| Summary: | The quota system, the economy, property rights, and growth – these topics have caused many to theorise, hypothesise, dissect and discuss. This essay encases an amalgam of the ideas of respected and well known economists. I reflect on and examine a number of pertinent ideas contained within their works. I discuss various aspects of the institutional structure of Iceland’s economy and how the nation’s prosperity and success have been affected by the changes in its institutional structure. I particularly focus on the marine sector and its development over the last 30 years and how it has affected the Icelandic economy. In the main body of this essay I discuss growth theory and property right theory, which paves the way to propound on various ideas raised by North, Acemogle & Robison, Demsetz and Alchian. I put forward certain findings and show how property right theory, together with the marine sector help to explain the evolution of the Icelandic economy and the prosperity it has experienced since World War II. In the latter part of the essay I focus on the economy of Iceland, and in particular, the marine sector and argue how the effects of the ITQs have implemented an upturn in the financial prosperity of the fish industry and in stronger fish stocks. I also argue how this upturn has had positive effects for the whole economy. It is questioned if the fisheries could have yielded more wealth and if a main reason for lower profit could have been caused by the extensive debate that has surrounded the fishing management act. I end by including my reaction to these debates, and review how further development in responsible fishing can be achieved in an expanding market.
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