The introduction of the market system in former socialistic countries brings new challenges to forest policy formulation. The transition from a command type of forest economy to the decisionmaking characteristic of a free market system at both national and woodlot level, will be reflected in goal- setting and selection of policy means, and in the creation of institutions characteristic of private ownership of both the forest industries and forests. This paper purports to give a brief cross-section of the forest policy process and the institutional requirements under the market system.
