| Sumario: | The four Caspian states that recently discovered significant oil and gas reserves would be well advised to learn from the failures of the members of the Organization of Petroleum Exporting Countries (OPEC). The four former Soviet republics of Azerbaijan, Kazakhstan, Turkmenistan, and Uzbekistan are estimated to be endowed with gas and oil reserves worth between $2.5 trillion and $3 trillion at today's prices. The full extent of these states' subterranean energy resources are still unknown, but their mineral wealth is by all accounts the largest discovery in 30 years. OPEC's rise and subsequent fall from economic prosperity is powerful proof of the dangers of a tempting but temporary energy boom, and although there are significant historical and institutional differences between OPEC and the Caspian states, the newcomers appear to be following a similar route to industrial and financial development. The writer discusses OPEC's failings and how the Caspian states can avoid repeating the mistakes of the past.
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