Three months ago the Russian energy giant Gazprom forced Ukraine to pay sharply higher prices for natural gas. At the time, the story was portrayed as a political struggle for control in Kiev. But last week Gazprom announced it was tripling gas prices in Belarus, a country that is politically close to the Kremlin. Moldova has been forced to accept a doubling of prices over the next three to four years, and the other former Soviet republics are already paying market prices for Russian gas.

The truth is that these price increases are not political. Rather, they reflect worrisome economic and geological facts about Russian gas fields. The Kremlin is not simply trying to use Gazprom to reassert authority in Belarus, Ukraine or anywhere else. There are in fact deep problems with Gazprom -- problems created by its inefficient management and a looming decline in gas production.

Russia controls over a quarter of the world's gas reserves -- more than any other country. Most of the known Russian reserves (about 80 percent) are in west Siberia and concentrated in a handful of giant and super-giant gas fields. Since the early 1970s the rate of discovery for these new fields has been declining. Moreover, output from the country's mainstay super-giant fields is also steadily falling.

Huge investments are needed to replace this dwindling supply, and all the options for new production will prove costly and difficult. New fields in the far north and east of the country are distant from most of Russia's people and export markets, requiring wholly new transport systems such as pipelines. Moreover, most of these fields are found in extremely harsh environments where it is technically and financially difficult to operate.

Gazprom controls neither the capital nor the technology that will be needed. The state-controlled company is already deeply in debt and burdened by many expensive obligations, such as supplying Russia's population and friends with cheap gas. The company has to work with foreign partners.

So far Gazprom has been able to forestall crisis. Economic stagnation across the former Soviet Union and Eastern Europe since 1990 dampened gas demand. Russia, which had a surplus at the time, sharply increased its gas exports and made contractual commitments that will remain in force for many years.

But following the long stagnation, Russia's internal gas consumption is rising again as the economy expands. And new Russian policies to promote development of the country's eastern regions will, in the next few years, require large new commitments to supply gas to that region (along with spending on railroads, airports and other infrastructure).

Even when the Russian economy was in the doldrums the country was notable as a large gas consumer because of its extremely inefficient energy system. Today Russia is the world's second-largest gas user, after the United States, although its economy is only one-twentieth the size of the U.S. economy.

Electricity in Russia is produced for the most part by gas, but the country's gas-fired electric generators work at 33 percent efficiency on average, compared with 50 to 55 percent in Europe. More than 90 percent of residential and industrial gas consumers don't have meters. Gas is even cheaper than coal -- Russia is the only large country where that is true -- so incentives to switch to an abundant fuel are weak.

In recent years Russia has boosted gas supplies by squeezing Turkmenistan to sell gas to Russia at a deep discount. But Turkmen gas production is poised to decline, and Turkmenistan's gas industry is barely functional because the country's political environment is scary for long-term investors. Other Central Asian suppliers, notably Kazakhstan, are unlikely to be able to bridge the gap.

Caught between growing internal consumption of gas, continued inefficiency and mounting external obligations, Russia's gas industry faces a looming crisis. Given the country's vast resources, it seems that many producers could fill the void. But a series of policy decisions created two roadblocks that Gazprom has been happy to reinforce. One is the lack of access to the Gazprom-controlled pipeline network, which explains why few companies even bother to look for gas: They know they can't get what they find to market. The other barrier to investment is the low internal prices, which make gas production uneconomic except for companies that can sell their products outside.

Gazprom needs cash -- much more cash -- for investment. At the same time, it needs a strong incentive for former Soviet republics to cut their own very inefficient consumption.

Analysts have ignored the risk that Russia's supplies could fall short because they focus on Russia's vast gas resources and the new Western investors who are -- albeit cautiously -- entering into joint ventures with Gazprom. But those resources and ventures are for the long term, and the looming crisis of supply is unfolding now.

The gas shortage is likely to become most acute over the next few years. If there is an unusually cold winter in 2008, the year of Russia's presidential election, then Gazprom will face a politically unpleasant choice: whether to cut off internal customers (voters) or the Western customers who are the firm's main source of hard cash.

The writer is a research fellow at the Program on Energy and Sustainable Development at Stanford University. She is co-author of "Axis of Oil" and of a forthcoming comprehensive review of Russia's gas pipelines.

There was no Orange-style revolution in Belarus following the 19 March presidential elections. But there may have been the beginning of a revolution of the spirit that will bring the last tyranny in Europe to an end. Observers should not lament the "failure" of revolution but should hail the beginning of a genuine democratic movement, which is stronger today than it was just a few years ago.

From the beginning of this campaign, there was little sign of a real contest. Lukashenka could have won a free and fair election: Strong economic growth and social stability might have guaranteed him half of the vote or so, had the vote actually been counted. But a free and fair vote carried the risk of defeat, however remote, and the ghost of the Orange Revolution in Ukraine in 2004 fueled hysteria within the regime. Consequently, just before the vote, the government criminalized opposition-related activity and began to arrest election monitors and activists from nongovernmental organizations on charges of terrorism.

Yet Lukashenka wanted some legitimacy for his reelection and therefore allowed opposition candidates to participate. Surprisingly, two challengers, the leader of the united opposition, Alyaksandr Milinkevich, and the former rector of the Belarusian State University, Alyaksandr Kazulin, refused to bow to the dictator and decided to play by their own rules. Their 30-minute campaign speeches on state TV (that is how much exposure to alternative opinions an ordinary TV viewer in Belarus has had in five years) were devoted not much to the issues but to attacking Lukashenka's character - an act previously unthinkable in a country where one official once declared Lukashenka to be "a bit higher than God." Both candidates emphasized freedom and democracy rather that day-to-day issues in their messages and found much sympathy, to the surprise of observers. Thousands turned out on the streets to hear speeches from opposition candidates, numbers that were unthinkable even in Minsk just a year ago.

Lukashenka saw the crowds as well and got nervous. Kazulin, whose particularly scathing attacks made him an instant celebrity, was beaten up by riot police. Dozens of observers and reporters were denied visas, expelled, or even arrested and charged with helping to plot a coup. State TV propped up its propaganda, and the KGB began to discover one plot after another every several days. In the last revelation, the head of the KGB claimed that the opposition would poison the tap water in Minsk using decomposing rats. And dozens of opposition activists with experience in street protests were rounded up in the run-up to the vote. Yet even in the face of these repressive tactics, Lukashenka's autocratic regime failed to deter people from mobilizing on the streets after the vote to denounce the fraudulent results.

On 19 March, at least 20,000 people took to the streets to protest the announcement of a "smashing" victory for Lukashenka, who was declared winner with 83 percent of the vote cast. And the protesters did not stop there, organizing an around-the-clock vigil on the central square of Minsk to demand annulment of the vote and new elections.

To be sure, the size of the protests was nowhere near the crowds that turned out in the streets in Kyiv a year and half ago. Yet thousands of Belarusians braved not only the blizzard but explicit threats of jail and even the death penalty made by the KGB on the eve of elections. Most of them faced immediate dismissal from state jobs or university if found in the crowd or even caught checking an opposition website. And they barely had means to communicate with each other due to suspension of most of the opposition press and an almost total blockade of the Internet and mobile communications. Could one have expected a protest of more than just a handful of dissidents in these, almost Soviet-style conditions?

SMALL VICTORIES

In retrospect, one has to admit that the protest was doomed. The opposition knew it did not win the elections and hence did not attempt to stage a revolution as such: that is, to attempt to snatch power from Lukashenka by force. Instead, the protest turned into a show of defiance, an attempt to get the sympathy and attention of fellow countrymen. Day after day, the numbers dwindled, not least because each new day brought the protesters closer to an imminent show of force by the government. It came on the morning of 23 March, when people on the square were surrounded and thrown into police trucks, then taken to jails and sentenced to various prison terms.

The dramatic end of the protest also highlighted an unpleasant fact for the Belarusian opposition: A combination of fear imposed by the government on one part society, and acceptance of the regime by another part, still limits its appeal and following. The streets of Minsk these days were full of pictures of solidarity and defiance, but also of indifference from passers-by and loathing for the protesters from the regime's supporters.

Lukashenka's opponents still have a long way to go to communicate their message to the entire society - and will have to do so in an even more repressive political climate than they have endured so far. But failures and disappointments shall not distract attraction from the opposition's successes in this campaign and afterward. It achieved unity and presented society with a leader whom many accepted as a credible alternative to Lukashenka. It invigorated the network of democratic activists, who braved certain repression and imprisonment. It spurred public debate, and the quest for free information was boosted even when the regime knocked out independent newspapers by the dozens. And it proved to the society and the entire world that support for democratic change in Belarus is not limited to just a handful of fanatics.

The March events may be the beginning of a newly invigorated fight for democracy in Belarus as much as it can trigger a new, more severe round of oppression from the regime. The West cannot stop paying attention. Those struggling for democracy, especially those already in jail, deserve our solidarity; families of political prisoners need support; and recently expanded democratic assistance programs, especially efforts to expand access to independent media within Belarus, must be sustained, not cut, now that the election is over.

Democrats in Belarus defied expectations and demonstrated that they exist, they have some popular support, and they are willing to take risks in their fight for freedom. Now, more than ever, supporters of freedom in the West need to stand with them.

On May 18 a roundtable organized jointly by CDDRL and CREEES and chaired by SIIS Senior Fellow Gail W. Lapidus brought together visiting scholars Temuri Yakobashvili from Georgia, Volodymyr Kulyk from Ukraine, Uladzimir Rouda from Belarus, and Wall Street Journal reporter Steve LeVine to examine the dramatic wave of democratic revolutions and protest movements which have transformed the geopolitics of the post-Soviet region over the past 2 years.

The participants argued that although the "Rose Revolution"in Georgia in October 2003, the Ukrainian "Orange Revolution" of November-December 2004, and the more recent regime change in Kyrgyzstan were all precipitated by popular protest against fraudulent elections, they expressed a deeper dissatisfaction with the widespread corruption and failures of the three governments, combined with the emergence of an increasingly mature and organized political opposition. While international organizations and actors played a supportive role in delegitimizing electoral fraud and nurturing civil society, domestic factors were the decisive ones in bringing about peaceful regime change.

The panelists also concurred that the "easy"revolts were now over. They predicted that future upheavals in the region were inevitable, but were far less likely to go smoothly. In Belarus, although popular hostility to a tyrannical political regime is growing, inspired by the successful example of neighboring Ukraine and the attraction of Europe, the absence of a united and organized opposition remains a major barrier. In Uzbekistan, the repressive regime of President Karimov has demonstrated its willingness to resort to violence to put down opposition, and to forestall international criticism by stigmatizing opponents as Islamist terrorists.

On April 7, The Rt. Hon. Lord Christopher Patten of Barnes delivered the Spring 2005 Payne Lecture before a large audience in the Bechtel Conference Center.

Lord Patten's address - The Transatlantic Family: Counseling, Mediation, or Divorce - although focused on American-European relations, extended to a myriad of global issues facing the transatlantic partnership. The lecture drew on Patten's exceptional public service experience, notably as the last British Governor of Hong Kong (1992-1997), EU Commissioner for External Relations (1999-2004) and Chancellor of Oxford University (2003-present).

Patten began by rebutting the notion that the U.S. is or should be an imperial power. Speaking about America, Patten observed: "You bucked what some historians going back to Thucydides believed to be almost a dictate of natural law, and refused to translate power into territorial aggrandizement and conquest. There is no real American settlement abroad. Most Americans who live overseas inhabit rich countries, not poor ones. Your universities do not, unlike Milner's Oxford, train an imperial cast of administrators. You don't seize territory though you're concerned about military bases and energy sources." America has pursued the most successful great power strategy since Augustus's Rome, Patten argued, not through imperialism, but by a tri-part policy of building institutions of global governance, persuading Europe to turn its back on xenophobic nationalism, and using American economic power and development assistance to foster market-based prosperity abroad. "That was the world in which I grew up, a world where there was stability, peace and growing prosperity year after year, but there wasn't much gratitude for the superpower."

From the very beginning many Europeans showed ingratitude and demonstrated "a particular European condescension masquerading as sophistication" Patten remarked. France in particular has displayed "petulant ingratitude". Even during the Clinton presidency, he added, there were some rows, though on the whole it was a storm-free relationship. Since 2001 however Americans and Europeans have perceived a growing gap between them on several issues, including the Middle East Peace Process, changes in US policy over North Korea, and abrogation of the ABM Treaty. The Bush administration's position on the Kyoto Protocol, in particular, impacted European public opinion negatively. By the time the Iraq crisis unfolded, Patten asserted, it appeared to confirm for many Europeans that America has turned to unilateralism. Patten emphasized that unlike President Bush who, he argued, won the 2004 Presidential election as a war President, in Britain Tony Blair, if he wins the general elections on May 5th this year, will do so not because of the war but despite it. Patten also expressed the fear that the Iraq experience will make it far more difficult to secure public support for any course of action, which will involve asking the public to put their trust in governments, and in the intelligence community in particular. About the wider Middle East he stated: What is a geostrategic issue for the United States is Europe's backyard.

Turning to what should be done to prevent the fracturing of the Transatlantic Alliance, Patten stressed that a rupture would be bad for Europe, the United States and the world at large "because whether you are talking about matters political or economic, the world is best served when transatlantic relations are in good shape". To prevent the relationship from deteriorating Americans and Europeans should first manage the relationship better. "We shouldn't take one another by surprise", he observed. Europe should also spend more on security, especially on better airlift capacity and special forces. "If we're going to be treated seriously as a partner, we have to be able to punch a little closer to our economic weight from time to time", Patten said; "too often Europeans are reluctant to accept that the maintenance of the international rule of law does sometimes require the use of force", he added. America and Europe should also spend more on development assistance, and the promotion of democracy, the rule of law and good governance. The objective of spreading democracy to the countries of the Arab League is not an impossible one. More broadly, Patten observed that "We need to identify those areas where it's imperative that we work together". Europe is never likely to be a significant contributor to a political settlement in Korea, he argues, but it can play a big role in Africa, the Balkans, in the Middle East, in Iran, and in dealing with Russia. On the latter, Patten was decisive: "If we want peace and stability in Moldova, in the south Caucuses, in the Ukraine, then Russia is going to have to stop creating trouble. It's got to abandon its present attitude to spheres of influence, and this is a point which we should put pretty bluntly, in my judgment, to President Putin. We talk in Europe regularly about a strategic relationship with Russia based on shared values. I have to say I don't see much evidence of the shared values."

The approach to global governance since World War II has been remarkably successful, Patten concluded. Recent surveys about attitudes in international affairs show that the majority of Americans, even after the Iraq war, want Europe to play a larger part in sharing world leadership. Patten expressed hope that that is a challenge Europeans will live up to. Europeans should be America's "super partners", Patten concluded, rather than its "supine followers" or "super snipers".

While the improving U.S. economy remains the engine of growth for the world economy, an underlying trend involving "huge imbalances and risks" should be cause for serious alarm, Paul Volcker warned Feb. 11 during a speech on campus. Americans have virtually no savings, the former chairman of the Federal Reserve said, and the nation is consuming more than it is producing. Furthermore, Social Security and Medicare are threatened by the retirement of millions of baby boomers and skyrocketing health care costs. More broadly, he continued, the world economy is lopsided.

"Altogether, the circumstances seem as dangerous and intractable as I can remember," Volcker said during a keynote address at the second annual summit of the Stanford Institute for Economic Policy Research. "But no one is willing to understand [this] and do anything about it."

Volcker spoke at the end of a daylong conference that attracted about 450 corporate leaders, entrepreneurs, policymakers and academics. The event included discussions on the stability of the global economy, the U.S. economic outlook and the role of the Internet in helping to level the competitive playing field worldwide. The conference also featured sessions on outsourcing, Medicaid and Medicare, technology policy and the Sarbanes-Oxley Act, which was implemented in 2002 to restore investor confidence in corporate America following a series of bankruptcies and far-reaching accounting scandals.

During a morning session, William J. Perry, a former secretary of defense and a senior fellow at the Stanford Institute for International Studies, gave a chillingly stark assessment of the crisis of terrorism that was reinforced by George Shultz, a former secretary of state.

"I fear that we're headed toward an unprecedented catastrophe where a nuclear bomb is detonated in an American city," Perry said. "The bomb will not come in a missile at the hands of a hostile nation. It will come in a truck or a freighter at the hands of a terror group."

Perry, who holds the Michael and Barbara Berberian Professorship, said the "awesome military capability" of the United States has had unintended consequences in that it has increased the incentive for a hostile power, unable to compete in conventional warfare, to acquire weapons of mass destruction and launch terror attacks against America. U.S. military superiority is not particularly effective against such tactics, he said. "There exist terror groups, of which al Qaeda is the most prominent, that have the mission, the intent to kill Americans," Perry said. "They have the capability to do so; they have the resources to do so." A truly nightmare scenario would involve a terror group using nuclear weapons acquired clandestinely, he said: "After 9/11 that threat seems all too real."

Such a catastrophe is preventable, but the United States is not taking the necessary measures to avert it, Perry warned. Important steps should include a major expansion of the Nunn-Lugar Cooperative Threat Reduction Program with the support the G-8 group of industrialized nations. The program was created in 1991 to reduce the threat posed by the legacy of the Soviet nuclear arsenal and succeeded in dismantling and destroying weapons in Kazakhstan, Ukraine and Belarus. Furthermore, Perry said, a clear strategy of "coercive diplomacy" should be used against North Korea and Iran, followed by a major diplomatic initiative to convince other nuclear powers that the threats posed by terrorists are real and not just directed at Americans. "While America must show real leadership in dealing with this problem, [it] cannot deal with it alone," he said.

Shultz, the Thomas W. and Susan B. Ford Distinguished Fellow at the Hoover Institution, said the United States faces a huge problem in combating Islamic radicals intent on using terror to achieve their goals. "Eventually, what they want is to change the way the world works by creating a unified Islamic theocratic state," he said. "It's a worldwide agenda."

Shultz argued that the United States must help supporters of mainstream Islam understand the fundamental nature of the problem so they will take action against the radicals themselves.

"That's why Iraq is of such overwhelming importance," he said. "Here we have a country in the heart of the Middle East where there is a chance. If Iraq can emerge as a sensibly governed country--that's a gigantic event in the Middle East and in this war on terror. Our enemies recognize that just as well as we do, and that's why we're having so many problems."

Other measures that Shultz said should receive greater support include efforts to set up independent media in countries such as Iraq, as well as a revival and expansion of the U.S. diplomatic service, which he said was allowed to atrophy after the end of the Cold War. "We have developed an awesome military capability," he said. "We need a diplomatic capability that is as every bit as good." Shultz also stressed the need to reduce U.S. dependence on foreign oil. "We are out of our cotton-picking minds not to be doing much, much more to figure out how to use much, much less oil," he said to applause from the audience.

In the afternoon, Thomas Friedman, a columnist at the New York Times, also called for greater efforts to develop alternative energy supplies. This should be the "moon shot of our generation," he said.

Friedman discussed how the convergence of personal computers, cheap telecommunication and workflow software has changed the way the world works. In his upcoming book, The World Is Flat: A Brief History of the 21st Century, Friedman explained that the world has shrunk to the point where individuals, not countries or companies, are increasingly able to think and act globally. "And it's not just a bunch of white Westerners," he said. "It's going to be driven by individuals of every color of the rainbow."

Friedman told the audience that these technological advances quietly unfolded just as the 9/11 terror attacks, the Enron collapse and the dot-com bust grabbed America's attention. "People thought globalization was over but actually it turbo-charged globalization; it drove it overseas," he said. "9/11 completely distracted our administration, and then there was Enron. We have hit a fundamentally transformative moment and no one is talking."

In this new scenario, people anywhere in the world will be able to "innovate and not emigrate" if they have the required skills, Friedman said. This means that engineers in India and China will be able to compete on a level playing field with people in this country. "When the world goes flat, everything changes," he said.

To address this challenge, Friedman said the United States must radically improve science, mathematics and engineering education and encourage young people to enter these fields. "We're not doing that," he said. "In the next two years, five years, it won't matter. In 15 years, which is the time it takes to build an engineer, it will matter. We will not be able to sustain our standard of living."

Elizabeth Sherwood-Randall, a senior research scholar with the Center for International Security and Cooperation (CISAC) at the Stanford Institute for International Studies and a senior adviser to CISAC's Preventive Defense Project, has been selected as a 2004 Carnegie Scholar.

The 15 scholars chosen this year by the Carnegie Corporation of New York will each receive up to $100,000 for a period of two years to pursue research. They join 52 others awarded the fellowships since 2000.

"The Carnegie Corporation has a long history of supporting path-breaking work in international security, and I am truly honored to be included in such a distinguished group of scholars," said Sherwood-Randall. "Given the state of the world -- and the fact that there are few foreign and defense policy goals that we can successfully pursue unilaterally -- I intend to use this support to generate new ideas about the leadership of America's key alliances and partnerships."

Sherwood-Randall's research topic is "Transforming Transatlantic Relations: A New Agenda for a New Era." Her study will seek to understand the elements of continuity and change in the global security environment in order to determine whether and how America's most important alliance, the North Atlantic Treaty Organization, can remain relevant and effective. She intends to publish the results of her work in a journal-length article as well as produce policy memoranda and briefings for appropriate officials in the U.S. government and relevant international organizations.

Sherwood-Randall served as deputy assistant secretary of defense for Russia, Ukraine and Eurasia during the first Clinton Administration (1994-1996). She played a key role in creating a cooperative context for denuclearization efforts in Russia, Ukraine, Belarus and Kazakhstan and in establishing security ties with the new states of Central Asia. Prior to her government service, Sherwood-Randall served as co-founder and associate director of the Harvard Strengthening Democratic Institutions Project, as chief foreign affairs and defense policy advisor to Sen. Joseph R. Biden, Jr., and as a guest scholar in foreign policy studies at the Brookings Institution.

Sherwood-Randall received her B.A. from Harvard-Radcliffe Colleges, magna cum laude. She received her doctorate in International Relations from Oxford University, where she was a Rhodes Scholar.

Chosen in a highly competitive process -- from an initial group of 144 nominees, 54 were invited to provide complete proposals -- the 15 selected Carnegie Scholars will explore issues critical to economic growth and human development. These include the American electoral process; political theory of international law; school reform from an international perspective; a reconsideration of the Iran hostage crisis; the logic of suicide terrorism; local control and federal reform of education; how U.S. transatlantic relations can remain relevant and effective; Hispanic students' achievements in elementary education; justice in education; political obligations in World War I America; the rise of far-right extremist groups and the role masculinity plays in their resurgence; the role of the United States in the 21st century; and the rebirth of democracy in Iraq.

"The annual announcement of the Carnegie Scholars is an opportunity to celebrate original and creative thinking on a wide array of social issues important to the Corporation's strategies," said Vartan Gregorian, president of the Carnegie Corporation of New York, who inaugurated the Scholars Program in 1999 to support innovative and path-breaking scholarship.

"Criteria for selection were based on stringent academic standards and the relevance of the project to Corporation program priorities," said Neil Grabois, Carnegie Corporation's vice president and director for strategic planning and program coordination, who facilitated the various levels of deliberations. "The program's definition of excellence incorporates demonstrating intellectual risk-taking, framing unusual questions, possessing the capacity to communicate clearly and effectively on complex themes, and advancing scholarship in the Corporation's programs."

The Carnegie Corporation of New York was created by Andrew Carnegie in 1911 to promote the advancement and diffusion of knowledge and understanding. As a grant-making foundation, the Corporation seeks to carry out Carnegie's vision of philanthropy, which he said should aim to do real and permanent good in the world. The Corporation's capital fund, originally donated at a value of about $135 million, had a market value of $1.8 billion on Sept. 30, 2003. The Corporation awards grants totaling approximately $80 million a year in the areas of education, international peace and security, international development and strengthening U.S. democracy.