Institutional Dynamics of the Agricultural Sector as a Factor of Transformation of Rural Communities

The paper shows dynamics of the institutions of the agrarian sector in the post-Soviet period and provides the characteristics of the economic and social consequences of these changes for the development of rural communities. It was revealed that in the agrarian institutions two different components are present, the archaic and the modern, which structure the life of the rural society. The archaic component is represented by the institution of private subsidiary farms, is associated with the minimization of all life support processes and ensures the survival of the village in times of crisis. The modern component, represented by agricultural organizations and farming, is associated with the development of innovative agricultural production, and not with the support of rural communities. The development of innovative forms of management leads to a weakening of the social and economic potential of personal subsidiary plots and the
unsustainable dynamics of the rural society.