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Many misconceptions about the state of affairs in Russia have surfaced since the end of the Cold War; this article seeks to correct these errors. The first erroneous idea is that the Russian economy has collapsed. This is not true; Russians have simply fled low quality in domestic products & have embraced high quality foreign goods. Also, the idea that the market economy was too much too soon is erroneous; problems such as excessive state intervention, corruption, high tax rates, etc, actually point to the need for more reforms. In addition, privatization is not to blame for these deficits; instead, it has provided 70% of the nation's GDP. Russia collects taxes & in fact has instituted a stable flat income tax of 13%, which most people pay. Russia's infrastructure is actually improved: Russia does not need foreign investors. The health care crisis is not as extreme as some say. Russia was not lost by President Clinton. Democracy & the media are the answer to control Russia's elitist tendencies. Bibliog. R. Larsen

In this section on the Capabilities, Trends & Economics of regional military defense capabilities, the military trends & priorities of Russia are assessed. The reform & modernization of the Russian military is asserted to be slowing, as well as a reduced path aspirations for military professionalization, & the retention of conscription. Developments in modernization identify a slow pace of re-equiping for ground forces, but also updates to aerospace reconnaissance systems & successful underwater firing of submarine-launched ballistic missiles. A medium-term outlook is positive for the Russian economy, and increases in and national defense spending & exports of military hardware may be slowed by changing relationships due to China & US sanctions on to of Russia's defense groups. The difficulties of estimating the real scale of Russian military spending is resolved by the application of the PPP approach to calculate Russian military expenditure in US dollars. A detailed assessment follows of Russian military capabilities that inventories troops, organizations by service & equipment, deployment, & foreign forces. Tables. J. Harwell

Russia's reactions toward the US plan for deploying a national missile defense system & strategy for renegotiating the 1972 Anti-Ballistic Missile (ABM) Treaty are studied. An overview of the former USSR's ballistic missile defense research & technology & implementation of such a system around Moscow is presented. It is claimed that Russia's diminished status as a global superpower has severely decreased its capacity to maintain the ABM Treaty in its current state. A review of Russia-US arms control summits during the late 1990s illustrates both nations' concerns with other countries' creation of long-range ballistic missiles. It is stated that renegotiating the ABM treaty provides the best-case scenario for present-day Russia & that allowing the US to withdraw from the agreement would damage future possibilities for Russia-US cooperation. In addition, it is speculated that renegotiation could lead to both nations' collaboration in creating a joint missile defense system. It is concluded that Putin's overt acknowledgment of ballistic missile threats has probably compromised Russia's ability to preserve the original stipulations of the ABM Treaty. J. W. Parker

Although Russian military reform has been obstructed by several factors including the appearance of cases of bullying amongst senior leaders, it is noted that conscription programs have been modified & that other reforms will reduce the number of Interior Ministry troops while augmenting the number of Federal Security Service personnel. Attention is then directed toward examining the air defense & space capabilities of the Russian military, alterations to Russia's cooperation with international military operations, & developments in combating insurgency in the North Caucasu's region. Moreover, information concerning Russia's defense economics, defense budget for 2006, & weapons exports is presented. In addition, detailed information documenting the Russian military's capabilities, deployment, & involvement in foreign forces is provided. Tables. J. W. Parker