Andrii Mykhailov

Sustainable development of the Ukrainian economy is rather complicated, extraordinary and controversial task for Ukraine. By fulfilling the obligations assumed by the world community to implement the main provisions of sustainable development, Ukraine undergoes comprehensive structural transformations, which undoubtedly have a significant impact on the development of its agrarian sector. Administrative and territorial reform is one of the major structural changes, which is taking place at the present time and has a direct impact on the agrarian sector development. The research is aimed at deepening the methodological principles for predicting the effectiveness of new institutes and rules caused by agrarian and structural transformations in the national economy, as well as substantiating the cluster model of sustainable development of the agrarian sector.
The provision of the economic theory of “path dependence” is the methodological basis of the research. In the article, based on a combination of theoretical and empirical methods, the transformation of the state of the socio-economic system, which is conditioned by the introduction of a new rule in implementing the reforms, is researched. Under these conditions, the effect of hysteresis may arise – the new rule can fall into the institutional trap and stay in it even when perturbations often disappear.
Given the analysis of the current implementation of the sustainable development model in the agrarian sector, the authors focus on combining the efforts of management bodies, socially responsible business and rural population and substantiate the need to improve the system of functional environment, which should be based on the cluster concept of development. It is precisely the cluster structure that will ensure the effectiveness of production relations between market agents, minimize the emergence of ineffective institutions and reduce the likelihood of institutional traps in the future.

After a long period of decline and persecution, there is a revival and rapid development of the cannabis industry around the world: the use of this unique crop is expanding rapidly, and finally, it was transferred from a narcotic to an agricultural one (except for Ukraine). Nowadays, the Ukrainian hemp industry has practically gone unnoticed by the state, scientists, practitioners and society. At the same time, it has development prospects and can play a significant role for rural areas and the national economy. The paperis aimed at exploring the possibilities of growing hemp (Cannabis sativa L.) and justifying the need for strategic management of the development of the cannabis industry in Ukraine. Based on the analysis of hemp production, it is established that during the years of Ukraine’s independence, the area of hemp crops has decreased almost 8 times; the number of producers is limited; hemp processing plants do not function; the yield of technical hemp seeds has a slight tendency to increase andapproximates 6-7 kg/ha. The prospects for cannabis cultivation require building strategic management of the cannabis industry to address key issues and mitigate threats. The key elements of the production development strategy are identified as improving institutional and financial support at the state level. The main guidelines of strategic management of hemp cultivation are: simplification of regulation for producers; intensification of agribusiness entities; increasing production volumes; and improving the competitive environment in the hemp market. It is proved that the strategic development of the hemp industry requires developing hemp processing enterprises; disseminating knowledge among the population about the usefulness and benefits of this multi-purpose culture. To substantiate the effectiveness of strategic decisions, the algorithm was proposed for assessing the effectiveness of growing different types of hemp products by different technologies, which is carried out using economic and mathematical modeling.