The Forum on Contemporary Europe (FCE) is sponsoring long-term research on questions of European integration. This year FCE has conducted a series of seminars and international conferences to bring European authors and policy leaders together with forum researchers and Stanford centers to investigate the challenges of social integration. The series has combined the study of European Union (EU) policy toward its newest members, East-West and trans-Atlantic relations, crime and social conflict, and European models of universal citizenship. The directors of the forum plan multiple publications. Here is a preview of the forthcoming anthology on Ethnicity in Today’s Europe (Stanford University Press) edited and with an introduction by FCE Assistant Director Roland Hsu.

In periods of EU expansion and economic contraction, European leaders have been pressed to define the basis for membership and for accommodating the free movement of citizens. With the lowering of internal borders, member nations have asked whether a European passport is sufficient to integrate mobile populations into local communities. Addressing the European Parliament on the eve of the 1994 vote on the European Constitution, Vaclav Havel, then president of the Czech Republic, defined national membership in terms of a particular tradition of civic values:

The European Union is based on a large set of values, with roots in antiquity and in Christianity, which over 2,000 years evolved into what we recognize today as the foundations of modern democracy, the rule of law and civil society. This set of values has its own clear moral foundation and its obvious metaphysical roots, whether modern man admits it or not.

Havel’s claim for the continuing efficacy of Greco- Roman and Christian values can be read as a prescription for founding policy and even sociability. In today’s multicultural Europe his definition has been repeated, but also challenged, in debates over the most effective response to increasing heterogeneity and social conflict. For those who endorse or reject Havel’s binding moral roots, this new anthology reveals surprising positions.

The scale of change since Havel’s 1994 speech challenges confidence in European traditions for new Europe. During 1995–2005, EU immigration grew at more than double the annual rate of the previous decade. European immigrant employment statistics are difficult to aggregate but show a steep downward trend. EU Eurostat figures show the Muslim community is the fastest growing resident minority.

The violence in recent years also presses us to revise theory and practice. In the east: How will Balkan communities resume relations after massacres and ethnic cleansing? Does EU recognition of Kosovo validate claims for Flanders independence and Basque ethnic heritage? Can Roma immigrants look to Italian governments to enforce ethnic safeguards? In the west, the widespread riots in France in 2005 and 2007 by urban youths of mainly North and West African descent against military police have ruptured public security and social cohesion. France’s official response was aimed more to excise rather than reintegrate the protesters. In 2005, then Interior Minister Nicolas Sarkozy announced “zero tolerance” for those he termed racaille (scum). The descriptor was effectively deployed to shape public opinion and the ministry declared a national state of emergency, invoking a law dating from the 1954–1962 War of Algerian independence, applied previously only against ethnic uprisings in French Algeria and New Caledonia, for searches, detainments, house arrests, and press censorship without court warrant.

Based on the ministry’s own records, the violence did not catch the government by complete surprise. Researchers, including Alec Hargreaves in Ethnicity in Today’s Europe, have revealed a study conducted in 2004 by the French interior ministry that documented more than 2 million citizens living in districts of social alienation, racial discrimination, and poor community policing. The ministry’s document admits that youth unemployment in what journalists referred to as quartiers chauds (neighborhoods boiling over) surpassed 50 percent. Constitutionally barred from conducting ethnic surveys, the report nevertheless acknowledges what most already understood: that the majority of the unemployed and disenfranchised youth were French-born whose parents or grandparents were of African descent.

Post-war era immigration, from the 1950s European reconstruction through the 1960s and 1970s decolonization, is best defined as post-colonial migration. European governments created neighborhoods for immigrants who moved from periphery to metropole. The new residents’ education, language, and collective memory were shaped by colonial administrations, and that background was roughly familiar to the host communities. Since 1990, however, based on projections in this anthology, we have entered a period, for lack of a better name, of post-post-colonial diaspora.

The peoples immigrating to Europe are increasingly coming from lands without characteristic European colonial heritage. While few countries of origin have no instance of European intervention, the new arrivals are adding rapidly growing numbers of émigrés of global diasporas from Iraq, Iran, Afghanistan, Egypt, Syria, and Israel, as well as the Indonesian archipelago and sub- Saharan and East Africa. This most recent demographic trend takes Europe, and the larger trans-Atlantic west, into an era not well served by existing models.

In this anthology, nine prominent authors substantiate this shift. The essays create an unusual and productive dialogue between social scientist modeling and humanist cultural studies to confront assumptions about immigrant origin, European identity, and policies of tolerance. Bassam Tibi (International Relations, University of Gottingen/Cornell) criticizes European multiculturalism, which, he argues, inadvertently enables European Islamist fundamentalism. Tibi’s essay challenges his fellow Muslim immigrants to embrace traditional European civic values (which he dates neither from antiquity nor the Christian era, but rather from the French Revolution) as the foundation not for multiculturalism, but for a cultural pluralism that fosters social integration. The result, in his terms, would replace Islamist fundamentalism with a Euro-Islam capable of Euro-integration. Kadar Konuk (German Studies, University of Michigan) sets Tibi’s insight on European- Muslim ethnicity into the history of European-Turkish relations. Readers questioning Turkey’s EU candidacy will find that the two essays shift the common critique of Turkish policy toward a more pressing question of Europe’s social capacity to integrate prospective Turkish-EU citizens.

Contributions by Alec Hargreaves (French Studies, Florida State), Rogers Brubaker (Sociology, UCLA), and Saskia Sassen (Sociology, Columbia) — all leading authors on European political culture and social theory — rethink Western European responses to minority integration. Articles by Carole Fink (History, Ohio State), Leslie Adelson (German Studies, Cornell), and Salvador Cardús Ros (Sociology, Autonomous University of Barcelona) reveal cultural expressions that are often overlooked in studies of European minority identity. The final article by Pavle Levi (Art and Art History, Stanford University) focuses on the case of post-ethnic war Balkans, to test the ability of mass media and film to influence the creation of cross-border inclusive cultures.

Ethnicity in Today’s Europe was developed from the fall 2007 conference on the topic sponsored by FCE and the Stanford Humanities Center.

To sign up for upcoming FCE programming, and for an alert from the Stanford University Press when this anthology and works on this topic are released, plese visit the Stanford University Press website.

Martha Crenshaw is a pioneer in terrorism studies, one of a handful of scholars worldwide who started investigating the subject long before Sept. 11, 2001.

Crenshaw, who joined CISAC this year as a senior fellow at FSI and a political science professor by courtesy, brings three decades of study to her current agenda of examining distinctions between so-called old and new terrorism, how terrorism ends, and why the United States is the target of terrorism.

"We are very fortunate to have Martha Crenshaw join CISAC as a senior fellow," said Scott Sagan, CISAC co-director. "Her detailed knowledge of the inside workings of terrorist organizations and her deep understanding of earlier counter-terrorist campaigns have brought much-needed historical perspective to contemporary policy debates after 9/11."

Associate professor of law Mariano-Florentino Cuéllar, who led the search that resulted in Crenshaw's hiring, said her "combination of attention to historical detail, interdisciplinary methods, and knowledge of institutional context has made her one of the nation's foremost scholars of terrorism. Her appointment is great news for CISAC and Stanford, where she will strengthen an already significant scholarly community working on homeland security and terrorism."

Coming to Stanford from Wesleyan University, where she was the Colin and Nancy Campbell Professor of Global Issues and Democratic Thought and a government professor, Crenshaw said she found the opportunity to join an interdisciplinary research center a welcome change.

"CISAC's and my interests merged perfectly," she said, as the center was looking to build its research expertise in terrorism. She said she looks forward to teaching graduate students in the Ford Dorsey Program in International Policy Studies as well as working with research colleagues at CISAC and across campus.

Crenshaw's terrorism studies began with a graduate seminar paper she wrote on actions by the FLN, or National Liberation Front, during Algeria's war for independence from France in the 1950s and 60s. She arrived at the topic the way many professors advise students to do--she noted in a study of Vietnam-era guerrilla warfare the comment that "no one has studied terrorism."

That seminar paper inspired her dissertation, which formed the basis of her 1978 book, Revolutionary Terrorism: The FLN in Algeria, 1954-1962, a case study in the strategic use of terrorism by a revolutionary nationalist movement.

Having written numerous articles and edited four books on terrorism, Crenshaw is now editing a book tentatively titled The Consequences of Counterterrorist Policies in Democracies. The Russell Sage Foundation supported the research, which Crenshaw said illuminates issues such as "the strength of executive power, effects of counterterrorism legislation on minorities, and unintended consequences of counterterrorism policies."

As a lead investigator with the National Consortium for the Study of Terrorism and Responses to Terrorism at the University of Maryland, a Department of Homeland Security Center of Excellence, Crenshaw is also researching why the United States is the target of terrorism, a study that could be especially useful in informing counterterrorism policy.

Crenshaw "trace[s] the evolution of anti-American terrorism over time--since the mid-1960s," she said, comparing groups that used terrorism to others with similar ideas that have not resorted to terrorism. Comparing case studies, she explained, allows her to "analyze incentives for the use of terrorism."

In "The Debate over 'New' versus 'Old' Terrorism," a paper Crenshaw presented at the American Political Science Association annual meeting in September--and which will be published as a chapter in an edited volume, she questions oft-heard claims that terrorism in recent years has taken on a new character to become more religious and lethal. She found the distinctions too hastily drawn and possibly dangerous.

"There is no fundamental difference between 'old' and 'new' terrorism," she said.

"Rejecting our accumulated knowledge of terrorism by dismissing it as 'obsolete'" would be a mistake that could lead to bad policy choices, she added. Before 9/ll, assumptions that "new" terrorism would forsake the "old" technique of hijacking and turn to weapons of mass destruction turned out to be wrong, she pointed out.

Crenshaw said researchers and policymakers should "ask why some groups cause large numbers of civilian casualties and others do not, rather than assuming that religious beliefs are the explanation for lethality."

The Institute welcomes five new full-time faculty and two distinguished visitors in the current academic year. The latest additions represent consolidation of ongoing programs, such as those in homeland security and international relations and expansion of its research agenda into Asian comparative healthcare and issues in contemporary Europe.

Below are brief profiles of FSI's new faculty, all of whom have offices in Encina Hall.

Martha Crenshaw--FSI Senior Fellow, CISAC

Formerly a professor of government at Wesleyan University, Martha Crenshaw has a distinguished record of scholarship and policy engagement in the area of terrorism studies. Her early work on the National Liberation Front in Algeria 30 years ago made seminal contributions to the understanding of terrorist psychology and organizational structure, themes that are helping to animate the agenda for future research in the field. Her work with the U.S. Department of State and the intelligence community in the wake of 9/11 has played an important role in a major Department of Homeland Security grant she brought to Stanford this year.

Karen Eggleston--FSI Center Fellow, Shorenstein APARC and CHP/PCOR

Karen Eggleston joined Stanford from Tufts as an Asian comparative healthcare scholar whose work focuses on health systems and design incentives, especially in lower- and middle-income countries. She has co-authored Welfare, Choice and Solidarity in Transition: Reforming the Health Sector in Eastern Europe with esteemed economist János Kornai, which has been translated into Chinese, Vietnamese, Polish, and Hungarian. Her current research examines the Chinese healthcare system and how ownership factors affect hospital performance.

Siegfried S. Hecker--FSI Senior Fellow, Professor (Research), Management Science and Engineering, and Co-director, CISAC

Director emeritus of the Los Alamos National Laboratory, material scientist Sig Hecker became CISAC's co-director in early 2007. His research interests include plutonium science, nuclear weapons policy and international security, nuclear security, including nonproliferation and counter terrorism, and cooperative nuclear threat reduction. Over the past 15 years, he has fostered cooperation with the Russian nuclear laboratories to secure and safeguard the vast stockpile of ex-Soviet fissile materials.

Josef Joffe--FSI Senior Fellow, Forum on Contemporary Europe, and the Marc and Anita Abramowitz Fellow, Hoover Institution

A journalist-scholar and publisher-editor of the German weekly Die Zeit, Joe Joffe is in residence at Stanford during fall quarter. His work focuses on U.S.-Europe relations, and is noteworthy for its ability to bridge the worlds of journalism, academics, and policy analysis. He serves on several editorial boards and is a member of the International Institute for Strategic Studies. His work has been acclaimed through a number of awards, including Germany's Theodor Wolff Prize.

Phillip Lipscy--FSI Center Fellow and Assistant Professor, Political Science

Just completing his PhD in government at Harvard, Phillip Lipscy joins Stanford as a jointly held appointment in political science and FSI. His research focuses on international relations in Asia with particular attention to the domestic sources of foreign policy conduct. He is a comparativist with training in international relations, a rarity in the field of contemporary Japanese politics. He is bicultural, having grown up in Japan, and his foreign policy interests encompass the entire East Asia region.

William Howard Taft IV--The Warren Christopher Visiting Professor of International Law and Diplomacy, FSI and the Stanford Law School

Will Taft will be in residence at FSI and the Law School during the 2007-08 academic year as a visiting scholar and teaching Contemporary Issues in International Law and Diplomacy and Foreign Relations Law. Taft has held several private and public positions, including appointments at the Federal Trade Commission, Office of Management and Budget, and U.S. Department of Health, Education and Welfare. In 1981, he became general counsel to the Department of Defense followed by an appointment as the Deputy Secretary of Defense in 1984. Taft also served as U.S. ambassador to NATO and the U.S. Department of State's legal advisor, the highest legal position in the department. Taft is currently counsel in the office of Fried Frank Harris Shriver & Jacobson.

Alejandro Toledo--FSI Distinguished Payne Lecturer, CDDRL

Having overcome extreme childhood poverty, Alejandro Toledo became the first Peruvian president of indigenous descent to be democratically elected in 500 years. During his presidency, the Peruvian economy registered one of the fastest growing economies in Latin America. The central aim of his presidency was the fight against poverty through health and educational investment. Toledo will be in residence at CDDRL during the 2007-08 academic year. His work will be showcased in a series of talks, workshops, and other activities as part of his Payne lectureship.

The Brazilian government is declaring victory in its decades-long struggle to become self-sufficient in the supply of oil. The milestone is cause for celebration in a country that has long paid a high price for imported energy.

The Brazilian government is declaring victory in its decades-long struggle to become self-sufficient in the supply of oil. The milestone is cause for celebration in a country that has long paid a high price for imported energy.

It will also reverberate here in the United States where policy-makers, too, are trying to wean the nation from costly imports, jittery markets and the foreign spigot. But we must learn the right lessons. Brazil's success came not from treating oil as an addiction but by producing even more of the stuff and by becoming even more dependent on world markets

Here in the United States, most attention to Brazil's fuel supply has focused on the country's aggressive program to replace oil with ethanol that is made by fermenting homegrown sugar. American newspapers are filled with stories about Brazil's famous "flex fuel" vehicles that make it easy to switch between ethanol and conventional gasoline.

Guided partly by Brazil's apparent success, American policy-makers are crafting new mandates for ethanol, and flex fuel vehicles are now taking shape. We have the impression that ethanol is king.

In reality, ethanol is a minor player in Brazilian energy supply. It accounts for less than one-tenth of all the country's energy liquids.

The real source of Brazil's self-sufficiency is the country's extraordinary success in producing more oil. After the 1970s oil shocks, when Brazil's fuel import bill soared, the government pushed Petrobras, the state-controlled oil company, to look asunder for new energy sources.

Petrobras delivered, especially at home, where the firm pioneered the technologies that make it possible to extract oil locked in sediments under the seabed in extremely deep water. In the middle 1970s Brazil struggled to produce just 180,000 barrels of oil per day while importing four times that amount. Today it produces about 2 million and is self-sufficient. Indeed, the current milestone of self-sufficiency arrives with the inauguration of Brazil's newest deep water platform, the "P50." When P50 reaches its full output later this year, that one platform will deliver more liquid to Brazil than the country's entire ethanol program.

Brazil's self-sufficiency offers three lessons for U.S. energy policy:

-First is that ethanol, with current technology, will do little to sever our dependence on imported energy. Today's approach involves growing a crop - sugar in Brazil, corn in the United States - and then fermenting the fruits to yield fuel. Sugar plants in Brazil's climate are a lot more efficient at converting sunlight to biomass than is corn in the Midwest, but U.S. policy nonetheless favors corn (and imposes tariffs on imported sugar) because the program is really a scheme to deliver heartland votes rather than a commercially viable fuel.

Yet, even with Brazil's favorable climate and sugar's inviting biology, ethanol is already reaching the limit. That's because the land and other resources devoted to ethanol can be put to other uses such as growing food and cash crops.

Indeed, today the Brazilian government is actually reducing the share of ethanol that must be blended into gasoline because sugar growers prefer to make even more money by selling their product as sugar on the world market rather than fermenting it into alcohol.

New technologies - notably "cellulosic biomass"- could breathe fresh life into ethanol and replace still more oil. Cellulosic biomass is intriguing because it cuts costs by allowing the entire plant - the cellulose in the stalks, as well as the prized grain or sugar - to be fermented into fuel.

Advocates for this technology, including President Bush in his State of the Union address, have wrongly confused the sexy promise of this new-fangled approach to making ethanol with the practical realities of fuel markets. Schemes to produce cellulosic biomass, today, work only under special circumstances and nobody has delivered the fuel at the industrial scale that would be required for the technology to become commercially viable.

-Second, we should learn that, for now, the greatest force to loosen the world's oil markets lies with oil itself. We can use oil more efficiently, as would occur with a gasoline tax or wise fuel economy standards. But we can also find ways to produce more of the stuff - as Brazil did with Petrobras.

The problem for U.S. policy-makers is that the richest veins for new production lie mainly outside the United States and beyond our direct control.

Indeed, the Brazilian government made Petrobras more efficient by putting the firm partly beyond its control as well. When the government sold part of the company on international stock exchanges, it accepted Western accounting procedures and other strictures that have given Petrobras the autonomy and accountability to its shareholders that, in turn, helped make it an efficient company.

We have a stake in seeing other countries do the same - from Algeria to Mexico to Iran and even Russia. But we must remember that Brazil did this on its own, in response to internal pressures for reform, with little leverage from foreign governments.

-Third, we should learn from Brazil not to confuse the goal of greater self-sufficiency with the illusion of independence. Even as Brazil has become self-sufficient it has also, ironically, become more dependent on world markets. That's because the Brazilian government has wisely relaxed price controls so that the prices of fuels within the country are set to the world market. Thus Brazilians see real world prices when they fill up at the pump, and the decisions about which cars to buy and how much to drive reflect real costs and benefits of the fuel they consume. That is why, even as the country becomes self-sufficient, Brazilians are working ever harder to be more frugal with oil - because the price at the pump is high and rising.

Dependence on oil is a liability that must be managed. But it is not an addiction.

Efficiency, sober policies toward modest alternatives such as ethanol, and more production - all tools of the manager, not the addict - are required. Brazil helps show the way, but only if we learn the right lessons.

The world's energy system seems to have come unhinged. Oil is trading at record high prices because demand keeps rising even as supplies become unreliable. Oil exporters from Iran to Russia and Venezuela are using their petrocash to pursue agendas that undercut western security and interests. Supplies of natural gas also seem less secure than ever.

The root cause of these troubles is dysfunctional energy politics. The countries with the strongest incentives to cut their vulnerability to volatile energy markets - notably America - are unable to act because influential politicians view all serious policies as politically radioactive. Efforts to boost supply have little leverage because the most attractive geological riches are found mainly in countries where state-owned companies control the resources and outsiders have little clout. Thus, the current energy debates are generating a volcano of proposals that have no positive impact on tight markets.

Yet these structural barriers to serious policy remain hidden because the debate labours under the meaningless umbrella of "energy security". Proper policy on oil and gas must start with the distinct uses for these fuels - each requiring its own political strategy.

The effort on oil must focus on transportation. Vehicles and aircraft work best with liquid fuels that can store large quantities of energy in a compact space and flow easily through pipes to engines. Searching for a better substitute is worthwhile, but the effort faces an uphill battle. With today's technologies, no other energy liquid can reliably beat petroleum. Liquids can be made from coal, as South Africa and China are doing. But that approach is costly and has unattractive environmental implications. Brazil and the US have focused on ethanol, which they distill from sugar or grain from crops. However, those programmes, which account for less than 0.5 per cent of the world's energy liquids, have a negligible impact on the oil market. Yet, America is redoubling its ethanol effort because it is politically unbeatable to reward corn growers and grain handlers who are a formidable force in US politics. Indeed, requirements for ethanol in America have created a more rigid fuel supply system that actually raises the price of oil products, although ethanol's backers originally claimed they would cut energy costs. That same political force also blocks imports of cheaper Brazilian ethanol. In principle, a better approach is so-called "cellulosic ethanol", which promises lower costs as it converts whole plants into ethanol rather than just the grain. But like most messiahs, its attraction lies in the future. So far, nobody has made the system work at the scale of a commercial refinery.

The best way to temper oil demand today is by lifting efficiency. Even this economic winner is politically difficult to implement. The US, which consumes one-quarter of the world's oil, has not changed fuel efficiency standards for new cars in 16 years. Every big economy - even China's - has stricter fuel economy rules than America's. Political gridlock has stymied even modest proposals to allow trading of efficiency credits. A trading scheme is politically inconvenient as it could force US carmakers (which make generally inefficient cars) to buy valuable credits from foreign brands. No politican wants to multiply Detroit's problems.

Even better ideas - such as a stiffer petrol tax - stay stuck on opinion pages of newspapers and in academic journals. Despite what is increasingly termed today's "energy crisis", these ideas barely cross the lips of politicians who want to remain viable among the thicket of anti-tax conservatives and pro-Detroit lobbyists.

The approaches needed for natural gas are quite different. In western Europe, which has long depended on imported gas from Russia, Algeria and a few smaller suppliers, the vulnerabilities are particularly stark. In principle, though, gas dependencies are easier to manage than oil because gas has rivals for each of its major uses. In electric power generation, countries must preserve diversity - ensuring, for example, that advanced coal and nuclear technologies remain viable. While "diversity" is motherhood in energy policy, in reality it requires difficult choices. In continental Europe, for example, policy-­makers have not seriously confronted the conflict between the need for diversity while, at the same time, opening the power sector to morecompetition. Historically, companies in competitive power markets have invested heavily in gas because gas plants are smaller and require less capital than coal or nuclear plants.

Gas suppliers who dream of extending their powers forget that it is harder to corner gas markets when users have a choice. Algeria learnt that lesson in 1981 when it left a key pipeline empty in a pricing dispute with Italy - extracting a better price at the time but losing billions of dollars for the future by destroying its reputation as a reliable supplier.

That lesson should be sobering for Russia today. In December, Gazprom, Russia's giant state gas company, cut deliveries to Ukraine, which then siphoned supplies that flow on to Europe. The company rattled its pipes again last month - threatening retaliation if Europe dared try to wean itself from Russia's gas. While Gazprom's management must pander to Russian nationalism (where pipe-rattling is welcome), the company's long-term viability rests on its reliability as a supplier to lucrative west European markets. Similarly, the recent decision by Evo Morales, Bolivia's president, to nationalise his country's gas fields will give him a boost domestically and might generate some instant extra revenue, but it will also encourage his customers in Brazil and Argentina to look elsewhere for energy.

"Resource nationalism" is back in vogue. But for gas suppliers in particular, it usually ends badly - not least because the infrastructure is costly to build and buyers can afford to be choosy. Gas users can further subdue Russia's rattling by multiplying sources of supply. A robust market for liquefied natural gas will help.

The tendency for gridlock in energy politics means that policymakers must focus where tough decisions matter most, such as efficiency in the use of oil and diversity in the application of gas. Yet, prospects for serious policy are poor - not least because the US, which should be a leader, is the most hamstrung. Luckily, the markets are responding on their own - albeit slowly and patchily. Costly oil is encouraging conservation and new supplies; LNG is accelerating, and gas buyers are more wary of Russian gas than they were a decade ago when Russia was seen as a reliable supplier. If the political structure remains dysfunctional on matters of energy, then the best second is perhaps no policy at all.

The Brazilian government is declaring victory in its decades-long struggle to become self-sufficient in the supply of oil. The milestone is cause for celebration in a country that has long paid a high price for imported energy.

It will also reverberate here in the United States where policy-makers, too, are trying to wean the nation from costly imports, jittery markets and the foreign spigot. But we must learn the right lessons. Brazil's success came not from treating oil as an addiction but by producing even more of the stuff and by becoming even more dependent on world markets

Here in the United States, most attention to Brazil's fuel supply has focused on the country's aggressive program to replace oil with ethanol that is made by fermenting homegrown sugar. American newspapers are filled with stories about Brazil's famous "flex fuel" vehicles that make it easy to switch between ethanol and conventional gasoline.

Guided partly by Brazil's apparent success, American policy-makers are crafting new mandates for ethanol, and flex fuel vehicles are now taking shape. We have the impression that ethanol is king.

In reality, ethanol is a minor player in Brazilian energy supply. It accounts for less than one-tenth of all the country's energy liquids.

The real source of Brazil's self-sufficiency is the country's extraordinary success in producing more oil. After the 1970s oil shocks, when Brazil's fuel import bill soared, the government pushed Petrobras, the state-controlled oil company, to look asunder for new energy sources.

Petrobras delivered, especially at home, where the firm pioneered the technologies that make it possible to extract oil locked in sediments under the seabed in extremely deep water. In the middle 1970s Brazil struggled to produce just 180,000 barrels of oil per day while importing four times that amount. Today it produces about 2 million and is self-sufficient. Indeed, the current milestone of self-sufficiency arrives with the inauguration of Brazil's newest deep water platform, the "P50." When P50 reaches its full output later this year, that one platform will deliver more liquid to Brazil than the country's entire ethanol program.

Brazil's self-sufficiency offers three lessons for U.S. energy policy:

-First is that ethanol, with current technology, will do little to sever our dependence on imported energy. Today's approach involves growing a crop - sugar in Brazil, corn in the United States - and then fermenting the fruits to yield fuel. Sugar plants in Brazil's climate are a lot more efficient at converting sunlight to biomass than is corn in the Midwest, but U.S. policy nonetheless favors corn (and imposes tariffs on imported sugar) because the program is really a scheme to deliver heartland votes rather than a commercially viable fuel.

Yet, even with Brazil's favorable climate and sugar's inviting biology, ethanol is already reaching the limit. That's because the land and other resources devoted to ethanol can be put to other uses such as growing food and cash crops.

Indeed, today the Brazilian government is actually reducing the share of ethanol that must be blended into gasoline because sugar growers prefer to make even more money by selling their product as sugar on the world market rather than fermenting it into alcohol.

New technologies - notably "cellulosic biomass"- could breathe fresh life into ethanol and replace still more oil. Cellulosic biomass is intriguing because it cuts costs by allowing the entire plant - the cellulose in the stalks, as well as the prized grain or sugar - to be fermented into fuel.

Advocates for this technology, including President Bush in his State of the Union address, have wrongly confused the sexy promise of this new-fangled approach to making ethanol with the practical realities of fuel markets. Schemes to produce cellulosic biomass, today, work only under special circumstances and nobody has delivered the fuel at the industrial scale that would be required for the technology to become commercially viable.

-Second, we should learn that, for now, the greatest force to loosen the world's oil markets lies with oil itself. We can use oil more efficiently, as would occur with a gasoline tax or wise fuel economy standards. But we can also find ways to produce more of the stuff - as Brazil did with Petrobras.

The problem for U.S. policy-makers is that the richest veins for new production lie mainly outside the United States and beyond our direct control.

Indeed, the Brazilian government made Petrobras more efficient by putting the firm partly beyond its control as well. When the government sold part of the company on international stock exchanges, it accepted Western accounting procedures and other strictures that have given Petrobras the autonomy and accountability to its shareholders that, in turn, helped make it an efficient company.

We have a stake in seeing other countries do the same - from Algeria to Mexico to Iran and even Russia. But we must remember that Brazil did this on its own, in response to internal pressures for reform, with little leverage from foreign governments.

-Third, we should learn from Brazil not to confuse the goal of greater self-sufficiency with the illusion of independence. Even as Brazil has become self-sufficient it has also, ironically, become more dependent on world markets. That's because the Brazilian government has wisely relaxed price controls so that the prices of fuels within the country are set to the world market. Thus Brazilians see real world prices when they fill up at the pump, and the decisions about which cars to buy and how much to drive reflect real costs and benefits of the fuel they consume. That is why, even as the country becomes self-sufficient, Brazilians are working ever harder to be more frugal with oil - because the price at the pump is high and rising.

Dependence on oil is a liability that must be managed. But it is not an addiction.

Efficiency, sober policies toward modest alternatives such as ethanol, and more production - all tools of the manager, not the addict - are required. Brazil helps show the way, but only if we learn the right lessons.