Sustainable Agriculture: Circular to Reconstructive, Volume 2 (Environmental Footprints and Eco-design of Products and Processes) [1st ed. 2022] 9789811911248, 9789811911255, 981191124X

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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 sustainability 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 MGIMO University Moscow, Russia

Bruno S. Sergi Harvard University 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 © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors, and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Springer imprint is published by the registered company Springer Nature Singapore Pte Ltd. The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore 189721, Singapore

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 agriculture 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 comprehensively address the urgent environmental gaps of our time: to improve the environment 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-naAmure 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

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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 agriculture’s sustainability. 1st criterion—social. It consists in fighting poverty and providing food security. A restraining factor on the path of bringing modern agriculture in accordance with this criterion is unfavourable and changing climate conditions. The Third (pre-digital) technological mode, which is widespread in agriculture, allows creating and successfully using in agricultural entrepreneurship the technologies 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 traditionally 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.

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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 footprints (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 environmental 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 naturalness 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 components. This allows determining its sustainability by all three criteria and ensuring the scientific search for the prospects of agriculture’s development for its full correspondence to all criteria. The solution, which is provided in the second volume of the book, envisages the transition from circular agriculture to reconstructive agriculture. 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 technologies, 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 agriculture 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 attractiveness 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

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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 reconstructive 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 products 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 implementation. 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 . . . . . . . . . . . . . . . . . . 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 . . . . . . . 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 . . . . . Mukaddas A. Dzhorobaeva

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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

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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

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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 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

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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 Features of Criteria of Profitability of Cotton–Textile Cluster . . . . . . . . . . Gulchexra Dj. Khalmatjanova, Gulmira A. Yuldasheva, and Gulnoza Kh. Rayimdjanova

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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

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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

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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 Scientific Director of the International Center for Emerging Markets Research at RUDN University—Moscow.

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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 contemporary 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 questions that have confronted thinkers in the past and remain unresolved in the present are as follows: 1.

2.

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? How to use this part of the national wealth effectively and efficiently?

Over the millennia of its development, humankind has not yet resolved the indicated 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: [email protected] © The Author(s), under exclusive license 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_1

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through the correct construction of the system of institutions and institutional mechanisms 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. 2. 3.

To reveal the essence of land property from the point of view of various representatives of political economy; To evaluate the different options for the distribution of land property rights (private or public) in terms of their social efficiency; 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

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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 eliminated, 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

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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 relations 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 discussions 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 international 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 transition 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

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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.

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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.

2.

3.

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? 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. 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.

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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 7. Marx K (1984) In: Engels F (ed) Capital: a critique of political economy. The circulation of 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 mechanisms for conducting commodity-purchasing interventions in the grain market in Russia. In: Proceedings of ICoM’ 2017: managerial trends in the development of enterprises in globalization era. Slovak University of Agriculture in Nitra, Nitra, pp 15–25 10. Say J-B (1833) A treatise on political economy; or the production, distribution, and consumption of wealth (Transl. from French). Third Department of His Imperial Majesty’s Own Chancellery, St. Petersburg, Russian Empire (Original work published 1803) 11. Tugan-Baranovsky MI (1918) Fundamentals of political economy, 5th ed. Pravo, Petrograd 12. USSR (1957) Decrees of the Soviet government, vol I. USSR, Gospolitizdat

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 agricultural 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 influences. The impact of geoeconomic influences on economic processes has considerably 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 particular 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 government support in the agricultural market. The authors show the main financial instruments 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: [email protected] M. A. Abramova e-mail: [email protected] O. V. Zakharova e-mail: [email protected] 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 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

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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 favorable investment climate [13]. Other scholars have also noted the variable components 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. Additionally, the current restrictions associated with the COVID-19 pandemics have made significant adjustments to the tactical and strategic directions of further development 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 investments 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 transformation 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 Compiled by the authors

Implementation of microlendin within the framework of the State Program for the development of productive employment

Mass Entrepreneurship “Enbek” for 2017–2021

Measures to enhance digital transformation in agriculture

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Fig. 2 Primary sources of credit resources for the subjects of agriculture. Source Compiled by the authors

Microfinance organizations

Commercial banks

Sources

Subsidiaries of holding 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 overcoming 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 institutions 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.

References 1. Agency for Strategic planning and reforms of the Republic of Kazakhstan Bureau of National Statistics (n.d.) Official website. Retrieved from https://stat.gov.kz/. Accessed 22 Aug 2021 2. Baidalinova AS, Baigireyeva Z, Myrkanova A (2021) Household food security in Kazakhstan. In: Popkova EG, Sergi BS (eds) “Smart technologies” for society, state and economy. Springer, Cham, pp 107–114. https://doi.org/10.1007/978-3-030-59126-7_13 3. Baigireyeva Z, Butkenova AK, Baidalinova AS (2021) Analysis of the existing human capital development monitoring system. In: Popkova EG, Sergi BS (eds) “Smart technologies” for society, state and economy. Springer, Cham, pp 514–521. https://doi.org/10.1007/978-3-03059126-7_58 4. Berstembayeva R, Kaldenova GS (2021) Evaluation of poverty and measures to reduce it. In: Popkova EG, Sergi BS (eds) “Smart technologies” for society, state and economy. Springer, Cham, pp 99–106. https://doi.org/10.1007/978-3-030-59126-7_12 5. Evmenchik OS, Seidakhmetova FS, Mezentceva TM (2021) The role of gross profit and margin contribution in decision making. In: Popkova EG, Ostrovskaya VN, Bogoviz AV (eds) Socioeconomic systems: paradigms for the future. Springer, Cham, pp 1393–1404. https://doi.org/ 10.1007/978-3-030-56433-9_145 6. Gavrilova EN (2018) Credit history bureau: formation, efficiency assessment and ways of improvement. Moscow Witte Univ Bull Ser 1 Econ Manag 4(27):34–42. https://doi.org/10. 21777/2587-554X-2018-4-34-42 7. Gavrilova EN (2019) Investment banking as a direction of banking activity: the essence, features and problems of development. Moscow Witte Univ Bull Ser 1 Econ Manag 4(31):81–86. https:// doi.org/10.21777/2587-554X-2019-4-81-86 8. Gavrilova EN (2020) “Green” financing in Russia: specifics, main tools, development problems. Moscow Witte Univ Bull Ser 1 Econ Manag 2(33):48–54. https://doi.org/10.21777/2587-554X2020-2-48-54 9. Gavrilova EN, Danaeva KL (2021) The banking sector of Russia: the current state and development trends. Moscow Witte Univ Bull Ser 1 Econ Manag 1(36):7–14. https://doi.org/10. 21777/2587-554X-2021-1-7-14 10. Gorbacheva T (2020) Fiscal anticrisis measures of countries during the Covid-19 pandemic. Moscow Witte Univ Bull Ser 1 Econ Manag 3(34):38–42. https://doi.org/10.21777/2587-554X2020-3-38-42 11. Ivanova OS, Suleimenova B, Yerzhanova SK, Berstembayeva RK (2021) Oil and gas investment opportunities for companies in modern conditions. In: Popkova EG, Ostrovskaya VN, Bogoviz AV (eds) Socio-economic systems: paradigms for the future. Springer, Cham, pp 669–676. https://doi.org/10.1007/978-3-030-56433-9_70 12. KazAgro Holding. (n.d.). Activity profile. Retrieved from https://eldala.kz/dannye/kompanii/ 300-kazagro. Accessed 22 Aug 2021 13. Keynes JM (1971–1989) In: Moggridge DE (ed) The collected writings of John Maynard Keynes in 30 vols. Macmillan, London

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14. Kurmankulova RZ, Anzorova SP, Goigova MG, Yessymkhanova ZK (2021) Digital transformation of government procurement on the level of state governance. In: Popkova EG, Ostrovskaya VN, Bogoviz AV (eds) Socio-economic systems: paradigms for the future. Springer, Cham, pp 663–667. https://doi.org/10.1007/978-3-030-56433-9_69 15. Madysheva MA, Khudzhatov M (2021) Management of sustainable development of tourism in cross–border territories. Acad Strateg Manag J 20(SI2):1–9 16. Maisigova LA, Isayeva BK, Dzholdosheva TY (2021) Features of relations between government authorities, business, and civil society in the digital economy. In: Popkova EG, Ostrovskaya VN, Bogoviz AV (eds) Socio-economic systems: paradigms for the future. Springer, Cham, pp 1385–1391. https://doi.org/10.1007/978-3-030-56433-9_144 17. Moldashbayeva LP, Zhumatayeva BA, Mezentseva TM, Shirshova LV (2021) Digital economy development as an important factor for the country’s economic growth. In: Popkova EG, Ostrovskaya VN, Bogoviz AV (eds) Socio-economic systems: paradigms for the future. Springer, Cham, pp 361–366. https://doi.org/10.1007/978-3-030-56433-9_38 18. Nurpeisova AA, Smailova LK, Akimova BZ, Borisova EV (2021) Condition and prospects of innovative development of the economy in Kazakhstan. In: Popkova EG, Ostrovskaya VN, Bogoviz AV (eds) Socio-economic systems: paradigms for the future. Springer, Cham, pp 1773–1779. https://doi.org/10.1007/978-3-030-56433-9_184 19. Semenyuk O, Abdrashitova T, Beloussova E, Nechay N, Listkov V, Kurbatova V (2018) The influence of ecology and economic factors on eco-architecture and the design of energy-efficient buildings. World Trans Eng Technol Educ 16(2):186–192 20. Troyanskaya M, Dogalova G, Mizamgalievna AE (2021) Sustainable hotel development. Acad Strateg Manag J 20(SI2):1–16

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: [email protected] © The Author(s), under exclusive license 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_3

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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 agencies and public organizations in improving the regulatory framework for the functioning of rural tourism through the adoption of laws, projects, and programs. 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. 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 employment 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 digitalization 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.

+

Mapping

Deduction

Induction +

+

+

+

Index analysis

+

+

+

+

Grouping and zoning

+

+

+

+

+

Computational and structural analysis

Abstract-logical

+

+

+

+

Synthesis

+

+

+

Method of economic analysis

Analysis of economic efficiency of rural tourism facilities in the region

Assessment of the main trends in the development of rural tourism in the region

+

Assessment of the natural resource potential of the region

+

Theoretical analysis of the development of rural tourism

Economic-statistical method

Research methods

Table 1 Methods of research on the regional development of rural tourism

+

+

+

+

+

+

Analysis of the impact of rural tourism on rural employment in the region

+

+

+

+

Identification of promising areas of the improvement of the organizational and economic mechanism to support rural tourism facilities

+

+

+

Formation of the institutional infrastructure to stimulate entrepreneurial activity in the region

+

+

+

(continued)

Identification of investment opportunities for the development of rural tourism in the region

Development of Rural Tourism Based on Green Technologies … 19

Source Developed by the authors based on [1, 3, 6, 8, 9, 12–17]

Systematization

+ +

Multivariate analysis

Assessment of the main trends in the development of rural tourism in the region

Surveys

Assessment of the natural resource potential of the region

+

Theoretical analysis of the development of rural tourism

Correlation method

Research methods

Table 1 (continued)

+

Analysis of economic efficiency of rural tourism facilities in the region

+

Analysis of the impact of rural tourism on rural employment in the region

+

Identification of promising areas of the improvement of the organizational and economic mechanism to support rural tourism facilities

+

Formation of the institutional infrastructure to stimulate entrepreneurial activity in the region

+

Identification of investment opportunities for the development of rural tourism in the region

20 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 recommend 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.

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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 development 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 from services provided

10,190

16,967

6777

60.1

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 tourist facility

44.3

59.5

15.2

74.5

Average costs of one tourist facility

thous. KZT

21.9

36.1

14.2

60.7

Average profit of one tourist facility

thous. KZT

22.4

23.4

1.0

90.5

Actual expenses of the tourist object on one workday

KZT

117.2

104.4

−12.8

Profitability

%

30.0

61.6

31.6

−10.9

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]

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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 …

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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.

References 1. Baidalinova AS, Niyazbekova SU, Baigireyeva Z, Myrkanova A (2021) Household food security in Kazakhstan. In: Popkova EG, Sergi BS (eds) “Smart technologies” for society, state and economy. Springer, Cham, pp 107–114. https://doi.org/10.1007/978–3–030–59126–7_13 2. Bernardino S, Santos JF (2018) Unleashing the intelligence of cities by social innovation and civic crowdfunding: an exploratory study. Int J Technol Human Interact 14(2):54–68. https:// doi.org/10.4018/IJTHI.2018040104 3. Bunevich KG, Niyazbekova Sh U (2017) Analysis of the socio-economic development of the city of Astana. Moscow Witte Univ Bull Ser 1 Econ Manag 3(22):24–31. https://doi.org/10. 21777/2307-6135-2017-3-24-31 4. Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan (n.d.) Official website. Retrieved from https://stat.gov.kz/. Accessed 29 Sept 2021 5. Curran D (2018) Risk, innovation, and democracy in the digital economy. Eur J Soc Theory 21(2):207–226. https://doi.org/10.1177/1368431017710907 6. Imangozhina ZA, Niyazbekova Sh.U (2019) International economic cooperation of Persian Gulf countries in the gas sector. Moscow Witte Univ Bull Ser 1 Econ Manag 1(28):15–20. https://doi.org/10.21777/2587-554X-2019-1-15-20 7. Ivanova OS, Niyazbekova Sh.U (2020) Development of fintech and big data in the financial sphere: features, problems, opportunities. Moscow Witte Univ Bull Ser 1 Econ Manag 1(32):30–36. https://doi.org/10.21777/2587-554X-2020-1-30-36 8. Ivanova OS, Suleimenova B, Yerzhanova SK, Berstembayeva RK (2021) Oil and gas investment opportunities for companies in modern conditions. In: Popkova EG, Ostrovskaya VN, Bogoviz AV (eds) Socio-economic systems: paradigms for the future. Springer, Cham, pp 669–676. https://doi.org/10.1007/978-3-030-56433-9_70 9. Kamkin V, Beisembayeva M, Mazbayev O, Bazarbekov K (2016) Effect of environmental water release on the state of flora and vegetation of the steppe plain segment of the Irtysh River floodplain. Oxid Commun 39(1-I):357–367 10. Kurmankulova RZ, Anzorova SP, Goigova MG, Yessymkhanova ZK (2021) Digital transformation of government procurement on the level of state governance. In: Popkova EG, Ostrovskaya VN, Bogoviz AV (eds) Socio-economic systems: paradigms for the future. Springer, Cham, pp 663–667. https://doi.org/10.1007/978-3-030-56433-9_69 11. Latos BA, Harlacher M, Przybysz PM, Mutze-Niewohner S (2018) Transformation of working environments through digitalization: exploration and systematization of complexity drivers. In: Proceedings of the IEEM 2017: IEEE international conference on industrial engineering

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13.

14.

15.

16.

17.

A. E. Zhansagimova et al. and engineering management. Singapore, pp 1084–1088. https://doi.org/10.1109/IEEM.2017. 8290059 Maisigova LA, Isayeva BK, Dzholdosheva TY (2021) Features of relations between government authorities, business, and civil society in the digital economy. In: Popkova EG, Ostrovskaya VN, Bogoviz AV (eds) Socio-economic systems: paradigms for the future. Springer, Cham, pp 1385–1391. https://doi.org/10.1007/978-3-030-56433-9_144 Moldashbaeva LP, Niyazbekova Sh.U, Uspambaeva MK (2019) On institutional and legal problems of state audit and financial control. Moscow Witte Univ Bull Ser 1 Econ Manag 3(30):15–20. https://doi.org/10.21777/2587-554X-2019-3-15-20 Moldashbayeva LP, Zhumatayeva BA, Mezentseva TM, Shirshova LV (2021) Digital economy development as an important factor for the country’s economic growth. In: Popkova EG, Ostrovskaya VN, Bogoviz AV (eds) Socio-economic systems: paradigms for the future. Springer, Cham, pp 361–366. https://doi.org/10.1007/978-3-030-56433-9_38 Niyazbekova Sh.U, Nazarenko OV (2018) Current state and prospects for the development of the oil and gas sector of the Republic of Kazakhstan. Moscow Witte Univ Bull Ser 1 Econ Manag 4(27):7–14. https://doi.org/10.21777/2587-554X-2018-4-7-14 Niyazbekova ShU, Grekov IE, Blokhina TK (2016) The influence of macroeconomic factors to the dynamics of stock exchange in the Republic of Kazakhstan. Econ Reg 12(4):1263–1273. https://doi.org/10.17059/2016-4-26 Nurpeisova AA, Smailova LK, Akimova BZ, Borisova EV (2021) Condition and prospects of innovative development of the economy in Kazakhstan. In: Popkova EG, Ostrovskaya VN, Bogoviz AV (eds) Socio-economic systems: paradigms for the future. Springer, Cham, pp 1773–1779. https://doi.org/10.1007/978-3-030-56433-9_184

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 agroindustrial complex of Kazakhstan. The priority of agro-industrial development justifies 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 production. Financial support of the agro-industrial complex is laid down in the government 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 technology, and maintaining state grain reserves. Unfortunately, the peculiarities of agriculture 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: [email protected] 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 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

27

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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 technology, 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, statistical analysis, and others. The analytical approach reviews the current state of agriculture in Kazakhstan and identifies the primary sources of funding for the agroindustrial 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 agricultural 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 Planning 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 agricultural sector are small, in most cases individual entrepreneurs. In general, agricultural

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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 developing agriculture, become more accessible sources of borrowed funds for the agroindustrial 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 Planning 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].

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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.

References 1. Baba YG, Kusumoto Y, Tanaka K (2018) Effects of agricultural practices and fine-scale landscape factors on spiders and a pest insect in Japanese rice paddy ecosystems. Biocontrol 63:265–275. https://doi.org/10.1007/s10526-018-9869-5 2. Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan (n.d.) Official website. Retrieved from https://stat.gov.kz/ (Accessed 30 July 2021) 3. Gavrilova EN (2019) Investment banking as a direction of banking activity: essence, features and problems of development. Moscow Witte Univ Bull Ser 1 Econ Manag 4(31):81–86. https:// doi.org/10.21777/2587-554X-2019-4-81-86 4. Gavrilova EN, Danaeva KL (2021) The banking sector of Russia: the current state and development trends. Moscow Witte Univ Bull Ser 1 Econ Manag 1(36):7–14. https://doi.org/10. 21777/2587-554X-2021-1-7-14 5. Knight EC, Mahony NA, Green DJ (2016) Effects of agricultural fragmentation on the bird community in sagebrush shrubsteppe. Agr Ecosyst Environ 223:278–288. https://doi.org/10. 1016/j.agee.2016.03.011 6. Lechner AM, Baumgartl T, Matthew P, Glenn V (2016) The impact of underground longwall mining on prime agricultural land: a review and research agenda. Land Degrad Dev 27(6):1650– 1663. https://doi.org/10.1002/ldr.2303 7. Lukovnikova NS (2019). The impact of the efficiency of the use of budgetary funds on the indicators of financial stability of agricultural organizations. Moscow Witte Univ Bull Ser 1 Econ Manag 1(28):39–45. https://doi.org/10.21777/2587-554X-2019-1-39-45 8. Luo BL (2018) 40-year reform of farmland institution in China: target, effort and the future. China Agric Econ Rev 10(1):16–35. https://doi.org/10.1108/CAER-10-2017-0179 9. Maisigova LA, Niyazbekova SU, Isayeva BK, Dzholdosheva TY (2021) Features of relations between government authorities, business, and civil society in the digital economy. In: Popkova EG, Ostrovskaya VN, Bogoviz AV (eds) Socio-economic systems: paradigms for the future. Springer, Cham, Switzerland. https://doi.org/10.1007/978-3-030-56433-9_144 10. Niyazbekova SU, Ivanova OS, Suleimenova B, Yerzhanova SK, Berstembayeva RK (2021) Oil and gas investment opportunities for companies in modern conditions. In: Popkova EG, Ostrovskaya VN, Bogoviz AV (eds) Socio-economic systems: paradigms for the future. Springer, Cham, Switzerland. https://doi.org/10.1007/978-3-030-56433-9_70 11. Niyazbekova SU, Kurmankulova RZ, Anzorova SP, Goigova MG, Yessymkhanova ZK (2021) Digital transformation of government procurement on the level of state governance. In: Popkova EG, Ostrovskaya VN, Bogoviz AV (eds) Socio-economic systems: paradigms for the future. Springer, Cham, Switzerland. https://doi.org/10.1007/978-3-030-56433-9_69

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12. Niyazbekova SU, Moldashbayeva LP, Zhumatayeva BA, Mezentseva TM, Shirshova LV (2021) Digital economy development as an important factor for the country’s economic growth. In: Popkova EG, Ostrovskaya VN, Bogoviz AV (eds) Socio-economic systems: paradigms for the future. Springer, Cham, Switzerland. https://doi.org/10.1007/978-3-030-56433-9_38 13. Nurpeisova AA, Smailova LK, Akimova BZh, Borisova EV, Niyazbekova SU (2021) Condition and prospects of innovative development of the economy in Kazakhstan. In: Popkova EG, Ostrovskaya VN, Bogoviz AV (eds) Socio-economic systems: paradigms for the future. Springer, Cham, Switzerland. https://doi.org/10.1007/978-3-030-56433-9_184 14. Rey D, Holman IP, Daccache A, Morris J, Weatherhead EK, Knox JW (2016) Modelling and mapping the economic value of supplemental irrigation in a humid climate. Agric Water Manag 173:13–22. https://doi.org/10.1016/j.agwat.2016.04.017 15. Sturm A, Drechsler M, Johst K, Mewes M, Wätzold F (2018) DSS-ecopay—a decision support software for designing ecologically effective and cost-effective agri-environment schemes to conserve endangered grassland biodiversity. Agric Syst 161:113–116. https://doi.org/10.1016/ j.agsy.2018.01.008 16. Todorovic M, Mehmeti A, Scardigno A (2016) Eco-efficiency of agricultural water systems: methodological approach and assessment at meso-level scale. J Environ Manage 165:62–71. https://doi.org/10.1016/j.jenvman.2015.09.011

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 accommodation 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: [email protected] 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: [email protected] Moscow Witte University, Moscow, Russia S. P. Anzorova Moscow Financial and Industrial University “Synergy”, Moscow, Russia e-mail: [email protected] © The Author(s), under exclusive license 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_5

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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 development 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 high level of comfort in rural areas

Partially

Houses with a sufficiently high 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 + of rural tourism

The existing programs are 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 technology

+

Partially

5

Creating of associations of rural tourism enterprises

+

Partially

6

Advertisement and information promotion

+

Partially

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 environmentally friendly hotels in the world and more than 5000 hotels invest in environmental 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

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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 onsite 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 (SayramUgam 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

1

Bayanaul National Park

–

+ (private)

–

+

2

Ile-Alatau National Park

+ (private)

+ (private)

–

–

3

Karkaraly National Park

+ (private)

+ (private)

+ (public)

+

4

Zhongar-Alatau National – Park

+ (public)

–

+

5

Buiratau National Park

–

+ (private)

–

+

6

Burabay National Park

+ (private)

+ (public)

+ (private) +

7

Kolsay Lakes National Park

+ (public)

+ (public)

–

+

8

Kokshetau National Park

–

+ (public)

–

+

9

Katon-Karagay National Park

–

+ (public.)

–

–

10

Charyn National Park

+ (public)

+ (public)

+ (public)

+

11

Sayram-Ugam National Park

+ (private)

+ (public and private) –

–

12

Altyn-Emel National Park

+ (public)

+ (public)

+

Source Compiled by the authors based on [8, 12]

Gift stores

–

Parking

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 developed. There are no specialized signs on the roads and no entertainment, leisure, and other structures. Moreover, first aid centers for the population, accommodation facilities, 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.

References 1. Agafonov DV, Fine BI, Mozgovaya OO (2021) Prospects for improving the Russian state tariff policy in the field of water supply. Moscow Witte Univ Bull Ser 1 Econ Manag 2(37):42–52. https://doi.org/10.21777/2587-554X-2021-2-42-52 2. Baidalinova AS, Baigireyeva Z, Myrkanova A (2021) Household food security in Kazakhstan. In: Popkova EG, Sergi BS (eds) “Smart technologies” for society, state and economy. Springer, Cham, pp 107–114. https://doi.org/10.1007/978-3-030-59126-7_13 3. Burykin ES (2020) Increasing user engagement in brand communication using digital marketing tools. Moscow Witte Univ Bull Ser 1 Econ Manag 4(35):81–86. https://doi.org/ 10.21777/2587-554X-2020-4-81-86 4. Dulambayeva RT, Marmontova TV (2021) International management experience: Analysis of best practices for the possibility of implementation in Kazakhstan. Moscow Witte Univ Bull Ser 1 Econ Manag 2(37):80–86. https://doi.org/10.21777/2587-554X-2021-2-80-86 5. Iskakova MS, Abenova MK, Dzhanmuldaeva LN, Salzhanova ZA, Zhansagimova A (2021) Methods of state support of innovative entrepreneurship. The example of rural tourism. J Environ Manag Tourism 12(2):466–472 6. Ivanova OS, Suleimenova B, Yerzhanova SK, Berstembayeva RK (2021) Oil and gas investment opportunities for companies in modern conditions. In: Popkova EG, Ostrovskaya VN, Bogoviz AV (eds) Socio-economic systems: paradigms for the future. Springer, Cham, pp 669–676. https://doi.org/10.1007/978-3-030-56433-9_70 7. Kurmankulova RZ, Anzorova SP, Goigova MG, Yessymkhanova ZK (2021) Digital transformation of government procurement on the level of state governance. In: Popkova EG, Ostrovskaya VN, Bogoviz AV (eds) Socio-economic systems: paradigms for the future. Springer, Cham, pp 663–667. https://doi.org/10.1007/978-3-030-56433-9_69

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8. Maisigova LA, Isayeva BK, Dzholdosheva TY (2021) Features of relations between government authorities, business, and civil society in the digital economy. In: Popkova EG, Ostrovskaya VN, Bogoviz AV (eds) Socio-economic systems: paradigms for the future. Springer, Cham, pp 1385–1391. https://doi.org/10.1007/978-3-030-56433-9_144 9. Moldashbayeva LP, Zhumatayeva BA, Mezentseva TM, Shirshova LV (2021) Digital economy development as an important factor for the country’s economic growth. In: Popkova EG, Ostrovskaya VN, Bogoviz AV (eds) Socio-economic systems: paradigms for the future. Springer, Cham, pp 361–366. https://doi.org/10.1007/978-3-030-56433-9_38 10. Nurpeisova AA, Smailova LK, Akimova BZ, Borisova EV (2021) Condition and prospects of innovative development of the economy in Kazakhstan. In: Popkova EG, Ostrovskaya VN, Bogoviz AV (eds) Socio-economic systems: paradigms for the future. Springer, Cham, pp 1773–1779. https://doi.org/10.1007/978-3-030-56433-9_184 11. Proshin VP, Gopeevtseva ME (2021) State policy of the Russian Federation in the field of ensuring forest protection. Moscow Witte Univ Bull Ser 1 Econ Manag 2(37):53–59. https:// doi.org/10.21777/2587-554X-2021-2-53-59 12. Ribokene EV (2017) Evaluation of the forms and principles of state regulation of the tourism sector. Moscow Witte Univ Bull Ser 1 Econ Manag 4(23):82–90. https://doi.org/10.21777/ 2587-9472-2017-4-82-90 13. Ribokene EV, Flerov OV (2019) On the issue of state regulation of tourism in Russia. Educ Resour Technol 1(26):86–90. https://doi.org/10.21777/2500-2112-2019-1-86-90 14. Rudyk NV (2019) Features of cottage real estate management In Russia. Moscow Witte Univ Bull Ser 1 Econ Manag 4(31):103–107. https://doi.org/10.21777/2587-554X-2019-4-103-107 15. Solovyova TS (2021) Solving problems of territorial development in the conditions of the Covid-19 pandemic: the role of social innovations. Moscow Witte Univ Bull Ser 1 Econ Manag 2(37):87–95. https://doi.org/10.21777/2587-554X-2021-2-87-95 16. Terekhova AV (2021) Hierarchy of goals and priorities in the development of customs affairs of the Russian Federation. Moscow Witte Univ Bull Ser 1 Econ Manag 2(37):69–79. https:// doi.org/10.21777/2587-554X-2021-2-69-79 17. Ugryumova AA, Pautova LE, Grishaeva OY (2021) Assessment of the conditions of extensive use of reclaimed land in the context of the federal districts of the Russian Federation. Moscow Witte Univ Bull Ser 1 Econ Manag 2(37):60–68. https://doi.org/10.21777/2587-554X-20212-60-68 18. Ushkulakova G, Utaliyeva R, Bissembiyeva Z, Nazarenko OV, Beketova KN, Nurgaliyeva AS, Amerzhanova DA (2020) Environmental management as a factor in the safe management of a modern enterprise. J Environ Manag Tourism 11(8):2094–2102. Retrieved from https://jou rnals.aserspublishing.eu/jemt/article/view/5816. Accessed 22 Aug 2021 19. Zhansagimova AE, Azatbek TA, Niyazbekova SU (2013) Model of organizational structure for tourist cluster in Kazakhstan. Actual Probl Econ 149(11):332–337

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: [email protected] © The Author(s), under exclusive license 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_6

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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 agriculture 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.

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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 households’ 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 participatory 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 catastrophe 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 undernourishment 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 COVID19 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

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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 vulnerable 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 Nutrition Program of the Kyrgyz Republic (2019–2023) to improve the country’s nutritional 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].

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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 disproportionately 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 competitive 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].

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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.

References 1. Akseer N (2021) COVID-19 pandemic and mitigation strategies: implications for maternal and child health and nutrition. Am J Clin Nutr 112(2) 2. Babu S (2000) Achieving food security in Central Asia—current challenges and policy research needs. Food Policy 25(6):629–635 3. Babu S (2000) Poverty, food security, and nutrition in Central Asia: a case study of the Kyrgyz Republic. Food Policy 25(6):647–660 4. Baer-Nawrocka A, Sadowski A (2019) Food security and food self-sufficiency around the world: a typology of countries. PLoS ONE 14:e0213448 5. David Laborde WJ (2021) Impacts of COVID-19 on global poverty, food security, and diets: insights from global model scenario analysis. Agric Econ 52(7) 6. Dodd W (2021) Humanitarian food security interventions during the COVID-19 pandemic in low- and middle-income countries: a review of actions among non-state actors. Nutrients 13(7):2333 7. Hossain ST (2020) Impacts of COVID-19 on the Agri-food sector: food security policies of asian productivity organization members. J Agric Sci—Sri Lanka 15(2):116 8. Jerzak MA, Smiglak-Krajewska M (2020) Globalization of the market for vegetable protein feed and its impact on sustainable agricultural development and food security in EU countries illustrated by the example of Poland. Sustainability 12:888 9. Musa SF (2021) Covid-19 and food security in Southeast Asia. Int J Sustain Agric Manage Inf 7(2):1 10. Myrzaliyev BS (2020) Import substitution as a factor of food security. J Secur Sustain Issues 9(4) 11. Popkova EG, Sergi BS (2020) Social entrepreneurship in Russia and Asia: further development trends and prospects. On Horizon 28(1):9–21

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12. Popkova EG, Sergi BS (2021) Digital public health: automation based on new datasets and the internet of things. Socio Econ Plan Sci:101039. https://doi.org/10.1016/j.seps.2021.101039 13. Serafim Bakalis VP (2021) How COVID-19 changed our food systems and food security paradigms. Curr Res Food Sci 3(11) 14. Sergi BS, Popkova EG, Bogoviz AV, Litvinova T (2019) Understanding industry 4.0: AI, the internet of things, and the future of work. Emerald Publishing Limited, UK 15. Sergi BS, Popkova EG, Bogoviz AV, Ragulina JV (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, UK 16. Sergi BS, Popkova EG, Bogoviz AV, Ragulina JV (2019) Costs and profits of technological growth in Russia. In: Sergi BS (ed) Tech, smart cities, and regional development in contemporary Russia. Emerald Publishing Limited, UK, pp 41–54 17. Sergi BS, Popkova EG, Sozinova AA, Fetisova OV (2019) Modelling Russian industrial, tech, and financial cooperation with the Asia-Pacific region. In: Sergi BS (ed) Tech, smart cities, and regional development in contemporary Russia. Emerald Publishing Limited, UK, pp 195–223 18. Sergi BS, Popkova EG, Vovchenko N, Ponomareva M (2019) Central Asia and China: financial development through cooperation with Russia. In: Barnett, William A, Sergi BS (eds) AsiaPacific contemporary finance and development (international symposia in economic theory and econometrics), 26. Emerald Publishing Limited, UK, pp 141–164 19. Smutka L, Steininger M, Miffek O (2009) World agricultural production and consumption. Agris on-line Papers Econ Inform 1:3–12 20. Tashmatov A (2000) Food policy reforms for sustainable agricultural development in Uzbekistan, the Kyrgyz Republic, and Tajikistan. Food Policy 25(6):719–732 21. WFT (2021) Food security situation in the Kyrgyz Republic. Online: WFT 22. Wigle J (2020) Drivers of stunting reduction in the Kyrgyz Republic: a country case study. Am J Clin Nutr 112 23. Yu B (2010) A typology of food security in developing countries. China Agric Econ Rev 5(945) 24. Zhunusova E (2014) Agricultural incentives in the Kyrgyz Republic under the influence of domestic policies and changing macroeconomic conditions. In: Pawlowski, natural resources and human welfare in Central Asia. Cuvillier, Göttingen, pp 151—181

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: [email protected] 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 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

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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 international 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 organization 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 development 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 countries. 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.

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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 inconsistency 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 potential 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 “Fundamentals 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 Constitutions 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.

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In particular, the Russian Federation has not provided in its constitution any restrictions 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 legislation 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 Federation 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 ownership 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. 101FZ 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

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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 necessarily 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

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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 international 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 environmental 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.

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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 ancestors 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 possession 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

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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.”

References 1. Baieva NA, Burkin DO, Vysheslavova TF, Lukinova SA (2017) The concept of the social state and its implementation in the Russian Federation. J Adv Res Law Econ 8(5):1446–1455 2. Barkhatova EYu (2009) Citizenship and registration is Moscow, Russia, the CIS (3rd edition, revised and expanded). Prospekt, SPS ConsultantPlus, Moscow 3. Makarova TI (2017) About the application of instrumental methods in the study of the effectiveness of environmental law. In: The priority directions of development of environmental, land and agrarian law. he Republican round table dedicated to the anniversary of the Doctor of Law prof. Makarova TI. Minsk, Publishing Center of BSU, pp 7–10 4. Navasardova ES, Makarova TI, Zaharin AN, Kolesnikova KV, Nutrikhin RV (2020) Regulating waste management: national experience and international practice. J Environ Treat Tech 8(4):1574–1580 5. Smirnov DA, Strus KA, Avanesova AA (2018) Features of the taxation in the territories with the special mode of business and investing activities: comparative analysis of the Russian and foreign best practices. Int J Eng Technol (UAE) 7(3.14 Special Issue 14):412–420

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 environment, 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 integration is associated with problems in the field of nature management and environmental protection, economic development of society, mutual influence of economic, and environmental spheres and is also determined by the state of national and international legislative frameworks of environmental security. The development of the Eurasian economic integration should take into account the provision of environmental 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 modernization 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 harmonization 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 formation 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 possibilities 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: [email protected] A. R. Agabekyan e-mail: [email protected] O. V. Zhdanova Stavropol State Agrarian University, Stavropol, Russian Federation e-mail: [email protected] © The Author(s), under exclusive license 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_8

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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 environmental 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, declarative, 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.

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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 unification 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 restrictions by regulatory legal acts of national legislation if they are necessary for environmental 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 interaction. 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 activities, 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 supranational 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 documents 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).

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Thus, the technical regulations “On the safety of wheeled vehicles” fix the requirements 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 environmental protection continue to operate in the EAEU space. Among them is the Decision 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 transportation 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 definitions 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. 2218), 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.

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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 international 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 environmental cooperation of the CIS states was the signing of the draft Interstate Agreement 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 agrobiodiversity 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 development 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 coordinated 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

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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 environment 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 definitions 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 Environmental Protection,” the wording of the concept of “environmental safety requirements” 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

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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.

References 1. Agafonov VB, Ignatiev DA (2018) Peculiarities of the conceptual framework of environmental protection and ensuring environmental safety in the use of subsoil in the legislation of the Russian Federation and foreign countries. Actual Probl Russ law 5:221–235 2. Anisimov AP (2017) Modern legal problems of ensuring environmental safety in the Russian Federation. Legal Sci Pract Bull Nizhny Novgorod Acad Ministry Internal Aff Russ 3:42–46 3. Bogoljubov SA (2012) Environmental policy of the Union of Belarus and Russia: legal aspects. J Russ Law 7(187):107–115 4. Khotko OA (2021) Theoretical and methodological problems of technical regulation in the Eurasian space as a component of the legal provision of transport environmental safety. J Foreign Legislation Comp Law 17(3):84–99

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5. Kolesnikova KV, Makarova TI (2021) On the Issie of the elements of the economic mechanism of environmental protection and nature management in the EAEU countries. Humanites Law Stud 1:161–167 6. Makarova TI (2018) Problems of legal support of environmental security in the context of integration processes of the Republic of Belarus and the Russian Federation. Legal support of environmental safety in the field of environmental resources and energy: collection of articles of the international scientific and practical conference dedicated to the year of ecology in the Russian Federation, Kazan, 08–09 Dec 2017. Kazan (Volga Region) Federal University, Kazan pp 33–38 7. Navasardova ES, Nelgovskij IE, Zaharin AN, Kolesnikova KV, Nutrikhin RV (2020) Regulating waste management: national experience and international practice. J Environ Treat Tech 8(4):1574–1580 8. Toktobaev BT (2018) Legal regulation of some issues of environmental safety of the Kyrgyz Republic. Modern problems of humanities and natural sciences: proceedings of the XXXVIII international scientific and practical conference, Moscow, 06–07 Mar 2018. Scientific and Information Publishing Center “Institute for Strategic Studies”, Moscow, pp 94–98 9. Zaharin AN, Kolesnikova KV (2020) Integration of legal regulation of rational use of natural resources and environmental protection in the EAEU legislation: current state of things and prospects. Humanit Law Studies 3:135–142 10. Zaharin AN, Nutrihin RV (2021) Legal problems of the formation of a single environmentally safe space of the EAEU member countries. Humanit Law Stud 1:145–151 11. Zhavoronkova NG, Shpakovskij Ju G (2017) Legal support of environmental safety in the conditions of economic integration of the Russian Federation. Monograph. Prospect, 160 p

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 environmental 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 establish preferences for economic entities registered in the EAEU member states. This concerns both the natural resource legislation and the legislation on investment activities. 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: [email protected] V. Y. Maksimov Stavropol State Agrarian University, Stavropol, Russia © The Author(s), under exclusive license 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_9

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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 problematic issues in the legal regulation of these relations, which hinder effective interstate 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 corruption manifestations in the practice of its application. The study aims to analyze the

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current legal norms that are conducive to corruption, as well as to develop practical recommendations aimed at overcoming such negative trends. 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. 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 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 practices 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 presence 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 regulating 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.

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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 environmental 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 protection, 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, political, economic, sociological and other aspects, as well as analysis of corruptogenic factors affecting the reduction of its effectiveness;

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• 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 participation 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 implementation 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) assistance to the developers of acts through expert recommendations containing indications 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 representatives 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.

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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 significance. When conducting an anti-corruption examination of documents, experts are guided by: Federal Law No. 172-FZ of 17.07.2009 “On Anti-Corruption Examination 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 resolution. 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 anticorruption 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 annually 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”. Obviously, 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 incompleteness 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

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of informing (e.g., on paper by mail or in electronic form), the deadline for delivering 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 regulate the procedure for publishing reports, as well as other information about the activities of state authorities and local self-government bodies. For example, sometimes 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 envisaged 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 communicating 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 activities 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 transnational 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

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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 environmental 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. Independent 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.

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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 business 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: [email protected] E. B. Zavyalova e-mail: [email protected] © The Author(s), under exclusive license 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_10

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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. Economically, 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.

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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 infrastructure. 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. Collaboration between actors within the value chain could reduce costs by $60 billion annually. Policy improvements. To encourage efficient consumption uniform regulation, industry standards are needed.

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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.

1

According 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."

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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). Consequently, 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 technological and socio-regulatory approach may significantly cut the amount of food waste in the next several years (Fig. 2).

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Table 1 Stages, issues, and volume of food waste and instruments of mitigation Stage

Key issues

On-farm (harvesting) Farmer issues: crops left in fields after harvesting, non-optimal timing of harvesting, crops damages by birds or rodents, poor harvesting techniques

Volume of food waste

Instruments of mitigation and their effects

12–21% ~$190 bn

Novel instruments of crop protection (incl. biopesticides), AI-assisted harvesting, time-release biologicals ~50% mitigation ~$95 bn

Storage

Storage issues: 9% improper storage, poor ~$90 bn techniques, spillage, pests, contamination, natural drying

Controlled atmosphere (e.g., ozone-enriched) storage rooms ~30% mitigation ~$27 bn

Processing (primary and secondary) and production

Processing and production issues: overproduction, excessive disposal, spillage, improper packing, undeveloped transport infrastructure, contamination

1–10% ~$50 bn

Thermal processing, dehydration (“DaaS” (drying-as-a-service.) technologies), novel natural, and synthetic preservatives ~20% mitigation ~$10 bn

Packaging and distribution

Packaging and distribution issues: packaging damage, rodents damages

2% ~$20 bn

Customizable “smart” packaging ~50% mitigation ~$10 bn

Transportation

Transport issues: spoilage, poor handling, lack of cooling

17% ~$170 bn

Closed cold chain logistics ~80% mitigation ~$136 bn

Retail supply

Retail issues: improper 5% purchases, overstock, ~$50 bn improper storage, improper handling

Inventory management systems, B2B and B2C food marketplaces, smart kitchen, food life cycle management systems, dynamic pricing systems across the demand curve ~40% mitigation ~$20 bn (continued)

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Table 1 (continued) Stage

Key issues

Volume of food waste

Retail storage

Retail issues: improper 2–26% demand forecast, ~$130 bn improper presentation, stock criteria, cosmetic standards

Development of large stores networks with higher stock turns (rather than the small ones), advanced storage chambers (70% of stage’s loss reduction) ~50% mitigation ~$65 bn

Consumers (households, restaurants)

Overbuying, improper storage, unclear best-before dates labels, cosmetic standards, overcooking, poor storage, surplus food, edible food discarded with inedible

C2C marketplace for surplus food, food sharing networks, food life cycle management systems, smart shopping systems, waste-to-fertilizer technologies ~20% mitigation ~$60 bn

3–61% ~$300 bn

Instruments of mitigation and their effects

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)

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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 processors 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 prevention and reuse

Practices for prevention

Practices for reuse

Packaging • Revise product standards • Standardize date labels • Reduce portion sizes

Alternative use • Develop secondary resellers • Connect with animal feed and clothes producers

Operational efficiency • Demand forecasting • Supply chain optimization • Improve produce handling processes

Food repurposing • Development of byproducts • Repackage practices

Consumer education • Conduct household education campaigns • Food management apps • Launch social media platforms

Donation Development of donation contacts Standardize donation regulations 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)

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6 Conclusion The research has shown that a significant amount of food waste management opportunities 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.

References 1. AFN Foodtech. URL: https://agfundernews.com/europe. Accessed 5.11.2021 2. Bagherzadeh M, Inamura M, Jeong H (2014) Food waste along the food chain. OECD Food, Agriculture and Fisheries Papers, 71, OECD Publishing, Paris.https://doi.org/10.1787/5jxrcm ftzj36-en 3. Boston Consulting Group (2018) Tackling the 1.6-billion-ton food loss and waste crisis. URL: https://www.bcg.com/publications/2018/tackling-1.6-billion-ton-food-loss-and-wastecrisis. Accessed 5.11.2021 4. Boston Consulting Group (2020) A recipe to reduce food loss and waste. https://www.bcg. com/publications/2020/recipe-to-reduce-food-loss-and-waste. Accessed 7.11.2021 5. California governor signs new date label bill to reduce food. https://www.wastedive.com/ news/update-california-governor-signs-new-date-label-bill-to-reduce-food-waste/506956/? mc_cid=43b16cba31&mc_eid=295ead2126. Accessed 5.11.2021 6. Data Snapshot: supply chain issues drove $3.1bn investment in midstream tech in H1 2021. https://agfundernews.com/midstream-technologies-investment-reached-3-1b-in-h12021-data-snapshot.html. Accessed 12.10.2021 7. Durufle G, Fabre R et al (1988) Les effets sociaux et economiques des projets de development rural. Serie Methodologie, Ministere de la Cooperation

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8. Food and Agriculture Organization of the United Nations. Food loss and waste and value chains. https://www.fao.org/3/ca5312en/ca5312en.pdf. Accessed 5.11.2021 9. Food and Agriculture Organization of the United Nations. Making value chains work better for the poor. A toolbook for practitioners of value chain analysis. https://www.fao.org/3/at357e/ at357e.pdf. Accessed 7.11.2021 10. Food and Agriculture Organization of the United Nations. Sustainable development goals. https://www.fao.org/sustainable-development-goals/indicators/1231/en/. Accessed 3.11.2021 11. Gereffi G, Humphrey J et al (2003) The governance of global value chains: an analytical framework 12. Lux research. Preservation tech is the key to driving higher margins and avoiding $1 trillion in losses across the agrifood value chain. https://www.luxresearchinc.com/press-releases/pre servation-tech-is-the-key-to-driving-higher-margins-and-avoiding-1-trillion-in-losses-acrossthe-agrifood-value-chain-says-lux-research. Accessed 3.11.2021 13. Porter ME (1985) Competitive advantage. The Free Press, New York 14. ReFED. https://refed.org. Accessed 5.11.2021 15. Study by Stuttgart University, sponsored by German Federal Ministry of Food and Agriculture. https://www.f02.uni-stuttgart.de/en/faculty/news/news/ISWA-New-research-results-onfood-waste/. Accessed 10.10.2021 16. United Nations. Population 2030. Demographic challenges and opportunities for sustainable development planning. https://www.un.org/en/development/desa/population/publications/pdf/ trends/Population2030.pdf. Accessed 3.11.2021 17. Wrap Report: Household Food and Drink Waste in the United Kingdom (2012). https://wrap. org.uk/resources/report/household-food-and-drink-waste-united-kingdom-2012. Accessed 12.10.2021 18. Wyman O (2014) Reducing food waste. How can retailers help? https://www.oliverwyman. com/our-expertise/insights/2014/jul/reducing-food-waste.html. Accessed 5.11.2021

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 selfsufficiency 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 stimulate 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: [email protected] FSBI “Agroexport”, Moscow, Russia © The Author(s), under exclusive license 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_11

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Meat is a unique food product containing a large number of important microelements 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 international 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

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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 5 0 2010

2011

2012

2013 China

2014 Japan

2015 USA

2016

2017

2018

2019

2020

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]

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600 500 400 300 200 100 0

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

70 60 50 40 30 20 10 0

Self-sufficiency

Import

It is important to note that China’s dependence on pork supplies is often exaggerated. The analysis of the official statistics of the PRC, illustrated in Fig. 3, demonstrates 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 selfsufficiency, typical for most countries [7]. Thus, the Food Security Doctrine of the

The Role of the PRC in the Transformation of the World Food … Fig. 4 Structure of countries importing pork to the PRC market in 2019 (thousand tons). Source Compiled by the author based on [6]

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17%

19%

8% 16%

8% 9% 11%

12%

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 products 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 precrisis 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 Fig. 5 Ratio of imports with self-sufficiency in soybeans in the PRC (million tons). Source Compiled by the author based on [6]

V. A. Tikhomirova

140 120 100 80 60 40 20 0

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 … Fig. 6 Ratio of imports with self-sufficiency in corn in the PRC (million tons). Source Compiled by the author based on [6]

91

300 250 200 150 100 50 0

Self-sufficiency

Fig. 7 Structure of countries importing soybeans to the PRC market in 2019 (million tons). Source Compiled by the author based on [6]

2.26

Import

2.07

0.73

8.79

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 selfsufficiency in meat, soybeans, and corn by developing an independent national seed

92 Fig. 8 Structure of countries importing corn to the PRC market in 2019 (million tons). Source Compiled by the author based on [6]

V. A. Tikhomirova

3%

3%

1%

7%

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 selfsufficiency. 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 agroindustrial 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

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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 previously 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 6. National Bureau of Statistics of China. Official Internet portal of the National Bureau of Statistics of China. https://data.stats.gov.cn/easyquery.htm?Cn=C01. Accessed 17 Mar 2021 7. Tikhomirova VA (2020) Implementation of the doctrine of food security in Russia: assessment and prospects. Bulletin of the Peoples’ Friendship University of Russia. Ser Econ 28(4):751– 764 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 modernization of agriculture. Official Internet portal of the State Council of the People’s Republic of 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 consumption of pig products. Bull Belarusian State Agric Acad 2:35–40 12. The Demeter 2021. Produce and feed: the daily challenge of a confused world. Official Internet portal of The Demeter Club. https://www.clubdemeter.com/fr/le-demeter. Accessed 20 Mar 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 production, 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: [email protected] © The Author(s), under exclusive license 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_12

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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 sustainability 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 industrial 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 competitiveness 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.

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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 industries, 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 theoretical 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].

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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 inextricably 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 innovative 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 agroindustrial 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 educational 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 laboratories 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.

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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 investments, 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 development 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 development 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 highyielding soft and ostrich wheat and varieties resistant to fungal diseases. Further, it is planned to create “AgroPARK,” which includes deep grain processing, biotechnology, 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 “FosAGRO”). 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.

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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 activities. 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 methodological 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.

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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 competitive 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.

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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 integrated 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

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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,

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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 development 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.

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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 agriculture for overcoming food deficit and for import substitution in countries of the sample. For the best information and empirical support for import substitution, the quantitative 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 development 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: [email protected] 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 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

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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. Furthermore, 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 catastrophes, 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 agricultural 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.

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• 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 civilizations, 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

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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]. Sustainable improvements in consumption patterns and production patterns are encouraged 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 emissions, 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 production. 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.

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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 urbanization 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.

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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 characteristics such as satisfaction, awareness, and cooperation are important aspects of city life, insisting on public participation in decision-making and sharing personal experiences. In addition, there is the issue of urban sustainability. The official decisionmaking 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 participation 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. Multistakeholder 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 performance, 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

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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 international 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 development, 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 governmental 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 obstacles. 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 impoverished 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

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to hunger and malnutrition. Maintaining food security is a challenge that disproportionately 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 conditions 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.

References 1. Andree BPJ, Chamorro A, Kraay A, Spencer P, Wang D (2020) Predicting food crises. Open knowledge depository. https://openknowledge.worldbank.org/handle/10986/34510. Accessed 19 Sept 2021 2. Anikina ID, Kucherova EP, Bukhantsev YA (2020) Sustainable development and principles of the green economy as a concept for development of “Smart Technologies”. In: Institute of scientific communications conference. Springer, Cham, pp 47–55 3. Carleton TA, Hsiang SM (2016) Social and economic impacts of climate. Science 353(6304) 4. Dreze J, Sen A (2002) India: development and participation. Oxford University Press, USA 5. Food and Agriculture Organization, International Fund for Agricultural Development, World Food Program (2017) The state of food insecurity in the world 2017. Strengthening the enabling environment for food security and nutrition. FAO, Rome 6. Fuglie KO (2010) Total factor productivity in the global agricultural economy: evidence from FAO data. The shifting patterns of agricultural production and productivity worldwide, pp 63–95 7. Global Report on Food Crises 2020 (2021). Food security information network (FSIN). https:// www.fsinplatform.org/global-report-food-crises-2020. Accessed 19 Sept 2021 8. Hoddinott J, Rosegrant M, Torero M (2012) Hunger and malnutrition. https://www.copenhage nconsensus.com/sites/default/files/hungerandmalnutrition.pdf. Accessed 19 Sept 2021 9. Hoegh-Guldberg O, Jacob D, Bindi M, Brown S, Camilloni I, Diedhiou A, Djalante R, Ebi K, Engelbrecht F, Guiot J, Zougmoré RB (2018) Impacts of 1.5 C global warming on natural and human systems. Global warming of 1.5 C. An IPCC special report

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10. Ketiem P, Makeni PM, Maranga EK, Omondi PA (2017) Integration of climate change information into drylands crop production practices for enhanced food security: a case study of Lower Tana Basin in Kenya. Afr J Agric Res 12(20):1763–1771 11. Pawlak K. and Kołodziejczak, M. (2020). The role of agriculture in ensuring food security in developing countries: considerations in the context of the problem of sustainable food production. https://www.researchgate.net/publication/342771171_The_Role_of_Agriculture_in_E nsuring_Food_Security_in_Developing_Countries_Considerations_in_the_Context_of_the_ Problem_of_Sustainable_Food_Production. Accessed 10 Sept 2021 12. Popkova EG, Sergi BS (2020a) Human capital and AI in Industry 4.0. Convergence and divergence in social entrepreneurship in Russia. J Intellect Capital 21(4) 13. Popkova EG, Sergi BS (2020) Social entrepreneurship in Russia and Asia: further development trends and prospects. On Horiz 28(1):9–21 14. Porter JR, Xie L, Challinor AJ, Cochrane K, Howden SM, Iqbal MM, Lobell DB, Travasso MI (2014) Food security and food production systems. https://cgspace.cgiar.org/handle/10568/ 68162. Accessed 10 Sept 2021 15. Sergi BS, Popkova EG, Vovchenko N, Ponomareva M (2019) Central Asia and China: Financial Development through Cooperation with Russia. In: Barnett WA, Sergi BS (eds) AsiaPacific contemporary finance and development (International symposia in economic theory and econometrics, 26, pp 141–164. Emerald Publishing Limited, Bingley, UK) 16. Vermeulen SJ, Campbell BM, Ingram JS (2012) Climate change and food systems. Ann Rev Environ Resour 37:195–222 17. Wiesmann, D., Weingärtner, L., & Schöninger, I. (2006). The challenge of hunger: global hunger index: facts, determinants, and trends. International Food Policy Research Institute. https://www.ifpri.org/publication/global-hunger-index-challenge-hunger. Accessed 12 Sept 2021 18. Wu, S-H, Ho, C, Nah, S-L, Chau C-F (2014). Global hunger: a challenge to agricultural, food, and nutritional sciences. Crit Rev Food Sci Nutr 54:151–162. https://doi.org/10.1080/ 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: [email protected] A. A. Sozinova (B) Vyatka State University, Kirov, Russia e-mail: [email protected] 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 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

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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 (combination) 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 agricultural 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, information 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 agricultural 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, consistent and reasonable technology, infrastructure, and services are required. Smart cities are the opposite of megacities.

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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 importantly, 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 organizations developed represent criteria and principles for utilizing digital technology’s potential [13].

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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 forwardthinking, innovative governmental policy, legislation, and investment in digital agriculture [11]. Governments have a chance to use digital technologies to provide agricultural 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 flexibility, 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 innovative approaches to dealing with problems. In the information and analytical interaction chain, business is the weak link because of the absence of scientific and methodological 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

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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 transformation. 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 employment 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 information 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.

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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 particular 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 instrument 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 digitalization. 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 policymakers 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 agricultural 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 agricultural 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.

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References 1. Basso B, Antle J (2020). Digital agriculture to design sustainable agricultural systems. Nat Sustain 3(4) 2. De Schutter O (2020) A ‘Common Food Policy’ for Europe: how governance reforms can spark a shift to healthy diets and sustainable food systems. Food Policy 101849 3. Fielke S (2020) The digitalisation of agricultural knowledge and advice networks: a state-ofthe-art review. Agric Syst 180:102763 4. Fountas S, García BE, Kasimati A, Mylonas N (2020) The future of digital agriculture: technologies and opportunities. IT Prof 22(1):24–28 5. Melf-Hinrich Ehlers RR (2021) Agricultural policy in the era of digitalisation. Food Policy 36–90 6. Miles C (2019) The combine will tell the truth: on precision agriculture and algorithmic rationality. Big Data Soc 6–9 7. Popkova EG (2020) Social entrepreneurship in Russia and Asia: further development trends and prospects. On Horiz 28(1):9–21 8. Popkova EG (2020) Human capital and AI in Industry 4.0. Convergence and divergence in social entrepreneurship in Russia. J Intellect Capital 12(4):565–581. https://doi.org/10.1108/ JIC-09-2019-0224 9. Rotz S, Duncan E, Small M, Botschner J (2019) The politics of digital agricultural technologies: a preliminary review. Sociologia Ruralis 59(2) 10. Schaub S (2020) Tracking societal concerns on pesticides—a Google Trends analysis. Environ Res Lett 15:084049 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 13. Shen SS, Basist A, Howard A (2010) Structure of a digital agriculture system and agricultural risks due to climate changes. Agric Agric Sci Procedia 1:42–51 14. Zuboff S (2019) The age of surveillance capitalism: the fight for the future at the new frontier 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 production 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 potential 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: [email protected] © The Author(s), under exclusive license 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_15

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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 analysis 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 competitiveness 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.

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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 investment plays the greatest role in ensuring economic growth, with foreign direct investment being the second most important factor. Public investment, if significantly 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].

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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 commissioned, 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).

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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

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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

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

68,106

131,990

265,059

Tons

Thousand USD Export

41,051

61,401

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

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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

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

Canada

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.

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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

Spain

0.582

The USA Germany

2017

2018

2019

2020

0.596

0.553

0.729

1.002

0.111

0.113

0.108

0.131

0.175

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

− 0.157

− 0.162

− 0.026

− 0.031

0.035

Russia

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 competitiveness at the production level and in terms of supply volumes to the world market.

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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 2. Sivagnanam KJ, Murugan K (2016) Impact of public investment on agriculture sector in India. J Econ Soc Dev XII(2):45–51 3. Phetsavong K, Ichihashi M (2012) The impact of public and private investment on economic growth: Evidence from developing Asian countries (IDEC Discussion paper 2012). Hiroshima, Japan: Hiroshima University. Retrieved from https://home.hiroshima-u.ac.jp/~ichi/Kongphet2 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 Development”. University of Agriculture, Jelgava, Latvia, pp 1509–1514. Retrieved from https://www. tf.llu.lv/conference/proceedings2017/Papers/N340.pdf. Accessed 6 Sept 2021 5. Madsen J (2003) Inflation and investment. Scott J Polit Econ 50(4):375–397. https://doi.org/ 10.1111/1467-9485.5004002 6. Mendes SM, Teixeira EC, Salvato MA (2009) Infrastructure investments and total factor 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 8. Ushachev IG (ed) (2020) Agrarian policy of Russia: Investment and competitiveness. Nauchnyy consultant, Moscow, Russia 9. Government of Russian Federation (2012) Decree “On approval of the state program of agricultural development and regulation of markets of agricultural products, raw materials, and food” (July 14, 2012 No. 717). Moscow, Russia 10. Maslova V, Chekalin V, Avdeev M (2019) Agricultural development in Russia in conditions of import substitution. Herald Russ Acad Sci 5:478–485 11. Federal State Statistics Service of the Russian Federation (Rosstat) (n.d.) Official website. Retrieved from http://www.gks.ru. Accessed 6 Sept 2021 12. Ministry of Agriculture of the Russian Federation (n.d.) Official website. Retrieved from https:// mcx.gov.ru. Accessed 31 May 2021 13. UN Comtrade Database (n.d.) Official international trade statistics. Retrieved from https://com trade.un.org. Accessed 7 Sept 2021 14. Maslova V, Zaruk N, Fuchs C, Avdeev M (2019) Competitiveness of agricultural products in the 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 countries, 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. 18. FAO Stat. (n.d.) Official website. Retrieved from http://www.fao.org/faostat. Accessed 6 Sept 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 organizing 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 transition 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 agricultural 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: [email protected] 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 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

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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, technology 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 mixedmethod 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

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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 challenges such as increased temperatures that destroy certain crops. Agriculture companies are also affected by the changing rainfall patterns; this makes it hard for agriculture 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 development (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.

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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 technologies 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 modified 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 importance. 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. Governments 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 agriculturalrelated 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.

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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 selfsustaining 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 incorporate 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 recycling 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

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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)

(2)

(3)

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; 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; Farmers should learn continually; education should be a consistent process for farmers so that they can learn about the dynamic technology in reconstructive agriculture.

References 1. Abdullahi H, Sheriff R (2017) Case study to investigate the adoption of precision agriculture in Nigeria using simple analysis to determine variability on a maize plantation. J Agric Econ Rural Dev 3(3):279–292 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. Emerald Publishing Limited 3. Brown P, Roper S (2017) Innovation and networks in New Zealand farming. Aust J Agric Resour Econ 61(3):422–442 4. Castle M, Lubben BD, Luck JD, Mieno T (2017, June 21) Precision agriculture adoption and profitability. Cornhusker Economics 5. Clarke E, Jackson TM, Keoka K, Phimphachanvongsod V, Sengxua P, Simali P, Wade LJ (2018) Insights into the adoption of farming practices through multiple lenses: an innovation systems approach. Dev Pract 28(8):983–998

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6. Harwood RR (2020) A history of sustainable agriculture. In Sustainable agricultural systems. CRC Press, pp 3–19 7. Hoang VN, Alauddin M (2012) Input-orientated data envelopment analysis framework for measuring and decomposing economic, environmental and ecological efficiency: an application to OECD agriculture. Environ Resour Econ 51(3):431–452 8. Ikerd JE (2018) The need for a system approach to sustainable agriculture. Agric Ecosyst Environ 46(1–4):147–160 9. Jamal M, Mortez SS (2014) The effect of urban agriculture in urban sustainable development and its techniques: a case study in Iran. Int J Agric Forest 4(4):275–285 10. Johnston MP (2017) Secondary data analysis: a method of which the time has come. Qual Quant Methods Libr 3(3):619–626 11. Popkova EG, Sergi BS (2018) Will industry 4.0 and other innovations impact Russia’s development? In Exploring the future of Russia’s economy and markets. Emerald Publishing Limited. 12. Popkova EG, Sergi BS (2019) Social entrepreneurship in Russia and Asia: further development trends and prospects. Horiz 28(1):9–21. https://doi.org/10.1108/OTH-09-2019-0065 13. Popkova EG, Sergi BS (2020) Human capital and AI in industry 4.0. Convergence and divergence in social entrepreneurship in Russia. J Intellect Capital 21(4):565–581. https://doi.org/ 10.1108/JIC-09-2019-0224 14. Popkova EG, Sergi BS (2018) Will Industry 4.0 and other innovations impact Russia’s development? In: Sergi BS (ed) Exploring the future of Russia’s economy and markets: towards sustainable economic development. Emerald Publishing, Bingly (UK), pp 51–68. https://doi. org/10.1108/978-1-78769-397-520181004 15. Sergi BS, Popkova EG, Vovchenko N, Ponomareva M (2019) Central Asia and China: financial development through cooperation with Russia. In: Asia-Pacific contemporary finance and development. Emerald Publishing Limited 16. Sergi BS, Popkova EG, Sozinova AA, Fetisova OV (2019) Modelling Russian industrial, tech, 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, pp 195–223

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 Abstract This chapter studies in detail the entrepreneurial potential in the system 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 agricultural 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: [email protected] S. I. Kadyrov Batken State University, Batken, Kyrgyzstan e-mail: [email protected] © The Author(s), under exclusive license 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_17

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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 characteristics 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].

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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 establishing 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 diversification 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.

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The move from subsistence to commercial farming was anticipated once the transition 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 robustness 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

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estimates, with p-values greater than 0.05 indicating that the instruments were appropriately 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 deindustrialization 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 elaborate on government agricultural policies as well as certain significant macroeconomic developments to have a better understanding of how these policies and economy-wide

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trends influenced agricultural development in the Kyrgyz. There were several separate 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 agriculture 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 infrastructure, 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.

References 1. Bobokulovich KA, Yulchiyena AM (2020) Prospects for the development of fruit and vegetable enterprises. J NX 6(12):13–17 2. Bogoviz A (2018) Will the circular economy be the future of russia’s growth model? In: Sergi BS (ed) Exploring the future of Russia’s economy and markets: towards sustainable economic development. Emerald Publishing, Bingley, pp 125–141 3. Broka S, Giertz Å, Christensen G, Hanif C, Rasmussen D, Rubaiza R (2016) Kyrgyz Republic Agricultural Sector Risk Assessment 4. Bukhtiyarova TI, Semin AN, Demyanov DG, Tenetko AA, Nemykina Y (2020) Competitiveness of rural areas: formation, assessment, growth reserves aspects. In: IOP conference series: earth and environmental science, vol 548, issue no (2). IOP Publishing, p 022055 5. CIAT; World Bank (2018) Climate-resilient agriculture in the Kyrgyz Republic. CSA Country Profiles for Asia Series, vol 99 6. Erokhin V, Diao L, Du P (2020) Sustainability-related implications of competitive advantages in agricultural value chains: evidence from Central Asia—China trade and investment. Sustainability 12(3):1117 7. Felipe RB (2013) Agriculture and structural transformation. Asian Development Bank, pp 34–90 8. Gollin D, Lagakos D, Waugh ME (2014) The agricultural productivity gap. Q J Econ 129(2):939–993 9. Islam AHMS, Hasan MR (2020) Characterization of the aquafeed sub-sector in Kyrgyz Republic: a value chain analysis. Aquaculture 524:735149 10. Morkovkin D, Hutarava I, Ogloblina E, Gibadullin A, Kharchenko S (2020) Assessment of the innovative potential of agriculture of the member states of the Eurasian Economic Union. In E3S web of conferences, 176, 05002. EDP Sciences 11. Sergi BS (2019) Modeling Russian Industrial, tech, and financial cooperation with the AsiaPacific region. In: Sergi BS (ed) Tech, smart cities, and regional development in contemporary russia. Emerald Publishing Limited, Bingley, pp 195–223

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12. Sergi BS (2019) Entrepreneurship and economic growth: the experience of developed and developing countries. In: Sergi BS (eds) Entrepreneurship and development in the 21st century. Emerald Publishing, Bingley 13. Sergi BS (2019) The agro-industrial complex: tendencies, scenarios, and policies. In: Sergi BS (ed) Modeling economic growth in contemporary Russia. Emerald Publishing, Bingley 14. Sergi BS (2019) Understanding Industry 4.0: AI, the Internet of Things, and the future of work. Emerald Publishing Limited, Bingley 15. Sergi BS (2019) Asia-Pacific contemporary finance and development. In: Sergi BS, Barnett WA (eds) Central Asia and China: financial development through cooperation with Russia. Emerald Publishing, Bingley 16. Smagulova S, Nurseiytova G, Rakhimbayeva R, Spankulova L, Koptayeva G, Dzhunusov A, Imashev A (2018) Entrepreneurship and investment environment in the central Asian transition countries: case Kazakhstan. Acad Entrepreneurship J 24(4):1–8 17. Strelkovskii N, Komendantova N, Sizov S, Rovenskaya E (2020) Building plausible futures: scenario-based strategic planning of industrial development of Kyrgyzstan. Futures 124:102646 18. Wolz A, Möllers J, Micu MM (2020) Options for agricultural service cooperatives in a postsocialist economy: evidence from Romania. Outlook Agric 49(1):57–65 19. Zhantemirov SA, Zhantemirova AS (2014) The strategy of innovative development of livestock of the Kyrgyz Republic to 2020. RUDN J Agron Anim Ind 2:77–84

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 functioning 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 engineering 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 interchangeability 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: [email protected] D. V. Zyablikov e-mail: [email protected] N. M. Butakova e-mail: [email protected] V. V. Berezovaya e-mail: [email protected] © The Author(s), under exclusive license 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_18

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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 facilities, 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 functioning 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].

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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

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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 development 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 environmental requirements; • the long-term sustainable development of housing, civil and industrial construction 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 buildings (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 sanitation 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;

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• 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 alternative 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 facilities 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.

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(2)

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. 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 infrastructure.

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 investment 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

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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.

References 1. Benedict MA, McMahone E (2006) Green infrastructure: smart conservation for the 21st century. D. C., Island Press, Washington 2. Environmental problems of the housing and utilities sector and ways to solve them. https://studopedia.su/5_20779_ekologicheskie-problemi-zhilishchno-kommunalnogohozyaystva-i-puti-ih-resheniya.html. Data accessed 15 Sept 2021 3. Hung Y-Y (2011) Landscape infrastructure: case studies by SWA. Birkhauser, Basel 4. Katanandov SL, Demin AY (2021) Problems and prospects of development of the municipal infrastructure management system in the Russian Federation. Manag Consult 6:80–93. https:// doi.org/10.22394/1726-1139-2021-6-80-93 5. Pauleit S (2011) Multifunctional green infrastructure planning to promote ecological services in the city. Urban ecology. Patterns, processes, and applications. Oxford, pp 272–285 6. Passport of the Program of integrated development of municipal infrastructure systems of the Krasnoyarsk City district for 2018–2030. http://pravo.admkrsk.ru/Pages/detail.aspx ?recordId=32607. Data accessed 15 Oct 2021 7. The Decree of the Government of Russian Federation dated 06.05.2011 № 354 “On the provision of utility services to owners and users of premises in apartment buildings and residential buildings”. https://base.garant.ru/12186043/. Data accessed 13 Oct 2021 8. The Decree of the Government of Russian Federation of June 14, 2013 № 502 “On approval of requirements for programs of complex development of communal infrastructure of settlements and city districts”. https://base.garant.ru/70398922/. Data accessed 15 Oct 2021 9. The Decree of the Government of Russian Federation of September 21, 2021, No. 1587 “On approval of criteria for sustainable (including green) development projects in the Russian Federation and requirements for the verification system for sustainable (including green) development projects in the Russian Federation”. https://www.garant.ru/products/ipo/prime/doc/402 739344/. Data accessed 15 Oct 2021 10. The Decree of the President of the Russian Federation of May 07, 2012 No. 600 “On measures to provide citizens of the Russian Federation with affordable and comfortable housing and improve the quality of housing and communal services”. https://base.garant.ru/70170944/. Data accessed 11 Oct 2021 11. The Institute for Urban Economics (2019) The Institute for Urban Economics presented its 2018 highlights of the activities funded through the IUE Endowment. https://urbaneconomics.ru/en/centr-obshchestvennyh-svyazey/news/institute-urban-eco nomics-presented-its-2018-highlights. Data accessed 15 Oct 2021 12. The Order of the Ministry of Regional Development of the Russian Federation “On the development of programs for the integrated development of communal infrastructure of municipalities” No. 204. of May 06, 2011 https://normativ.kontur.ru/document?moduleId=1&docume ntId=179076. Data accessed 15 Oct 2021 13. The Resolution of the Yekaterinburg City Administration of December 3, 2015 N 3541 “On approval of the new edition of the Strategic Project “Development of water sources and water treatment facilities”. https://base.garant.ru/20973366/ . Accessed 15 Sept 2021

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14. Transforming our world: The 2030 Agenda for sustainable development (2015) United Nations. Department of Economic and Social Affairs. Sustainable Development. https://sdgs.un. org/publications/transforming-our-world-2030-agenda-sustainable-development-17981. Data accessed 15 Oct 2021 15. Yeganyan A (2015) Investments in infrastructure: money, projects, interests. PPP, concessions, project financing. Alpina Publisher, Moscow

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 production 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 implementing improvement proposals as a tool of lean production at the enterprise level. The authors consider the stages of introducing a system of implementing improvement 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 implement 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 enterprise’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: [email protected] © The Author(s), under exclusive license 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_19

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enterprise employees, increases the efficiency of production and support processes, improves product quality and customer satisfaction, strengthens product competitiveness, and increases business sustainability. The continuous improvement process is aimed at shaping the thinking style and daily behavior of employees of the enterprise 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. 2. 3.

Strengthening the role and importance of employees in production facilities and offices while reducing costs and increasing the profits of enterprises [2]; Implementing creative initiatives aimed at improving technical and economic potential [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. 2. 3.

Culture of improvement and change management at the corporate level; Algorithm for implementing improvement projects; 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 improvement 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.

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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 transformation 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 manufacturing tool. To date, the system for submitting and implementing improvement proposals is presented in the methodology of the national project “labor productivity” [9]. Despite the elaborateness of this methodology, the applicability of the considered toolkit is limited to the following: 1. 2.

Narrow focus of algorithmic proposals within industrial activities; Specialized activities aimed at systematizing flow conditions limit the applicability of the considered toolkit.

Thus, it is proposed to introduce the author’s system for implementing improvement proposals within the enterprise (Fig. 1). The identified system for implementing improvement proposals within the enterprise is based on a four-step algorithm: 1. 2. 3. 4.

Identifying the problem and submitting proposals for the project; Diagnostics of the process improvement project; Risk assessment of the process improvement project; Implementation of improvements in the enterprises’ activities.

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Conducting an internal survey, creating a card of the improvement project, and creating info centers for improvement project

2. Diagnostics of the process improvement project

Analyzing business entities and compiling a matrix of the current and ideal state

3. Risk assessment of the process improvement project

Forming the risk pool of the improvement project

4. Implementation of improvements in the enterprises’ activities

Introducing measures to implement and consolidate changes

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-inprocess, 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 questionnaires to enterprise employees. The internal questionnaire system is a key link

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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 necessary 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 questionnaire 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 additional 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;

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• 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. 2. 3. 4.

Place an information board in the unit together with the project implementation; Hold project meetings on improvements only near the info center; Identify those responsible for filling the info centers; 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 production 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.

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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 responsible 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 improvement 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 px k oz

employee bonus formula, basic remuneration, bonus percentage, percentage of bonus on improvements.

The third stage of the efficiency system is the diagnosis of production and technological 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 framework. 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. 2.

Collection of actual target values for the process and each stage of the process (according to the project card); Analysis of the main indicators of production and technological processes and accounting for their fluctuations;

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Identification of deviations with subsequent consideration of the worst and best values of the indicators; Determination of the causes of deviations from the target values; Proposals for eliminating deviations; 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 measurements 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

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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 implementation 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 technical 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

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project “Labor Productivity.” Nevertheless, the lack of precise algorithms for submitting 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 production and technological processes. The identification of risks is based on the author’s algorithm, which includes the following: 1. 2. 3. 4. 5.

Making a list of suggested solutions for each problem at each stage of the process; Assessing the risks of the proposed solutions to achieve all target parameters at each stage of the process; Determining the impact of the proposed solutions on the end-user; Identifying risks together with the experts responsible for the areas affected by the decisions; Developing measures to compensate for risks.

References 1. Volkova YY (2021) Experience in implementing the concept of “Lean Production” on the example of the Tula Region. Bulletin of the educational consortium of the Srednerussky University. Series: economics and management, vol 17, pp 26–27 2. Wader M (2020) Lean production in the infrastructure industry: experience and results. Methods Qual Manag 2:24–28 3. Medvedeva LB, Filippova IA (2021) Lean production from theory to practice. Eurasian Law Journal 2(153):432–433 4. Popov, D. A., & Tinyakova, V. I. (2019). “Lean production” as a driver of socio-economic development of the region. Research Result. Economic Research, 5(1), 52–59. https://doi.org/ 10.18413/2409-1634-2019-5-1-0-6 5. Babalola O, Ibem EO, Ezema IC (2019) Implementation of lean practices in the construction industry: a systematic review. Build Environ 148:34–43. https://doi.org/10.1016/j.buildenv. 2018.10.051 6. Sapra G, Chander S (2021) Lean blow-off characteristics of a tangential entry type dual swirling free and impinging flame. Fuel 295:120598. https://doi.org/10.1016/j.fuel.2021.120598 7. Stroeva OA, Lyapina IR, Gryadunova AV, Tishaev VV, Shalaev IA (2019) Priorities of using the new information and communication technologies in modern economy. In: Popkova E, Ostrovskaya V (eds) Perspectives on the use of new information and communication technology (ICT) in the modern economy. Springer, Cham, Switzerland, pp. 449–455. https://doi.org/10. 1007/978-3-319-90835-9_53 8. Chikirkin OV (2021) Lean Production—the way to improve the efficiency of the company. Lokomotiv 8(776):12–13 9. Federal Center of Competence in Labor Productivity. (n.d.). FGC Performance Academy of the Federal Center of Competence. Retrieved from http://cdo.ppoizvoditelnoct.pf/ view_doc.html?mode=home&id=54077. Accessed 9 Nov 2021 10. Stroeva O, Lyapina I, Mironenko N, Lukyanchikova T, Polyanin A (2017) Formation of organizational directions for implementing road mapping into activities of industrial enterprises. In: Popkova E (eds) Overcoming uncertainty of institutional environment as a tool of global

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crisis management. Springer, Cham, Switzerland, pp 143–150. https://doi.org/10.1007/978-3319-60696-5_17 11. Ministry of Finance of the Russian Federation. (2017). Order “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). Moscow, Russia. Retrieved from http://publication.pravo.gov.ru/Document/View/0001201708230001. 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 environmental 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 regulatory 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: [email protected] © The Author(s), under exclusive license 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_20

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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 examination, 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 attitudes 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 protection. According to the Sustainable Development Goals of Agenda 2030, all learners must acquire the knowledge and skills necessary to promote sustainable development. 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 UNESCOUNEVOC, relevant reports, and documents of international organizations.

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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 consistent 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 agroindustrial 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 investments. Based on the inevitable reduction in coal production and use, it is necessary to start implementing appropriate measures today. The Limburg region in the Netherlands 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 transition 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

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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 specialized, 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 transformation 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 enterprises. 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.

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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 agriculture, 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

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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, representatives 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 professions) 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 knowledge 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 Environment, 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 associated 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.

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The launch of an open and inclusive discussion is desirable. Sectoral tasks and development 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.

References 1. Antropov VA, Kniss MJ (2019) Metodologicheskie osnovy razvitija chelovecheskogo kapitala dlja “zelenoj” jekonomiki Rossii”. Vestnik Ural’skogo gosudarstvennogo universiteta putej soobshhenija [Methodological foundations of human capital development for the green economy of Russia. Bulletin of the Ural State University of Railway Transport], pp 76–86 2. Anufriev, V.P., Anufrieva, E.I., Kaminov, A.A. (2018). O cennosti chelovecheskogo kapitala v kontekste zelenoj jekonomiki. V sbornike: Kul’tura i jekologija-osnovy ustojchivogo razvitija Rossii. Chelovecheskij kapital kak kljuchevoj resurs zelenoj jekonomiki Ministerstvo obrazovanija i nauki Rossijskoj Federacii; FGAOU VPO “Ural’skij federal’nyj universitet imeni pervogo Prezidenta Rossii B. N. El’cina” [On importance of human capital in the green economy context. In Culture and ecology—foundations of the sustainable development of Russia. Human capital as the key resource of the green economy, Ural Federal University], pp 11–18

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3. Chang CH, Chen YS (2012) The determinants of green intellectual capital. Manag Decis 50(1–2):74–94 4. Chen YS (2008) The positive effect of green intellectual capital on the competitive advantages of firms. J Bus Ethics 77(3):271–286 5. Chen YS, Chang CH (2013) Utilize structural equation modelling (SEM) to explore the influence of corporate environmental ethics: the mediation effect of green human capital. Qual Quant 47(1):79–95 6. Consoli D, Marin G, Marzucchi A, Vona F (2016) Do green jobs differ from non-green jobs in terms of skills and human capital? Res Policy 45(5):1046–1060 7. Foster AD, Rosenzweig MR (1996) Technical change and human-capital returns and investments: Evidence from the green revolution. Am Econ Rev 86(4):931–953 8. Gur’eva, M.A. (2018). Chelovecheskij kapital v koncepte “zelenoj” jekonomiki. V sbornike: Kul’tura i jekologija-osnovy ustojchivogo razvitija Rossii. Chelovecheskij kapital kak kljuchevoj resurs zelenoj jekonomiki Ministerstvo obrazovanija i nauki Rossijskoj Federacii; FGAOU VPO “Ural’skij federal’nyj universitet imeni pervogo Prezidenta Rossii B. N. El’cina” [Human capital in the green economy conception. In Culture and ecology—foundations of the sustainable development of Russia. Human capital as the key resource of the green economy, Ural Federal University), pp 73–80 9. Kaminov AA (2016) Obrazovanie kak vazhnejshij faktor povyshenija chelovecheskogo kapitala i perehoda k “zelenoj” jekonomike. V sbornike: Rossijskie regiony v fokuse peremen sbornik dokladov X Mezhdunarodnoj konferencii. [Education as the principal factor of human capital increase and transition to the green economy. Proceedings of the X international conference “Russian regions in the focus of change”], 268–271. 10. Kaminov AA (2016) Rol’ chelovecheskogo kapitala v processe stanovlenija zelenoj jekonomiki. V sbornike: Rossijskie regiony v fokuse peremen sbornik dokladov XI Mezhdunarodnoj konferencii. [The role of human capital in the process of the green economy consolidation. Proceedings of the XI international conference “Russian regions in the focus of change”], pp 686–690 11. Ma Y, Chang CH (2021) Understanding the antecedents and consequences of green human capital. SAGE Open 11(1):1–9 12. Shoaib M, Zamecnic R, Zuhair A (2021) Green human resource management and green human capital: a systematic literature review. In: Contemporary issues in business, management and economics engineering. Proceedings of the International Scientific Conference in Vilnius, Lithuania, pp 1–10

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 scientific knowledge, a comprehensive scientific concept of circular agriculture is formed. The methods of correlation and regression analysis are used to determine the consequences 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. Additionally, 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 agriculture 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: [email protected] V. N. Ostrovskaya (B) Center for Marketing Initiatives, Stavropol, Russia e-mail: [email protected] 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 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

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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 sickness, insufficient manure, and the continual threat of a horrific calamity. Circular agriculture 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 organizations, 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 blossoms 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. Agroecological ‘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.

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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 initiatives 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 initiatives 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.

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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 … Table 1 GHG emissions (GtCO2 -eq yr–1 ) from the food system and their contribution (%) to total anthropogenic emissions

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Food system component

Emissions (Gt Co2 eq yr−2 )

Share in mean total emissions (%)

Agriculture

6.2 ± 1.4a,b

10–14

Land use

4.9 ±

Beyond farm gate

2.6c –5.2d

5–10

Food system (total)

10.8–19.1

21–37

2.5a

5–14

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 agricultural 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 agriculture 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

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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 agriculture uses given technological machines to carry out these agricultural practices, developing countries adopt the new technology in agriculture to improve and maintain 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 embracement 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 traditional 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.

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7. Final Production Destination This affects the sustainability of agriculture in one way or another. In circular agriculture, since most of the resources are being reused, the production cost will be significantly 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, sustainability 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.

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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, chemical 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 innovation 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 institutional culture. The DT is regarded as the fourth modern upheaval since it is mechanical 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 sustainable 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.

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References 1. Barros MV, Salvador R, de Francisco AC, Piekarski CM (2020) Mapping of research lines on circular economy practices in agriculture: from waste to energy. Renew Sustain Energy Rev 131:109958 2. Connard CB (2004) Sustaining agriculture: an examination of current legislation promoting sustainable agriculture as an alternative to conventional farming practices. Penn State Environ Law Rev 13:125 3. Dagevos H, Lauwere CD (2021) Circular business models and circular agriculture: perceptions and practices of Dutch farmers. Sustainability 13(3):1282 4. Duque-Acevedo M, Belmonte-Ureña LJ, Yakovleva N, Camacho-Ferre F (2020) Analysis of the circular economic production models and their approach in agriculture and agricultural waste biomass management. Int J Environ Res Public Health 17(24):9549 5. Fourie A (2006) Municipal solid waste management as a luxury item. Waste Manage (New York, NY) 26(8):801–802 6. Friant MC, Vermeulen WJV, Salomone R (2021) Analysing European Union circular economy policies: words versus actions. Sustain Prod Consumpt 27:337–353 7. FFTC 2019 Annual Report (2021) 2020 Project 07: the practice and benefits of circular agriculture in waste reduction and recycling. https://www.fftc.org.tw/zh/publications/detail/2265. Accessed 17 Sept 2021 8. Gao W, Chen Y, Dong W (2010) Circular agriculture as an important way to a low-carbon economy. Zhongguo Shengtai Nongye Xuebao/Chin J EcoAgric 18(5):1106–1109 9. Hansen JW (1996) Is agricultural sustainability a useful concept? Agric Syst 50(2):117–143 10. Jun H, Xiang H (2011) The development of a circular economy is a fundamental way to achieve agriculture sustainable development in China. Energy Procedia 5:1530–1534 11. Liang L, Chen YQ, Gao WS (2010) Integrated evaluation of circular agriculture system: a life cycle perspective. Huan jing ke xue=Huanjing kexue 31(11):2795–2803 12. 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 13. Lajoie-O’Malley A, Bronson K, van der Burg S, Klerkx L (2020) The future(s) of digital agriculture and sustainable food systems: an analysis of high-level policy documents. Ecosyst Serv 45:101183 14. Poore J, Nemecek T (2018) Reducing food’s environmental impacts through producers and consumers. Science 360(6392):987–992. https://doi.org/10.1126/science.aaq0216 15. Popkova EG, Sergi BS (2020) Social entrepreneurship in Russia and Asia: further development trends and prospects. On The Horizon 16. Popkova EG, Popova EV, Sergi BS (2018) Clusters and innovational networks toward sustainable growth. In: Sergi BS (ed) Exploring the future of Russia’s economy and markets: towards sustainable economic development. Emerald Publishing Limited, Bingley, UK, pp 107–124 17. Potter C, Tilzey M (2007) Agricultural multifunctionality, environmental sustainability and the WTO: resistance or accommodation to the neoliberal project for agriculture? Geoforum 38(6):1290–1303 18. Rosemarin A, Macura B, Carolus J, Barquet K, Ek F, Järnberg L, Lorick D, Johannesdottir S, Pedersen SM, Koskiaho J, Haddaway NR, Okruszko T (2020) Circular nutrient solutions for agriculture and wastewater—A review of technologies and practices. Curr Opin Environ Sustain 45:78–91 19. Sergi BS, Popkova EG, Bogoviz AV, Ragulina JV (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 Limited, Bingley, UK, pp 3–32 20. Sergi BS, Popkova EG, Bogoviz AV, Ragulina YV (2019) The agro-industrial complex: tendencies, scenarios, and regulation. In: Sergi BS (ed) Modeling economic growth in contemporary Russia. Emerald Publishing Limited, Bingley, UK, pp 233–247

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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 (averaged 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: [email protected] 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 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

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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 highincome 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 countries 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 downturns, 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

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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 middleincome 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

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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 countries 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 countries.) 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]

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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 differentiation 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 differentiation 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. 2. 3. 4. 5.

Integrating humanitarian, development, and peacebuilding policies in conflictaffected areas. Scaling up climate resilience across food systems. Bolstering the resilience of the most vulnerable to economic adversity. Intervening along food supply chains to reduce the cost of nutritious foods. Addressing poverty and structural inequalities while ensuring interventions are effective.

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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 implementation efficiency. Comprehensive portfolios of policies, investments, and laws are, therefore, critical 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 practices 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, agricultural inputs, technology, financial resources, and knowledge and education, constitutes 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,

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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.

References 1. Barnett WA (2019) Asia Pacific contemporary finance and development. Emerald Publishing Bookstore: Home Page. Retrieved 25 Sept 2021 from https://books.emeraldinsight.com/page/ detail/Asia-Pacific-Contemporary-Finance-and-Development/?k=9781789732740. Accessed 11 Oct 2021 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. Ericksen PJ (2018). What is the vulnerability of a food system to global environmental change? Ecol Soc 13(2). https://doi.org/10.5751/es-02475-130214 4. Popkova EG, Sergi BS (2020) Human capital and AI in industry 4.0. convergence and divergence in social entrepreneurship in Russia. J Intellect Capital. Retrieved 25 Sept 2021 from https://www.emerald.com/insight/content/doi/https://doi.org/10.1108/JIC-092019-0224/full/html. Accessed 11 Oct 2021 5. Lang T, Barling D (2012) Food Security and Food Sustainability: Reformulating the debate. Royal Geographical Society (with IBG). Retrieved 26 Sept 2021 from https://rgs-ibg.onlinelib rary.wiley.com/doi/full/10.1111/j.1475-4959.2012.00480.x. Accessed 11 Oct 2021 6. Popkova EG, Popova EV, Sergi BS (2018) Clusters and innovational networks toward sustainable growth. In: Exploring the future of Russia’s economy and markets, pp 107–124. https:// doi.org/10.1108/978-1-78769-397-520181006 7. Santiago EJ (2013). Humanitarian crisis and conflict: food assistance and nutritional security issues. In: Food aid and human security, pp 157–188. https://doi.org/10.4324/978020304545 9-12 8. Sergi BS, Scanlon CC (2019) Introduction. Entrepreneurship and development in the 21st century, pp 1–2. https://doi.org/10.1108/978-1-78973-233-720191003 9. Sergi BS, Popkova EG, Bogoviz AV, Ragulina JV (2019a). Costs and profits of technological growth in Russia. In: Tech, smart cities, and regional development in contemporary Russia, pp 41–54. https://doi.org/10.1108/978-1-78973-881-020191005 10. Sergi BS, Popkova EG, Bogoviz AV, Ragulina YV (2019b) The agro-industrial complex: Tendencies, scenarios, and regulation. In: Modeling economic growth in contemporary Russia, pp 233–247. https://doi.org/10.1108/978-1-78973-265-820191009 11. Sergi Bs, Popkova EG, Sozinova AA, Fetisova OV (2019) Modeling Russian industrial, tech, and financial cooperation with the Asia-Pacific region. In: Tech, smart cities, and regional development in contemporary Russia, pp 195–223. https://doi.org/10.1108/978-1-78973-881020191012 12. Sergi BS, Popkova EG, Vovchenko N, Ponomareva M (2019) Central Asia and China: financial development through cooperation with Russia. In: International symposium on economics theory econometrics, pp 141–164. https://doi.org/10.1108/s1571-038620190000026008 13. The Economist Group (2020) Global food security index. performance of countries based on their food security score. Economic Intelligence Unit 14. UNICEF (2021) The stae of food security and nutrition in the world. UNICEF 15. World Bank (2021) Understanding poverty. Retrieved from Food Security. https://www.wor ldbank.org/en/topic/food-security. Accessed 11 Oct 2021

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 systematic evaluation of the sustainability of circular agriculture by analyzing its contribution 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 epitomizes 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 international 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 responsibility, 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 characterized 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: [email protected] 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 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

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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 atmosphere 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 agriculture 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 reintroduced 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 agriculture 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 development [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 …

Phase 1: Defining scope and research quesƟons

Phase 2: IdenƟfying keywords

201 Scope: systemaƟc assessment of the sustainability of circular agriculture Research quesƟons: 1. What is the perspecƟve of determining the development of circular agriculture? 2. What are the advantages of the implementaƟon of circular agriculture Brainstorming: ConstrucƟon of keywords and search string construcƟon. Use of Boolean logic: keywords combined by “or”, “and” and “not”.

Phase 3: Database selecƟon Timespan specificaƟon

Phase 4: SelecƟon criteria

Major and reputable databases were selected: science direct, Taylor, Francis, and Willey. Only arƟcles from 2016-2020 were considered

Set inclusion and exclusion criteria For quality papers, four quality aƩributes were idenƟfied. Counterchecking of the finalized arƟcles

DescripƟve and content analysis Phase 5: InterpretaƟon and presentaƟon of findings

WriƟng the review 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 agriculture 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.

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Table 1 Inclusion and exclusion criteria Criteria

Inclusion

Exclusion

Rationale

Quality

Peer-reviewed journal

Unpublished books, dissertations, opinionated articles

Selection of peer-reviewed articles

Language

English

Other languages

Only English was used because it recognized worldwide publication

Length

Fully accessed article

Articles not accessible with full text

Selected for detailed content analysis, 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 objectives 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 articles 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 challenges 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 sustainable development is among the most fundamental notions of the current theory of

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economic growth [9]. They further argue that sustainability and sustainable development are among the criteria for assessing economic growth and equitable development. 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 publications concerning the application of circularity metrics using life cycle methodologies for the previous seven years. From 2014 to 2016, the initial publication detailed energy generated from dairy farming, reprocessing food waste for feeding aquaculture life. Robust efforts toward sustainability were made to develop a study to quantify 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

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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 nutrients 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 agriculture. The authors of many selected articles promoted a model that environmental, economic, and social dimensions were essential for the accomplishment of sustainable 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.

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4.4 Agricultural Entrepreneurship There are numerous ways for executing a circular approach in agricultural entrepreneurship. Entrepreneurs can either use animal welfare standards or environmental standards in the manufacturing process that supersedes regulatory requirements. 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 population, 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 agriculture can be substantially enhanced through the efficient use of resources. Environmental 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

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ensures environmental conservation and waste disposal. The CE model is characterized 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 environmental 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 agroindustrial 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 divergence 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: [email protected] A. A. Sozinova (B) Vyatka State University, Kirov, Russia e-mail: [email protected] 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 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

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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 reconstructive 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. Reconstructive 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].

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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 satisfied; 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 products 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 agriculture 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

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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 knowledge about how they can improve and cope with new challenges [12]. In reconstructive agriculture, traditional farming methods have to be put aside and the farmer must remain open-minded to achieve better products [10]. Reconstructive agriculture 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

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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.

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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 innovation 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 1. Abdullahi H, Sheriff R (2017) Case study to investigate the adoption of precision agriculture in Nigeria using simple analysis to determine variability on a maize plantation. J Agric Econ Rural Dev 3(3):279–292 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. 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 4. Castle M, Lubben BD, Luck JD, Mieno T (2017) Precision agriculture adoption and profitability. Cornhusker Economics, June 21 5. Clarke E, Jackson TM, Keoka K, Phimphachanvongsod V, Sengxua P, Simali P, Wade LJ (2018) Insights into the adoption of farming practices through multiple lenses: an innovation systems approach. Dev Pract 28(8):983–998 6. Harwood RR (2020) A history of sustainable agriculture. In: Sustainable agricultural systems. CRC Press, pp 3–19 7. Ikerd JE (2018) The need for a system approach to sustainable agriculture. Agr Ecosyst Environ 46(1–4):147–160 8. Jamal M, Mortez SS (2014) The effect of urban agriculture in urban sustainable development and its techniques: a case study in Iran. Int J Agric For 4(4):275–285

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9. Johnston MP (2017) Secondary data analysis: a method of which the time has come. Qual Quant Methods Libraries 3(3):619–626 10. Popkova EG, Sergi BS (2018) Will industry 4.0 and other innovations impact Russia’s development? In: Exploring the future of Russia’s economy and markets. Emerald Publishing Limited 11. Popkova EG, Sergi BS (2019) Social entrepreneurship in Russia and Asia: further development trends and prospects. On the Horizon 12. Popkova EG, Sergi BS (2020) Human capital and AI in industry 4.0. Convergence and divergence in social entrepreneurship in Russia. J Intell Capital 13. Sergi BS, Popkova EG, Vovchenko N, Ponomareva M (2019) Central Asia and China: financial development through cooperation with Russia. In: Asia-Pacific contemporary finance and development. Emerald Publishing Limited 14. Sergi BS, Popkova EG, Sozinova AA, Fetisova OV (2019) Modeling Russian industrial, tech, 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, pp 195–223

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 conditions for agricultural entrepreneurship. Traditional agriculture extension and advisory services face various challenges in developing countries which also reduce their efficiency. Challenges in traditional agriculture to maintain food security and efficiency 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 integration with digital systems and call centres to improve access to extension services. Coordination with local public, private and civil society organizations shares information on efficient agriculture practices in developing areas. Unfavourable climatic conditions also have a great impact on the agriculture system. The digital development 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: [email protected] © The Author(s), under exclusive license 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_25

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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 sustainable 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 facilitates 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.

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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.

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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 appropriate 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 reconstructive 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. Environment 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.

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Table 1 Demographic statistics Statistics No

Gender

Status

Education

Experience

Age

Valid

80

80

80

80

80

Missing

5

5

5

5

5

Frequency

Percent

Valid per cent

Cumulative percent

100.0

100.0

Gender

Valid

Female

80

94.1

Missing

System

5

5.9

85

100.0

Total

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

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Table 2 Descriptive analysis for the authenticity and transparency of data Status Frequency

Percent

Valid percent

Cumulative percent

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

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 agriculture system

80

1

5

3.09

1.255

Technological improvement

80

1

5

3.86

0.978

Direction of wind

80

1

5

3.81

0.995

Temperature of soil

80

1

5

3.66

0.954

Environmental degrading

80

1

5

3.54

1.124

Economic crisis

80

1

5

3.70

1.024

Valid

Descriptive statistics

Source: Compiled by the author based on [8] Table 3 ANOVA technique Model 1

Sum of squares Regression Residual Total

df

Mean square

F

Sig

20.825

12

1.735

1.226

0.285b

94.862

67

1.416

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 deviation 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 agriculture 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.

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References 1. Bogoviz AV, Sergi BS (2018) Will the circular economy be the future of Russia’s growth model? In: Sergi BS (ed) Exploring the future of Russia’s Economy and markets: towards sustainable economic development. Emerald Publishing, Bingley, UK, pp 125–141 2. Bruno SS, Popkova EG, Bogoviz AV, Ragulina JV (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 3. Fujisaka S (1994) Learning from six reasons why farmers do not accept innovations intended to improve sustainability. Agric Syst 409–425 4. Low A (1993) The low-input, sustainable agriculture (LISA) prescription: a bitter pill for the farm. In: Project appraisal, pp 97–101 5. Nielson (2010) Nielson/facebook report: the value of social media ad impressions. Nielsen report. Oct 2010. http://www.researchgate.net/publication/268289406_Advertising_on_Fac ebook. Accessed 19 Sept 2021 6. Pearce DA (1990) Economic of natural resources and the environment. Harvester, Wheatsheaf, New York 7. Penning de Vries FA (1982) Simulation of plant growth and crop. Pudoc, Wageningen 8. Popkova EG, Sergi BS (2020). Social entrepreneurship in Russia and Asia: further development trends and prospects. On The Horizon 28(1):9–21. https://en.x-mol.com/paper/article/136056 5928639893504 9. Reardon TP (1995) Sustainability issues for agricultural research strategies in the semi-arid tropics. Agric Syst 345–360 10. Reardon TP (1988) World development. Coping with household-level food insecurity, pp 1065– 1074 11. Sergi BS, Popkova EG, Bogoviz AV, Ragulina YV (2019) The agro-industrial complex: tendencies, scenarios, and regulation. In: Sergi BS (ed) Modeling economic growth in contemporary Russia. Emerald Publishing Limited, Bingley, UK, pp 233–247. https://www.degruyter.com/ document/doi/10.1515/9783110643701/pdf 12. Smith S (2011) Latest statistics on facebook ads for digital marketing campaigns. Pudos Digital. http://www.researchgate.net/publication/268289406_Advertising_on_Facebook . Accessed 19 Sept 2021 13. Tiffen MM (1994) More people, less erosion: environmental recovery. https://www.oecd.org/ greengrowth/sustainable-agriculture/2739771.pdf. Accessed 19 Sept 2021 14. Udry C (1990) Credit markets in Northern Nigeria: credit as insurance in a rural economy. World Bank Econ Rev 251–270

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 agriculture 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 conditions 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 agricultural 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: [email protected] A. R. Nabiyeva e-mail: [email protected] A. E. Suglobov e-mail: [email protected] © The Author(s), under exclusive license 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_26

223

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 sustainable 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 dominant 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.

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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 interrelated 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]. Agriculture 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 progressive 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].

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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 2016

2019 in % to 2018 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 slaughter weight)

67

70

72

74

110.4

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 functioning 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 production 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. Continually, increasing food imports have devastating consequences for the development of domestic agriculture, accompanied by a decrease in production, loss of jobs, impoverishment 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

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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

120.7

135.5

113.3

121.2

100.4

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

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

Grain and leguminous crops—total Including

Legumes

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

Vegetables—total

13.2

13

13.7

14.1

106.8

3.1

3.5

3.6

4.0

129.0

23.3

25.6

26.2

28.1

3.1

2.7

3.3

3.5

Including agricultural organizations Share of agricultural organizations, % Fruits and berries

n.a

n.a 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 production of livestock and poultry in slaughter weight increased from 9853 to 10,866 thousand 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

9.9

10.3

10.6

10.9

110.1

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

Cattle and poultry in slaughter weight, million tons

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 organizations 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 agricultural 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 development 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 production 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].

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Table 5 Purchases of agricultural products and raw materials by consumer societies of the Centrosoyuz of the Russian Federation in 2020 Unions of consumer societies

Total, mln. RUB

Agricultural products by type, tons

Centrosoyuz of the Russian Federation

21,460 47,516 223,453 138,626 29,788

36,182

20,853 864.0

Central

3082

7830

3495

29,146

6776

8318

5170

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 Caucasus

646

1011

2327

2616

2201

1895

276

-

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

31.0

33.9

32.4

32.6

77.7 0.1

Meat

48.6

Milk

91.0

Eggs, thou. pcs.

Potatoes Vegetables Fruits

Medicinal raw materials

11.3

Ural

798

1335

3107

13,248

1071

1432

606

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]

References 1. Presidential Executive Office. (2020) Decree “On approval of the food security doctrine of the Russian Federation” (January 21 2020 No. 20). Legal information resource “Garant.” Moscow, Russia. Retrieved from https://www.garant.ru/products/ipo/prime/doc/73338425/ 2. Balalova EI, Maksaev AA, Ovcharenko NA, Suglobov AE, Tkach AV (2019) Entrepreneurship in the food supply. Dashkov and Co., Moscow, Russia 3. Centrosoyuz of Russia (2021) The main indicators of socio-economic activities of consumer cooperation of the Russian Federation in 2020. Central Union of Consumer Societies of the Russian Federation, Moscow, Russia 4. Dudukalova GN, Tkach AV, Nechitaylov AS (2020) The development of the dairy market in Russia. In: Bogoviz A (ed) Complex systems: innovation and sustainability in the digital age. Springer, Cham, Switzerland. https://doi.org/10.1007/978-3-030-44703-8_47 5. Kaurova OV, Maloletko AN, Tkach AV (2021) Consumer cooperation in the formation of food resources. Russian J Manage 8(4). Retrieved from https://riorpub.com/en/nauka/article/41232/

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view 6. Kaurova OV, Tkach AV, Maloletko AN (2021) Consumer cooperation of regions in the infrastructure of the Russian food market. Econ Labor Manage Agric 2:73–80. https://doi.org/10. 33938/212-73 7. Maksaev AA, Zhukova OI, Nechitailov AS (2021) Marketing approach in the management of the national food security system. Fundam Appl Res Stud Econ Cooper Sector 2:95–104 8. Maksayev AA, Suglobov AE, Tkach AV (2019) Entrepreneurship of economic entities consumer cooperation in agro-industrial complex. Fundam Appl Res Stud Econ Cooper Sector 5:8–17 9. Ministry of Agriculture of the Russian Federation (2020). Agro-industrial complex of Russia in 2019. Moscow, Russia. Retrieved from https://mcx.gov.ru/upload/iblock/2af/2afc2fd5020b 9449bc7b85d064ea7b44.pdf 10. Nabyeva AR (2019) Features of the mechanism of procurement of agricultural products by a consumer cooperation and methods of its regulation. Econ Agric Process Enterprises 8:76–81. https://doi.org/10.31442/0235-2494-2019-0-8-76-81 11. Nabyeva AR, Tkach AV (2019) The main milestones of the concept of development of consumer cooperation in the Russian Federation and ways of its realization. Russian J Manage 7(1):1–65. https://doi.org/10.29039/article_5d0a42963a1030.17037639 12. Nechitailov AS (2016) The choice of effective milk sales channels in the Republic of Tatarstan. Agro-Ind Complex: Econ Manage 8:87–93 13. Nechitailov AS (2017) Development of the market of ecologically safe milk and dairy products. Dashkov and Co., Moscow, Russia 14. Nechitailov AS (2017) The development potential of ecologically milk and dairy products market in the Republic of Tatarstan. Econ Agric Process Enterprises 7:27–32 15. Nechitailov AS (2019) Features of formation and development prospects of market of milk and dairy products in the Republic of Tatarstan. Fundam Appl Res Stud Econ Cooper Sector 2:133–141 16. Nechitailov AS (2020) Marketing management in the system of national food security of Russia. Fundam Appl Res Stud Econ Cooper Sector 2:89–101 17. Nechitailov AS (2020) Organizational and economic mechanism of food security in the national security system of Russia using cooperation. Fund Appl Res Stud Econ Cooper Sector 1:65–76 18. Nechitaylov AS (2019) Features of the market infrastructure of environmentally safe milk. In: IOP conference series: earth and environmental science, vol 274, p 012038. https://doi.org/10. 1088/1755-1315/274/1/012038 19. Rozanov TP, Nechitailov AC, Tkach AV (2019) Tendencies of formation and development of the market of milk and dairy products in Russia. Econ Labor Manage Agric 6:74–80 20. Tkach AV, Nechitailov AS (2014) Dairy products subcomplex of Russia: State and prospects of developing. Econ Agric Process Enterprises 10:7–14 21. Tkach AV, Romanova TE (2016) Meat cattle development of Tatarstan Republic on subculture creation basis. Fundam Appl Res Stud Econ Cooper Sector 3:58–61 22. Tkach AV, Zhukova OI, Nechitailov AS (2017) Expansion of the domestic market of agricultural products as an export resource of Russia. Econ Agric Russia 1:25–30 23. Tkach AV, Zhukova OI, Nechitailov AS (2016) Agricultural commodities of Russia as an export resource for international market. Fundam Appl Res Stud Econ Cooper Sector 5:13–19 24. Tkach AV, Zhukova OI, Zhukov AS, Nechitaylov AS (2019) Cooperative small businesses in the agricultural sector. Econ Labor Manage Agric 3(48):118–124 25. Zhukov AS, Nechitailov AS, Tkach AV (2015) Marketing management of the agro-industrial complex in the conditions of the WTO and economic sanctions. Econ Agric Process Enterprises 12:11–17

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: [email protected] K. V. Solovyev Peoples’ Friendship University of Russia (RUDN University), Moscow, Russia O. M. Val Arctic State Agrotechnological University, Yakutsk, Russia e-mail: [email protected] © The Author(s), under exclusive license 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_27

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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 1992–2000

2001–2010

2011–2017

3254

5405

9722

2018

2019

12,756

15,379

Russia

Thousand tons % 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

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

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

24,349

28,845

43,473

51,910

56,073

Argentina

India

Total

Source Compiled by the authors based on [2]

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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 Russia

Ukraine

Years 2011

2012

2013

2014

2015

c/ha

13.4

13.0

15.5

19.8

14.2

% Of 2011

100.0

96.6

115.7

147.4

105.6

c/ha

18.4

16.5

21.7

27.2

21.6

% Of 2011

100.0

89.8

118.1

147.8

117.7

Kazakhstan

2016

2017

2018

14.5

16.0

18.3

107.7

119.4

136.1

22.4

20.2

23.0

25.6

121.8

109.8

125.0

139.3

15.1 112,5

2019

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

c/ha

21.1

18.3

19.2

28.0

21.9

21.2

19.5

21.1

% Of 2011

100.0

87.0

91.0

133.1

104.1

100.7

92.6

100.1

Argentina

20.4 96,8

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 2011

100.0

94.0

109.6

131.9

109.5

113.6

114.0

121.9

128.9

Source Compiled by the authors based on [2]

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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,

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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 Territories 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:

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Table 3 Share of sunflower in the sown area in the main regions of Russia, % Regions

2010

2015

2019

2020

23.8

16.8

15.8

15.5

Voronezh Region

Agricultural enterprises 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

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

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

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

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

12.1

11.1

16.5

16.0

Krasnodar Territory

Republic of Bashkortostan

Farms

Kurgan Region

Farms 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.

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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 characterized 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 pollination 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

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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 revenue (%) Over 50.0%

From 33.3 to 50.0%

Total (pcs.)

35

35

70

180

X

% 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 production, person-hour/c

0.36

0.36

0.44

0.43

Production profitability (%)

33.21

36.52

46.21

42.84

Number of enterprises

66.89

From 20.1 to 33.3%

Average

Less than 20.1%

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 production reserves aimed at increasing the fertility of arable land by organizing resourcesaving 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

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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 COVID19 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: [email protected] 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 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

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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 security 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 comparative 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 socioeconomic 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, environmental, 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

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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 security 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 characterizing 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.

2. 3.

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; Development of the author’s approach to conducting a comparative analysis of the economic security of regions during the pandemic; 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.

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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 indicators. Shestiperova [26] points out the need to evaluate other comprehensive performance 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 magnitude 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, sociodemographic 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 epidemiological component of the regional economic security). The importance of this aspect

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

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Table 1 Actual, reference and normalized indicators of economic security of the Rostov, Krasnodar and Belgorod regions, 2020 Indicator

Rostov region

Krasnodar territory

Belgorod region

The best value among the three regions

Weight of normalized indicator

The financial component of the economic security of the region GRP, billion rubles 1558.71

2890

966.7

Normalized indicator of GRP

0.54

1

0.33

Consolidated budget revenues, billion rubles

257.2

387.1

133.46

Normalized indicator of consolidated budget revenue

0.66

1

0.34

Foreign trade turnover, billion US dollars

11.3

10.2

4.57

0.9

0.4

Normalized 1 indicator of foreign trade turnover

2890 0.4 387.1

0.3

11.3

0.3

Technical and technological components of the economic security of the region Commissioning of the total area of residential buildings, thousand sq. m

2644

5124

1148.6

Normalized indicator of the commissioning of the total area of residential buildings

0.52

1

0.22

Investments in 323.8 fixed assets, billion rubles

500.3

168.12

Normalized indicator of investments in fixed assets

1

0.34

0.65

5124

0.2

500.3

0.4

(continued)

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Table 1 (continued) Indicator

Rostov region

Krasnodar territory

Belgorod region

The best value among the three regions

Index of the 106.2 physical volume of investments in fixed assets, in % compared to the previous year

99.7

95.5

106.2

Normalized indicator of index of the physical volume of investments in fixed assets

0.94

0.9

1

Weight of normalized indicator

0.4

Socio-demographic component of the economic security of the region Real monetary incomes of the population, in %, compared to the previous year

98.4

99.1

98.1

Normalized indicator of real monetary incomes of the population

0.99

1

0.99

Real accrued wages, in % of the previous year

102.1

103.2

104.8

Normalized indicator of real accrued wages

0.97

0.98

1

The real size of the 102.6 average annual value of the assigned monthly compensation in % compared to the previous year

100.2

102.3

Normalized indicators of the real size of the average annual value of assigned monthly pensions

0.98

1

1

99.1

0.4

104.8

0.4

102.6

0.2

(continued)

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Table 1 (continued) Indicator

Rostov region

Krasnodar territory

Belgorod region

The best value among the three regions

Weight of normalized indicator

Sanitary and the epidemiological component of the economic security of the region Recovered by 8152 10,000 sick people, people

6732

8545

Normalized indicators of the recovered per 10,000 cases

0.95

0.79

1

Percentage of the population with natural immunity to COVID-19 (the ratio of recovered to the number (excluding vaccinated)), %

1.01

0.33

1.21

Normalized indicator of the percentage of the population with natural immunity to COVID-19

0.83

0.27

1

8545

0.5

1.21

0.5

Resource and production component of the economic security of the region The industrial production index, in %, compared to the previous year

101.7

97.0

101.4

Normalized indicator of the industrial production index

1

0.95

1

Agricultural products, billion rubles

289.9

399.5

266.01

Normalized indicators of agricultural products

0.73

1

0.67

Source Compiled by authors based on [3, 14, 25]

101.7

0.5

399.5

0.5

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Complex integral level of economic security of the region

4.44 4.22 0.83 0.98 0.86

Integral level of resource and production security of the region

1 0.53 0.89

Integral level of sanitary and epidemiological safety of the region Integral level of socio-demographic security of the region

1 0.99 0.99

Integral level of technical and technological safety of the region

0.54 0.98 0.76 0.36

Integral level of financial security of the region

0.97 0.72 0

Belgorod Region

1

Krasnodar Territory

2

3

4

5

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

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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 visually 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 sanitary 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.

2.

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 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

References 1. Agaeva L, Kurnosova E (2017) Assessment of economic security of the Samara region. Vector Sci Togliatti State Univ Ser: Econ Manage 3(30):5–11 2. Alikina E (2020) Comparative analysis of economic security of regions. Economic security: problems, prospects, development trends. In: Proceedings of the VI international scientific and practical conference, pp 28–39 3. Belgorodstat (2021) Belgorod region in numbers 2021. Brief statistic collection 4. Bilyk R (2016) Ensuring economic security of the regions: European experience and Ukraine. Eureka: Soc Hum 3:3–12 5. Eremeeva E (2016) Comparative analysis of methods for assessing the economic security of the state, region, municipality. In: Proceedings of the international youth symposium on management, economics and finance. Institute of Management, Economics and Finance of KFU, pp 319–320 6. Gordienko D (2016) Comparative assessment of the level of economic security of the border Far Eastern regions of Russia. In: Proceedings of the VIII international scientific and practical conference, actual problems of China’s development in the process of its regionalization and globalization, pp 56–61 7. Greer B (2020). European economic security. In: Securing Europe’s future, pp 221–241 8. Hacker J (2018) Economic security. In: For good measure, pp 203–240

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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 reconstructive agriculture, which advantages are the reconstruction of lands (an increase of soil fertility) and reverse change (reconstruction) of climate, which, in their totality, stimulates the growth of efficiency in agriculture. Reconstructive agriculture is considered 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: [email protected] A. A. Sozinova (B) Vyatka State University, Kirov, Russia e-mail: [email protected] 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 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

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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 knowledge, 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.

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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, agricultural 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 influence 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 COVID19, while managing an ecological crisis. Unlike most technologies applied in agriculture, 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

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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 technology 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 management through a green economy improves soil quality, moisture-holding capacity and

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nutrient content [11]. Notably, these are key factors that must be observed in agriculture 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 wellbeing 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 environmental, 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 ecological 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 production 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

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production and even strengthening the fight against COVID-19. However, not all technology 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 ecological 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, particularly during the pandemic period, ensure food security and significantly reduce environmental risks, which would thus affect ecologic habitation. Agricultural productivity gains from green agriculture contribute significantly to the environmental benefit, including reducing soil erosion, agrochemical pollution and reducing agricultural 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 1. Abou-Elela SI (2017) Constructed wetlands: The green technology for municipal wastewater treatment and reuse in agriculture. In: unconventional water resources and agriculture in Egypt. Springer, Cham, pp 189–239 2. Beachy RN (2014) Building political and financial support for science and technology for agriculture. Philos Trans Roy Soc B: Biol Sci 369(1639):20120274 3. Chhachhar AR, Hassan MS (2013) Information communication technology for agriculture development. J Am Sci 9(1):85–91 4. Choudhary SK, Jadoun RS, Mandoriya HL (2016) Role of cloud computing technology in agriculture fields. Computing 7(3) 5. de Wilde S (2016) The future of technology in agriculture. Stichting Toekomstbeeld der Techniek, The Hague 6. Devi PI, Solomon SS, Jayasree MG.(2015) Green technologies for sustainable agriculture: policy options towards farmer adoption. Ind J Agric Econ 69(902–2016–68343):414–425 7. Farooq MS, Riaz S, Abid A, Umer T, Zikria YB (2020) Role of IoT technology in agriculture: a systematic literature review. Electronics 9(2):319 8. Ghadiyali TR, Kayasth MM (2019) Contribution of green technology in the sustainable development of the agriculture sector. J Environ Res Dev 7(1A):590–596 9. Kaaya J (2019) Role of information technology in agriculture. In: Proceedings of FoA conference, vol 4, pp 315–328 10. Koohafkan P, Altieri MA, Gimenez EH (2012) Green agriculture: foundations for biodiverse, resilient and productive agricultural systems. Int J Agric Sustain 10(1):61–75 11. Llewellyn D (2018) Does global agriculture need another green revolution? Engineering 4(4):449–451 12. Patel S, Sayyed IU (2014) Impact of information technology in the agriculture sector. Int J Food Agri Veterinary Sci 4(2):17–22 13. Popkova EG, Sergi BS (2020) A digital economy to develop policy related to transport and logistics. Predictive lessons from Russia. Land Use Policy 99:105083. https://doi.org/10.1016/ j.landusepol.2020.105083

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14. Popkova EG, Sergi, BS (2021) Paths to the development of social entrepreneurship in Russia and Central Asian countries: standardization versus de-regulation. In: Sergi BS, Scanlon CC, Heine LRI (eds) Entrepreneurship for social change. Lab for Entrepreneurship and Development, Emerald Publishing Limited, Bingley, pp 161–177. https://doi.org/10.1108/978-1-80071-210220211006 15. Popkova EG, DeLo P, Sergi, BS (2021) Corporate social responsibility amid social distancing during the COVID-19 crisis: BRICS versus OECD countries. Res Int Bus Finance 55:101315. https://doi.org/10.1016/j.ribaf.2020.101315 (Elsevier) 16. Puranik V, Ranjan A, Kumari A (2019). Automation in agriculture and IoT. In: 2019 4th International conference on internet of things: smart innovation and usages (IoT-SIU). IEEE, pp 1–6 17. Sarkar MK, Rahman MR, Ahmed GF, Kabiraj R, Uddin AJ, Biswas A, Kabir MH (2014) Climate change and green technology for enduring agriculture. Am J Agric Forestry 2(1):7 18. Sergi BS, Popkova EG, Sozinova AA, Fetisova OV (2019) Modelling Russian industrial, tech, 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, pp 195–223 19. Sergi BS, Popkova EG, Vovchenko N, Ponomareva M (2019) Central Asia and China: financial development through cooperation with Russia. In: Barnett WA, Sergi BS (eds) AsiaPacific contemporary finance and development. International symposia in economic theory and econometrics, vol 26. Emerald Publishing Limited, Bingley, UK, pp 141–164 20. Wang W, Wang J, Liu K, Wu YJ (2020) Overcoming barriers to agriculture green technology diffusion through stakeholders in China: a social network analysis. Int J Environ Res Public Health 17(19):6976

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 agroindustrial 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 agricultural 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: [email protected] © The Author(s), under exclusive license 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_30

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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 lowercost 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, extensive 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 agricultural 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. Agricultural 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

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important. Agriculture frequently puts a strain on natural resources and the environment. 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 agricultural 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 information 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, irrigation 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 relocalization in which cities take a leading role, driving city-region food systems [1].

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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 motivations of entrepreneurs, utilizing adjectives such as “social”, “eco” and “sustainable” [9, 18]. This suggests entrepreneurship can be understood, either implicitly or explicitly, 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 bricolage [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 industrialized 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 exemptions 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 educational 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 manufacturing 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

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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 lockdown. 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 agricultural 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].

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5 Results The chapter then collects and presents the statistical data along with the new information 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 inauguration 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 holdings

% of total holdings

Utilized agricultural % of Utilized 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

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single structural commonality that both industries share: a supply chain and a distribution 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.

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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. 07.012 2. Brodt S, Six J, Feenstra G, Ingels C, Campbell D (2011) Sustainable agriculture. Nat Educ Knowl 3(10):1 3. FAO (2018) Transforming food and agriculture to achieve the SDGs 20 interconnected actions to guide decision-makers. FAO, Rome 4. Fujimoto S, Matsuda T (2006) Alternative agriculture development—Environment and healthfriendly agriculture. Tokyo University of Agriculture Publisher, pp 85–86 5. Gallenti G, Troiano S, Marangon F, Bogoni P, Campisi B, Cosmina M (2019) Environmentally sustainable versus aesthetic values motivating millennials’ preferences for wine purchasing: evidence from an experimental analysis in Italy 6. Gardner TA, Benzie M, Börner J et al (2018) Transparency and sustainability in global commodity supply chains 7. Kyuma K (2005) What is soil?. Kyoto University Academic Publisher, pp 276–285 8. Lee DR (2005) Agricultural sustainability and technology adoption: issues and policies for developing countries. Am J Agric Econ 87(5). Proceedings Issue (December 2005), pp 1325– 1334. https://www.jstor.org/stable/3697714. Accessed 15 Oct 2021 9. Mueller S (1997) Evaluating the sustainability of agriculture: The case of the Reventado River Watershed in Costa Rica. European University 10. Nacke E (2014) High tech AG machinery solutions: contradiction or contribution to sustainable agriculture? EurAgEng. Zurich, Switzerland 11. National Sustainable Agriculture Coalition (2012) Farming for the future: a sustainable agriculture agenda for the 2012 Food & Farm Bill, Washington, DC 12. Onofri L, Bianchin F, Boatto V (2019) How to assess future agricultural performance under climate change? A case study on the Veneto region. Agric Food Econ 13. Pancino B, Blasi E, Rappoldt A, Pascucci S, Ruini L, Ronchi C (2019) Partnering for sustainability in agri-food supply chains: the case of Barilla sustainable farming in the Po Valley. Agricultural Food Economy 14. Philipp, A. (2009). What is sustainable agriculture? Empirical evidence of diverging views in Switzerland and New Zealand. J Ecol Econ pp 1872–1882 15. Popkova EG, Sergi BS (2018) Will Industry 4.0 and other innovations impact russia’s development? 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 16. Popkova EG, Sergi BS (2020) Human capital and AI in Industry 4.0. convergence and divergence in social entrepreneurship in Russia. J Intell Capital 21(4) 17. Popkova EG, DeLo P, Sergi BS (2021) Corporate social responsibility amid social distancing during the COVID-19 crisis: BRICS versus OECD countries. Res Int Bus Finance 55:101315. https://doi.org/10.1016/j.ribaf.2020.101315 (Elsevier) 18. Sergi BS, Popkova EG, Bogoviz AV, Ragulina JV (2019) The agro-industrial complex: tendencies, scenarios, and regulation. In: Sergi BS (ed) Modeling economic growth in contemporary Russia. Emerald Publishing Limited, Bingley, UK, pp 233–247 19. Sergi BS, Popkova EG, Sozinova AA, Fetisova OV (2019) Modelling Russian industrial, tech, 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, pp 195–223 20. Thanwa J (2014) Sustainable agricultural systems for small-scale farmers in Thailand. Kasetsart University, Bangkok. The Office of SamutSakhon Province. (2012). Annual report 2012. Samut Sakhon

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21. Willett W, Rockström J, Loken B et al (2019) Food in the anthropocene: the EAT-Lancet Commission on healthy diets from sustainable food systems. Lancet 393:447–492 22. van der Gaast K, van Leeuwen E, Wertheim-Heck S (2021) Food systems in transition: conceptualizing sustainable food entrepreneurship. Int J Agric Sustain. Published online 27.08.21. 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 technological 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), development and implementation of technologies for the quick-growing of plants, determination 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: [email protected] © The Author(s), under exclusive license 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_31

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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 monitored. The vertically inclined surfaces could be mounted on shipping containers, and in repurposed warehouses. Vertical farming uses controlled-environment agriculture technology (CEA) which incorporates modern farming indoors and makes it as productive as possible by the use of artificial intelligence. Artificial temperature, 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, qualitative 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

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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 officially named it the ‘Vertical Farming Method’. In the twentieth century, scientists and architects repeatedly focused on improving vertical farming, so they incorporated various technological advancements into the practice [16]. In the 1910s, the vertical farming practice did not have much technology as the current twenty-firstcentury 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 artificial 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 sustainable 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

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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 limitation 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 greenhouse in a real-time situation. Phytomonitoring allows farmers to assess the physiological conditions of crops in an enclosed space; one can hardly apply phytomonitoring 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,

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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 accurate 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 technologies 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 electrotechnical 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 recommendations 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

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up wasting money and resources. Secondly, this study recommends that companies 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 wellconversant 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 1. M Al-Chalabi 2015 Vertical farming: Skyscraper sustainability? Sustain Cities Soc 18 74 77 2. C Banerjee L Adenaeuer 2014 Up, up and away! The economics of vertical farming J Agric Stud 2 1 40 60 3. Benke K, Tomkins B (2017) Future food-production systems: vertical farming and controlledenvironment agriculture. Sustain: Sci Practice Policy 13(1):13–26 4. Birkby J (2016) Vertical farming. ATTRA sustainable agriculture, pp 1–12 5. A Garg R Balodi 2014 Recent trends in agriculture: vertical farming and organic farming Adv Plants Agric Resour 1 4 00023 6. M Jamal SS Mortez 2014 The effect of urban agriculture in urban sustainable development and its techniques: a case study in Iran Int J Agric Forestry 4 4 275 285 7. MP Johnston 2017 Secondary data analysis: a method of which the time has come Qual Quant Methods Libraries 3 3 619 626 8. Kalantari F, Mohd Tahir O, Mahmoudi Lahijani A, Kalantari S (2017) A review of vertical farming technology: a guide for implementation of building integrated agriculture in cities. Adv Eng Forum 24:76–91 (Trans Tech Publications Ltd.) 9. F Kalantari OM Tahir RA Joni E Fatemi 2018 Opportunities and challenges in sustainability of vertical farming: a review J Landscape Ecol 11 1 35 60 10. Popkova EG, Sergi BS (2018a). Will Industry 4.0 and other innovations impact Russia’s development? 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) 12. EG Popkova BS Sergi 2020 Social entrepreneurship in Russia and Asia: further development trends and prospects On The Horizon 28 1 9 21 13. EG Popkova BS Sergi 2021 Energy efficiency in leading emerging and developed countries Energy 221 119730 https://doi.org/10.1016/j.energy.2020.119730 14. BS Sergi EG Popkova AA Sozinova OV Fetisova 2019 Modeling Russian industrial, tech, 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 15. Sergi BS, Popkova EG, Vovchenko N, Ponomareva M (2019b) Central Asia and China: financial development through cooperation with Russia. In: Barnett WA, Sergi BS (eds) AsiaPacific contemporary finance and development (international symposia in economic theory and econometrics, vol 26. Emerald Publishing Limited, Bingley, UK, pp 141–164 16. D Touliatos IC Dodd M McAinsh 2016 Vertical farming increases lettuce yield per unit area compared to conventional horizontal hydroponics Food Energy Secur 5 3 184 191

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 agriculture 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 provision) 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 technologies 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 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

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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 reconstructive 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.