The forest land in Belarussia, Russia and Ukraine is still managed by state forest institutions. The future contribution of the state forest institutions to the goal of sustainable multiple-use forestry and market economy depends on four major factors: the management and production within task units; the planning system; the development of labour and social services; the resources accessible for the forest sector from state and markets. These factors were analysed in field studies based on written sources and interviews with foresters and scientific experts.
The analysis is oriented toward the theory of politics and organizations but the empirical basis is not strong enough to check hypothesis in the scientifically strictly required way. Therefore the analysis looks to the theoretically expected factors and describes them using all empirical information available. On this basis strategies are designed on how the state forest enterprise could contribute to a profitable and sustainable forestry within markets. Strong forestry institutions guarantee sustainability of multiple-user forestry better than other state institutions which today, supporting narrow economic or ecological interests only, have strong influence on forestry in transition. Because of the participation of many different institutions it is nearly impossible to optimize forestry in the complex process of financing and decision making which is now established in the three countries. As an alternative new models for combining financial flows and ecological management in closed productions units are formulated. Further strategies are formulated for rebuilding the technical infrastructure and for enlarging the environmental significance of forestry. Finally the labour management and the resource basis are discussed. In both fields specific solutions for the transition period are suggested.