In international practice, the degree of the state's development is determined by the ability of its economy to create and apply practical implementation of innovations. One of the requirements for change in the agricultural sector, because of the accession of Russia to the WTO, is a sustainable competitive development of rural areas. Sustainable agricultural development of mountain areas is a complex problem.

The criterion for the sustainable economic development of the rural economy and the social status of rural population in mountainous areas of the region can be considered a dynamic increase of the positive (from the point of view of society) characteristics of these processes. The main solutions are:
-Employment of the working population;
-The growth of labor productivity;
-Reduction of production costs;
-Maintaining the high quality of agricultural products;
-The conquest of effective markets for manufactured ecologically clean agricultural products and processed products.

In assessing the current level of economic stability in the region, we have taken measures of the effective conduct of the proceedings, which can be both generalizing and private.

The territory of the Kabardino-Balkaria Republic (small areas-12,5 thousand sq.km), there are districts with sharply differing economic and social conditions of functioning. The differences are explained by both objective and subjective factors. While the first reflects the climatic conditions, economic and geographical position, historical and socio-cultural characteristics, the second represents the implementation of the policy management system at all levels.
In market conditions come out imbalance of both economic development of companies, and certain territories, especially mountainous administrative regions. Some areas have become a kind of depressive.

One of the main causes of depression can be considered a selected regional scheme of ​​economic development of a specific area in mountainous areas and the lack of adaptation of the current conditions of the market. Typically, in such regions was developed the production of a limited number of agricultural products, that is, there is the narrowness of the structure of production and economic relations, the imbalance in the development of economic systems. Traditions in the development of the system of management in mountain areas become a brake and cause a chain reaction of crisis phenomenon.

The imbalance of farms' development, areas even within the same region - Kabardino-Balkaria are great, that is confirmed by large differences in social status of the population, the economy of agricultural producers. Indicators of imbalance give reasons to distinguish depressed regions as areas that are heavily and consistently lag behind the others in the main socio-economic indicators.

One of the reasons for the depressed state of mountainous areas of the Kabardino-Balkaria Republic is considered natural conditions. They have historically influenced the formation of agricultural production. One of the main activities of mountain population is cattle, sheep, goat, gathering wild plants, food and medical treatment. Although local cattle adapted to the conditions of the mountains, their feeding and maintenance do not provide high productivity. Livestock farming system is based on the extensive principle.
The main goals of pulling the region out of the state of depression are caused by the following courses of action:
- Rational use of local raw materials;
- Expansion of the traditional labor skills;
- Increased use of efficient technologies and equipment;
- Focus on the production of innovative, best-selling (not just locally, but also in other markets) of goods (products);
- The use of energy-saving technologies;
- Improving the forms of co-operation and integration of labor, production;
- Improving the information of the production process and the process of turnover;
- Improvement of management of the national economy at all levels;
- Improving the institutional basis.

One of the key factors for sustainable development of agricultural production is to increase the fertility of the soil, its reproduction. In general, the climatic conditions of mountainous areas of the Kabardino-Balkaria republic, often called extreme, contribute little to the sustainable development of agricultural production. Agro climatic potential of agricultural mountainous area of ​​the Kabardino-Balkaria republic is much lower than in the foothill and steppe zones of the country.

The reduction of the negative impact of natural factors requires first of all implementation of the complex agronomic, natural and biological activities. Crucial here are the economic, social, organizational, managerial, and technical and technological measures.

The problems of intensification occupy an important role in the system of economic factors for sustainable development of agricultural production. In the current conditions it must have intensively ecological character, completely excluding or allowing a minimal size of the anthropogenic impact on soil. For this purpose, it is advisable to cultivate any crop only in its most suited conditions, there must be limits to the use of different methods of intensification, the plants must be protected from external influences.

With a new approach to the intensification of agricultural production organically connected with introduction of advanced technologies. Technology of production in any industry, in particular, agriculture is the application of the system of interrelated ways of processing of raw materials for making a product.
One of the most important factors in improving the stability of rural development is to improve the placement of agricultural production on the territory of the region. This factor is of great importance for improving the stability of the reproduction in crop and livestock production. First of all, it requires a high concentration of crops and species of animals, in macro - and micro zones where arrhythmia of their production efficiency above and below.
Aamong factors of increasing the sustainability of the economy of rural areas are also corresponding changes in the structure of agricultural production, both the production of certain types of products, and the forms of organization of production. Social factor is of great importance in the system of factors ensuring stability in the region. They are organically linked with the economy. At the same time, economic development is the basis of the social one. However, the social development will not always be established and maintained "after the economic." Social transformations in some countries precede economic one. For example, the choice of place of work, both in the private and public sector, is determined by well development of social sphere, related to working conditions, duration, level of remuneration, etc.

Objective scientific evaluation of the current state of agriculture in mountainous areas of Kabardino-Balkaria and the need for theoretical and methodological reasoning of main directions of its market transformation, and then identify the optimal parameters of functioning of the economy in a civilized market environment require the same objective characteristics of the previous phase of the restructuring of agro-industrial complex.