North Atlantic Treaty Organization New military role for United States? Russia: Friend or Foe? Absorb Warsaw Pact? European’s own defense?

Economic reforms needed 1. Price reform. 2. Financial reform: a) fiscal policy. b) monetary control. 3. Privatization. 4. Trade reform. 5. Build new institutions. 6. Changes in attitudes: work ethic, profit motive.

Eastern Europe  Countries facing the Baltic: –Latvia, Lithuania, Poland, Kaliningrad, Belarus? F Landlocked Center: –Czech Republic, Slovakia, Hungary F Countries facing the Black Sea: –Romania, Bulgaria, Ukraine, Moldova F Countries facing the Adriatic Sea: –Albania, Slovenia, Croatia, Bosnia, Serbia, Montenegro, Macedonia

Countries facing the Baltic Sea Latvia:  pop. 2.5 million  1/3 rd Russian  land area: 24,000 mi 2  required Russians to become Latvian citizens  products: refrigerators, TVs, railroad cars Lithuania:  pop. 3.7 million  80% Lithuanian/RC  land area: 25,000 mi 2  Vilnius inland, little coastline  access thru Lithuania to Kaliningrad

Countries facing the Black Sea Ukraine: population 50 million, 22% Russian largest population in Eastern Europe land area: 223,700 mi 2 (Texas = 267,000 mi 2 : France = 212,000 mi 2 ) largest territory in the European Realm! Donets Basin (Donbas) iron ore and coal dependent on energy imports  Chernobyl 1986 boundary changes: Crimean Peninsula 1954 cultural / economic divide Dnieper River

Moldova 34,000 mi2 3.5 million PCRM: 1998, 2001, 2005

Transdnestr Frozen Conflict: de jure vs de facto 1,607 mi2 537,000 pop.