The world continues to get smaller, and the neighborhoods that it is composed of are becoming more dependent upon one another. Today's threats to stability are trans-national in nature and rarely contained within the borders of one country. In most cases the consequences of a major terrorist action or environmental disaster will quickly overwhelm the management capability and response assets of the affected nation. When that occurs the maintenance of stability relies on effective regional, and if required, international assistance. A government that attempts to "go it alone" in today's environment runs the risk of losing the confi dence of its citizens and, as a result, its viability. As part of the United States' active efforts to forge new, productive international relationships to meet the challenges of the 21 st century, encouraging stronger regional ties where few currently exist is a key policy initiative.

The Central Asian country of Uzbekistan has adopted a unique transition strategy of gradual, state-guided development in which stability and equality are principal objectives and in which growth is sought for now by exporting staple raw materials and importing capital equipment to assure energy independence and to invest in backward-linkages into cotton fabricating, chemicals, and other manufacturing branches. Sharp criticisms of the'Uzbek Road'by multinational agencies unfairly neglect positive aspects of the transition record to date in comparison with other post-Soviet states of the area. Copyright 2000 Western Economic Association International.

Post-Soviet Russia has had the will to dominate its neighbors, but it no longer has the capability. Its Central Eurasian neighbors are much stronger and more confident about their independence, and Russia's influence is being effectively challenged there by China, the West, and the democratic economies of Asia. Unable to modernize its economy and armed forces, Russia has failed to achieve most of the main objectives (excluding NATO, regaining trade exclusivity, ending drug, arms, and terrorist infiltration) it has set for itself in the "near abroad." In view of Russia's admitted weakness and its excessive reliance on oil and gas exports, some of its leaders favor redirecting its efforts to improving relations with the West. Aside from Central Asia, where Russia is cooperating with NATO in combating extreme Islamists operating in Afghanistan, Russia is trying to establish an Eurasian customs union with Kazakhstan and Belarus. But relations with most of the others have deteriorated to some degree in recent years.

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