The transition from the Soviet system to a market economy as a cause of instability in the Estonian coastal fisheries sector

This study analyzes how overall changes in political and economic life during the last decade have affected the Estonian coastal fishery of the Baltic Sea. At the beginning of the nineties, the opportunity to export fish to the European market emerged. Opening of this new market resulted in rapidly increasing pressure on fish stocks. Some of the most important coastal fishery resources were over-fished because of high export market demand coupled with insufficient resource management and ineffective control and enforcement mechanisms. The costs associated with fishery have grown much more than the first-buyer prices. Additionally, dynamic development of the Estonian economy has resulted in substantial increases in earnings in other economic sectors and therefore the relative wealth of fishermen has steadily declined. This has resulted in increasing social problems. In conclusion, countries in transition may encounter serious difficulties in the fisheries sector, arising from privatization and economic reforms, which may affect the fisheries even years after the establishment of new ruling principles.