On the Necessity of Transition to the Policy of Rural-urban Development

Abstract

The author substantiates the necessity of transition from current policy of isolated rural development to integrated development of rural-urban areas in the course of scientific discussion. It is shown that artificial retention of rural population approximately at the present level can negatively influence employment and incomes of both rural and urban population. Based on a comparison of territories with a predominance of rural and urban population according to a number of macroeconomic and financial indicators, it is concluded that there is some deprivation and even discrimination of rural settlements, which cannot be corrected within the framework of existing management approaches. In order to ensure the employment of the local population and maintain social control over the territories, the need to form 700–800 urban settlements (small capitals) as a necessary element of the successful development of municipalities in rural areas has been substantiated.