The Estonian Forest Sector in Transition: Institutions at Work

Kallas, A. (2000). The Estonian Forest Sector in Transition: Institutions at Work. IIASA Interim Report. IIASA, Laxenburg, Austria: IR-00-073

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Abstract

This paper is a case study based on forest sector development during the first ten years of economic transition in Estonia between 1991-2001. The study attempts to shed light on the significance of social norms, beliefs and conventions for the implementation of Government policies. The format of the analysis relies on the description of consecutive steps in the evolution of the country's forest sector, allowing speculations and conclusions on why some policy actions are more successful than others. Using Douglass C. North's ideas on the factors that most influence economic progress, the author follows the interplay between the formal and informal institutions during the above-mentioned era in Estonian forestry. The author finds that the so strongly advocated participatory policy making procedures alone do not necessarily guarantee the achievement of socially acceptable policy outcomes. Individual decision-makers' actions may alter the course of policy-making and contribute significantly to uncertainties related to successful policy implementation.

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