chemicals to energy and construction. On the one hand, there
appears new “green” jobs, such as an energy auditor, on the other, some jobs disappear
174 Y. A. Goncharov

or are radically transformed. This, for example, reduces the need for petrochemical
specialists.
Sustainable development requires the active participation of individuals, both in
everyday life and in professional activities. Education reform is critical in helping
citizens become environmentally conscious professionals. Efforts should be made to
change the training system, revise existing curricula, and develop new ones.
Significant work in the field of developing recommendations to governments in
the field of promoting the development of green human capital is being carried out
based on the UNESCO International Center for TVET (UNESCO-UNEVOC). The
center was founded in 1987, at the first UNESCO International Congress dedicated to
the development of technical and vocational education. On July 12, 2000, UNESCO
and the German government signed an agreement to host the center in that country.
Under the overall leadership of UNESCO headquarters in Paris, the center provides
effective mechanisms to improve the use of available human and financial resources
to support Member States in TVET.
The center is responsible for disseminating knowledge and providing technical
support for the UNESCO International TVET Program, acting as a clearinghouse
for information. This assumes that it is the focal point of the UNEVOC network. It
serves as a reference and resource base for UNESCO’s TVET activities and supports
its partners accordingly.
The mission of UNESCO-UNEVOC is to help UNESCO Member States develop
their TVET systems. The objectives are in part focused on the achievement of
UNESCO’s comprehensive TVET goals, namely the development of TVET around
the world, to support the Member States in developing strategies and disseminating
educational methods to expand professional competencies, to increase employment
and social responsibility, and to open access to high quality and relevant educational
programs.
The transition to a green economy requires improving the quality of skills in
already existing professions. In any case, such a transition requires more special-
ized, more trained, and highly qualified workers. Here, of course, there is a need for
active participation of the state, and not only the private sector, in ensuring the trans-
formation of the labor market to maximize the positive impact of the green economy
on employment. In this regard, it is important to improve not only infrastructure but
human capital by developing the necessary professional skills. Three points need
to be highlighted: transparent relations between industries and related structures
and activities, the development of social dialogue at the state and local levels, and
the development of a broad strategy for improving social protection measures and
making production more environmentally friendly.
The success of the green economy is largely associated with the creation of an
enabling environment for business entities, primarily small, and medium-sized enter-
prises. We must bear in mind that for many of them, greening their jobs is a serious
problem due to the lack of sufficient funding. Therefore, financial and legislative
measures are needed to ensure the easier use of green technologies and responsible
business practices.
Green Human Capital: Problems and Development Strategy 175

It seems rational to work out and implement a national strategy for the development
of green human capital. There is a need for thoughtful government support for the
adaptation of the labor market, education, and the system of advanced training to the
needs of a green economy.
First of all, we are talking about reforming taxation, which has a huge impact
on business activity and employment. So, for example, it is advisable to tax carbon
dioxide emissions and use the income received to create new jobs. Secondly, it is
important to encourage investment in a green economy, which in itself will lead to
such a creation. Consideration should be given to supporting investment in sectors
such as clean energy, low energy manufacturing and transport, sustainable agricul-
ture, and rural infrastructure. Thirdly, the role of small and very small companies
in the transition to a green economy will be extremely high in line with the overall
development and support of small and medium-sized businesses. Its needs must be
taken into account in the development of all budgetary and legislative initiatives.
Unfortunately, it is common practice to prefer the adoption of ambitious programs
over measures for their implementation. As a result, quite promising reforms very
often never come to their actual implementation. Here, it is appropriate to recall the
problem of disbursing funds allocated for Russian national projects, which remain
far from the target indicators. Similarly, Strategy-2010 and Strategy-2020 have long
been forgotten, and no one now remembers their actual level of implementation. Both
horizontal coordination between industries and vertical coordination between various
government bodies, economic entities, and specialized international organizations
are important.

4 Recommendations

When developing a full-fledged program (strategy) for the transition of the labor
market to a green economy, it seems that it is possible to be guided by the following
principles.
The entire policy for the development of green human capital fits into three stages.
At the first stage, it is necessary to analyze the situation in the labor market and
determine the main directions of the forthcoming reforms. The state should identify
the needs of the labor market for new skills. This work should be carried out first at
the federal level, and then brought to the attention of economic entities.
Some obvious research questions about the needs of the transition to a green
economy in the labor market include determining the number of affected direct
and indirect jobs, professions and boundaries between them, assessing the number
of workers in each specified profession, determining the necessary skills and
competencies, and their role in professions.
Further, it is advisable to determine the sources of these skills, corresponding to
the needs for education and vocational training, methods of their implementation.
It is also logical to calculate the number of people with the appropriate skills, to
assess the inflow of the trained labor force now and in the future. Business entities
176 Y. A. Goncharov

and institutions related to professional training and interested in developing the skills
necessary for a green economy also need to be defined. These include employees of
state authorities, line ministries, but not only. We are talking about the widest range of
specialists related to the green economy, including labor market specialists, education
and health workers, human rights defenders, geographers, environmental scientists,
members of professional organizations, consumer associations, entrepreneurs, repre-
sentatives of relevant non-governmental organizations, and environmental protection
agencies.
Required at this stage is the political will to support the development of green
skills and a clear understanding of the rationale for the upcoming changes. It would
be logical to start by gathering information about the state of the labor market and the
required skills of the workforce. This will probably require the creation of a special
state institution. It will then be possible to move on to defining and standardizing
green economy-related jobs and skills. Needs and priorities should be identified both
qualitatively (listing and describing the relevant professions and skills required for a
green economy—especially soft (auxiliary) ones that is applicable in various profes-
sions) and quantitatively (estimating the number of affected jobs and the capacity of
retraining programs). Priority industries, professions, and their role in the transition
to a green economy should be identified. It is advisable to develop standards for
defining the skills required for each profession, while separately highlighting the
auxiliary skills used everywhere.
For example, the French government in 2009 launched the National Plan for the
Adaptation of Jobs to the Needs of a Green Economy. The plan, developed by the
Ministry of the Environment, aimed to support businesses in identifying the skills
and retraining needed to move toward sustainable, green, socially oriented economic
growth. As part of this program, the National Observatory of Jobs and Occupations of
the Green Economy was established in 2010. The observatory develops methods for
assessing and analyzing the needs for such skills and disseminates relevant knowl-
edge among business entities. This institution brings together the staff of the Ministry
of the Environment, the Ministry of Labor, the National Institute of Statistics and
Economic Research, the Employment Agency, the National Agency for the Environ-
ment, and other interested organizations. The observatory has two tasks: analyzing
the labor market, employment, and mobility trends, as well as identifying the required
skills of the workforce and observing the transition to a green economy.
The Ministry of the Environment and the Ministry of Labor have jointly developed
guidelines to support vocational retraining in industries affected by the transition to
a green economy. These recommendations define the basic principles and activities
that have been tested in several regions of the country. They involve identifying skills
that are significantly impacted by transformation, assessing retraining opportunities,
and supporting employment and professional growth. For the specified skills, the
current and expected needs are calculated.
The second stage of developing a national green human capital strategy is asso-
ciated with the familiarization and participation of business entities. We should start
by defining the circle of those and involving them in the development of the strategy.
Green Human Capital: Problems and Development Strategy 177

The launch of an open and inclusive discussion is desirable. Sectoral tasks and devel-
opment plans should be agreed upon with representatives of business entities and the
education system. Specific legislation and financial institutions should be in place
to support skills greening. To finance efforts to promote green jobs, government
authorities need to make appropriate financial commitments.
The success of the strategy is determined by the efficiency of cooperation between
government bodies at the federal and local levels, as well as the active participation
of economic entities of various industries and types of activity: In general, we are
talking about close interaction of government bodies, the private sector, professional
organizations, citizens, and other interested groups.
At the third stage, based on the results of multi-level inclusive consultations, a
draft of the corresponding national strategy should be created. Local authorities will
take the lead when it comes to its implementation. Direct dialogue is needed between
all levels of government, as well as business entities.
In many countries, the development of green skills is already the prerogative of
local governments. This is because the characteristics of the labor market are largely
determined by territorial characteristics. In any case, it is necessary to involve local
business entities and public structures, local authorities should see their tasks in the
development of green skills.
It is also advisable to take into account cross-sectoral interaction, as many jobs
associated with a green economy go beyond traditional industries and professional
competencies. Moreover, the general trend of world development is decentralization.
In this regard, coordination between sectors and levels of government is necessary
to ensure the effectiveness of relevant policies. Thus, the education and training
system in Denmark, after a series of reforms in recent decades, have provided more
autonomy to local authorities to determine the needs of the labor market. Thirteen
Competence Centers have been established in the new national structure to link
the training program to the needs of the green economy and are also responsible
for forecasting and monitoring changes in the labor market at the local level. This
experience should be used in Russia as well.

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 The Contribution of Reconstructive
Agriculture to Sustainable Development
and Food Security
The Sufficiency of Circular Practices
in Agriculture to Fight Global Hunger
and Ensure Food Security

Elena V. Karanina , Victoria N. Ostrovskaya, Musa M. Usonov,

and Ekaterina A. Erokhina

Abstract This chapter aims at substantiating the advantage of circular agriculture for
the environment. For this, the authors perform a detailed literature review. Based on
the content analysis of the existing literature and systematization of the current scien-
tific knowledge, a comprehensive scientific concept of circular agriculture is formed.
The methods of correlation and regression analysis are used to determine the conse-
quences and substantiate the advantages of circular agriculture for the environment
based on the study of international experience using a representative sample, which
includes developed and developing countries from different geographical regions of
the world, for obtaining correct data for the world economy on the whole. Addi-
tionally, the authors study the international experience of using the capabilities of
the digital economy for implementing a circular model of agriculture. A critical
necessity for smart technologies, digital personnel, and skilled employees in agri-
culture to implement its circular model is proved. Recommendations for the national
economic policy for the regulation of the process of transition to circular agriculture
or its development based on stimulation of the dissemination of smart technologies
and development of higher education in the interests of environmental protection in
the aspect of production waste reduction and fighting climate change are developed.

Keywords Circular agriculture · Environment · Digitalization · Development of

higher education · Innovative technologies · Digital personnel · Waste reduction ·
Fight against climate change

E. V. Karanina
Vyatka State University, Kirov, Russia
e-mail: karanina@vyatsu.ru
V. N. Ostrovskaya (B)
Center for Marketing Initiatives, Stavropol, Russia
e-mail: ostrovskayav@mail.ru
M. M. Usonov
Batken State University, Batken, Kyrgyzstan
E. A. Erokhina
Sebryakovsk branch of the Volgograd State Technical University, Mikhailovka, Russia

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 181
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_21
182 E. V. Karanina et al.

JEL Classification Q18 · Q52 · Q56

1 Introduction

1.1 Circular Agriculture for the Environment

In many regions of the world, farming used to be plagued by a high frequency of sick-
ness, insufficient manure, and the continual threat of a horrific calamity. Circular agri-
culture is not a strategy designed to suffocate further expanding companies through
rigid ideologies, market requirements, and unofficial rules [1, 9]. It is a notion that
refers to a collective effort by all required delegates, including ranchers, to achieve the
ideal balance of environmental standards and contemporary innovation, new organi-
zations, and new beneficial business models. It emphasizes high yields and efficient
resource and energy consumption and the importance of squeezing the climate as
much as possible. It is a concept that regards residues from farming biomass and food
handling within the food system context as unlimited resources [3]. By making more
efficient use of scarce resources and squandering less biomass, we may minimize
our reliance on imported chemical composts and faraway domesticated animal feed
supplies [12]. This means that the availability of alternative assets will dictate the
maximum capacity of production and subsequent use alternatives.

1.2 Advantages of Circular Agriculture

Improve crop resilience by agro diversity. Circular agriculture, where a sound harvest
and governmental assistance for the animals are vital, recognizes a precise extended
process. This process begins with robust microscopic organisms, which are used
to choose plants and animals that are more resistant to diseases and irritations, as
well as the effects of environmental change. Incorporating agrobiodiversity into,
on, and around fields as a kind of natural fertilization and harvest security would
increase productivity. This might be accomplished, for example, by planting blos-
soms along field margins, in squares of land, and in insect banks, which act as hiding
places for wild honey bees and other pollinators, as well as regular predators of
various vermin species. Regular cycles are beneficial to horticulture, but they also
add to a tremendous and undeniably normal cultivating environment. Agroecolog-
ical ‘nature-inclusive agribusiness’, which explicitly focuses on biological system
administrations, including preserving and utilizing nature and biodiversity on and
around the homestead in a cultivating scene, is a form of circular horticulture that
takes things a step further.
The Sufficiency of Circular Practices in Agriculture … 183

1.3 Reduces Carbon Dioxide (CO2 ) Emissions

Circular agriculture’s core assumption is to utilize farming biomass as frequently and

successfully as feasible. It includes avoiding the regular decomposition of surplus
biomass (crop remains, compost) and the continuing creation of carbon dioxide,
nitrous oxide, and methane [4]. It also implies that less manure is required for
overall agriculture to emit less CO2 . Additionally, excellent manure (excrement,
soil, and fertilizer) promotes carbon retention in the soil, which is a systematic
strategy for combating climate change. Thus, circular agriculture provides far more
options for mitigating agribusiness’s ozone-depleting chemical emissions than initia-
tives primarily focused on making typical farming cycles more ecologically friendly.
Horticulture has the potential to bring significant environmental advantages precisely
because of this mix.

1.4 Enhance the Health of the Soil

Circular agriculture’s core assumption is to utilize farming biomass as frequently and

successfully as feasible. It includes avoiding the regular decomposition of surplus
biomass (crop remains, compost) and the continuing creation of carbon dioxide,
nitrous oxide, and methane [18]. It also implies that less manure is required for
overall agriculture to emit less CO2 . Additionally, excellent manure (excrement,
soil, and fertilizer) promotes carbon retention in the soil, which is a systematic
strategy for combating climate change. Thus, round horticulture provides far more
options for mitigating agribusiness’s ozone-depleting chemical emissions than initia-
tives primarily focused on making typical farming cycles more ecologically friendly.
Horticulture can bring considerable environmental advantages precisely because of
this mix [7, 8].

1.5 Provides Essential Soil, Air, and Water Bodies

Circular economics promotes the creation of vital habitats such as soil, air, and water
bodies. These biological systems perform various functions, including cleaning,
productive agriculture, fertilization, and the provision of safe drinking water. In
a direct economy, these administrations eventually get exhausted due to frequent
product withdrawals or become overburdened due to toxin offloading [5]. If these
items are used in a cycle and dangerous substances are avoided, the land, air, and
water bodies will remain healthy and beneficial.
184 E. V. Karanina et al.

1.6 Conservation of Natural Reserves

One of the most fundamental difficulties facing humanity in the coming years will
be to provide enough safe and nutritious food without dramatically expanding the
planet’s borders. Squander is used as a raw material in circular agriculture to create
new valuable commodities such as crops, food, and feed. Another part of the notion is
the requirement to minimize asset use and environmental pollution [1]. The extraction
of raw materials and the disposal of waste have a detrimental effect on nature’s
reserves. These natural regions are crucial for the preservation of environmental
administrations, as well as for the conservation of natural and social heritage. At
the moment, numerous administrations and organizations are principally concerned
with preserving nature from crude material exploitation and waste disposal. In order
to protect the ecosystem, this extraction and unloading process should be halted
altogether. It is accomplished within the framework of a circular economy [11, 15].

2 Methods

This research used a qualitative approach to answer the research questions. Interviews
were used to gather the data from the respondents. The reason for choosing the
qualitative approach was that it provides deeper insights into the research problem.
The reason for not selecting the quantitative approach was that it takes more time
and provides less information. In the field of agriculture and circular agriculture, we
examined the existing literature on circular practices. Throughout our research, we
used sources from many nations and continents to identify a range of examples that
may assist and understand the practical working of circular agriculture. Further details
of interviews and/or consultations had been gathered via e-mails. We attempted to
gather instances, scales, and kinds of the procedure from various locations. Not
all potential uses of ‘circular’ in agriculture and food industries within LMICs are
necessarily like these. A fresh attempt to disclose items that used to be ‘trash’ was a
criterion for our decision. The time we had to gather information on the instances was
also a highly practical criterion. Therefore, the seven instances of the ‘circularity’
in LMICs are not necessarily indicative of all potential uses. In order to develop the
findings and suggestions at the end of this research, we then integrated insights from
the examination of ideas and cases.
Table 1 shows the breakdown of individual food system contributions based on
the available literature between farmers within the farm gate—10 to 14% (high trust);
dynamics of land use and change in land-use emissions, such as deforestation and
peat degradation, that are linked to agriculture in many regions—5 to 14% (high
confidence, limited evidence, medium agreement). Note that the associated lower
range of emissions beyond the farm gate, for example, 2.6 GtCO2 -eq yr−1 (Table
1), is consistent with recent estimations produced by [14]. These estimates of total
The Sufficiency of Circular Practices in Agriculture … 185

Table 1 GHG emissions

Food system Emissions (Gt Share in mean total
(GtCO2 -eq yr–1 ) from the
component Co2 eq yr−2 ) emissions (%)
food system and their
contribution (%) to total Agriculture 6.2 ± 1.4a,b 10–14
anthropogenic emissions Land use 4.9 ± 2.5a 5–14
Beyond farm 2.6c –5.2d 5–10
gate
Food system 10.8–19.1 21–37
(total)
Source Compiled based on GHG emissions from the food system
Mean of 2007–2016 period
a Meam and 95% confidence interval, using global warming

potential values of the IIPCC AR5 with no climate feedback

b Computed using a total emissions value for the period 2007–2016

of 52GtCO2e per year

c Food-related FOLU for food system columns
d Rounded to nearest fifth percentile due to assessed uncertainty in

estimates

food system emissions implicitly incorporate contributions from food loss and waste.
They may represent 8–10% of the total human emissions of GHG (low confidence).

3 Literature Review

According to [22], sustainability in circular agriculture helps in decreasing agricul-

tural overflow; farmers are placed in a better position, food production increases,
and joint process between nature and agriculture, and animal breeding becomes
sustainable. Some of the factors that contribute to sustainability in circular agriculture
include the following.

1. Fair Prices for Farmers

[10] mentioned that farmers could succeed in the production of goods and services
only if they are well paid. Therefore, in exchange for good payments of farmers,
developing countries are likely to invest more embrace circular agriculture. Thus,
if farmers and growers are highly paid, and regulatory measures are not applied to
sustainability and animal health, this will bring about a transition to circular agricul-
ture since growers are aware that in the end, they will be paid for the sustainability
well-being and improved quality products productions.

2. Legislative by the Government

When developing countries give farmers and growers freedom to contract, this will,
in return, give them great power in carrying out trade practices [19]. This government
agricultural law, such as financial help to farmers, imports rules and regulations and
irrigation strategies and influences this circular farming. Therefore, the farmers aim at
186 E. V. Karanina et al.

carrying more of their activities to improve their well-being and aiming at sustaining
their agricultural practices; thus, sustainability of this circular agriculture which is
the major practices will be maintained [2].

3. Technology Growth in a Developing Country

Technology innovation is still growing in developing countries. Hence, since agri-
culture uses given technological machines to carry out these agricultural practices,
developing countries adopt the new technology in agriculture to improve and main-
tain its sustainability [9]. That is to maintain the production of products for the long
term to satisfy the human needs in the economy. Some kinds of technologies used are
temperature sensors, soil and water sensors, and weather tracking which promotes
agriculture. Without these technology devices, farmers will feel frustrated, and their
morale in farming will be discouraged. Therefore, technology innovation embrace-
ment in these developing countries contributes to the adoption and sustainability
of circular agriculture, hence improving the countries’ economies as more jobs are
created from the agricultural sector [20].

4. Climate Change
According to [21], climate affects the growth of crops. Therefore, some crops cannot
grow well in given areas. For the growth sustainability of these crops to be achieved,
developing countries should employ the necessary resources to measure the climatic
change such as temperature to take the necessary precautions to continue practising
agriculture. Therefore without technological advancement and adoption, circular
agriculture would be difficult to maintain.

5. Farming Techniques
In developing countries, there is a measure of the increase in modern techniques to
circular farming, such as the use of fertilizers and automation, which have increase
product production. Compared with undeveloped countries that continue to use tradi-
tional methods, which affects the reduction of their production and makes it difficult
to conduct agriculture, which ultimately leads to the fact that human needs are met
only for a short time. Circular agriculture states that resources are being recycled
or reused using modern technology for the production of human needs for the long
term. With modern farming techniques, the sustainability of circular agriculture is
achievable.

6. Environmental Policies
According to [17], environmental policies help to protect the environment, ensures
safety, hygienic food production through regulation of farming, fertilizer usage, and
waste which is either reused for treatment or usage of pesticides to control crops
diseases. This environmental policy helps in achieving sustainability in this circular
farming since, with no or minimal negative effects, developing countries hold this
agricultural practice and encourage more people to invest in it through the provision
of financial support to the farmers.
The Sufficiency of Circular Practices in Agriculture … 187

7. Final Production Destination

This affects the sustainability of agriculture in one way or another. In circular agricul-
ture, since most of the resources are being reused, the production cost will be signifi-
cantly low. Therefore, the cost of production can increase and affect the production in
terms of transportation of these products to the final consumer [24]. To minimize this
cost of transportation, farming should be near the market. For example, suppose the
area near the market is not conducive to carry out circular agriculture, such as how
cow recycled manure is done, may be the land will be small and not enough to do the
whole process. This can easily affect the sustainability of this circular cultivation.

4 Results

• Through the help of the environment, we can attain our human needs. Therefore,
if the environment is polluted, these will not be attained that easily. Therefore,
circular agriculture sustainability helps to use land, water, and air, hence ensuring
that natural resources will still allow the future human to fulfil their needs.
• Circular agriculture avoids the use of dangerous pesticides and other inputs such as
fertilizers. Therefore, its sustainability allows growers to carry out the production
of goods through more careful and good management of wastes and protects
humans from toxins pollutants.
• In circular agriculture, many wastes produced are being recycled or being reused,
hence remaining in the farm environment. Therefore, the waste cannot cause
pollution since precautions are being taken into considerations. Thus, sustain-
ability of this circular agriculture will be of more benefits to the humans; hence,
the developing countries will encourage the growth of agriculture and improve
their economy in exchange for their products as more trade practices will be
carried out.
• Circular agriculture decreases the use of fossils fuels such as non-renewable gas
(carbon dioxide) used in the greenhouse; these results are cost saving in purchasing
and transport, hence less cost of farming since in circular agriculture, and only
reusable and recyclable resources are being used for the production of goods.
• Through the engagement of circular agriculture and its sustainability, farmers
can receive good wages from their production. Thus, this reduces how they will
depend on their government support, such as the provision of subsidies. Since
organic farming uses less labour as compared to factory farms, this also benefits
workers as they are given salaries which are high and other benefits.

5 Discussion

In circular agriculture, minimum quantities of external sources are used, nutrient

loops are closed, and soils regenerated and environmental impacts are minimized.
188 E. V. Karanina et al.

Circular agriculture, if done on a broad scale, may decrease resource needs and the
environmental impact of farming. It may also assist to decrease land usage, chem-
ical fertilisers, and trash, enabling global emissions of CO2 to be reduced. Europe
is projected to have 80% less usage of chemical fertilisers via a circular approach to
food systems. Similarly to prudent management, HEIs will invest in adopting and
advancing clean technologies in their operations and oversee their dispersion in their
current impact scenario. Clean innovation, alternatively referred to as ecological,
green, or natural sound innovation in analytical writing, refers to the interaction or
administration that mitigates adverse biological effects through significant increases
in energy productivity, sustainable asset utilization, or natural security exercise [6].
On a fundamental level, these cycles are less unclean, make better use of assets,
recycle more rubbish, and take better care of waste. Additionally, the growth of
clean technologies is contingent upon the advancement of data and communication
technologies (ICT). HEIs embrace media communications administrations, which
minimize the need for additional physical devices and equipment because they are
offered online in the cloud [23]. DT is an interaction that coordinates advanced inno-
vation from all angles and, among other things, needs changes to the innovation space,
culture, and tasks. Organizations must assess themselves and change their cycles to
leverage developing technology and their rapid growth into human activities. Thus,
for DT to thrive, it requires a shift in focus, increased innovation, and a shift in institu-
tional culture. The DT is regarded as the fourth modern upheaval since it is mechan-
ical and embraces new human capabilities despite organizational re-evaluation [13].
However, the third stage of computerized growth reception, following computerized
competence and computerized use, is examined as well. Similarly, digital education
increases usage and application capacity. DT is an interaction inside the instructive
topic that necessitates evolution in teaching and adapting to the understudy’s new
adapting needs [16]. As a result, this interaction becomes more effective, enabling
community-based work.

6 Conclusions

Developing countries embracement of circular agriculture is vital since humans can

use less expensive and harmful resources in satisfaction of their human needs for the
long term, hence improving their way of life. Therefore, its sustainability is necessary
to make the agricultural sector, and the nation as a whole improves on the economic
and national income growth of the country. Public policies that emphasize sustain-
able resource use should encourage smallholder ranchers to pursue breakthroughs
in precision farming and harvest efficiency. It is inextricably linked to the need to
advance towards net-zero energy costs for water reuse, which must be accomplished
through a re-evaluation of critical public policies.
The Sufficiency of Circular Practices in Agriculture … 189

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Imbalances in Food Security of the World
Countries as a Problem of Sustainable
Agricultural Development

Aziza B. Karbekova and Kanikey T. Samieva

Abstract This chapter evaluates the scale of the differentiation of food security
among countries of the world. The research is based on the existing, generally
acknowledged classification of countries by the International Monetary Fund and
the World Bank, by the criterion of income with distinguishing developed countries
(1—high income) and developing countries (2—upper middle income, 3—middle
income, and 4—lower middle income). Based on the statistical data of the Economist
Intelligent Unit “Global Food Security Index 2021”, the authors form profiles (aver-
aged values) of food security (in view of the indicators of pricing and quantitative
accessibility of food, its quality and security, and the naturality and sustainability of
agriculture) in developed and developing countries in 2021. The method of variation
analysis is used to determine the level of differentiation (differences) among the four
categories of countries and within each category.

Keywords Disproportions · Food security · Sustainable development of

agriculture · Developed countries · Developing countries · Well-balanced
development

JEL Classification Q15 · Q27 · Q28

1 Introduction

Food insecurity is a real issue in today’s world. With the advent of COVID-19, food
security across the world is not getting any easier. Different countries across the
world have different levels of food security [15]. According to the World Bank and
the International Monetary Fund, there are classifications in which each country falls

A. B. Karbekova (B)
Jalal-Abad State University, Jalal-Abad, Kyrgyzstan
e-mail: aziza-karbekova@mail.ru
K. T. Samieva
Osh Technological University Named After M.M. Adyshev, Osh, Kyrgyzstan

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 191
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_22
192 A. B. Karbekova and K. T. Samieva

that different one country from another regarding food security. These factors are the
income criterion for each country that distinguishes countries either as developed
countries or as developing countries. The developed countries are classified as high-
income countries.
In contrast, developing countries are classified under upper middle-income
countries, middle-income countries, and lower middle-income countries [13]. The
research will aim to evaluate the scale of differentiation of food security throughout
the globe. The purpose of the research will be to analyze global food security levels
based on previous research by the International Monetary Fund and the World Bank
using variation analysis of the four classifications. The Monte Carlo method will be
used to forecast future changes in food security throughout the globe and determine
viable ways of solving the problem of sustainable development goals in agriculture
on a global level.

2 Methodology

The research is to determine the scale of differentiation of food security for coun-
tries throughout the globe using various methods. The main method was variation
analysis followed by the Monte Carlo method. The variation analysis method was
used since the research was reliant on existing statistical data from the Economist
Intelligent Unit on Global Food Security Index 2021 [13]; therefore, most of the data
was quantitative. Originally, the data was collected based on about 50 food security
indicators throughout the countries that classify them into each of the four categories
based on their income levels.
The index analyzes 113 countries worldwide based on the availability of food,
the affordability of food, the quality and safety of the food, and the natural resources
and resilience of the country in maintaining its levels of food security [5]. Before
analysis, the data was gathered and prepared to be checked for missing data and any
anomalies. The data was checked and assessed based on the original author’s form
profiles recording the average values of food security. The main dataset analyzed the
indicators of pricing and the accessibility of food, its quality and security, and the
neutrality and sustainability of agriculture in developed and developing countries in
2021.

3 Literature Review

The scale of differentiation of food security across the globe greatly varies throughout
the four categories. The categories in question are underdeveloped countries and
developing countries [15]. Research indicates that economic slowdowns and down-
turns, on the other hand, mainly affect food systems via their detrimental impacts
on people’s access to food, particularly the cost of healthy diets, since they result in
Imbalances in Food Security of the World Countries … 193

increased unemployment and reductions in earnings and incomes [10]. This is true
regardless of whether market fluctuations, trade conflicts, political instability, or a
worldwide epidemic such as COVID-19 are to blame. Healthy diets are unaffordable
due to various drivers or variables on people’s income and the cost of nutritious items
throughout the food chain. It is a force inside food systems that has a detrimental
effect on food security and nutrition. Poverty and inequality are important structural
variables that exacerbate the detrimental effects of the main drivers.
Their effects ripple across food systems and food surroundings, influencing the
cost of healthy diets and food security and nutrition outcomes. Apart from their
direct effects on food systems, these key global drivers and underlying structural
issues erode food security and nutrition by cascading on other systems, including
environmental and health systems [11]. The frequency and severity of war, climatic
variability and extremes, and economic slowdowns and downturns have all risen in
the past decade, weakening global food security and nutrition. Low- and middle-
income nations are of special concern because their negative effects on food security
and nutrition are severe [7]. They bear the brunt of the world’s malnourished, food
insecure or suffer from one or more types of malnutrition.
In comparison, the incidence of child stunting has been decreasing steadily from
2017 to 2019. A study of countries impacted by drivers revealed no discernible trends,
suggesting other stronger drivers [8]. Additionally, there are significant variations in
trends depending on whether a nation is impacted by several drivers and on the
country’s economic group and location. Nations with numerous drivers typically
see the greatest rises in the Prevalence of Undernourishment (PoU), 12 times more
than countries with a single driver. Multiple factors impacted about 36% of low- and
middle-income nations across all the areas studied; Africa, Asia, Latin America, and
the Caribbean.
The greatest rise in the PoU happens in low-income nations afflicted by war and
climatic extremes, whereas the largest increase occurs in middle-income countries
during economic downturns. Africa is the only area with gains in PoU from 2017 to
2019 due to all three factors (conflict, climate extremes, and economic downturns)
[12]. Those impacted by economic downturns in Africa, Asia, Latin America, and
the Caribbean have a greater rise in the PoU than countries affected by climatic
extremes and war, with the greatest increases occurring in Africa, Latin America,
and the Caribbean. By 2020, economic downturns would have impacted nearly all
low- and middle-income nations.
The rise in the number of malnourished people was more than five times that
of the preceding two decades, and the economic slump was twice as severe as any
prior downturn in the same era. When economic downturns were combined with
additional factors (climate-related catastrophes, war, or a mix of the two), Africa
saw the greatest rise in the PoU, followed by Asia [1]. The 2017 version of this
study showed that the inability to purchase nutritious meals was significantly linked
with malnutrition and other types of malnutrition, including child stunting and adult
obesity.
These findings are reaffirmed for 2019. Additional research demonstrates that
high levels of unaffordability are significantly linked with greater levels of severe
194 A. B. Karbekova and K. T. Samieva

and moderate or severe food insecurity, as assessed by the FIES [2]. Nations with
numerous drivers have the greatest proportion of the population unable to afford a
nutritious meal (68%), which is on average 39% higher than countries with a single
driver and 66% higher than countries with no drivers. Additionally, these nations had
a higher incidence of moderate or severe food insecurity (47%)—13% higher than
countries impacted by a single driver and 38% higher than countries not touched by
any driver. Wherever there is conflict, the inaccessibility of healthy meals tends to
be greater.

4 Results

4.1 Pricing Indicators

The research conducted came up with several interesting results. According to [13],
high-income countries had low prices for their food compared to other countries.
The low price of food was matched by a high-income level per capita of income
throughout the country which means the citizens of the high-income developed coun-
tries could easily buy food. However, the scale of differentiation grew larger, going
down the scale from high-income countries to lower middle-income countries. The
differentiation was based on the idea that the lower the country’s income level, the
higher the price charged for food in those countries, therefore resulting in increased
food insecurity down the scale, hence larger pricing differentiation between the four
categories.

4.2 Quantitate Accessibility of Food

The accessibility of food also showed an increasing scale of differentiation, going

down the scale from developed countries (high-income countries) to developing
countries (upper middle-income, middle-income, and lower middle-income coun-
tries.) According to [14], the relative accessibility of food based on the income level
declined for countries ranking lower under the developing countries. The reason for
this diminishing scale of differentiation is based on the fact that the lower the income
level of the country, the less likely it was to participate in trade and agriculture.
However, there were outlier cases of some countries, mainly in sub-Saharan Africa,
categorized as middle-income countries but had relatively high accessibility of food
because their economies are agriculturally based. Similarly, countries were ranking
higher on level of income but poorly on the accessibility of food since the countries
had a little agricultural background, therefore having to import most of their food
rather than grow it [13]
Imbalances in Food Security of the World Countries … 195

4.3 Quality and Security

The scale of differentiation for quality and security of food was similarly large, going
down the scale from developed to developing countries classification. This differ-
entiation was based on the fact that higher-income countries had better economies
and, therefore, higher buying power. The countries could afford to import or grow
high-quality food and incorporate high-quality and advanced systems to ensure food
security. Unlike their counterparts in developing countries, the scale of differentia-
tion grew larger based on a reduced level of income; therefore, even for countries
built on an agricultural background, it was found by Sergi et al. (2019a) that it was
difficult to facilitate or ensure food security due to outdated or ineffective systems
that ended up wasting food, or improperly distributing it throw-out the population
resulting in higher cases of food insecurity.

4.4 Naturality and Sustainability of Agriculture

The scale of differentiation for the naturality and sustainability of agriculture was
larger from the bottom of the scale going up. This perspective means that countries
ranking lower on the income level had higher chances of naturality and sustainability
of agriculture. These countries are based majorly in sub-Saharan Africa, where the
regions can naturally produce and sustain agricultural practices [9, 13]. However,
the countries do not practice these food security measures mainly because of poor
leadership, poverty, war, and other problems despite being in prime areas. On the
other hand, most countries ranking higher on the income level are in areas such
as Europe. The Americas and Asia, where the climate may not be conducive for
round the year agricultural production. This means that these countries rank lower
on naturality and sustainability of agriculture.

5 Discussion

There are six suggested paths for transforming food systems to address the main
causes of food insecurity and malnutrition and guarantee that all people have access to
cheap, nutritious meals sustainably and inclusively [4]. These include the following:
1. Integrating humanitarian, development, and peacebuilding policies in conflict-
affected areas.
2. Scaling up climate resilience across food systems.
3. Bolstering the resilience of the most vulnerable to economic adversity.
4. Intervening along food supply chains to reduce the cost of nutritious foods.
5. Addressing poverty and structural inequalities while ensuring interventions are
effective.
196 A. B. Karbekova and K. T. Samieva

6. Government innovation and intervention to create reliable and sustainable

agricultural practices and systems.
Because various factors impact many nations, several routes will be applied
concurrently, necessitating coherence across these pathways to guarantee imple-
mentation efficiency.
Comprehensive portfolios of policies, investments, and laws are, therefore, crit-
ical for allowing food system change along these paths. When war occurs, whole
food systems are often severely disrupted, threatening people’s access to healthy
meals [6]. Deep economic crises may occur when the underlying reasons of conflict
are related to competition for natural resources such as fertile land, forest, fishery,
and water. It is critical to executing policies, investments, and activities targeted at
reducing acute food insecurity and malnutrition concurrently with those aimed at
reducing conflict levels and linked with long-term socioeconomic development and
peacebuilding initiatives [3]. Our food production and resource management prac-
tices may contribute to a climate-positive future where people and the environment
can coexist and flourish. This is critical not just because climatic events affect food
systems but also because food systems affect the condition of the environment and
are a driver of climate change. Priorities for protecting nature, managing current food
production and supply systems sustainably, and restoring and rehabilitating natural
ecosystems are central to this endeavor.

6 Conclusion

Additionally, these sustainability initiatives will boost resilience to climatic shocks,

ensuring food security and better nutrition. Economic and social policies, legislation,
and governance structures should be in place well before economic slowdowns and
downturns to mitigate the effects of adverse economic cycles and ensure access to
nutritious foods, particularly for the most vulnerable population groups, women and
children. These must include social safety measures and basic healthcare services in
the short term. Interventions throughout food supply chains are necessary to improve
the availability and affordability of safe and nutritious foods, especially to make
healthy diets more affordable.
This requires a coordinated set of policies, investments, and laws from production
to consumption to increase efficiency and reduce food loss and waste. Empowering
poor and vulnerable population groups, who are often smallholders with limited
access to resources or those living in rural areas, as well as women, children, and
adolescents who are otherwise excluded, is a critical lever for transformational
change. Increased access to productive resources, such as natural resources, agricul-
tural inputs, technology, financial resources, and knowledge and education, consti-
tutes empowerment. Other empowerment indicators include enhanced organizational
capabilities and, most crucially, access to digital technologies and communication.
Changes in eating habits have affected both human health and the environment,
Imbalances in Food Security of the World Countries … 197

both positively and negatively. Depending on the country’s context and prevalent
consumption patterns, policies, regulations, and investments are required to promote
better food environments and empower consumers to follow nutritionally sound,
healthy, and safe eating patterns with minimal environmental effects.

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Systematic Assessment
of the Sustainability of Circular
Agriculture

Anarkan M. Matkerimova, Tolkunbek A. Kadyrov,

Aktalina B. Torogeldieva, and Yuliya A. Ogoreva

Abstract The principal aim of this chapter is to determine the trajectory of the
future development of sustainable agriculture. This chapter will undertake a system-
atic evaluation of the sustainability of circular agriculture by analyzing its contri-
bution to stability, food security, circularity, expanded reproduction, environmental
and energy efficiency. The criterion of assessing food security will depend on the
availability and affordability of food, neutrality and sustainability of agriculture,
and quality and security of food. The critical review presented by the authors epit-
omizes the circular practices of agriculture in terms of its merits and demerits. The
research was arrived at following the Sustainable Developmental Goals (SDGs) by
determining the impact of circular agriculture on their achievement based on interna-
tional experience. The authors authenticated the merits of demonstration of corporate
social and ecological responsibility at agriculture companies that implement circular
practices for the sustainable development of agriculture. The following components
of the dataset are used: combat against climate variation, corporate social respon-
sibility, and sustainable development. The current economic model was severely
affected over the last decade due to unsustainability (Esposito et al. in A systematic
literature review. Sustainability 12:7401, 2020 [3]). This economic model was char-
acterized by numerous challenges in the agro-food sector (AFS), resulting in scarcity
of resources, decreased food production, and waste generation along the supply chain
(Esposito et al. in A systematic literature review. Sustainability 12:7401, 2020 [3]).
The authors concluded that there is an imperative need for a paradigm shift toward
circular agriculture due to rapid climatic change and biodiversity loss.

Keywords Systematic evaluation · Agriculture sustainability assessment · Circular

agriculture · Circular economy (CE) · Dataset research · Life cycle
methodologies · Agriculture entrepreneurship

A. M. Matkerimova (B) · T. A. Kadyrov · A. B. Torogeldieva

International University Named After K. Sh. Toktomamatov, Jalal-Abad, Kyrgyzstan
e-mail: anarkan67@mail.ru
Y. A. Ogoreva
Kuban State Agrarian University Named After I.T. Trubilin, Krasnodar, Russia

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 199
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_23
200 A. M. Matkerimova et al.

JEL Classification Q01 · Q17

1 Introduction

1.1 The Theoretical Foundation of the Circular Agriculture

Circular agriculture is a relatively new concept, and its central principles lie in the
lack of application of more acreage, which can be achieved by closing cycles. Circular
agriculture, synonymously denoted as circularity, is an expression that is commonly
used in contemporary society. However, circularity remains masked in the atmo-
sphere of mystery, particularly if the purpose of its coinage and use is to capture the
most practical merits of its application. Because of this, the themes about circular agri-
culture are explored at different levels and from a different approach by academics,
researchers, experts, politicians, and business persons [10]. The concept of circular
agriculture was dated from the novel idea of “closing circle” and was further reintro-
duced in 2010 by Mac Arthur Foundations [10]. From that period, ideas about circular
agriculture have continued to thrive. The most critical issue that makes circular agri-
culture discourse to be particularly sophisticated is the comprehension of the link
between sustainability and circularity. However, the vision of circular agriculture
is mostly shared to be the most effective way of achieving sustainability goals. It
will focus on the operations at different levels of the economy such as micro-level
(products, consumers, and firms), meso-level (eco-industrial parks), and macro-level
(region, city, nation, and beyond) with the objective of achieving sustainable devel-
opment [1]. This research aims to identify ways in which CE will achieve sustainable
development, thus ensuring economic prosperity, environmental quality, and social
equity for the betterment of current and future generations.

2 Methodology

The current literature on the circular economy was studied using both qualitative and
quantitative methods of research collection. The qualitative methods used involved
the identification of case studies and paper surveys of scholarly articles. To arrive at
the qualitative and quantitative methods, a systematic literature review (SLR) criteria
was established for screening the articles and sources that formed the basis of the
research. SLR method was preferred to others because it complimented the qualitative
and quantitative methods [5]. Besides, it provides a systematic, reproducible, and
systematic technique for the identification, assessment, and interpretation of existing
research availed by scholars and researchers. To effectively address the purpose of
this study and research questions, the study employed a modified version consisting
of a five-step procedure as detailed in Fig. 1.
Systematic Assessment of the Sustainability … 201

Scope: systemaƟc assessment of the

sustainability of circular agriculture
Research quesƟons:
1. What is the perspecƟve of
Phase 1: Defining scope determining the development
and research quesƟons of circular agriculture?
2. What are the advantages of the
implementaƟon of circular
agriculture

Brainstorming: ConstrucƟon of
keywords and search string
Phase 2: IdenƟfying
construcƟon.
keywords
Use of Boolean logic: keywords
combined by “or”, “and” and “not”.

Major and reputable databases were

Phase 3: Database selected: science direct, Taylor, Francis,
selecƟon and Willey.
Timespan specificaƟon Only arƟcles from 2016-2020 were
considered

Set inclusion and exclusion

Phase 4: SelecƟon criteria criteria
For quality papers, four quality
aƩributes were idenƟfied.
Counterchecking of the finalized
arƟcles

DescripƟve and content analysis

Phase 5: InterpretaƟon and
WriƟng the review
presentaƟon of findings
ReporƟng the results

Fig. 1 Modified version consisting of a five-step procedure. Source Compiled by the authors

The first phase of SLR entailed a definition of the scope of study and objectives.
The primary domain of the study was to evaluate the sustainability of circular agri-
culture and its drivers [5]. Two objectives were formulated in order to accomplish
the aims of the study. Firstly, identification of current practices of circular economy
in the agricultural sector. Secondly, identification of the advantages and drivers of
circular agriculture. Thirdly, identification of ways of ensuring transition to a circular
economy.
202 A. M. Matkerimova et al.

Table 1 Inclusion and exclusion criteria

Criteria Inclusion Exclusion Rationale
Quality Peer-reviewed journal Unpublished books, Selection of
dissertations, peer-reviewed articles
opinionated articles
Language English Other languages Only English was used
because it recognized
worldwide publication
Length Fully accessed article Articles not Selected for detailed
accessible with full content analysis,
text full-text article
Date of publication 2016–2020 Before 2009 Selection of articles
showing trends from
linear to a circular
economy
Source Compiled by the authors

The second phase involved the identification of relevant keywords to the objec-
tives and subject area. A structured search was conducted to scrutinize the literature
through many brainstorming sessions by the authors. By using Boolean logic, initial
keywords were refined, such as “agricultural sustainability”, “circular agriculture”,
“life cycle method”, and “agriculture entrepreneurship” [5].
In the third phase, the selection was narrowed and limited to only more relevant
online databases. The publication period was also considered to ensure that outdated
sources are not used. Among the selected databases were ResearchGate, Web of
Science (WOS), Tylor, Science direct, and Willey Library.
The fourth phase involved the inclusion and exclusion criteria. The selected arti-
cles were thoroughly scrutinized. Through inclusion criteria, the articles to be used
in the final review process were developed. The inclusion and exclusion criteria are
as detailed in Table 1.
The final phase involved the analysis and interpretation of key findings. The papers
were analyzed using thematic and descriptive analysis.

3 Literature Review

According to [9], the contemporary global economy is compounded by many chal-

lenges such as famine, poverty, gender inequality, and climate change. Therefore,
the modern global economy is required to acknowledge and embrace the transition
to sustainable development to solve these challenges. The authors posit that sustain-
able development is among the most fundamental notions of the current theory of
Systematic Assessment of the Sustainability … 203

economic growth [9]. They further argue that sustainability and sustainable develop-
ment are among the criteria for assessing economic growth and equitable develop-
ment. The authors denote that the crucial part of sustainability is an innovation that
enhances the sustainability of economic growth in the long term [9].
A study conducted by Belov et al. [1] found that there was a need to improve
the staffing of agro-industrial complex to ensure agricultural sustainability in the
Belgorod region. Improvement of the agro-industrial sector would ensure high rates
of social-economic transformations in modern Russian society. The agro-industrial
enterprises are compelled to change the mechanism and strategy for their operation
to increase their efficiency [1]. The authors conclude that the most significant factor
for determining the effectiveness of labor personnel and maintaining professionalism
is to provide quality professional training in the agro-industrial sector.
A study conducted by [7] identified the tendencies and prospects of developing
the social domain of free enterprise in Russia and Asian countries. The methodology
used by the authors included trend, regression, and correlation analysis.
Muscio and Sisto [6] conducted a study whose aim was to determine how circular
agriculture could be implemented in the Netherlands. They arrived at their results by
studying the existing literature on the circular economy. The additional information
was gathered from interviews and consultations through emails. They have remarked
that the need to later toward circularity is the outcome of critical reflections about the
existing global food system. The most common challenge predicted in the coming
decades is to produce adequate safe food for future generations without going beyond
the planetary boundaries [6].
Among the environmental benefits are effective waste management systems,
reduction in the use of natural resources, decreased carbon (IV) oxide emission,
and less pollution. The use of organic fertilizers improved the quality of soil and its
biodiversity [6]. The study concluded that there was a need for an effective action
plan by the government in collaboration with public and private partners in lower
and middle-income countries (LMICs) to promote circular agriculture as a strategy
for fostering sustainability of the food system [6].

4 Results

The descriptive analysis conducted focused on the spread of reviewed articles over
the years and by location, depending on the place of application of the case study.
The study results revealed an exponential upward shift in the number of publica-
tions concerning the application of circularity metrics using life cycle methodolo-
gies for the previous seven years. From 2014 to 2016, the initial publication detailed
energy generated from dairy farming, reprocessing food waste for feeding aquacul-
ture life. Robust efforts toward sustainability were made to develop a study to quan-
tify circularity depending on the agri-food systems. According to the location of case
study submission, many publications can be drawn to European countries and China.
About 15% of the studies were categorized under the “manufacturing sector”, which
204 A. M. Matkerimova et al.

includes product promotion resulting from (non-renewable and renewable materials).

The manufacture of bio-based plastics and biochemical is among the climate change
mitigation plan because of their biodegradability. The “agricultural sector” accounted
for 11% of the whole production of fruits and vegetables. The need to recycle nutri-
ents like phosphorous was recognized as a crucial issue of CE. The studies showed
that a circular economy results in improved eco-efficiency and waste management.
Transition to circular agriculture would, therefore, require strategic planning and
integration of technology. Incineration of waste substances to generate energy was
deemed to be an effective method as it would reduce pollution [2].

4.1 Reviewed Circularity. Assessment Indicators

The articles that were classified for dealing with assessment via particular indicators
for measuring circularity depended on the degree of the system. It was discovered
that CE indicators that used varying metrics could be used to deliver simplified
outcomes due to the complexity of the circular economic paradigm. Enhancing the
circularity of nutrients of organic waste was denoted to be a suitable strategy for
waste management [1].

4.2 Circular Economy and Agricultural Planning

According to the findings, there is a piece of underlying evidence that a circular

economy can be considered a sustainable alternative to the development of agricul-
ture. The authors of many selected articles promoted a model that environmental,
economic, and social dimensions were essential for the accomplishment of sustain-
able development via a cycle of production, distribution, change, and consumption
[3]. The authors emphasized a more holistic approach that depended on the flow of
materials, energy, water, and soil.

4.3 Circular Agriculture in National Policies

In a circular agriculture system, livestock farming, arable farming, and horticulture

essentially apply raw materials from each other’s supply chain, thus making a cycle
of waste flow alternating from the food supply chain and food industry. The residues
from these sectors decomposed into manure that could be reused in agriculture.
The residues derived from farms could be used to produce auxiliary products. Soil
management is designed to work toward the use of manufactured animal manure
while decreasing the application of artificial fertilizers.
Systematic Assessment of the Sustainability … 205

4.4 Agricultural Entrepreneurship

There are numerous ways for executing a circular approach in agricultural

entrepreneurship. Entrepreneurs can either use animal welfare standards or environ-
mental standards in the manufacturing process that supersedes regulatory require-
ments. Besides, the entrepreneurs can coordinate themselves in new ways where the
youths are given extra attention when they are poised to control the business [8].

4.5 Merits and Demerits of Circular Economy

The strength of the circular economy lies in its ability to overcome the downscaling
sustainable development models like degrowth to achieve more realistic quality
growth. The benefits derived from the recycling of materials pose some diminishing
returns. The circular economy will help to address the demands of the growing popu-
lation, thus reducing hunger [4]. Transition to sustainable practices has the effect of
reducing the high rates of wastage of food across all stages of the food system.
A circular economy substantially helps in the reduction of negative environmental
effects like increased emission of carbon dioxide and eutrophication. The circular
economy will avail tools for optimization of the food system in the western economy
[4]. The main challenge in a circular economy lies in complexities in controlling the
life cycles efficiently. Besides, sometimes it is incredibly difficult to link industries
as it is difficult to close the resource loop for some countries.

5 Discussion

The authors have concluded that the sustainable growth model and circular agri-
culture can be substantially enhanced through the efficient use of resources. Envi-
ronmental sustainability should be promoted in both the industrial and agricultural
sectors to prevent the exploitation of natural resources. Circular agriculture ensures
that human beings can live while accomplishing their needs without compromising
the ability and needs of incoming generations. According to the authors, numerous
production systems of agriculture could be captured through the heading of circular
agriculture. Based on the case studies, the authors deduced that companies sold a
variety of products, and the income of these products made the business case to be
economically feasible. Circular agriculture had a variety of benefits, including social
benefits like better living conditions and economic advantages like the creation of
employment opportunities [8]. In the most concise terms, the circular economy (CE)
model, unlike the linear economic model, would reduce the depletion of resources it
206 A. M. Matkerimova et al.

ensures environmental conservation and waste disposal. The CE model is character-

ized by the recovery of materials in production, reusing, recycling, distribution, and
consumption process.

6 Conclusion

The application of circular agriculture in farming will help to fight hunger and ensure
that there is sustainable economic development. Besides, the minimization of envi-
ronmental pollutants through the use of circular agriculture is very fundamental in
promoting the social wellbeing of people. Circular agriculture reduces the inputs of
finite resources and promotes the use of renewable resources, thus preventing leakage
of systems of natural resources like phosphorous, carbon, nitrogen. It stimulates the
recycling and reuse of inevitable losses.

References

1. Belov AA, Belova EV, Gordienko IV, Shvarev EV (2021) Improving the staffing of the agroin-
dustrial complex of the belgorod region on the basis of partnership between education and
business. Revista Gestão Inovação E Tecnologias 11(4):3974–3984. https://doi.org/10.47059/
revistageintec.v11i4.2422
2. Bogoviz AV, Sergi BS (2018) Will the Circular Economy Be the Future of Russia’s Growth
Model? In: Exploring the future of Russia’s economy and markets, pp 125–141. https://doi.
org/10.1108/978-1-78769-397-520181007
3. Esposito B, Sessa MR, Sica D, Malandrino O (2020) Towards circular economy in the agri-food
sector. Syst Lit Rev Sustain 12(18):7401
4. Jurgilevich A, Birge T, Kentala-Lehtonen J, Korhonen-Kurki K, Pietikäinen J, Saikku L,
Schösler H (2016) Transition towards circular economy in the food system. Sustainability
8(1):69. https://doi.org/10.3390/su8010069
5. Mehmood A, Ahmed S, Viza E, Bogush A, Ayyub RM (2021) Drivers and barriers towards
circular economy in agri-food supply chain: a review. Bus Strategy Dev. https://doi.org/10.
1002/bsd2.171
6. Muscio A, Sisto R (2020) Are agri-food systems really switching to a circular economy model?
Implications for European research and innovation policy. Sustainability 12(14):5554
7. Popkova EG, Sergi BS (2019) Social entrepreneurship in Russia and Asia: further development
trends and prospects. In: On the Horizon. Ahead-of-print (ahead-of-print). https://doi.org/10.
1108/oth-09-2019-0065
8. Popkova EG, Sergi BS (2020) Human capital and AI in industry 4.0. Convergence and diver-
gence in social entrepreneurship in Russia. J Intell Capital 21(4):565–581. https://doi.org/10.
1108/jic-09-2019-0224
9. Sergi BS, Popkova EG, Bogoviz AV, Ragulina YuV (2019) Entrepreneurship and economic
growth: the experience of developed and developing countries. In: Sergi BS, Scanlon CC (eds)
Entrepreneurship and development in the 21st century. Emerald Publishing, Bingley, UK
10. Stillitano T, Spada E, Iofrida N, Falcone G, De Luca AI (2021) Sustainable agri-food processes
and circular economy pathways in a life cycle perspective: state of the art of applicative research.
Sustainability 13(5):2472. https://doi.org/10.3390/su13052472
The Benefits of Reconstructive
Agriculture for Food Security and Rural
Tourism in Present and Future:
Innovations and Sustainable
Development

Tatiana A. Zabaznova, Elena S. Akopova , Anastasia A. Sozinova ,

and Elena V. Sofiina

Abstract The chapter focuses on the problem of the underrun of rural territories’
development from large cities against the background of the global tendency of
urbanization. Reconstructive agriculture is considered a prospective tool for solving
this problem. On the one hand, the advantages of reconstructive agriculture for food
security are studied. The contribution of innovations in the sphere of sustainable
development to the reconstruction of lands and the increase of soil fertility are
assessed through the lens of the growth of labor efficiency in agriculture. On the
one hand, the contribution of reconstructive agriculture to the development of rural
tourism is determined; it is supposed that it is potentially large in the conditions
of the quick growth of green economies around the world. The authors consider the
contribution of innovative activities to the development of reconstructive agriculture,
using the materials of “The Global innovation Report 2021” by WIPO. The authors
also develop a concept of the provision of food security and the development of rural
tourism based on the popularization of reconstructive agriculture. For successful
practical implementation of the developed strategy in any country of the world, the
authors offer a perspective algorithm of transition to reconstructive agriculture with

T. A. Zabaznova
Sebryakovsk Branch Volgograd State Technical University, Mikhailovka, Russia
E. S. Akopova
Rostov State University of Economics, Rostov-on-Don, Russia
e-mail: Akopova_rsue@icloud.com
A. A. Sozinova (B)
Vyatka State University, Kirov, Russia
e-mail: aa_sozinova@vyatsu.ru
E. V. Sofiina
State – Financed Federal State Educational Institution «Kirov Agricultural Sector Advanced
Training Institution» (SF FEI Kirov ASATI), Kirov, Russia
Federal State Budgetary Scientific Institution «Federal Research Center of Agrarian Economy and
Social Development of Rural Areas – All – Russian Research Institute of Agricultural
Economics» (FSBSIFRC AESDRA VNIIESH), Moscow, Russia

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 207
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_24
208 T. A. Zabaznova et al.

special attention to the achievement of the advantages for food security and rural
tourism in the present and future.

Keywords Reconstructive agriculture · Food security · Rural tourism ·

Innovations · Sustainable development · Development of rural territories

JEL Classification A10 · Q01 · Q15 · Z30

1 Introduction

This study investigates the benefits of reconstructive agriculture for food security
to help provide ways through which farmers can achieve higher productivity within
shorter periods so that they can supply adequate food products to satisfy the rapidly
increasing population across the globe [8]. The main goal is to analyze various recon-
structive agricultural methods to achieve a healthier eco-culture. Previous studies
have shown that various farming methods can help increase farm productivity without
affecting a farmer’s budget. Each farmer can adopt various methods and technological
innovation to maximize their yields; however, some farmers fail to do so, why would
they opt for failure? In this study, there are various reasons why farmers fail to seize
such opportunities. Secondly, the study compares past studies’ statistics to evaluate
and argue out possible demerits that arise with reconstructive agriculture. Recon-
structive agriculture has proved that it can help increase food security; secondly, it
has depicted its ability to sustain crops in harsh environments [14]. Therefore, this
study analyzes how the past reconstructive agriculture has been employed and the
possible errors that were made which hindered its success.
Since the nineteenth century, the world population has increased rapidly; however,
the means for increasing food production to satisfy this population have not been
discovered yet [6]. Globally, food insecurity is a challenge in many places; people
have sort to different technological innovations that can help increase food production
rural territories are overpowered by the development projects in large cities. In many
cases, rural areas are given fewer resources by the government thus businesses in
these regions suffer from inadequate technology and empowerment [6]. If the rural
areas were to conduct their activities with smart devices like in the cities, then both
rural and urban areas would equally be developed. In the same way, large cities
have embraced technology, and rural areas should be able to embrace technology
regardless of the activities they are doing. While taking a closer look at the activities
done in rural areas, one realizes that most of these areas are heavily dependent
on farming whether on a large scale or small scale; more people in rural areas are
farmers [10]. In the nineteenth century, many people thought technology could hardly
survive in farms because of the rough environment in these regions; however, when
they started using fertilizers to increase productivity, farmers realized that technology
could help reduce labor and maximize productivity [7].
The Benefits of Reconstructive Agriculture … 209

Most of these projects have been met with various challenges in verifying and
executing them. This study focuses on the importance of reconstructive agriculture
and how it can be applied to resolve the issue of food insecurity. The advantages and
disadvantages of reconstructive farming are analyzed and evaluated in the literature
review section. This study conducts an assessment of how beneficial reconstructive
agriculture has been to those farmers who have tried it. The study closely focuses
on innovation and sustainable development in agriculture whether in reconstructive
agricultural practices or other practices.

2 Methods

To get to the bottom of this research, the study applies a mixed-method research
design to research all the highlighted problems stated above. The study utilizes
secondary data. The use of secondary sources in this case is very effective because it
helps save cost and time as the data is already prepared, analyzed, and documented
[9]. Also, being more of qualitative research, the use of secondary data provides an
opportunity to compare and cross-check findings from different sources. The PICO
framework was utilized to make sure the search options were methodical and refined
through the use of keywords. The use of keywords as shown in the abstract was used
to screen titles and to enhance the accuracy of data. Also, reference list of various
studies and articles was checked.

3 Literature Review

Many scholars have explored various ways through which sustainable food security
can be achieved by employing innovation in reconstructive agriculture. Researchers
report that there is a notable global demand for food that has not yet been satis-
fied; in fact, the demand for food increases each day as the population increases [4,
10]. Secondly, there is notable climate change that has affected each farmer across
the globe, therefore minimizing each farmer’s ability to produce more food. Harsh
climates and unpredictable weather changes have a negative impact on the farming
process in both developed and undeveloped countries. Thus, purchasing food prod-
ucts has become more stressful; as a result, the need to develop more sustainable
agricultural practices is at a peak. Another challenge that affects any kind of agricul-
ture is the increased cost of energy; farmers’ profits are cut off by a large percentage
as they have to cater for high energy costs [13]. Some farmers are not able to plant
and cultivate as many crops as they can because they cannot afford to maintain large
parts of the land.
The high cost of energy demotivates farmers from their work. Another issue that
affects farmers is the amount they have to pay for labor; since employees have to be
taxed, they now request higher pays, which oppresses the employer. The supply of
210 T. A. Zabaznova et al.

workers, therefore, decreases especially skilled employees who can solve issues that
arise on the farm. The agricultural sector also faces little support from investors; for
instance, tea, coffee, sugar, or tobacco plantains in South America suffer due to low
capital since investors prefer other types of investment rather than farming. Farmers
also face water shortages; this is a very serious problem in the agricultural sector [1,
14]. Many farm products go to waste once droughts occur.
The federal government of the USA proposed a water conservation project would
be developed in various parts of each state. This would help many farmers cultivate
their crops regardless of water shortages in the land. Proper water conservation
remains the biggest challenge for each farmer. Lastly, researchers realized that farm
safety is a key problem hindering many workers from attending work each day.
Farmers need more safety for each worker in their land [11]. Security is also a major
issue in each farm, many farm owners complain about the loss of certain gadgets in
their farms. This demotivated them from purchasing certain valuable gadgets in their
lands for fear of loss.
In all these discussed problems, reconstructive agricultural practices promise
better outcomes if only the right innovations are put in place. Researchers propose
that technological innovations will provide interested farmers with adequate knowl-
edge about how they can improve and cope with new challenges [12]. In reconstruc-
tive agriculture, traditional farming methods have to be put aside and the farmer
must remain open-minded to achieve better products [10]. Reconstructive agricul-
ture ensures that farmers’ plant crops using the right procedure and the right timing,
and this will ensure the farmer has prepared their lands adequately to accommodate
and germinate the seeds. Farmers can use online resources to make their work easier.
Many farmers have gained vast wealth and valuable skills from online resources on
how they can conduct reconstructive agriculture even on previously unproductive
lands. The proliferation of technology has drastically allowed farmers to access the
knowledge they lacked about certain types of seeds and which seeds are more suitable
in their lands. Additionally, certain online forums give farmers a chance to interact
with other farmers across the world [13], and these conversations can lead to robust
support and insightful discussions.
Another innovation that can be used in reconstructive farming is the use of GPS on
tractors. In the nineteenth century, the introduction of tractors excited many farmers
because it reduced the efforts needed to plow and plant [5]. However, there were
challenges such as seed wastage, mix-ups, and wrongful seed placement. Fortunately,
with the innovation of GPS, tractors can be tracked and they can be fitted with
automatic steering systems; this will help mend seed placement. It will also help track
pieces of land that have been planted and those that are not planted. Additionally,
adequate use of GPS-guided drones can help farmers spray their crops easily and
livestock. They can also map and control their livestock movement properly.
Innovations such as Geographic Information Systems (GIS) can help farmers map
out their lands well in 3D, and they call collect soil samples and test their fertility,
this will help a farmer prepare each portion of land for certain crops that will grow
well [5]. Sustainable harvests can be achieved as long as each farmer knows what
crop is suitable for their soil. Concurrently, farmers can use the GIS and variable rate
The Benefits of Reconstructive Agriculture … 211

technology (VRT) to allocate each part of their land the correct amount of fertilizer.
Other innovations in reconstructive farming include using sensors that guide a farmer
on the right approaches they can employ to adapt to environmental changes in their
regions. Location sensors can use data from satellite signals to predict the organic
matter in the soil, the moisture, and the soil content.
Research studies show that reconstructive agriculture would yield better results if
combined with smart farming systems which are also called precision agriculture [3].
Precision farming can be combined with reconstructive farming to produce higher
yields because each method will bring in better data, or better innovations. For
instance, for a farmer who wants to irrigate their land, they can combine data from
precision farming and use sensors to measure soil moisture.

4 Results

While comparing various studies such as Report 14, “Agro-ecological and Other
Innovative Approaches for Sustainable Agriculture and Food Systems that Enhance
Food Security and Nutrition” by The High-Level Panel of Experts on Food Security
and Nutrition, this academic article reports that many farmers need assistance and
guidance on how and which technologies to use. Eighty percent (234,300) of farmers
in the USA are literate and 50% of them use technological innovations in farming, this
makes the USA the biggest exporter of agricultural products due to the adaptation of
technology. Another report, “The Global Innovation Report 2021” by WIPO showed
that Switzerland, the USA, the UK, and South Korea were among the top-ranking
countries that apply technological innovations to their agricultural practices; as a
result, these countries have adequate food security. Among other studies, it is clear
that countries that use technology in farming are better producers than countries that
do not use innovation and reconstructive farming [2].

5 Discussion

Research shows that one of the challenges faced by many people is the lack of
skilled technicians to deal with agricultural technology. However, each year, many
students are enrolled in various institutions to study smart farming via physical or
online means. Technology can and has improved agriculture and its effects have more
merits than demerits. The world should encourage farmers to adapt to smart farming
so that they can decrease their efforts but increase their yields. Reconstructive and
smart farming offers farmers a new experience with farming in twenty-first-century
technology; some scientists have collaborated with farmers to ensure that better
seedlings are produced. Genetically modified seedlings have the potential of growing
within a shorter time and producing more harvests with little fertilizer.
212 T. A. Zabaznova et al.

New genetically modified seedlings are also pest resistant, and thus, harvests are
assured in a shorter time. The opportunity to grow crops and harvest in a shorter time
would mean that farmers can harvest many times in a year, and this would ensure a
stable supply of food; thus, food security would be achieved across many countries.
The high and stable availability of food would enable food prices to decrease; thus,
more people can be fed at the price of one person; this gives people hope for a better
nation that is well-nourished thus healthy. The increased activity in rural areas would
ensure they grow and develop. This development would attract better investors and
this would boost the agricultural sector.

6 Conclusions

The use of innovative technology in reconstructive agriculture would ensure that

higher yields are achieved; this would then increase food security which is the main
goal of this study and the world at large. Each country is struggling to ensure they feed
themselves; however, the harsh environmental factors challenge successful farming.
Technological innovations would enable farmers to decrease the use of fertilizers,
pesticides, and water, ensuring that food prices are low, thus affordable. If all people
would afford healthy meals daily, then each country would be healthier and a healthier
population leads to more productivity and mortality. The benefits of employing inno-
vation in reconstructive farming are the ultimate solution to food insecurity and rural
tourism. For people to tour around rural areas and enable their development, then
these regions have to attract the kind of development that would best suit them.

References

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In: Exploring the future of Russia’s economy and markets. Emerald Publishing Limited
3. Brown P, Roper S (2017) Innovation and networks in New Zealand farming. Austr J Agric
Resour Econ 61(3):422–442
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Insights into the adoption of farming practices through multiple lenses: an innovation systems
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A Framework for Reconstructive Digital
Farming for Areas with Unfavourable
Climatic Conditions for Agricultural
Entrepreneurship

Larisa V. Shabaltina , Natalia V. Shchukina, Olga A. Surkova,

and Anastasia I. Smetanina

Abstract This paper emphasizes the appropriate framework for reconstructive smart
technologies and corporate sustainability, areas with unfavourable climatic condi-
tions for agricultural entrepreneurship. Traditional agriculture extension and advi-
sory services face various challenges in developing countries which also reduce their
efficiency. Challenges in traditional agriculture to maintain food security and effi-
ciency in nutrition are difficult to manage. Establishing the technological system for
reconstructive advanced agriculture system uses the creative computerized stage for
local area commitment. Understanding the importance of creating networks across
South Asia and Sub-Saharan Africa is very significant. Esoko in Africa utilizes inte-
gration with digital systems and call centres to improve access to extension services.
Coordination with local public, private and civil society organizations shares infor-
mation on efficient agriculture practices in developing areas. Unfavourable climatic
conditions also have a great impact on the agriculture system. The digital develop-
ment system is the engine of agriculture efficiency. Advanced innovation systems
are the essential methods for digital farming to promote development and growth in
rural areas.

Keywords Framework · Digital development · Agriculture entrepreneurship

JEL Classification A10 · O13 · Q01 · Q12

L. V. Shabaltina
Plekhanov Russian University of Economics, Moscow, Russia
N. V. Shchukina · O. A. Surkova
Sebryakovsk Branch Volgograd State Technical University, Mikhailovka, Russia
A. I. Smetanina (B)
ISC-Group LLC, Volgograd, Russia
e-mail: luxury_economy@mail.ru

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 215
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_25
216 L. V. Shabaltina et al.

1 Introduction

Digital farming is divided into developed and developing countries farmers, their
corporative, large, medium and small input suppliers, and traders and retailers that use
digital farming for the food value chain, evaluating the soil in the farm. In this process,
farmers are facing different situations and more opportunities. To achieve a sustain-
able position in agriculture entrepreneurship, they need to manage the environmental
plans and procedures [13].
Many people use online social networks to establish communication. Sustainable
agriculture entrepreneurship establishes a unique and productive contribution to a
developed society.
High developments in Internet-based technological tools are encouraging several
developing countries to promote the economy into a fine destination. As a result,
developed countries are integrating through digital farming, and maintaining the
sustainable position of agriculture entrepreneurship [14]. Digital farming has made
a remarkable one of the best platforms to deal with industries and increase massive
content on daily tasks. The reconstructive digital farming system evaluates the
seamless updates, comments, news and recommendations, being frequently posted
on media channels, remarks by individuals on social media sites relevant to the
unfavourable climatic conditions [3].

The Objectives of the Research Are

• To evaluate the interconnection between reconstructive digital farming and
favourable climatic conditions.
• To consider the circular economy as a bridge to achieve the balanced development
between environment and economy.
• To promote circular agriculture in using agriculture resources.

Research Question
• Do climatic condition influence digital farming in agricultural entrepreneurship?

The Research Gap

The main research gap of this study is related to rural areas in which digital farming for
areas with the risk-based climatic condition for agriculture entrepreneurship must
be improved. The possible initiatives that will be taken to minimize the gaps are
highlighted in [4].
It is also evaluated through digital farming that it is helpful to minimize the risk
level in unfavourable climatic conditions.
In developing countries, one of the major steps is to adopt technology that facili-
tates achieving an efficient position. Technology development is essential to evaluate
the market failures such as unfavourable climatic conditions. It is difficult to manage
unfavourable climatic conditions without appropriate information and guidance of
reconstructive digital farming.
A Framework for Reconstructive Digital Farming … 217

2 Methods

Deductive Approach
We select the deductive approach. A deductive approach is reasoning from the
particular to the general.

Research Purpose
The basic purpose of research work is to establish an understanding of the previous
research work. Which things need to be improved in future? How to explore the
methods in the research field? The research work is favourable for generating new
ideas and opinions for scientists.

Data Collection Methods

Data collection methods consist of two types: the quantitative method, in which
research work is related to numerical analysis; and qualitative analysis, which
emphasizes attributes.
The basic vision of any research work is the collection of data; authors also
evaluate the validity and accuracy of data collection. The researcher’s basic aim is
to utilize various ways for the collection of data and address the research questions
properly. There are two basic categories: primary and secondary methods. It is also
evaluated through the research primary techniques in research work is the most
reliable and genuine way to collect data. Many of the researchers are using the primary
data for research work. Various sources are utilized for the analysis of primary data,
for example, the ones including questionnaires, etc.

Data Analysis
For data analysis of results, the authors use the SPSS software. The survey data is
collected from the participants and then uses the techniques for the analysis of data
mentioned below.

Data Analysis in Quantitative Research

The underlying phase of data analysis is that the ostensible information can be
changed over into something significant. Information readiness incorporates the
different stages.

Methods Used for Data Analysis in Quantitative Research

In numerical research, we use various methods for data analysis.

Descriptive Analysis
Descriptive analysis is used for the authenticity and transparency of data. In numerical
analysis, the techniques of mean, standard deviation and variance are implemented.
The ANOVA technique is also used in the analysis of data.
218 L. V. Shabaltina et al.

Measure of Frequency
• Evaluate in the form of a per cent.
• Researchers use it when they need to assess how the reaction is given.

Measures of Central Tendency

• Mean, median, mode.
• This method is evaluated to represent distribution by various points.

Measure of Dispersion
• Range, variance and standard deviation.
• Median absolute deviation.
• Mean absolute differences.

3 Literature Review

The industrial development process also facilitates reconstructive digital farming

with the unfavourable climatic condition of developing areas for agriculture
entrepreneurship. Farmers try to improve efficiency sustainably through the appro-
priate incentives. The unstable system and inefficiency exchange networks are studied
in [5, 7].
For agriculture, digital farming practices are implemented. Empirical studies are
also helpful for the analysis of data [6]. Reconstructive digital farming needs to invest
and implement sustainable technologies. Digital farming practices have also required
the investment to become profitable if they have the right education about reconstruc-
tive digital farming and motivational spirit [9]. Government policies regarding the
unfavourable climate set the appropriate criteria.
A technological system is a way that facilitates a new method to exchange their
opinions with other users using two-way communication. It is also helpful that
any person who has an advanced digital farming system can reduce the risk of
unfavourable climatic conditions [2].
For environment safety, it is essential to realize the myriad conditions that are
reliable for the sustainable development of the environment. Unfavourable climatic
conditions are greatly impacting the economic development of the industry. Environ-
ment degradation is due to the inefficient position of the environment in agriculture
[10]. Implementation of technology on sustainable farming systems includes a range
of stakeholders. These partners include farmers, the agri-food industry, purchaser
groups and non-government organizations.
A Framework for Reconstructive Digital Farming … 219

Table 1 Demographic statistics

Statistics
Gender Status Education Experience Age
No Valid 80 80 80 80 80
Missing 5 5 5 5 5
Gender
Frequency Percent Valid per Cumulative percent
cent
Valid Female 80 94.1 100.0 100.0
Missing System 5 5.9
Total 85 100.0
Source Compiled by the author based on [12]

4 Results

Discussion of the descriptive analysis of the study is given below, as well as the
analysis of the results of mean and standard deviation (Tables 1 and 2).
Table 3 is the ANOVA technique evaluation of the sum of squares, df, mean
square, F and significant point. The value of F in this table is 1.226, and the level of
significance is 0.28, which is higher than 0.05. The correlation between the model
and dependent variable is statistically significant. The mean square in Table 3 is
1.735.

5 Discussion

The discussion emphasizes the framework for reconstructive digital farming for
areas with unfavourable climatic conditions for agricultural entrepreneurship. For
this purpose, conduct the descriptive and ANOVA analysis to evaluate the results.
Mean is adding a data set and then dividing by the number of values in a data set.
The mean gender is 1.00. On the other side, the mean status is 2.55. The mean of
experience in the agriculture field is 1.51. The mean of education is 3.44. The mean
age is 2.89. Digital farming mean is 3.79. Advanced tools mean is 3.31. Advancement
in the agriculture system mean is 3.09. The technological improvement mean is 3.86,
and mean of the direction of the wind is 3.81. The temperature of the soil mean is
3.66. The environment degrading mean is 3.54. The economic crisis mean is 3.70.
Greater mean technological improvement is 3.86.
Standard deviation is the measurement of the dispersion of a set of data from its
mean. The standard deviation of gender is 0.00. On the other hand, in the analysis of
the agriculture entrepreneurship framework, the Standard deviation of status is 1.330.
The standard deviation of education is 1.210, the standard deviation of experience
220 L. V. Shabaltina et al.

Table 2 Descriptive analysis for the authenticity and transparency of data

Status
Frequency Percent Valid percent Cumulative
percent
Valid Single 19 22.4 23.8 23.8
Married 28 32.9 35.0 58.8
13 15.3 16.3 75.0
11 12.9 13.8 88.8
8 9.4 10.0 98.8
Descriptive statistics
No Minimum Maximum Mean Std.
deviation
Gender 80 1 1 1.00 0.000
Status 80 1 6 2.55 1.330
Experience 80 1 3 1.51 0.729
Education 80 1 5 3.44 1.210
Age 80 1 5 2.89 1.475
Digital farming 80 1 5 3.79 1.052
Advanced tools 80 1 5 3.31 1.298
Advancement in the 80 1 5 3.09 1.255
agriculture system
Technological 80 1 5 3.86 0.978
improvement
Direction of wind 80 1 5 3.81 0.995
Temperature of soil 80 1 5 3.66 0.954
Environmental 80 1 5 3.54 1.124
degrading
Economic crisis 80 1 5 3.70 1.024
Source: Compiled by the author based on [8]

Table 3 ANOVA technique

Model Sum of squares df Mean square F Sig
1 Regression 20.825 12 1.735 1.226 0.285b
Residual 94.862 67 1.416
Total 115.688 79
Source Compiled by the author based on [11]
A Framework for Reconstructive Digital Farming … 221

in relevant field is 0.729. The standard deviation of age is 1.475, and the standard
deviation of digital farming is 1.052. The standard deviation of advanced tools is
1.298, the standard deviation of advancement in the agriculture system is 1.255. The
standard deviation of technological improvement is 0.978. Through analysis, it also
evaluates the direction of the wind, the standard deviation is 0.995. The standard devi-
ation of the temperature of the soil is 0.954, the standard deviation of environmental
degrading is 1.124, the standard deviation of economic crisis is 1.024. The greater
the dispersion, the greater the magnitude of value from their mean. A high value
of the standard deviation is 1.330. The discussion of the results has shown that the
implementation of digital farming also has a significant impact on the unfavourable
climatic conditions for agriculture entrepreneurship.

6 Conclusion

It is possible to conclude that it is important to share the digital farming techniques

and approaches used in developing countries and to implement innovations for agri-
culture entrepreneurship frameworks. Different experiences evaluate the efficiency
of different policy approaches and techniques. A sustainable agriculture system
supports the development of the circular economy and efficiency in the sustainability
of the farming system. It is also necessary to evaluate the gap between developing
and developed countries. Farmers face a highly competitive marketplace. Digital
farming needs to increase the productivity and efficiency of technology to continue
the business.
Unexpected challenges are very common for farmers. A proper formation of
management needs to manage the different situations in unfavourable climatic
conditions. Coordination and collaboration by management are necessary for the
appropriate sustainable climatic position for agriculture entrepreneurship. A digital
farming system can help the farmers to evaluate their decisions yearly. A model of
recycling economy is developed for pollution-free agricultural products and green
food. A circular economic system for reconstructive advanced cultivation system
uses the creative computerized stage for local area commitment.
Digital farming in the agriculture system is very complex in this global, quickly
growing technology world. Facebook marketing is one of these so-called hot topics
and the interests for researchers regarding this agriculture entrepreneurship have
never been bigger before [1]. Comparison with the old traditional system-type social
media marketing can access much more potential outcomes within different user
channels (smartphone, laptop, iPad). The development of the agriculture system and
organic industry is the need to protect the environment. Development in the rural
economy is also essential for agriculture development. The government also plays
the important role in the digital farming process.
222 L. V. Shabaltina et al.

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Agricultural Sector in the System of Food
Security of Russia

Alsu R. Nabiyeva , Alexander E. Suglobov , and Alexander V. Tkach

Abstract The authors provide a comprehensive assessment of the food security

system and the place of the agro-industrial complex of Russia in it. Additionally, the
authors reveal the place and role of agriculture in the formation of resources for the
country’s food supply and emphasize its importance for national economic security.
The paper substantiates the main vectors of the formation of food resources to ensure
the national food sovereignty of Russia in the face of sanctions and embargoes. The
sources of food products from the national agro-industrial complex in the food supply
system are presented. The relevance of the interaction between the sectors of agri-
culture and processing industry based on cooperation and integration is revealed.
The authors propose the main directions of developing the food supply system,
including increasing the production of food products per capita and creating condi-
tions for physical and economic accessibility of all residents to food in the required
quantity and assortment. The paper shows that Russia’s gross production of agricul-
tural products and raw materials tends to grow every year. Additionally, it reveals
the dynamics of the consumption of various food products in the diet of Russians
and its compliance with medical standards of nutrition. The authors formulate the
recommendations to increase the volume of production of agri-food products using
innovation, increasing the productivity of fields and farms, saving material resources,
energy, and labor costs, increasing productivity, and strengthening the food security
of Russia.

Keywords Food security · Food supply system · Agro-industrial complex ·

Agriculture · Food products · Agricultural sectors

A. R. Nabiyeva · A. E. Suglobov · A. V. Tkach (B)

Russian University of Cooperation, Mytishchi, Russia
e-mail: alex.tkach2017@yandex.ru
A. R. Nabiyeva
e-mail: kazan@rucoop.ru
A. E. Suglobov
e-mail: a_suglodov@mail.ru

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 223
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_26
224 A. R. Nabiyeva et al.

JEL Classification D60 · E69 · E20 · F13 · L66 · Q12 · Q13 · Q18

1 Introduction

The system of food security in Russia is a multi-dimensional structural formation. It

involves developing and applying organizational and economic measures that allow
for the balanced functioning and development of industries in different regions and
the whole country. One of the main objectives of the food security system is a sustain-
able supply of food in the required volumes at any time of the year. The main share
in the food supply of the population is agri-food products of agriculture. Therefore,
the government should take the necessary measures to support domestic agricultural
producers. The agro-industrial complex (AIC) is the primary source of food resources
that predetermines the food security of Russia [25]. Food security is seen as a domi-
nant component of national security. Under food security conditions, it is supposed
to have free physical and economic access to food for the country’s population in
the amount required by medical standards. In this regard, the activities of the AIC
should be built in such a way as to guarantee the supply of agricultural products in the
required volume, regardless of weather conditions. The food security system involves
the equitable distribution of essential food and the successful development of rural
infrastructure. The primary factors of food security include availability, accessibility,
and consumption of food. We can distinguish four categories of food security: high,
marginal, low, and very low. In Russia, the primary statutory act that defines the
concept of public policy in the system of meeting the needs of society for food is
the Doctrine of Food Security of the Russian Federation, approved by Presidential
Decree of January 21, 2020, No. 20 [1].

2 Methodology

The research methodology is based on scientific methods of analysis, the formulation

of the scientific hypothesis of food security, the combination of industries, the study
of agricultural production, and the scientific works on food security.

3 Results

The authors study the activities of AIC enterprises aimed at the formation of food
resources [10]. The potential of increasing the volume of agricultural production
is revealed. The vectors of growth in the procurement of agri-food products are
determined. The dynamics of agricultural production are investigated. The features
of the activity of agricultural producers in the formation of agri-food resources are
disclosed.
Agricultural Sector in the System of Food Security of Russia 225

4 Discussion

The system of food security is an integral organizational and economic formation. Its
components are organizational–legal and production-economic forms that produce
and supply the country with food resources, agricultural products [12], food products
of the seas, rivers, and other water bodies, wild fruits, berries, nuts, mushrooms, and
other gifts of nature. This also includes enterprises of the food and processing industry
and catering facilities. Some of them are organizationally and economically linked by
cooperative and integrative mechanisms of relations that are dependent on each other
to a certain extent [5]. Certain agricultural products and raw materials are processed at
meat and milk processing plants, oil and fats plants, flax processing plants, and others.
The products of seas and freshwater bodies are processed in specialized canneries and
other workshops. The country has a well-developed network of specific production
facilities for the processing of crop products.
The agro-industrial complex is the main extraction, supply, and production base in
the system of the food supply of Russia [23]. The system of food security emphasizes
its orderliness, integrity, unity, and orderliness. There are regularities in forming this
system and creating the mechanism of relationships, sustainable functioning, and
dynamic development.
The study of the food supply system uses techniques from various disciplines,
including economics, systems engineering, systems dynamics, etc. The food supply
system can be considered a complex of interrelated and interacting organizational and
economic AIC structures engaged in certain relationships. Currently, the food supply
of Russia is a combination of interacting elements organized for the production,
processing, and supply of consumer agricultural food products. The food supply
system unites a multitude of economic entities, each of which performs its functions
and duties in a strictly defined period following the social division of labor to achieve
the ultimate goal of the food supply system [21].
The food supply system is a set of integrated and permanently interacting inter-
related components, the activities of which are aimed at guaranteeing the provision
of food to the country’s population. The AIC acts as an element of the food supply
system. It includes the branches of agriculture and enterprises for procurement and
processing of agricultural raw materials. Each branch of agriculture, considering its
specialization, practically solves specific problems according to the set objectives
and produces a certain range of products for the food supply system [22]. Agricul-
ture is the main producer and supplier of food products. Therefore, one of the leading
areas in the work of the government is the agricultural policy aimed at the progres-
sive development of the agricultural sector and enterprises that process agricultural
products and raw materials. One of the central places in the production of agri-food
products is occupied by the labor force in rural areas. From 1990 to 2020, Russia
saw a decrease in the number of rural residents from 38.9 to 37.2 million (4.4%). The
share of the rural population in Russia also decreased from 26.4% to 25.3% (1.1%)
[9].
226 A. R. Nabiyeva et al.

The primary indicators of food security are availability, accessibility, and

consumption of food. In 2019, Russia’s production per capita of grain remained
at the same level as in 2016; vegetable production increased by 6.7%; the production
of meat of all kinds increased by 10.4%; the production of milk increased by 5.4%;
the production of eggs increased by 3.0%. Only the production of potatoes decreased
by 2% (Table 1).
The access of the population to food increases as agricultural production increases
[20]. The analysis of the satisfaction of the population’s demand for agri-food
products in Russia (Table 2) shows the following (2019 compared with 2016):
• Per capita consumption of bread and bakery products decreased by 0.9%;
• Per capita consumption of potatoes decreased by 1.1%;
• Per capita consumption of vegetables increased by 6 kg;
• Per capita consumption of meat increased by 2 kg;
• Per capita consumption of milk increased by 3 kg;
• Per capita consumption of eggs increased by seven pcs.;

Table 1 Trends of agricultural production in Russia per capita, kg

Indicators Years 2019 in % to 2018
2016 2017 2018 2019
Grain 823 923 771 823 100
Potatoes 153 148 153 150 98.0
Vegetables 90 93 93 96 106.7
Cattle and poultry for slaughter (in 67 70 72 74 110.4
slaughter weight)
Milk 203 206 208 214 105.4
Eggs (pcs.) 297 305 306 306 103.0
Source Agro-industrial complex of Russia in 2019[9]

Table 2 Trend of annual food consumption per capita in Russia

Indicators Years 2019–2016
2016 2017 2018 2019 % +, −
Bread and bakery products (kg) 117 117 116 116 99.1 −1
Potatoes (kg) 90 90 89 89 98.9 −1
Vegetables (kg) 102 104 107 108 105.9 6
Meat (kg) 74 75 75 76 102.7 2
Milk (kg) 231 230 229 234 101.3 3
Eggs (pcs.) 278 283 284 285 102.5 7
Vegetable oil (kg) 13.7 13.9 14.0 14.0 102.2 0.3
Sugar (kg) 39 39 39 39 100 0
Source Agro-industrial complex of Russia in 2019 [9]
Agricultural Sector in the System of Food Security of Russia 227

• Per capita consumption of vegetable oil increased by 0.3 kg;

• Per capita consumption of sugar remained unchanged—39 kg.
One of the main roles in filling the country’s food supply is played by Russian
agricultural producers. In this regard, it is necessary to establish a sustainable func-
tioning of the entire system of agriculture, ensuring the guaranteed production of
own agri-food products in the required amount in any situation. Thus, to meet the
increasing demand for food, it is necessary to provide a timely response, use modern
methods of marketing management [7, 16], and implement innovative technologies
[14]. In Russia, agricultural producers supply a significant amount of crop produc-
tion to the country’s food supply system, increasing its cultivation. From 2016 to
2019, Russia increased gross output of grain and leguminous crops from 120,677 to
121,200 thousand tons (0.1%):
• Production of wheat increased from 73,346 to 74,453 thousand tons (1.5%);
• Production of leguminous crops increased from 2940 to 3344 thousand tons
(13.7%);
• Production of sunflower increased from 11,015 to 15,379 thousand tons (39.6%);
• Production of rapeseed increased from 1001 to 2060 thousand tons (2.1 times);
production of soybeans increased from 3143 to 4360 thousand tons (38.7%);
• Production of fruits and berries increased from 3055 to 3500 thousand tons
(14.6%).
It should be noted that the share of agricultural organizations in the production of
potatoes is only 21.0%, in the production of vegetables—28.1% (Table 3).
Ensuring the food security of the country cannot be considered only from the
position of satisfying the population’s demand for food. In the current global world,
the consequences of food insecurity must be considered in conjunction with global
economic and political developments that significantly affect people’s lives. Contin-
ually, increasing food imports have devastating consequences for the development of
domestic agriculture, accompanied by a decrease in production, loss of jobs, impov-
erishment of the rural population, and devastation of villages. A positive solution to
food security problems is influenced by the condition of the national economy, the
degree of development of the AIC, and the level of modernization of agriculture [13].
In a food-independent country, every citizen has guaranteed physical and economic
access to food in amounts of rational medical standards of consumption required for
a healthy lifestyle. The primary goal of the food supply system is to meet people’s
needs for nutritious food. Livestock products play a leading role in meeting people’s
needs for nutritious food [19]. The livestock industries produce high-quality and vital
food and raw materials for the processing industry. The country’s food resources are
supplied with meat, milk, eggs, fat, and other products from various regions of the
country, where livestock industries are developed [2].
One of the leading sectors of livestock production is cattle. In 2019, Russia had
18,126 thousand cattle, including 7964 thousand cows, 22,618 thousand sheep and
goats, and 544.7 million poultry. From 2016 to 2019, the number of pigs increased
228 A. R. Nabiyeva et al.

Table 3 Gross harvest of crops in farms of all categories in Russia, million tons
Indicators Years 2019 in % to 2016
2016 2017 2018 2019
Grain and leguminous crops—total 120.7 135.5 113.3 121.2 100.4
Including
Winter and spring wheat 73.3 86.0 72.2 74.5 101.6
Corn for grain 15.3 13.2 11.4 14.3 93.5
Legumes 2.9 4.3 3.4 3.3 114.0
Sugar beet (factory beet) 51.3 51.9 42.1 54.4 106.0
Sunflower 11.0 10.5 12.8 15.4 140.0
Rapeseed 1.0 1.5 2.0 2.1 210.0
Soybean 3.1 3.6 4.0 4.4 141.9
Potatoes—total 22.5 21.7 22.4 22.1 98.2
Including in agricultural organizations 4.2 4.2 4.3 4.6 109.5
Share of agricultural organizations, % 18.7 19.5 19.3 21.0 n.a
Vegetables—total 13.2 13 13.7 14.1 106.8
Including agricultural organizations 3.1 3.5 3.6 4.0 129.0
Share of agricultural organizations, % 23.3 25.6 26.2 28.1 n.a
Fruits and berries 3.1 2.7 3.3 3.5 112.9
Source Agro-industrial complex of Russia in 2019 [9]

from 21,925 to 25,163 thousand (14.8%). From 2016 to 2019, the nationwide produc-
tion of livestock and poultry in slaughter weight increased from 9853 to 10,866 thou-
sand tons (10.3%), milk yield increased from 29,787 to 31,360 thousand tons (5.3%),
and production of eggs increased from 43,515 to 44,858 million eggs (3.1%) (Table
4).
The most sought-after and popular product in the human diet is meat. The meat
of cattle is widely used in the production of meat products [15]. Beef has a high
nutritional value and is in demand among almost all people, regardless of nationality
and religion of the person. As a result of economic transformations in Russia, the
share of beef in the production and consumption of meat products has significantly

Table 4 Trend of livestock production in farms of all categories in Russia

Product Years 2019 in % to 2016
2016 2017 2018 2019
Cattle and poultry in slaughter 9.9 10.3 10.6 10.9 110.1
weight, million tons
Milk, thousand tons 29.8 30.2 30.6 31.4 105.4
Eggs (mln) 43.5 44.8 44.9 44.9 103.1
Source Agro-industrial complex of Russia in 2019 based on [9]
Agricultural Sector in the System of Food Security of Russia 229

decreased in recent years. From 1990 to 2019, the share of beef in the structure of
total meat production increased to 25.9%, the share of poultry meat increased to
38.0%, and the share of pork increased to 32.3%. During the reviewed period, the
share of mutton decreased to 3.0%. Horsemeat and rabbit meat products have a small
share in the structure of meat products.
In the system of food security of Russia, along with producers of agricultural
products, an important role is played by consumer societies and unions of consumer
cooperation of the Centrosoyuz of the Russian Federation [8]. Procurement organi-
zations and receiving and procurement cooperative stations annually purchase meat
products, dairy products, eggs, potatoes, vegetables, fruits, medicinal and technical
raw materials, and wild products of forests and swamps (i.e., mushrooms, berries,
nuts, etc.) from small agricultural businesses [11, 24]. In 2020, consumer societies
headed by the Centrosoyuz of the Russian Federation purchased and sent to the
country’s food supply system agricultural products worth 21,460 million rubles [6].
In physical terms, the volume of procurement of agri-food products is as follows
(Table 5):
• All kinds of purchased meat—4751 tons;
• Purchased milk—223,453 tons;
• Purchased eggs—138,626 thousand eggs;
• Purchased potatoes—29,788 tons;
• Purchased vegetables—36,182 tons;
• Purchased fruits—20,853 tons;
• Purchased medicinal raw materials—864 tons.

5 Conclusion

The research revealed the leading role of the agricultural sector in the system of food
security in Russia. The authors determined mechanisms of public support of agricul-
tural producers and determined the main directions of increasing the production of
agri-food products with more efficient use of natural resources [4; 18]. A promising
direction to increase food production is the expansion of participation in the devel-
opment of livestock and crop sectors of small farming, increasing their importance
in the formation of food resources, and the implementation of targeted programs
for the development of agriculture. Progressive development of social and produc-
tion infrastructure in rural areas, measures to improve working and living conditions
in rural areas, strengthening the economy of agricultural businesses, increasing the
role of consumer cooperation in procurement activities, and the formation of food
resources of the country will contribute to strengthening food security [17].
230 A. R. Nabiyeva et al.

Table 5 Purchases of agricultural products and raw materials by consumer societies of the
Centrosoyuz of the Russian Federation in 2020
Unions of Total, Agricultural products by type, tons
consumer mln. Meat Milk Eggs, Potatoes Vegetables Fruits Medicinal
societies RUB thou. raw
pcs. materials
Centrosoyuz 21,460 47,516 223,453 138,626 29,788 36,182 20,853 864.0
of the
Russian
Federation
Central 3082 7830 3495 29,146 6776 8318 5170 11.3
Share in % 14.4 16.5 1.6 21.0 22.7 23.0 24.8 1.3
Northwestern 1731 6480 1889 22,563 2738 3359 3165 136,7
Share in % 8.1 13.6 0.8 16.3 9.2 9.3 15.2 15.8
Southern 775 1214 592 7784 3944 4771 2104 –
Share in % 3.6 2.6 0.3 5.6 13.2 13.2 10.1 0
North 646 1011 2327 2616 2201 1895 276 -
Caucasus
Share in % 3.0 2.1 1.0 1.9 7.4 5.2 1.3 0
Volga 12,668 23,076 203,396 42,987 10,104 11,705 6795 671.2
Share in % 59.0 48.6 91.0 31.0 33.9 32.4 32.6 77.7
Ural 798 1335 3107 13,248 1071 1432 606 0.1
Share in % 3.7 2.8 1.4 9.6 3.6 4.0 2.9 0
Siberian 2096 4521 2518 16,432 1893 3212 2467 30.3
Share in % 9.8 9.5 1.1 11.9 6.4 8.9 11.8 3.5
Far Eastern 17 1901 699 3345 972 1375 188 14.4
Share in % 0.1 4.0 0.3 2.4 3.3 3.8 0.9 1.7
Source The main indicators of socio-economic activities of consumer cooperation of the Russian
Federation in 2020[3]

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Environmental and Economic Efficiency
of Cultivating Sunflowers in the Siberian
Federal District

Sergei P. Vorobyov , Konstantin V. Solovyev, and Olesya M. Val

Abstract The paper reveals modern trends in the world market of sunflower seeds
and indicates the place of Russia and its major regions in the gross harvest of this crop.
The authors find that the increase in the area of sunflower sowing and its share in the
arable land in the regions of the Siberian Federal District reduce economic efficiency
and increase the negative impact of the crop on the soil state. The increase in yields
is provided mainly by the intensification of production in violation of environmental
requirements. The authors indicate that it is possible to improve the efficiency of
sunflower cultivation by implementing science-based farming systems focused on
organic farming.

Keywords Production specialization · Sunflower · Effect of scale · Environmental

condition · Economic efficiency · Crop structure · Crop concentration

JEL Classification Q53 · Q55 · Q150

1 Introduction

The production of vegetable oil in the world has a steady growth dynamic. Most of
the vegetable oil is consumed for food (about 77.0%), and the rest is used as a raw
material for industry. Sunflower oil accounts for more than 11.0% of all vegetable oil
consumption in food, which corresponds to the fourth place, since the share of palm,

S. P. Vorobyov (B)
Altai State University, Barnaul, Russia
e-mail: servsp@mail.ru
K. V. Solovyev
Peoples’ Friendship University of Russia (RUDN University), Moscow, Russia
O. M. Val
Arctic State Agrotechnological University, Yakutsk, Russia
e-mail: Olesya-Val@mail.ru

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 233
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_27
234 S. P. Vorobyov et al.

soybean, and rapeseed oils in the structure of their consumption in food is 31.5%,
30.0%, and 14.0%, respectively.
If we consider the structure of the gross harvest of oilseeds, sunflower ranks fifth
in the world along with soybeans, rapeseed, cotton, and peanuts; in Russia, it ranks
first. Over a relatively long period from 1965 to 2019, the gross sunflower seed
harvest worldwide increased from 7,985,300 tons in 1965 to 5,607,300 tons in 2019
(7 times). The average annual growth rate in 2000–2019 exceeded 4.0% (including
an average annual growth rate of 7.5% in Russia, 11.6% in Kazakhstan, 3.6% in the
EU, 7.7% in Eastern Europe, 1.7% in Brazil, and 1.1% in China).
The leading producers of sunflower oilseeds in 2018 2019 were Russia (24.6%–
27.4% of the global gross harvest), Ukraine (27.2–27.3%), Argentina (6.8%), and
China (4.3–4.9%). Three countries (Russia, Ukraine, and Argentina) represented a
kind of sunflower triangle, which determined the price situation on the world market
of sunflower oil and sunflower oilseeds through the value of supply and quality of
products. The share of Kazakhstan, India, and the USA did not exceed a combined
3.5–3.9% of global oilseed production (Table 1).
In 2011–2019, the growth rate of the gross yield of sunflower seeds in the world
(137.3%) significantly exceeded the growth rate of the sunflower harvested area
(106.7%). This fact indirectly shows an increase in yields of this crop due to improved

Table 1 Gross sunflower oilseed harvest by major sunflower-growing countries, %

Country Average over the years 2018 2019
1992–2000 2001–2010 2011–2017
Russia Thousand tons 3254 5405 9722 12,756 15,379
% Of total 13.4 18.7 22.4 24.6 27.4
Ukraine Thousand tons 2398 4669 10,755 14,165 15,254
% Of total 9.8 16.2 24.7 27.3 27.2
Argentina Thousand tons 5148 3418 3126 3538 3826
% Of total 21.1 11.9 7.2 6.8 6.8
Kazakhstan Thousand tons 88 252 584 848 839
% Of total 0.4 0.9 1.3 1.6 1.5
USA Thousand tons 1733 1307 1084 956 882
% Of total 7.1 4.5 2.5 1.8 1.6
India Thousand tons 1048 1046 397 222 216
% Of total 4.3 3.6 0.9 0.4 0.4
China Thousand tons 1464 1768 2557 2494 2420
% Of total 6.0 6.1 5.9 4.8 4.3
Other countries Thousand tons 9217 10,980 15,249 16,932 17,257
% Of total 37.9 38.1 35.1 32.6 30.8
Total 24,349 28,845 43,473 51,910 56,073
Source Compiled by the authors based on [2]
Environmental and Economic Efficiency of Cultivating Sunflowers … 235

farming standards, improved machinery system, and the use of high-yield sunflower
varieties (mainly hybrids of the first generation). The highest crop yields in 2018–
2019 were observed in China (28.3–28.5 centners per ha, which is 15.2%–15.7%
higher than in 2011), Ukraine (23.0–25.6 centners per ha, which is 25.0%–39.3%
than in 2011), the EU countries (23.7–24.9 centners per ha, which is 20.8%–26.7%
than in 2011), and Argentina (20.4–21.1 centners per ha, the same as in previous
years). In the ranking of major producing countries in sunflower yield, Russia ranked
seventh in 2018 (16.0 centners per ha) and sixth in 2019 (18.3 centners per ha) (Table
2).
Simultaneously, the increase in the gross harvest of high-margin sunflower seeds
and the increase in cultivated areas were accompanied by negative processes. First,
there emerged highly specialized enterprises, which led to a violation of the crop
rotation system, contamination of soils with pathogens of various diseases, drying,
and additional soil depletion. These negative processes affected the reduction of
sunflower yields. Second, the increase in sunflower crops hinders the development
of feed production and other sectors of the agricultural economy, reduces employment
in agriculture, and decreases the use of agricultural machinery during the calendar
year. Third, the chemicalization of sunflower cultivation against the background of
declining soil fertility leads to the mass death of crop pollinators, including bees.

Table 2 Sunflower yields by major countries growing sunflower for seed, centners per ha
Countries Years
2011 2012 2013 2014 2015 2016 2017 2018 2019
Russia c/ha 13.4 13.0 15.5 19.8 14.2 15.1 14.5 16.0 18.3
% Of 100.0 96.6 115.7 147.4 105.6 112,5 107.7 119.4 136.1
2011
Ukraine c/ha 18.4 16.5 21.7 27.2 21.6 22.4 20.2 23.0 25.6
% Of 100.0 89.8 118.1 147.8 117.7 121.8 109.8 125.0 139.3
2011
Kazakhstan 4.6 5.9 7.0 11.1 7.6 9.3 10.2 10.0 10.3
European Union 19.6 16.5 20.0 23.7 18.8 21.1 24.2 24.9 23.7
USA 15.7 16.7 15.5 15.7 18.2 19.4 18.0 19.3 17.5
Argentina c/ha 21.1 18.3 19.2 28.0 21.9 21.2 19.5 21.1 20.4
% Of 100.0 87.0 91.0 133.1 104.1 100.7 92.6 100.1 96,8
2011
India 7.1 6.6 7.4 3.0 6.3 5.3 6.3 7.9 8.3
China 24.6 26.1 26.2 26.8 26.0 26.8 34.8 28.3 28.5
Other countries 13.5 13.3 14.0 15.1 15.4 14.0 14.2 15.5 16.0
Average c/ha 15.9 14.9 17.4 21.0 17.4 18.1 18.1 19.4 20.5
% of 100.0 94.0 109.6 131.9 109.5 113.6 114.0 121.9 128.9
2011
Source Compiled by the authors based on [2]
236 S. P. Vorobyov et al.

2 Materials and Methods

The research is based on the results of findings of other scholars in the field of
efficiency of sunflower cultivation. Thus, many scientific works indicate a decrease
in sunflower yield in case of any violation of the recommended timing of its return
to the previous place (with the norm of the share of sunflower in the arable land
being about 10.0–12.5%, optimal timing should be considered 8–10 years). A. V.
Khatnyansky and N. I. Dvoryadkin note the following:
• When the share of sunflower crops in the arable land exceeds 50.0%, its yield
decreases by 24.0%;
• When the share of sunflower crops in the arable land exceeds 25.0%, its yield
decreases by 18.2%;
• When the share of crops in the arable land exceeds 15.0% (return to the same
place of sowing every six years), its yield decreases by 11.4%.
In turn, the cost of production increases by 31.5%, 22.0%, and 12.8%, respectively,
compared with a crop rotation in which sunflowers are reseeded at least once every
eight years [6]. The negative consequences of the early return of sunflowers to the
previous places of sowing are also evidenced by the studies of V. M. Lukomets.
He recommends that the maximum specific weight of sunflowers in the arable land
should not exceed 8.0%–10.0% [7]. Similar ideas are found in the works of Voronkova
[11]. E. I. Artemova and K. N. Plachinda note that the factors increasing the efficiency
of sunflower cultivation include the mandatory application of fertilizers in the soil,
the improvement of seed systems, and the increase of the proportion of hybrids in the
structure of sunflower crops [1, 8, 9]. Many scholars emphasize the need to assess
the impact of sunflower crops on the environment and carbon footprint [4, 10].
The analytical grouping of agricultural enterprises of the Altay Territory to identify
the types of enterprises according to the level of specialization was carried out using
the indicators of revenues from the sale of main types of products contained in the
reports of agricultural organizations.
The sources of statistical information were the Federal State Statistics Service
of the Russian Federation (Rosstat) and the Ministry of Agriculture of the Altay
Territory. Data on the gross harvest and sunflower harvesting area for the main
countries of the world were obtained from the UN FAO statistical database (FAOStat).

3 Results

From 1990 to 2020, cultivated areas of sunflower in Russia increased from 2.7
million to 8.6 million hectares (3.13 times), which allowed to increase the gross yield
of sunflower oilseeds by more than 3.2 times. The Voronezh, Tambov, Volgograd,
Environmental and Economic Efficiency of Cultivating Sunflowers … 237

800 15

600
10
400
5
200

0 0
1991 1992 1993 1994 2016 2017 2018 2019 2020
Area planted with sunflowers, thousand hectares (right scale)
Specific weight in the sown area, % (left scale)

Fig. 1 Share of sunflower in the sown area of agricultural enterprises and peasant (farm) enterprises
of the Altay Territory, %. Source Compiled by the authors based on [3]

Rostov, Orenburg, Samara, and Saratov Regions, and the Krasnodar and Altay Terri-
tories remain the main areas of sunflower cultivation, with the cultivated area being
over 300 thousand hectares.
However, the greatest increase in sunflower acreage in absolute value was
observed in the regions that provided the lowest sunflower yield (the Saratov Region,
the Altay Territory, and other regions). Such structural shifts prevented the growth
of the national average yield indicator. Thus, in 1990–2020, the areas sown under
sunflower in the Altay Territory increased from 134.8 thousand hectares to 696.09
thousand hectares (5.16 times), at the variation of yield in some years from 3.4 c/ha
to 10.4 c/ha and increase of specific weight of sunflower sowings in general sowing
area of agricultural enterprises and farms of the Altay Territory from 2.11–2.16% in
1990–1991 to 13.12–14.02% in 2019–2020 (Fig. 1).
Negative processes of the concentration of sunflower crops in the total sown area
are observed in many Russian regions. However, these problems are most acute
in peasant (farm) enterprises, whose share of sunflowers in the structure of sown
areas in 2019–2020 exceeded 33.3–33.8% in the Samara Region, 27.7–28.1% in
the Tambov Region, 20.9–21.0% in the Voronezh Region, and 19.9–20.1% in the
Volgograd Region (Table 3).
In the Altay Territory, the sunflower was cultivated everywhere (i.e., in all seven
natural and economic zones). Nevertheless, the greatest concentration of crops was
observed in the most arid territories—the steppe (57.0% of all sunflower crops in the
region; the share of sunflower in the arable natural and climatic zone is 15.1%) and
the forest-steppe (27.3% of all sunflower crops in the region; the share of sunflower
in the arable natural and climatic zone is 9.4%). No more than 6.9% of the sunflower
crop is concentrated in the wet areas of the Altay Territory. This placement is quite
optimal since it leads to a reduction in the possibility of sunflower diseases and
an increase in soil pathogenicity, subject to scientifically based crop rotations and
certain agronomic requirements for tillage and crop care. However, this requires the
reduction of the share of sunflowers in the arable area of the main sowing farms.
The main factor in the profitability of the production of sunflower oilseeds in the
agricultural enterprises of the Altay Territory was its yields, which can be seen based
on the indicators of 2019:
238 S. P. Vorobyov et al.

Table 3 Share of sunflower in the sown area in the main regions of Russia, %
Regions 2010 2015 2019 2020
Voronezh Region Agricultural enterprises 23.8 16.8 15.8 15.5
Farms 36.7 21.1 21.0 20.9
Tambov Region Agricultural enterprises 23.7 20.1 18.4 20.0
Farms 32.7 30.6 27.7 28.1
Krasnodar Territory Agricultural enterprises 12.0 11.4 10.3 11.1
Farms 19.9 14.1 16.1 15.9
Volgograd Region Agricultural enterprises 32.0 21.0 22.9 25.2
Farms 29.2 17.9 19.9 20.1
Stavropol Territory Agricultural enterprises 8.5 9.1 10.3 10.4
Farms 8.9 6.7 7.7 7.0
Republic of Bashkortostan Agricultural enterprises 4.7 7.1 8.4 8.3
Farms 6.6 6.8 9.8 8.1
Republic of Tatarstan Agricultural enterprises 0.6 2.0 5.0 4.8
Farms 0.7 1.4 3.4 2.9
Samara Region Agricultural enterprises 22.6 28.2 33.6 32.3
Farms 29.1 26.8 33.3 33.8
Kurgan Region Agricultural enterprises 0.5 1.6 1.2 0.9
Farms 1.4 3.7 2.8 1.6
Chelyabinsk Region Agricultural enterprises 0.9 3.0 5.8 4.2
Farms 0.7 3.8 4.2 3.5
Altay Territory Agricultural enterprises 8.8 9.1 12.4 12.0
Farms 12.1 11.1 16.5 16.0
Source Compiled by the authors based on [3]

• At sunflower yields over 12 c/ha, the profitability averaged 46.0%;

• At yields from 5 to 10 c/ha, the profitability averaged 35.4%;
• At yields below 5 c/ha, the profitability was only 32.2%, which is 13.8% below
the results achieved by enterprises with higher yields (Fig. 2).
In 2019, 317 enterprises (45.1% of their total number) were engaged in cultivating
sunflowers in the region. The importance of this crop in commercial production is
proved by the following data:
• The share of sales of sunflower seeds in revenue over 50.0%: 32 organizations;
• The share of sales of sunflower seeds in revenue from 33.3% to 50.0%: 35
organizations;
• The share of sales of sunflower seeds in revenue from 20.1% to 33.3%: 70
organizations;
• The share of sales of sunflower seeds in revenue is less than 20.1%: 180
organizations.
Environmental and Economic Efficiency of Cultivating Sunflowers … 239

Fig. 2 Profitability of sunflower seed production in agricultural enterprises of the Altay Territory,
depending on the yield of sunflower, %. Source Compiled by the authors

In more than 56.8% of enterprises, sunflower cultivation was not on the list of
major production sectors in 2019. The average area sown under sunflowers per
enterprise in this group was 1078 hectares; the profitability of oilseed production
reached 46.2%. In this group of enterprises, the concentration of crops in arable land
corresponded to the optimal rate of 10.0%–12.0%.
The increase in the share of sunflower income in the total revenues of enterprises
led to a decrease in the profitability of oilseed production. Nevertheless, sunflower
yields remained at the same level. Enterprises with the highest concentration of
sunflowers in the structure of arable land and sales had a yield of the crop below
the regional average by 15.2%. The production of sunflower seeds can also be char-
acterized as more cost-consuming since labor intensity and unit cost of production
exceeded the industry average by 63.3% and 26.9%, respectively (Table 4).
Our research also shows that the enterprises located in the steppe and forest-steppe
part of the region, concentrating most of the sunflower crops, underestimate bee
pollination as the reserve of increasing the crop yield, which allows ensuring a yield
increase of 40.0–45.0% at minimal costs [5, 12]. Given the norms of sunflower polli-
nation and the actual density of bee colonies in rural areas of sunflower cultivation,
the number of bee colonies can be increased by more than five times.

4 Conclusion

Thus, increasing the level of specialization of enterprises in the production of oilseeds

and increasing the sown area and the share of sunflowers in the arable land allows
for the fuller use of available equipment and human resources. Nevertheless, it has
not led to an increase in sunflower yield, labor productivity, and reduced production
costs. The deepening of specialization was accompanied by the following:
• Disturbance of the system of crop rotations and the structure of sown areas;
240 S. P. Vorobyov et al.

Table 4 Primary production and economic indicators of the sunflower oilseeds production in
agricultural enterprises of the Altay Territory in 2019
Indicators Share of income from the sale of sunflower seeds in Average
revenue (%)
Over 50.0% From 33.3 to From 20.1 to Less than
50.0% 33.3% 20.1%
Number of Total (pcs.) 35 35 70 180 X
enterprises % of total 10.09 11.04 22.08 56.78 x
Share in arable land (%) 31.53 27.50 18.09 12.51 15.96
Yield, c/ha 9.53 11.91 12.08 10.91 11.24
Cost price, RUB/c 1457.76 1189.19 1155.16 1080.88 1148.49
Labor intensity of 0.70 0.36 0.36 0.44 0.43
production, person-hour/c
Production profitability 66.89 33.21 36.52 46.21 42.84
(%)
Source Compiled by the authors

• Decrease in the need of enterprises for staff with year-round employment (an
increase in the seasonal use of labor, dispersed need for which occurs only 1.0–
1.5 months a year);
• Increase in unemployment in rural areas and the migration moods of the population
of working age.
Many employers need highly qualified personnel without the possibility of closing
even the quantitative need for personnel.
To improve the environmental and economic efficiency of sunflower cultivation
for oilseeds in all regions of Russia, it is necessary to implement the internal produc-
tion reserves aimed at increasing the fertility of arable land by organizing resource-
saving processes, bee pollination, compliance with science-based crop rotations,
optimal placement and concentration of crops, the use of modern equipment, and the
compliance with zone-oriented technologies of soil treatment and crop care.

References

1. Artemova EI, Plachinda KN (2013) Efficiency of innovative processes in the production and
sale of sunflowers. Kuban State Agrarian University, Krasnodar, Russia
2. FAOStat. (n.d.). Production. Crops. Retrieved from http://www.fao.org/faostat/en/#data.
Accessed 8 June 2021
3. Federal State Statistics Service (2021) Unified interdepartmental information and statistical
system. Retrieved from https://fedstat.ru/organizations/. Accessed 8 June 2021
4. Forleo MB, Palmieri N, Suardi A, Coaloa D, Pari L (2018) The eco-efficiency of rapeseed and
sunflower cultivation in Italy. Joining environmental and economic assessment. J Clean Prod
172:3138–3153. https://doi.org/10.1016/j.jclepro.2017.11.094
Environmental and Economic Efficiency of Cultivating Sunflowers … 241

5. Holland JM, Sutter L, Matthias A, Philippe J, Pfisterc SC, Schirmel J, Entling MH, Kaasik R,
Kovacs G, Veromann E, Bartual AM, Cresswell JE (2020) Moderate pollination limitation in
some entomophilous crops of Europe. Agric Ecosyst Environ 302:107002. https://doi.org/10.
1016/j.agee.2020.107002
6. Khatnyansky AV, Dvoryadkin NI (2012) Economic efficiency of innovative processes in
sunflower cultivation (in the Krasnodar Territory). Kuban State Agrarian University, Krasnodar,
Russia
7. Lukomets VM (2008) Resource conservation in intensive oilseed production. Mach Equip
Village 9:9–13
8. Madyakin EV, Goryanin OI (2020) Prospects for cultivating Russian varieties and hybrids
of sunflower in the Volga region. Agr Sci J 10:46–49. https://doi.org/10.28983/asj.y2020i10p
p46-49
9. Milyutin VA, Shakhov VA, Komarova NK, Dluzhevsky NG, Dluzhevsky ON (2021) Improving
the technology of sunflower cultivation with an increase in yield and product quality in arid
soil and climatic conditions. Izvestia Orenburg State Agr Univ 1:152–158. https://doi.org/10.
37670/2073-0853-2021-87-1-152-158
10. Scott DA, Eberle C, Gesch RW, Schneider S, Weyers S, Johnson JMF (2021) Yield, nitrogen,
and water use benefits of diversifying crop rotations with specialty oilseeds. Agr Ecosyst
Environ 317:107472. https://doi.org/10.1016/j.agee.2021.107472
11. Sycheva IN, Voronkova OYu, Vorozheikina TM, Yusupova GR, Semenova AN, Iljin A E
(2019) The main directions of improving the environmental and economic efficiency of regional
production. J Environ Manage Tourism 10–3:631–639
12. Vorobyov SP, Vorobyova VV (2021) The ecological and economic effectiveness of sunflower
oilseed production in Russia. IOP Conf Ser: Earth Environ Sci 670:012057. https://doi.org/10.
1088/1755-1315/670/1/012057
Comparative Analysis of the Economic
Security of the Regions
and the Methodology of Its
Implementation

Nadezhda V. Kapustina , Evgeniya S. Tishchenko ,

Natalia V. Ruzhanskaya , Alexander S. Astakhin ,
and Svetlana A. Trufanova

Abstract The research aims at developing a methodological approach to conducting

a comparative analysis of the economic security of the Russian regions in terms of the
COVID-19 pandemic. The authors substantiate the scientific hypothesis that during
a pandemic it is necessary to take into account all groups of indicators, including
relative indicators characterizing the sanitary and epidemiological component of
regional economic security, which will contribute to increasing the reliability of
the results of a comparative analysis of the economic security of regions. In the
article, the authors systematize the existing methodological approaches to conducting
a comparative analysis of the economic security of regions and also identify their
disadvantages. The authors develop their methodology for conducting a comparative
analysis of the economic security of regions, adapted to the period of the COVID-
19 pandemic. The use of a wide range of research tools (methods of mathematical
analysis, comparison, grouping, expert evaluation method) allowed the authors to
substantiate the practical significance of the proposed methodology, as well as to
evaluate and compare the economic security of several regions of Russia (Rostov,
Belgorod Regions and Krasnodar Territory).

N. V. Kapustina (B)
Financial University Under the Government of the Russian Federation, Moscow, Russia
e-mail: economresearch@mail.ru
K. G. Razumovsky Moscow State University of Technologies and Management (the First Cossack
University), Moscow, Russia
E. S. Tishchenko
Kuban State Technological University, Krasnodar, Russia
N. V. Ruzhanskaya
The Komi Republican Academy of State Service and Administration (Krassa), Syktyvkar, Russia
A. S. Astakhin
Belgorod State National Research University, Belgorod, Russia
S. A. Trufanova
Moscow University for Industry and Finance “Synergy”, Moscow, Russia

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 243
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_28
244 N. V. Kapustina et al.

Keywords Economic security · Region · Integral indicators · Integrated

approach · Sanitary and epidemiological safety

JEL Classification R11 · R58

1 Introduction

The relevance of the study is determined by the negative processes taking place
in the economy of the regions of the Russian Federation caused by the spread of
COVID-19 and other reasons that significantly reduce the economic security of the
country’s territories [12, 17, 19]. In order to know how effectively federal and regional
authorities work, it is necessary not only to evaluate but also to conduct a comparative
analysis of the economic security of the regions.
Traditionally, when conducting a comparative analysis of the economic secu-
rity of regions, researchers select and compare indicators that characterize its key
components [11, 27, 32]. Before the spread of the COVID-19 coronavirus infection,
there was no need to pay attention to the indicators of sanitary and epidemiological
safety of the regions. However, the negative effects of the pandemic on the economy
are becoming increasingly important. They increasingly threaten the well-being of
regions. Therefore, it is becoming increasingly relevant to conduct a reliable compar-
ative analysis of the economic security of the regions of the Russian Federation,
taking into account sanitary and epidemiological indicators.
Therefore, the development of methodological approaches to the comparative
analysis of the economic security of the regions of the Russian Federation in terms
of the COVID-19 epidemic is currently of particular relevance.

2 The Theoretical Basis of the Study

The methodology of analyzing the economic security of regions is of interest to

Russian authors [1, 2, 5, 6, 20, 21, 30] etc. Abroad, the research topic is presented
in the works of [8, 9, 31] etc.
Raevneva et al. [23] noted that the economic security of each country directly
depends on the level and state of economic security of the regions. Their socioe-
conomic and natural resource potential should be interconnected and balanced to
ensure sustainable economic development and maintain their competitiveness both
at the national and international levels. Regional security is a set of economic, envi-
ronmental, legal, geopolitical and other conditions that should ensure the security of
state interests, regional development, financial stability, infrastructure and business
development, as well as affecting the development of internal and external security
[15]. Hacker [8] interprets the economic security of the region as a vulnerability to
economic losses, its consequence may be a decrease in income. Heinz [9] emphasizes
Comparative Analysis of the Economic Security … 245

that the economic security of the region is an important aspect of national security.
Korableva et al. [13] agree with the opinion of Heinz. According to [31], “economic
security presupposes the existence of a socially defined subsistence minimum of real
income for all people, as well as a constructive policy that supports macroeconomic
stability and conditions for individual and social development. Ensuring economic
security is perhaps the most difficult problem faced by modern industrial culture.”
According to [4], the economic security of the region is realized through a change
in the state of its economic system, reflecting its ability to withstand internal and
external threats, to realize economic interests and effectively use the competitive
advantages of the region. Povzun [22] calls these risks and threats to the economic
security of the region, including low profitability of business entities; low level of
internal and external investments; insufficient introduction of innovations; reduction
of the financial potential of the region.
Despite the extensive number of works devoted to the assessment of the economic
security of regions and methods of its comparative analysis, they all have a common
drawback—focusing mainly on indicators of financial and socio-demographic secu-
rity of regions. However, during the spread of COVID-19, this is not enough for a
reliable assessment and comparison of the comprehensive level of economic security
of the regions.

3 Methodology

The scientific hypothesis of the study is based on the assumption that during the
pandemic, the emphasis on all groups of indicators, including indicators character-
izing the sanitary and epidemiological component of the economic security of the
region, will contribute to increasing the reliability of the results of a comparative
analysis of the economic security of the regions.
The purpose of the study is to develop a methodological approach to conducting
a comparative analysis of the economic security of the regions of the Russian
Federation during the COVID-19 pandemic.
Research objectives:
1. Disclosure of the concept of “economic security,” as well as the study of
existing methodological approaches to conducting a comparative analysis of
the economic security of regions;
2. Development of the author’s approach to conducting a comparative analysis of
the economic security of regions during the pandemic;
3. Substantiation of the practical significance of the proposed methodology for
conducting a comparative analysis of the economic security of regions during
the COVID-19 period.
246 N. V. Kapustina et al.

4 Results

According to [21], the economic security of the region has a multi-level structure.
Therefore, the assessment of the economic security of the regions cannot have a
single methodological basis [1].
In [7] opinion, the economic security of a country can be measured by the degree
of fluctuations in the gross domestic product (GRP) depending on external changes,
and the economic security of a region, respectively, by the degree of fluctuations in
the gross regional product. Most often, researchers use GRP to compare the levels
of economic security of regions. However, this indicator is not the only one. For
example, [2] for these purposes uses the index of the physical volume of the gross
regional product, the index of labor productivity, the ratio of the trade balance to
foreign trade turnover, the share of innovative goods, works, services in the total
volume of exports of goods, works, services, etc. Gordienko [6] uses indicators of
the gross grain harvest, the share of mechanical engineering and metalworking in
industrial production. Kurepina [16] adds the region’s competition index to these indi-
cators. Shestiperova [26] points out the need to evaluate other comprehensive perfor-
mance indicators. Tokhirov [29] emphasizes the need for a more in-depth comparison
of indicators reflecting the state of specific systems in the region (including transport).
A graphical method can be used to conduct a comparative analysis. For example,
[20] chose petal distribution diagrams to represent indicators of economic security of
regions. Some authors use rating assessment and methods of applied mathematics,
in particular, [30].
Karanina and Kartavyh [10] conducted a comparative analysis of existing methods
for determining the economic security of the region. They believe that when assessing
the economic security of a region, several criteria should be compared: the magni-
tude of regional risk (a method that should be used to process the probability of
negative events that will change the prospects for the profitability of investments, a
loss or, at least, a decrease in the expected profitability of investments in the region;
objects of economic security (negative risk events and threats to economic security);
the result of the loss of economic security (decrease in investment attractiveness and
economic growth rates of the regional economy). However, the method of processing
the probability of negative events has not been widely used in assessing the economic
security of the region, in the guise of the indicator method. Indicators are usually
identified as indicators that characterize financial, technical and technological, socio-
demographic and other important components. But during the COVID-19 pandemic,
it is important to take into account the indicators of sanitary and epidemiological
safety of the regions. Therefore, the methodology of comparative analysis of the
economic security of regions should be based on a systematic approach ([5], in
particular, speaks about its importance) and an integral method (with an emphasis
on all groups of indicators, including indicators of the sanitary and epidemiolog-
ical component of the regional economic security). The importance of this aspect
Comparative Analysis of the Economic Security … 247

is demonstrated by statistics. In 2020, 144,691 people died in the Russian Federa-

tion from COVID-19 coronavirus infection, according to the Federal State Statistics
Service. This is 6.77% of all deaths in the country [28].
Conducting a comparative analysis requires the selection of three regions included
in the top 15 regions with a high socioeconomic status (Krasnodar Territory—10th
place, Rostov Region—14th, and Belgorod Region—15th place) [24]. This makes it
possible to demonstrate the advantages of the proposed methodology and compare
any regions, including those relatively close in terms of economic security (that is,
without the obvious superiority of one of the regions).
By the end of 2020, the most deaths from COVID-19 were in the Rostov Region
(2076 people), and the least in the Belgorod Region (258 people). In the Krasnodar
Territory, the number of deaths reached 932 people [18]. However, to select more
accurate indicators of the state of the sanitary and epidemiological component of the
economic security of the regions, we will calculate not absolute, but relative indicators
per 10,000 people of the population, as well as expressed as a percentage. According
to the Federal State Statistics Service and the MediaZone website, the number of
recovered per 10,000 cases in the Rostov Region is 8152 people, in the Krasnodar
Territory—6732 people, in the Belgorod Region—8545 people. Percentage of the
population with natural immunity against COVID-19 (ratio of recovered people to
the population (excluding vaccinated)) in the Rostov region is equal to 1.01%, in the
Krasnodar region—0.33%, in the Belgorod region—1.21% [3, 14, 25].
For the other components of the economic security of the region, it is proposed
to use standard indicators. Indicators of each component of the economic security
of the regions will undergo a normalization procedure by dividing the indicator by
a reference value (among the three regions—a higher value). The significance of
each indicator will be determined by the expert survey method. Such a sequence of
actions will make it possible to calculate the integral level of economic security of
each component, as well as the complex integral level of economic security of the
three regions. This is important for the clarity of comparing the results and forming
conclusions.
Let’s consider the effect of this technique on the example of the Rostov, Belgorod
Regions and Krasnodar Territory. We will calculate the normalized indicators of
economic security of the Rostov, Belgorod Regions and Krasnodar Territory, and
also determine the weight of each normalized indicator using the expert survey
method (Table 1).
The ideal value in the group is a unit, which means that by all indicators of one
or another component of economic security, the region is the best. The closer the
indicator value is to one, the higher the economic security of the region and vice
versa. The ideal value for the complex integral level of economic security of the
region is 5 (in terms of the number of components of the economic security of the
region).
The comparison of integral indicators of economic security of the Rostov,
Belgorod Regions and Krasnodar Territory is illustrated by the data in Fig. 1.
Figure 1 shows that among the three regions in the Krasnodar Territory, economic
security is the highest, however, the region is inferior to the Belgorod Region in
248 N. V. Kapustina et al.

Table 1 Actual, reference and normalized indicators of economic security of the Rostov, Krasnodar
and Belgorod regions, 2020
Indicator Rostov Krasnodar Belgorod The best Weight of
region territory region value among normalized
the three indicator
regions
The financial component of the economic security of the region
GRP, billion rubles 1558.71 2890 966.7 2890
Normalized 0.54 1 0.33 0.4
indicator of GRP
Consolidated 257.2 387.1 133.46 387.1
budget revenues,
billion rubles
Normalized 0.66 1 0.34 0.3
indicator of
consolidated
budget revenue
Foreign trade 11.3 10.2 4.57 11.3
turnover, billion
US dollars
Normalized 1 0.9 0.4 0.3
indicator of foreign
trade turnover
Technical and technological components of the economic security of the region
Commissioning of 2644 5124 1148.6 5124
the total area of
residential
buildings,
thousand sq. m
Normalized 0.52 1 0.22 0.2
indicator of the
commissioning of
the total area of
residential
buildings
Investments in 323.8 500.3 168.12 500.3
fixed assets, billion
rubles
Normalized 0.65 1 0.34 0.4
indicator of
investments in
fixed assets
(continued)
Comparative Analysis of the Economic Security … 249

Table 1 (continued)
Indicator Rostov Krasnodar Belgorod The best Weight of
region territory region value among normalized
the three indicator
regions
Index of the 106.2 99.7 95.5 106.2
physical volume of
investments in
fixed assets, in %
compared to the
previous year
Normalized 1 0.94 0.9 0.4
indicator of index
of the physical
volume of
investments in
fixed assets
Socio-demographic component of the economic security of the region
Real monetary 98.4 99.1 98.1 99.1
incomes of the
population, in %,
compared to the
previous year
Normalized 0.99 1 0.99 0.4
indicator of real
monetary incomes
of the population
Real accrued 102.1 103.2 104.8 104.8
wages, in % of the
previous year
Normalized 0.97 0.98 1 0.4
indicator of real
accrued wages
The real size of the 102.6 100.2 102.3 102.6
average annual
value of the
assigned monthly
compensation in %
compared to the
previous year
Normalized 1 0.98 1 0.2
indicators of the
real size of the
average annual
value of assigned
monthly pensions
(continued)
250 N. V. Kapustina et al.

Table 1 (continued)
Indicator Rostov Krasnodar Belgorod The best Weight of
region territory region value among normalized
the three indicator
regions
Sanitary and the epidemiological component of the economic security of the
region
Recovered by 8152 6732 8545 8545
10,000 sick people,
people
Normalized 0.95 0.79 1 0.5
indicators of the
recovered per
10,000 cases
Percentage of the 1.01 0.33 1.21 1.21
population with
natural immunity
to COVID-19 (the
ratio of recovered
to the number
(excluding
vaccinated)), %
Normalized 0.83 0.27 1 0.5
indicator of the
percentage of the
population with
natural immunity
to COVID-19
Resource and production component of the economic security of the region
The industrial 101.7 97.0 101.4 101.7
production index,
in %, compared to
the previous year
Normalized 1 0.95 1 0.5
indicator of the
industrial
production index
Agricultural 289.9 399.5 266.01 399.5
products, billion
rubles
Normalized 0.73 1 0.67 0.5
indicators of
agricultural
products
Source Compiled by authors based on [3, 14, 25]
Comparative Analysis of the Economic Security … 251

3.72
Complex integral level of economic
4.44
security of the region 4.22

Integral level of resource and 0.83

0.98
production security of the region 0.86

Integral level of sanitary and 1

0.53
epidemiological safety of the region 0.89

Integral level of socio-demographic 1

0.99
security of the region 0.99

0.54
Integral level of technical and
0.98
technological safety of the region 0.76
0.36
Integral level of financial security of
0.97
the region 0.72

0 1 2 3 4 5
Belgorod Region Krasnodar Territory Rostov Region

Fig. 1 Comparison of the economic security of the Rostov, Krasnodar and Belgorod regions. Source
Author’s calculations

terms of sanitary epidemiological and socio-demographic security. The region lags

behind the Rostov Region in terms of sanitary and epidemiological safety. The authors
attribute this to a larger population and the burden on medical personnel when doctors
cannot pay patients the same attention as in the Belgorod and Rostov Regions.

5 Conclusions

As a result of solving the first problem, the concept of “economic security” was
revealed and the existing methodological approaches to conducting a comparative
analysis of the economic security of regions were investigated.
To solve the second problem, the author’s approach was proposed to conduct a
comparative analysis of the economic security of regions, taking into account a set
of relative indicators that are of key importance in a pandemic and reflect the state of
the sanitary and epidemiological component of the economic security of the regions.
The advantage of the developed methodology is the simplicity of calculations, as well
as the availability of information for analysis (all indicators for each region of the
Russian Federation are available in statistical collections or are calculated according
to statistics on the spread of coronavirus infection published on the MediaZone
website and similar ones). In addition, the set of indicators for comparison is not
fixed. It can be replaced, taking into account the objectives of the analysis. In future,
the proportion of people vaccinated against COVID-19 in the region should be added
252 N. V. Kapustina et al.

to these indicators. However, today there are no such statistics for 2020 (by region),
so the indicator was not included in the calculation.
As a result of solving the third task, the practical significance and expediency of
using the author’s methodology for comparative analysis of the economic security
of regions in a pandemic were substantiated. This technique allows you to visu-
ally compare the integral levels of each component of the economic security of
the region and identify weaknesses. For example, the absolute leader in economic
security among the three regions is the Krasnodar Territory, but it is inferior to the
Belgorod and Rostov Regions in terms of sanitary and epidemiological security.
Thus, the hypothesis of the study is proved. In the conditions of a pandemic, the
emphasis on all groups of indicators, including indicators characterizing the sani-
tary and epidemiological component of the economic security of the region, really
contributes to increasing the reliability and practical significance of the results of a
comparative analysis of the economic security of the regions.

Data Availability
1. Data on actual, reference and normalized indicators of economic security of the
Krasnodar Territory, Rostov and Belgorod Regions, 2020, which confirm the
findings of the study, are available in https://figshare.com/ with https://doi.org/
10.6084/m9.figshare.16904002
2. Data on the economic security of the Rostov, Belgorod Regions and Krasnodar
Territory calculated by the authors, which confirm the findings of the study, are
available in https://figshare.com/ with https://doi.org/10.6084/m9.figshare.169
04185

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Reconstructive Agriculture
as a Mechanism for Environmental Crisis
Management and Epidemic Prevention:
Technologies and Project Activities

Anna N. Liberovskaya, Anastasia A. Sozinova , Elena V. Sofiina ,

and Inna P. Bandurina

Abstract This chapter describes the perspectives of the development of reconstruc-

tive agriculture, which advantages are the reconstruction of lands (an increase of soil
fertility) and reverse change (reconstruction) of climate, which, in their totality, stim-
ulates the growth of efficiency in agriculture. Reconstructive agriculture is consid-
ered from a new perspective—from a position of ecological crisis management and
prevention of epidemics (by the example of the COVID-19 pandemic). For this,
the authors determine countries practising reconstructive agriculture and find the
specific features of the preservation of biodiversity and the process of the COVID-19
pandemic in these countries. The information and empirical basis of the research are
the materials of the dataset “COVID-19 and the 2020 crisis: capabilities of health care
and consequences for economy and business around the world” (https://iscvolga.ru/
dataset-crisis-2020) and materials of the dataset “Big data for digital monitoring of
biodiversity, agriculture and food security – 2020” (https://iscvolga.ru/dataset-bioobr
azovanie). The authors consider perspective technologies and successful projects in
the sphere of reconstructive agriculture and analyse their contribution to ecological
crisis management and the fight against COVID-19.

A. N. Liberovskaya
Sebryakovsk Branch Volgograd State Technical University, Mikhailovka, Russia
e-mail: annaliber1212@mail.ru
A. A. Sozinova (B)
Vyatka State University, Kirov, Russia
e-mail: aa_sozinova@vyatsu.ru
E. V. Sofiina
State – Financed Federal State Educational Institution «Kirov Agricultural Sector Advanced
Training Institution» (SF FEI Kirov ASATI), Kirov, Russia
Federal State Budgetary Scientific Institution «Federal Research Center of Agrarian Economy and
Social Development of Rural Areas – All – Russian Research Institute of Agricultural
Economics» (FSBSIFRC AESDRA VNIIESH), Moscow, Russia
I. P. Bandurina
Kuban State Agrarian University Named After I.T. Trubilin, Krasnodar, Russia

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 255
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_29
256 A. N. Liberovskaya et al.

Keywords Reconstructive agriculture · Ecological crisis management · Prevention

of epidemics · Fight against COVID-19 · Technologies · Project activities ·
Preservation of biodiversity · Fight against climate change

JEL Classification A10 · O13 · Q01 · Q15

1 Introduction

For decades now, reconstructive agriculture has been used extensively to solve various
problems. In this chapter, reconstructive agriculture has been adopted from the
perspective of ecological crisis management and as a tool to manage pandemics
[12]. Notably, solving environmental issues through agriculture requires developing
and integrating different technologies. Several countries, including the USA and the
UK, have been at the forefront of adopting reconstructive agriculture and applying
new technologies to address environmental problems [7]. The use of perspective
technologies and other successful projects in the sphere of reconstructive agriculture
has been used in different countries to address ecological crises and, more so, as a
tool to fight against COVID-19.
The agriculture industry has changed dramatically over the past few decades.
The majority of the countries, through agriculture, can reduce food costs and even
increase food productivity [12]. However, due to the increase in population and the
pandemic outbreak in the recent past, most of the countries are finding it hard to
provide enough food to their population. This is where prospective technologies in
reconstructive agriculture come in handy. Technology has played a major role in
agriculture and has been integrated to address social and environmental concerns
[16].
It is important to note that interaction between the environment and agriculture is
major elements shaping food policies in many countries. Therefore, it is imperative
to note that the development of perspective technologies is shaping the agriculture
sector. To ensure that the agriculture industry functions to its expectation and still
protect the ecological environment, farmers need to be equipped with the right knowl-
edge, incentives and technology [15]. Also, it means that all coherent policies must
be adopted. Such policies include environmental, agricultural, trade and R&D, and
technological in particular. However, this report will focus on the interaction between
reconstructive agriculture, environment and perspective technology and the impact
of this interaction in fighting against COVID-19.
Reconstructive Agriculture as a Mechanism … 257

2 Methodology

To collect data for this research, we use the method of data collection. This involves
using scholarly articles and peer-reviewed journals related to the topic. Historical
and statistical documents are also used extensively for the research.

3 Literature Review

When we talk of adopting perspective technologies for sustainable agriculture, we are

talking about the already existing technologies that have been tested and approved.
Until recently, research shows that the choice of technology used in agriculture was
largely determined by the need to increase food productivity and profits. The main
constraint was the lack of resources, knowledge of how to adapt the technology
and market risk. According to [18], agricultural research and extension focused on
improving productivity other than advancing the technology.
Now, agriculture has to fulfil diverse objectives. It has to meet sustainable goals,
observe the environment and enhance productivity. To remain competitive, agricul-
tural producers must stay up to date with emerging technologies [14]. However,
they must still observe environmental standards and regulations to avoid causing
the ecological crisis. Notably, most of the measures taken in agriculture to influ-
ence productivity have ruthlessly affected the ecological habitats of so many species.
This is probably because of the chemical used or retrogressive technologies adopted.
Therefore, researchers suggest that, before adopting any perspective technology in
agriculture, it must be done after due diligence to avoid a potential ecological crisis
[2].
Adaptation of green economy is among the best perspective technologies that
have been adopted in agriculture. According to [9], a green economy aims to protect
environmental risk and ecological scarcities. The researcher further maintains that
a green economy aims to achieve sustainable development without degrading the
environment. In support of these sentiments, [19] found that a green economy is
human-centred because it improves human well-being, particularly during COVID-
19, while managing an ecological crisis. Unlike most technologies applied in agri-
culture, the green economy focuses on growing wealth that supports well-being and
social equity.
Even the green economy is facing competition from other emerging technologies
in agriculture. The research found that this is the only technology that generates
economic development, improves people’s lives and observes environmental and
social well-being [13]. The primary aim of the green economy is to promote and
sustain the development and adoption of sustainable technologies. Green economy,
in the perspective of reconstructive agriculture, can be described as green agriculture.
According to [5], green agriculture is a technology used in agriculture to rebuild
natural capacity by maintaining and restoring soil fertility by avoiding agrochemical
258 A. N. Liberovskaya et al.

pollution, reducing soil erosion, and biodiversity loss, increasing water use efficiency,
and reducing agricultural CHG, among others.
Recovering from the pandemic, governments worldwide must adopt agricultural
technologies that improve the economy, observe ecological habitations, protect the
environment and improve human lives [6]. These technologies must be aligned with
the guidelines provided by the green economy. Recent research has shown that the
implication of green growth for agriculture and the contribution of agriculture to
green growth can be incongruent or reciprocal [3]. Therefore, it is imperative to
point out that the implication of green growth in the agriculture sector results in
environmental sustainability, social well-being and economic growth [2]. Overall,
it is the best technological approach to manage ecological crises and strengthen the
fight against COVID-19.
On the other hand, irrigation control has been used extensively in different projects
to conserve the environment and increase food productivity. In his research, [2]
found that irrigation is arguably the best in agriculture when it comes to employing
technology that improves efficiency and technology. According to the findings by
Popkova et al. [13], irrigation has been used successfully in developing countries
to increase food production and address the ecological crisis. This is an agricultural
technology that has stood the test of time. In a recent report, the World Bank reported
that over 70% of freshwater goes to agriculture [4]. As a result, developed and
developing countries must adopt irrigation as an attenuative technology to enhance
productivity and address the ecological crisis.

4 Results and Discussion

There is no doubt that irrigation and green economy are the best agricultural tech-
nology that could enhance ecological crisis management and strengthen the fight
against COVID-19.
The green economy contributes immensely to economic returns in agriculture. It
is important to note that, as people are recovering from the COVID-19 pandemic,
the government must find ways to contribute to economic return. Adopting a green
economy is the way to go because it also contributes to yielding environmental core
benefits in agriculture from resource conservation and carbon sequestration [20].

4.1 How Green Economy Enhances Ecological Management

Crisis and Fights Against COVID-19

Better management of agricultural resources based on the green economy guidelines

will improve the management of the ecological crisis. Ecological sound land manage-
ment through a green economy improves soil quality, moisture-holding capacity and
Reconstructive Agriculture as a Mechanism … 259

nutrient content [11]. Notably, these are key factors that must be observed in agricul-
ture to manage the ecological crisis. Less pressure on scarce environmental resources
from the green economy goes a long way in reducing environmental risks that would
cause trouble to the ecological habitat.
In support of this argument, research has found that a green economy enhances
agricultural nutrient balances while still reducing soil erosion [10]. Conserving
agricultural biodiversity through a green economy improves soil nutrient levels
and hydrological functions, positively influencing ecological habitations. On the
other hand, environmental measures adopted through a green economy contribute
to economic well-being and poverty eradication [8]. Notably, COVID-19 has made
so many people poor, and this would be an ideal agricultural advancement to fight
against the pandemic.
Research has shown that all-inclusive green agriculture improves human well-
being by reducing environmental risks and building social equity (Abou-Elela, 2017).
The same researcher has maintained that green agriculture is an alternative to the
current dominant agricultural economic model characterized by inequalities, triggers
resource scarcity, encourages waste and generates a widespread threat to environ-
mental, ecological and human health [1]. This would thus be a great model to use,
particularly in the fight against the pandemic.

4.2 Irrigation as a Better Technology in Agriculture

As new technology in developing countries, the expansion of agriculture has

contributed immensely to increasing agricultural output and managing the ecolog-
ical crisis. With the increasing population and compromised environment, rain has
slowly become a limited commodity. Through reconstructive agriculture, farmers
can address this challenge through irrigation [15].
Research has projected that, by 2030, about 80% of the future agricultural produc-
tion will be made from irrigation [11]. Irrigation, particularly during the drought,
increases food production and contributes to maintaining the ecosystem [17]. An
ecosystem includes all living things in the environment, and such arrangements go
along with managing the ecological crisis. Agricultural productivity has gone high
through irrigation, particularly during the pandemic where people find it hard to get
basic needs, including food.

5 Conclusion

Solving environmental or rather ecological issues in agriculture requires developing

and integrating different technologies. Unlike in the past, agriculture has changed
dramatically where technology plays vital roles in solving ecological issues, food
260 A. N. Liberovskaya et al.

production and even strengthening the fight against COVID-19. However, not all tech-
nology in agriculture can successfully observe the environment, improve economic
gains and improve human welfare. But, adopting an inclusive green economy in
agriculture would improve human well-being and build social equity and observe
the environment.
Notably, the green economy aims at reducing environmental risks and ecolog-
ical scarcities. Also, it aims to achieve sustainable development without necessarily
degrading the environment. Green agriculture will offer opportunities to diversify
economies, reduce poverty through increased productivity, create new jobs, particu-
larly during the pandemic period, ensure food security and significantly reduce envi-
ronmental risks, which would thus affect ecologic habitation. Agricultural produc-
tivity gains from green agriculture contribute significantly to the environmental
benefit, including reducing soil erosion, agrochemical pollution and reducing agri-
cultural greenhouse gas emissions that would cause trouble to the ecosystem. On
the other hand, irrigation is a natural way to conserve the environment, increase
agricultural production and economic gain as the world fight against COVID-19.

References

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Development of Entrepreneurship
in the Agricultural Machinery Market
in the Interests of Ensuring Agricultural
Sustainability

Tatiana N. Litvinova and Olga M. Zemskova

Abstract This chapter focuses on the problem of systemic development of the agro-
industrial complex. It shows that the provision of food security in the long-term and
the full-scale implementation of SDG2 (achievement of agriculture’s sustainability)
in the period until 2030 need the transition to the agro-industrial complex 4.0. It is
treated as the fourth technological mode, which envisages the active use of leading
technologies. The main ideas of this chapter consist in demonstrating the central role
of the agricultural machinery market in the transition to the agro-industrial complex
4.0. The authors determine the target characteristics of agricultural machinery that
are necessary for its competitiveness and the transition of agricultural companies to
agro-industrial complex 4.0. These characteristics include robotization of agricul-
tural machinery and equipping agricultural machinery with the technologies of the
Internet of things, which allow using big data and AI in the management, monitoring
and forecasting of agricultural productions. A case study of the modern experience
of the development of the agricultural machinery market in Russia is performed,
based on which the preconditions and perspectives of import substitution in the
agricultural machinery market during the transition to agro-industrial complex 4.0
are determined. The authors systematize the current problems of the development
of entrepreneurship in the agricultural machinery market and develop the applied
recommendations to solve these problems in the interests of provision of agriculture’s
sustainability and food security in the conditions of the transition to agro-industrial
complex 4.0.

Keywords Development of entrepreneurship · Agricultural machinery market ·

Sustainability of agriculture · Food security · Agro-industrial complex 4.0

JEL Classification A10 · O13 · Q01 · L64

T. N. Litvinova (B) · O. M. Zemskova

Volgograd State Agrarian University, Volgograd, Russia
e-mail: litvinova1358@yandex.ru

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 263
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_30
264 T. N. Litvinova and O. M. Zemskova

1 Introduction

Entrepreneurship is among the most essential aspects of a country’s economic

growth and development. The mechanism of entrepreneurship and its implications
on a country’s performance is less well-understood [4]. Entrepreneurship provides
entrepreneurs with new options to improve their income and assets. It also raises
living standards by establishing new institutions and small and medium businesses
[7]. Despite numerous researches, there is disagreement about what constitutes
entrepreneurship and what constitutes an entrepreneur. Farming is one of the areas
that form the agricultural sector of the economy. The countries that rely heavily on the
use and development of their agricultural sector should be sure to invest heavily in the
agricultural sector. Many farmers have started to realize the importance of going for
entrepreneurship in the agricultural sector. Entrepreneurship in the farming industry
is relatively discussed with the motive of explaining how much has been invested
in the farming machinery market. These days, there is a lot of talk about farmers
becoming “business owners”. But, first and foremost, what is entrepreneurship? What
would it take to be a successful entrepreneur? How can an entrepreneurial mindset be
developed and maintained? How can you hone your entrepreneurship skills? What
are the responses of entrepreneurial farmers to the changing farming environment?
What tactics do they employ? What are their actions? How can extension personnel
assist farmers in developing entrepreneurial skills? The chapter answers to all of
these questions, as well as researching in detail the inventions that helped to sustain
agriculture and were made by entrepreneurs. The most important aspect of the scope
in the entrepreneurial spectrum of a business in a machinery market for agriculture
included having the platform to own the types of machinery for farming purposes.
Countries that depend heavily on their farming for their export of farmed products
should benefit from the economies of scale to further enjoy the benefits of the lower-
cost production. The use of extensive and technically smart technologies for farming
can reduce waste and increase the efficiency of production, leading to a drop in the
overall cost of production. Therefore, it has been recommended that the countries
either diversify from the primary sector of development (agricultural farming) to the
manufacturing sector or tertiary sector (service industry) to enjoy economic growth.
However, this chapter relies on the information, statistical data and figures to suggest
that to be able to have a profitable run in the economy which works slow, exten-
sive pieces of machinery should be invested by the farmers to improve the overall
performance of the agricultural production output [20].
When considering the economic growth of any country that relies on the agri-
cultural sector, those countries must develop their agricultural sector to enhance the
productivity of the farming sector. Secondly, efficiency in the agricultural sector
would also mean that there be a lesser waste of resources and less cost would be
incurred as well. All of this would altogether lead to agricultural sustainability. Agri-
cultural sustainability is based on the idea that we must meet current needs without
jeopardizing future generations’ ability to meet their own. As a result, both natural
and human resource management, as well as short-term economic benefit, are equally
Development of Entrepreneurship in the Agricultural Machinery Market … 265

important. Agriculture frequently puts a strain on natural resources and the environ-
ment. Sustainable agriculture practices aim to safeguard the environment, increase
the Earth’s natural resource base, and improve soil fertility. Encourage the practice
of environmental stewardship. However, in this chapter, it is identified how agricul-
tural sustainability is possible through the use of investment in farming pieces of
machinery [3].

2 Methods

The authors use a qualitative research approach to compile the data collected in
a simple and understandable way. The qualitative approach of data collection and
evaluation is suitable for this kind of research where there is plenty of new infor-
mation available. The main research focus is on how many entrepreneurial activities
have started to take place. The scope is to invest in the ownership of farming types
of machinery. The types of machinery for agricultural purposes that are discussed
include harvesting machinery, haying, and forage machinery, drainage machinery,
as well as other types of farm production are all included in the scope of the
research. Tractors, ploughing and cultivating machinery, sowing machinery, irri-
gation machinery, harvesting machinery, and other forms of machinery are split
by type and geography (North America, Europe, Asia–Pacific, South America and
Africa).
The criteria chosen for this specific chapter were formal and simple. This criterion
was chosen to shortlist the indicators to study the development of entrepreneurship
in the farming industry. The results that have been collected were eventually tested to
check the authenticity of the information provided along with the ability to find out
the absences of the markets from the main research to point out what could be added
in the research to support it from an even firm ground of research. The selection
of the criteria of the research in this chapter is not an issue at all, since the articles
used to support the information contained in the book are all reliable and scholarly
articles that do not contain unreliable information are to be further used for citation
purposes.

3 Literature Review

Entrepreneurship plays an important role in the transition of the global food system
towards environmental sustainability. On the one hand, it is part and parcel of
the current global food system and its inherent non-sustainable practices. On the
other hand, it is increasingly driving countervailing initiatives, such as stimulating
diverse and local economies, to alleviate the negative side effects of the globalized
food system [22]. This latter development fits the global trend of food system re-
localization in which cities take a leading role, driving city-region food systems [1].
266 T. N. Litvinova and O. M. Zemskova

Because of the importance of transferring to a more sustainable food system and

since food system re-localization and (local) entrepreneurship are crucial features of
that, there is a need for a better understanding of what constitutes “sustainable food
entrepreneurship”.
Although the role of entrepreneurship in making the food system more sustainable
is studied extensively, most studies do not specify the precise meaning of the used
terminology “entrepreneur” and “entrepreneurship” [8, 10, 17, 19, 22]. Some studies
distinguish different types of entrepreneurship based on goals, actions and motiva-
tions of entrepreneurs, utilizing adjectives such as “social”, “eco” and “sustainable”
[9, 18]. This suggests entrepreneurship can be understood, either implicitly or explic-
itly, as the behaviour of entrepreneurs and enterprises. An alternative perspective,
that might fit the issue of sustainable food entrepreneurship better, is known as
the resourcefulness perspective (RP), encompassing effectuation theory and brico-
lage [15]. While originally conceived as theories for entrepreneurial behaviour [14],
they are increasingly used to study entrepreneurship as a process [10, 15]. This
fits in a larger development of considering entrepreneurship, especially concerning
sustainability, as a process of change in itself [5, 17].
Questions of social equity often arise in discussions of sustainable agriculture and
they are studied by Brodt et al. [2]. Wages for farm labour are so low in most industri-
alized countries that their agricultural sectors rely substantially on migratory labour
from poorer nations, leaving farmers vulnerable to changing immigration policies
and placing burdens on government social services. The questionable legal status of
many of these workers also contributes to their generally low pay and standard of
living, lack of job security, lack of opportunities for upward mobility and exemp-
tions from occupational safety protections considered standard in other industries.
Pooling resources among many farmers to provide better housing, sharing labour
among farms with different crops to even out the seasonality of work opportunities,
shared equity in farm profits, mentoring workers to acquire and operate their farms,
and working on innovative ways to provide affordable health insurance and educa-
tional opportunities for employees are all alternative ways to increase labour equity
and social justice [2].

4 Discussion

The major countries that rely heavily on the agricultural and farming sector of the
country are all the developing nations. These developing countries however have a
great field to harvest. Therefore, besides the growth and establishment of the manu-
facturing sector and service sector, the countries have identified the need to promote
their agricultural sector. To be able to do this, the chapter has illustrated and presented
the information needed to portray the increase in the investment in agricultural and
farming machinery. Ever since the technology has started to advance, there has been
more scope in the agricultural sector to promote automated operations and types of
machinery in these farms. Furthermore, the impact of COVID-19 on the development
Development of Entrepreneurship in the Agricultural Machinery Market … 267

of developing countries has been one of the harsh issues that the government of these
countries has experienced. Furthermore, the growing economies were faced with the
backlash in their exports as well, meaning that the development of the agricultural
and farming sector saw the worst possible decline during the pandemic and lock-
down. However, the pace of development has again gone back to normal with the
increasing rate in investment in the entrepreneurial activities of the primary sector.
Increasing rates of mechanization in developing countries are driving the market.
In developing countries, the necessity for agriculture mechanization has increased
due to shrinking land, water supplies and labour force. In 2018, farm mechanization
was 45–55% in emerging countries like India and China, compared to 95% in affluent
ones like the USA. In 2017, India’s farm mechanization rate was estimated to be
between 40 and 45%. Because over 80% of small and marginal farmers own less than
five acres of land, agricultural equipment distribution is slow. In African countries, the
market for farm machinery, notably combines, is expected to rise. This is because
African farmers want access to the most up-to-date farm technologies to improve
their farming operations and reduce production expenses [14]. The penetration rate
in developing countries is still low. As a result, the farm mechanization market
has a lot of room to grow in terms of farm equipment penetration and, as a result,
market size throughout the projection period. Because businesses in Asia-Pacific
have been announcing new agricultural machinery, the region is considered one of
the fastest-growing markets. As a result, the region has dominated the market with
faster inventions and product releases. Rice, wheat, corn, potato, oilseed rape, cotton
and sugarcane are among the crops for which the Chinese government is increasing
farm mechanization. As per the Department of Agriculture in China, roughly 95.5%
of the 80.0% of wheat-land is harvested utilizing the combined harvesters [11].
The chapter then continues to discuss the literature on the available data regarding
which region is performing better and which is not. The research then also sheds
some light upon the global agricultural sector post-pandemic. The worldwide agri-
cultural machinery market is highly consolidated, with prominent players accounting
for the vast majority of the market share. Deere and Company, CNH Industrial,
AGCO Corporation, Kubota, Mahindra and Mahindra Limited, Iseki & Co. Ltd,
JC Bamford Excavators Limited, and Lindsay Corporation are the market’s top
players. Product innovation, expansion, partnerships and mergers and acquisitions
were among the strategic initiatives undertaken by the companies. For example, John
Deere announced the new 6155MH Tractor in August 2021, which delivers all of the
M Series’ field-proven performance and reliability. All of these prominent players
are the barriers to entry for new businesses and small start-ups aiming to target
developmental entrepreneurship in the agricultural sector. Below the image shows
the market dominated by the largest machinery manufacturers and entrepreneurs in
the farming industry [5].
268 T. N. Litvinova and O. M. Zemskova

5 Results

The chapter then collects and presents the statistical data along with the new informa-
tion on the plans for development in the machinery market. Entrepreneurial activities
in the farming machinery market have been started extensively since the year 2015.
CNH Industrial expanded its business in China in September 2019 with the inaugu-
ration of new parts and service centre in Shanghai. New Holland Agriculture and
Case IH agricultural equipment brands benefit from the new facility, which helps to
dramatically reduce delivery times to clients [6].
The MF RB 3130F fixed chamber round baler, MF RB 3130F Protec, and MF RB
4160 V Protec fixed and variable chamber balers were added to Massey Ferguson’s
hay and forage portfolio in September 2018 [12].
However, many major international and domestic lockdowns became a way to halt
the development of certain market sectors, including the growth and development of
the primary sector of all the developing nations. Producers, consumers, agricultural
and fishery inputs, processing and storage, transportation and marketing and so on
are all part of the food supply chain [21].
The automotive sales are much denser if we take into account the territory where
cars are mostly sold (=urban areas). By contrast, customers of agricultural equipment
(i.e. farmers and contractors) are more and more difficult to reach since the most
profitable farm holdings are more and more dispersed. Table 1 supports this analysis
[16].
Despite the fundamental trends and developments analysed above, several
academics and the EU regulator (in form of the European Commission) still uphold
their—arguably distorted—view that the tractor market is structurally comparable
and essentially identical to the automotive market. This assumption is based on the

Table 1 Distribution of agricultural holding by area (2013)

Area of holding, ha Number of % of total Utilized agricultural % of Utilized
holdings holdings area, ha agricultural area
2 4,706,370 44.1 3,578,030 2.0
2–4.9 2,307,300 21.6 7,313,240 4.2
5–9.9 1,277,230 12.0 8,940,870 5.1
10–19.9 888,540 8.3 12,442,190 7.1
Sub-total  20 9,179,440 86 32,274,330 18
20–29.9 374,870 3.5 9,134,540 5.2
30–49.9 387,730 3.6 14,974,730 8.6
50–99.9 388,680 3.6 27,264,410 15.6
100 366,740 3.2 90,965,810 52.1
Sub-total → 1,488,020 14 142,339,490 82
Total 10,667,460 100.0 174,613,820 100.0
Source: Compiled by the authors
Development of Entrepreneurship in the Agricultural Machinery Market … 269

single structural commonality that both industries share: a supply chain and a distri-
bution network with a reduced number of upstream producers. Yet such an abstract
commonality is hardly a reliable basis for a serious comparison. Following such
logic, many markets would fall into the same structural category as the automotive
market, such as the markets for smartphone shops, fast-food chains or even coffee
shops [22].
Food supply systems were stressed at the start of the crisis, as several countries
implemented restrictions on the movement of commodities and persons across and
within borders. As a result, the problem was not a lack of food, but rather a lack of
simple access to it. Then, fearful of all the uncertainties surrounding food supply,
some countries imposed restrictions on food exports, making the situation much
more difficult. These protectionist policies were enacted in part to prevent local food
costs from rising due to the depreciation of national currencies [13].

6 Conclusion

Farm mechanization refers to the use of large farm implements such as tractors and
heavy machinery such as disc Harrows and ploughing vehicles to till the ground in
huge quantities to produce crops for commercial purposes.
Farm mechanization guarantees that all farm operations are accomplished in a
reasonable amount of time. Moreover, one of the most essential parts of agricultural
reform is system-level mechanization. Using tractors with matching ploughing and
puddling instruments, the entire world has achieved considerable advances in field
preparation. Nonetheless, the supply of food and agriculture remains one of the
most inelastic demands of all times, as the agricultural products are all necessities.
Fortunately, extreme protectionism was avoided, and many of the first limitations
were lifted, with countries taking a cautious and sensible approach overall.
So far, the global food supply has been enough, and markets have remained stable.
Global cereal stocks, for example, are at healthy levels, and the outlook for wheat
and other major staple crops in 2020 is promising. However, interruptions to the
food systems remain, situations vary, and there are still many unknowns. Therefore,
the development of entrepreneurship in the primary sector of the countries should
target to improve the operations by investing in advanced technologies along with
the support for entrepreneurship in the agricultural sector of these countries.
270 T. N. Litvinova and O. M. Zemskova

References

1. Bochtis D, Sørensen C, Busato P (2014) Advances in agricultural machinery management. A

review. Researchgate. Biosyst Eng 126:69–81. https://doi.org/10.1016/j.biosystemseng.2014.
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opment? In: Sergi BS (ed) Exploring the future of Russia’s economy and markets: towards
sustainable economic development. Emerald Publishing Limited, Bingley, UK, pp 51–68
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divergence in social entrepreneurship in Russia. J Intell Capital 21(4)
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during the COVID-19 crisis: BRICS versus OECD countries. Res Int Bus Finance 55:101315.
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Russia. Emerald Publishing Limited, Bingley, UK, pp 233–247
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and financial cooperation with the Asia-Pacific Region. In: Sergi BS (ed) Tech, smart cities,
and regional development in contemporary Russia. Emerald Publishing Limited, Bingley, UK,
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https://doi.org/10.1080/14735903.2021.1969163
Vertical Farms as a Promising Direction
for the Development of Sustainable
Agriculture

Elena G. Popkova

Abstract This chapter studies the leading practical experience of managing a

vertical farm based on the Consortium of sustainable development and technolog-
ical leadership (https://iscvolga.ru/ppoekty). The vertical farm has been created
and functions for scientific and methodological support for the provision of Russia’s
food security. The most important tasks of the considered vertical farm are as follows:
selection of the most perspective (for growing) plants (and types of plants), devel-
opment and implementation of technologies for the quick-growing of plants, deter-
mination of optimal conditions for growing of plants at vertical farms that allow
reaching increased crop yield and set and improved nutrition qualities. For this, the
technologies of AI and deep learning are used. This chapter presents the results of the
experience on growing plants of the same type in soil and based on hydroponics in
2021. An analysis of these results is conducted, and the most perspective method of
growing plants at a vertical farm is determined. The results of the development and
implementation of digital sensors for automatized phytomonitoring at a vertical farm
of the Consortium are presented. Phytomonitoring allows controlling the conditions
of growing plants at a vertical farm (humidity, lighting, temperature, etc.) and the
results of growing plants (speed of growth, flowering and crop yield of plants).

Keywords Vertical farms · Sustainable agriculture · Consortium of sustainable

development and technological leadership · Deep learning · AI · Automatized
phytomonitoring

JEL Classification A10 · O13 · Q10

1 Introduction

Vertical farming allows farmers to grow crops in stacked layers such that less land is
used to plant more crops that are on shelves on top of each other. The lower shelves

E. G. Popkova (B)
MGIMO University, Moscow, Russian Federation
e-mail: E.Popkova@inno.mgimo.ru

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 273
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5_31
274 E. G. Popkova

have reasonable space between them and the upper shelves. In between shelves,
there is a reasonable space to allow growth; this type of agriculture is highly moni-
tored. The vertically inclined surfaces could be mounted on shipping containers,
and in repurposed warehouses. Vertical farming uses controlled-environment agri-
culture technology (CEA) which incorporates modern farming indoors and makes
it as productive as possible by the use of artificial intelligence. Artificial tempera-
ture, gases, light and humidity are among the highly used in vertical farming. This
chapter will focus on vertical farming as a tool for developing sustainable agriculture.
Vertical farming has shown possible improvement of food security in Russia, and
thus, many farmers and agriculture companies look forward to incorporating vertical
farming into their practice.
Vertical farming brings new hope that agriculture companies can produce more
food, within shorter periods and with little labour. This chapter will discuss the
methodology used to reach sensible conclusions that vertical farming is a promising
direction for the development of sustainable agriculture. This paper will also discuss
the use of various techniques to maintain and maximize productivity in vertical
farming. The literature review will provide a brief history of vertical farming, its
evolutions, application, benefits and demerits. The results section will discuss an
analysis of the most prospective method of growing plants at a vertical farm. The
development and implementation of digital sensors for automatized phytomonitoring
in vertical farming are discussed as collected from the Consortium of sustainable
development and technological leadership.

2 Methods

This study uses the mixed-method research design which combines both qualitative
and quantitative data from scholarly sources and peer-reviewed academic articles.
The collected data relates to the development of vertical farming as a promising type
of sustainable farming. Vertical farming assures farmers and agriculture companies
greater yields as compared to traditional methods of agriculture. The increased need
for a stable supply of high-quality food demands that farmers strategize and develop
ways to provide more food to the consumers. Data on vertical farming shows that
if technology is well-incorporated the farmers will harvest more yields [2]. Data
shows that the primary goal of vertical farming is producing more yields per square
metre. Farmers could either grow food or medicinal plants and herbs in their vertical
farms. Research shows that farmers must combine many skills and high intelligence
to produce higher yields otherwise vertical farmers could use up a lot of resources
then disappoint the farmer.
Quantitative data is used while comparing the improvements that farmers make
when they incorporate vertical farming into their practice. On the other hand, quali-
tative data is used to collect researchers’ published knowledge on vertical farming.
Many researchers argue that vertical farming is an easy practice that any farmer can
learn and practice given that they have adequate materials and resources. Vertical
Vertical Farms as a Promising Direction for the Development … 275

farming does not require formal training, unlike other traditional methods that require
farmers to learn and study them. Quantitative analytic methods are borrowed from
published quantitative studies on precision agriculture incorporated into vertical
farming [3]. In a qualitative study by Bemke et al. [3], many farmers are learning
to incorporate vertical farming into their practice. This assures them of maximum
productivity. Many farmers who use vertical farming use it for medicinal plants and
herbs, unlike foods.

3 Literature Review

The history of vertical farming is dated back to 1915 in South America scholars
explain that vertical farming is not a new idea [1]. The indigenous South Americans
used to make vertically stacked layers which they could use as plantations for rice;
they used rice terraces similar to those of East Asia [9]. The rice terraces were so
common that people adopted them fast, thus spreading the idea to many people.
Further, the American geologist Gilbert Bailey Ellis studied this practice and offi-
cially named it the ‘Vertical Farming Method’. In the twentieth century, scientists
and architects repeatedly focused on improving vertical farming, so they incorpo-
rated various technological advancements into the practice [16]. In the 1910s, the
vertical farming practice did not have much technology as the current twenty-first-
century vertical farming. Advancements in technology such as the development of
different and easily manageable growing mediums such as aquaponic, aeroponic and
hydroponic have made the current application of vertical farming easy and clean.
Integrating agriculture into a well-planned and well-built environment and artifi-
cial surfaces have shown great promise towards improving food production. Vertical
farming must include the following concepts which are very important towards their
success: first lighting, growing mediums, physical layout and fourth sustainability
features [11].
A farmer seeking to employ vertical farming must consider the physical layout
they will use because the structure is paramount in vertical farming. Foods can be
cultivated in old car tyres, peat moss and coconut husks if they are available. Farmers
can also use technology such as rotating beds to ensure that their plants gain light
from both artificial and natural sources in intervals. The combination of natural and
artificial light must be well-considered because it dictates the success of the vertical
farm. Vertical farming allows farmers to control light efficiency for crops; this enables
the plants to grow faster because they get all the best conditions compared to other
crops.
Farmers using vertical farming must plan and ensure they can provide sustain-
able features to offset the cost of energy and other raw materials for farming.
Vertical farming can provide a sustainable supply of food when well-installed [14].
Researchers explain that vertical farming offers a sustainable and reliable supply of
food because it does not spoil harvests due to climate changes [16]. While considering
the traditional farming methods, plants are easily destroyed when weather changes
276 E. G. Popkova

occur; however, the vertical farming methods provide agriculture companies with
a sustainable plant harvest because crops can grow all year round. In reality, crops
can grow all year round in vertical farming because the resources for example; the
growing mediums in vertical farming do not lose fertility like soil in natural lands.
Vertical farming also proves to use less water compared to other farming methods.
The irrigation farming method uses a high amount of water because farmers have to
spray a lot of water regularly to plants in the open. However, farmers can regulate
light efficiency in vertical farming, and thus, the humidity can be easily maintained
as long as plants are not exposed to harsh temperatures. Agriculture has always
been affected by water availability, across the world, farmers remain disappointed
by the unavailability of adequate water to sustain their crops as weather seasons
become extreme [12]. Researchers also explain that vertical farming is affordable
to maintain because it has less exposure to disease and chemicals. Vertical farming
allows farmers to start up the practice at a higher price but afterwards, it is affordable
to maintain. Vertical farming is among the most affordable farming methods that
farmers can adopt because, after installation, the maintenance is cheap since less
water is required, pests and diseases are hardly found in plants, and crops rarely fail
to produce the expected harvest.

4 Results

The quantitative methodology proves that technological underdevelopment hinders

the full application of smart technology in agriculture [13]. Farmers who can access
and afford smart technologies that are needed for vertical farming still complain
that they do not have fully developed technologies to control big farms with it. The
greatest challenge of vertical farming is that it is hard to control very large farms
and plantations. Popkova’s study was done in three sections; the first section shows
the dynamic model of development in agricultural practice in Russia. The Russian
regional economy faces many challenges with underdevelopment in technology [10].
Farmers lack smart technologies that can be applied in large farms. Thus, the limi-
tation of applying vertical farming remains low for the few agricultural companies
that can afford it. However, 60% of the people that apply precision agriculture in
Russia 40% them incorporate technology into their practices. The central Chernozen
economic region of Russia which is in the European part has among the best farms;
the success of these farms is attributed to the use of technology to maintain favourable
conditions for the farms [8]. Among the best applied smart technology in these farms
is phytomonitoring.
Phytomonitoring is a computerized technology used to assess plants in a green-
house in a real-time situation. Phytomonitoring allows farmers to assess the physio-
logical conditions of crops in an enclosed space; one can hardly apply phytomoni-
toring in open space due to its sensitivity. However, in enclosed spaces, one can easily
use phytomonitoring technology to manage their crops. Phytomonitoring allows the
controlling of conditions of growing plants at vertical farm aspects such as humidity,
Vertical Farms as a Promising Direction for the Development … 277

light efficiency and temperature is assessed in the farm, sent back to a data analysing
computer for the farmer to take action; in some systems, automatic responses are
sent back to the farm as feedback [9]. For instance, if the phytomonitors detect
low humidity and absence of moisture, this feedback is sent to a computer within
the system, the computer receiver is programmed to send back automatic but accu-
rate messages such as turning on sprinklers for a certain time until the crops are
well-moisturized. Methodological provisions show that technological provisions and
competencies are limited to function well in large farms. Thus, there is a problem in
the link chain because one system remains low [5]. This calls all developers to create
better technologies that provide an unlimited application of vertical farming without
much struggle. This will involve making mathematical transformations so that large
farms can apply vertical farming projects [4].

5 Discussion

Vertical farming promises a sustainable supply of food; with the growing population,
scientists propose that by 2050, the world population will be nine billion. This means
the demand for agriculture will be so high that people have to develop better ways
to do agriculture without exploiting the natural resources available. From the results
section, the use of vertical farming has shown promise to satisfy the agricultural
needs of the growing population across the world [6]. From the results, agricultural
productivity can only occur for a certain period before it hits its limits; however,
sustainable methods such as vertical farm projects take up little space and give in
more yields than other methods.
Technologies such as phytomonitoring are showing great potential towards
improving the application of vertical farms. The main argument here is that these tech-
nologies need to be improved so that vertical farming can be applied by all farmers
on both small and large scales [15]. The basics of visual monitoring use electro-
technical complexities which record information store it and conduct a wavelength
analysis then send responses to other machines within the system; with such a system
it is hard to start up however after the first yields, farmers can get adequate capital to
sustain vertical farming. However, farmers should be given adequate support to start
vertical farming projects because they promise sustainable agriculture [7].

6 Conclusion

The aspects of vertical farming projects are promising; clearly, there are many benefits
that agriculture companies could gain from vertical farming. However, few recom-
mendations are seen necessary from this study; first agriculture companies should
study the project well, understanding how to run farms in vertical farming is crucial.
If farmers do not have adequate knowledge in vertical farming, they could end
278 E. G. Popkova

up wasting money and resources. Secondly, this study recommends that compa-
nies should study the technologies adopted in other segments of indoor sectors
because these are the same as the ones in vertical farming projects. Thirdly, this
study would recommend that companies start by practising vertical farming with
easy-to-grow crops which do not require strict attention as one learns how to be well-
conversant with the project. Lastly, this study has established that vertical farming is
still a relatively new idea yet it holds great potential towards improving the current
farming methods. This study asserts that vertical farming provides solutions for stable
agriculture.

References

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opment? In: Sergi BS (ed) Exploring the future of Russia’s economy and markets: towards
sustainable economic development. Emerald Publishing Limited, Bingley, UK, pp 51–68
11. Popkova EG, Sergi BS (2020a) Human capital and AI in Industry 4.0. Convergence and
divergence in social entrepreneurship in Russia. J Intell Capital 21(4)
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trends and prospects On The Horizon 28 1 9 21
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and financial cooperation with the Asia-Pacific Region BS Sergi Eds Tech, smart cities, and
regional development in contemporary Russia Emerald Publishing Limited Bingley, UK 195
223
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cial development through cooperation with Russia. In: Barnett WA, Sergi BS (eds) Asia-
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Prospects of Reconstructive Agriculture’s
Development for Sustainable Development
(Conclusion)

Elena G. Popkova and Bruno S. Sergi

This second volume demonstrated the international experience of reconstructive agri-

culture with special attention to case examples of Russia, Kyrgyzstan, the EAEU and
other developing countries. This allowed showing that reconstructive agriculture is
not an exclusive (elite) prerogative of developed countries, but wide practices, which
are accessible and are successfully implemented in developing countries. Therefore,
sustainable development of agriculture is accessible all around the world.
Volume II showed serious financial problems (deficit of state financing and private
investments) and the economic and legal contradictions (growth of demand, but
reduction of offer due to insufficient development of the legal and institutional provi-
sion) of reconstructive land use. This volume also described the organisational and
managerial and technological aspects of the provision of agriculture’s sustainability
based on reconstructive land use, showing a critical role of the following: (1) state
regulation of the digital agricultural economy; (2) environmentally friendly tech-
nologies in municipal infrastructure projects and (3) green human capital for its
development.
This volume also demonstrated a large and growing contribution of reconstructive
agriculture to sustainable development and food security. It threw light on the benefits
of reconstructive agriculture for food security and rural tourism, offered frameworks
for reconstructive digital farming for areas with unfavourable climatic conditions for
agricultural entrepreneurship and substantiated that reconstructive agriculture is a
mechanism for environmental crisis management and epidemic prevention.
The obtained new scientific knowledge actualized the scientific elaboration of the
prospects of reconstructive agriculture’s development for sustainable development.

E. G. Popkova (B) · B. S. Sergi

MGIMO University, Moscow, Russia
B. S. Sergi
Harvard University, Cambridge, MA, USA
University of Messina, Messina, Italy
© The Editor(s) (if applicable) and The Author(s), under exclusive license 279
to Springer Nature Singapore Pte Ltd. 2022
E. G. Popkova and B. S. Sergi (eds.), Sustainable Agriculture,
Environmental Footprints and Eco-design of Products and Processes,
https://doi.org/10.1007/978-981-19-1125-5
280 Prospects of Reconstructive Agriculture’s Development for Sustainable …

In particular, the following new research questions emerged. Will the transition to
reconstructive agriculture allow for full provision of food security? How big is the
potential contribution of reconstructive agriculture to economic growth? Can recon-
structive agriculture fully cover the ecological costs of industrial growth and ensure
the return of climate to the initial state? These issues should be studied in future
scientific works.