Structural Transformation Research Papers - Academia.edu (original) (raw)

Many countries have undergone the process of structural transformation, leaving rural areas together with the agricultural sector underdeveloped with poor infrastructure, lack of information and new digital skills. However, the process of digital transformation and the application of new digital technologies represent an opportunity for the development of rural areas. Although developed countries have gone through the process of deindustrialization, in less developed countries the agricultural sector is still a vital sector because it produces food which is one of the basic human needs. Food security and the eradication of hunger are a part of global Sustainable Development Goals set by the United Nations (UN). Digital innovation and technologies can be a part of the solution to achieve these goals. Sustainable development is a holistic concept and focuses on reconciling social justice, environmental integrity and well-being of living beings. The goal is to create ecologically and socially rightful world by means available from nature, without compromising the conditions and opportunities of future generations. Sustainable development is a global objective and should be integrated in all development policies and strategies. Development and application of digital technologies for the purpose of developing new services and new ways of providing services, improving communication, business development and trade represent an opportunity, but also a challenge to achieve sustainable development. A prerequisite for benefiting from the application of digital technologies is the construction of digital infrastructure, strengthening digital skills and reducing the costs of using the Internet and new technologies. What is more, digital technologies can be a platform for supporting entrepreneurship in rural areas, not only in agriculture but also in other sectors, enabling the adaptation of production, management and organization processes; access to new markets; improved access to information, thus strengthening competitiveness. In addition to the agricultural sector, digital technologies are essential for making rural communities more attractive, accessible, smarter and sustainable destinations, reducing remoteness problems and improving access to services and their quality. The development of rural tourism has an important role and is considered as one of the drivers of rural development. In developing countries, and especially in rural areas, poor technology infrastructure, high technology costs, low levels of e-literacy and digital skills, weak regulatory framework and limited access to services contribute to the stagnation of the digitalization process. Therefore, bearing in mind all the opportunities offered by the digital economy, it is crucial to address these challenges and adapt existing as well as to develop new modes of governance and the legislative framework to ensure transparent and efficient performance of individuals and the economy. Without the appropriate policies and incentives, rural areas will not be able to make optimal use of the opportunities brought by new technological revolution, which could further increase inequalities within and between countries. A prerequisite for the success in the new digital economy is access to infrastructure and skills that enable the use of digital services. The digitalization of all sectors consists of important technical aspects, but it is primarily a social and political phenomenon, and is specific to each country and its economic and political environment. The aim of this paper is to consider the possibilities of achieving sustainable rural development in the conditions of digitalization. In a systematic way, this paper analyzes the importance of sustainable development, places it within the conditions of digitalization that characterizes the modern global economy and examines the opportunities and challenges of achieving rural development in the digital economy. The purpose of the paper is to draw conclusions about the key factors and drivers of sustainable rural development in the digital economy.