Abstract
Estonia has regained its independence after fifty years of Soviet occupation, which left its coastal zones devastated and many border areas depopulated. Soviet power replaced a complex prewar coastal economy combining many part‐time pursuits with a large‐scale, export‐oriented fishing industry. Independent Estonia has inherited a grossly overcapitalized fisheries sector dominated by large Soviet‐era “collective fisheries.”; Because of the loss of subsidies, long‐distance fishing opportunities, and the former Soviet market, Estonia must now reduce fishing effort, pay greater attention to the management of coastal stocks, and work toward the breakup and privatization of the former collective fisheries (FCFs). At the same time, efforts must be made toward constructing a free‐market coastal economy characterized by smaller production units, in which economic pursuits such as market gardening, animal husbandry, forest products, tourism and light industry will also play a role.

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