Necessity and perspectives of formation of the state of food security

Abstract

In the periods of positive dynamics of economic development it has usually dominated the attitudes towards the state non-interference in the economic processes, and upon occurrence of the next phase - the recession of production, particularly with the signs of stagflation, they have been replaced by the diametrically opposing views, which have tried to prove the need for the state active interference in the processes of sustainable economic reproduction. In the whole the states affect the agri-food complex, the market of agricultural products and the food supplies. However, the methods and tools of this influence depend on the purpose to be achieved with such a regulation. The world experience of development of market economy shows that the agriculture and the market of agricultural products are not the self-regulating systems due to the specific characteristics. It is explained primarily by the conservatism and inertia of agriculture as a production system, as well as a low elasticity of demand for the agricultural products and high price elasticity to them. The inability of market mechanism to direct the development of economic entities of different industries and regions into one common goal, calls for the state intervention in all spheres of the economy, one of the most important of which is the agriculture.