How did fishing licenses become a major source of income for the Falkland Islands?

In the late 20th century, the government of the Falkland Islands sought to diversify its economy, which had historically relied heavily on sheep farming and wool production. As part of these efforts, the government began selling fishing licenses to foreign entities in 1987.1

The revenue generated from the sale of these licenses quickly became a major contributor to the islands' economy, facilitating sustained growth. While the surrounding waters are rich in squid, the industry faced challenges with overfishing in the 1990s, which necessitated the implementation of regulatory measures to ensure sustainability.12