Over the last years, criticism of the State Forests policy has been becoming more and more frequent in the press. For that reason it is very important to inspire changes in the State Forests organisation system that will result in its adaptation to the changing requirements of the social market economy. From the economic point of view one of the most important problem is that the State Forests is an economic organisation without legal personality. This fact facilitates unjust criticism of this entity that leads to restriction in its economic activity and eventually decreases maximum gains from its resources. We present trends of changes from status quo across legitimate company to joint stock union and the budget unit. It is proposed to confer legal personality on the forest economic units so they become legitimate companies. Moreover it is also suggested to use the State Forests profits as evaluation criteria of its economic activity. The generated profits should be sufficient to protect owner (i.e. the state) interests and is intended to implement them to achieve important social and economic features. In addition, a new motivation system based on the incomes considering the interest of the state, company and the employers should be developed. In order to reduce conflicts that arise from limited ability to use environmental and social functions, efforts should be made to precisely determine leading functions of chosen forest areas. The main goal of the proposed legal and organizational reform of the State Forests is to create conditions to generate higher legal revenues from various from of forest activity and allocate them for implementation of non−economic forest functions. This would make possible to achieve greater social acceptance of actions made by the franchise.
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