As President Dmitri Medvedev formally recognized the independence of South Ossetia and Abkhazia in a televised announcement, Aleksandr Solzhenitsyn must have been rolling over in his grave and thinking, “I told you so.” Solzhenitsyn, who passed away earlier this year, had always argued that Russia had a strong soul that needed to be tamed or it would cause trouble.

The Kremlin seems to have decided to go with trouble, at least for the moment. The recognition decision comes a day after U.S. President George Bush and German Chancellor Angela Merkel explicitly warned Russia not to extend formal recognition to the republics, according to Stratfor, a U.S. company offering on-line intelligence. Furthermore, the Kremlin is hammering home the point - to Western governments - that it disdains their condemnations as insignificant. Meanwhile Russia is consolidating its footholds in Georgia and conceivably its spheres of influence in its “near-abroad” of countries formerly in Moscow’s orbit.

The west promptly denounced the Russian decision. German Chancellor Angela Merkel called the decision “totally unacceptable” and UK foreign minister David Milliband stated that “Georgia’s independence and territorial integrity cannot be changed by decree from Moscow.” In this situation, such strong rhetoric will need to be backed up by effective support for Georgia as well as with a new stance toward Moscow. Otherwise western bravado can backfire in the face of determined Russian action.

Russia will continue to use parallels to the Kosovo ‘precedent’ to contradict immediate or delayed reactions from Western leaders. The West will continue to say Kosovo was a ‘unique’ case and all other avenues had been exhausted. The rest of the states in the Caucasus will be watching closely-in the next few weeks for further developments in this conflict. Russia has made an audacious move, and the west is on the defensive. But Moscow must be wary of unleashing a backlash with secessionist regions, such as Chechnya, already on edge.

Georgia will desperately need the help of its Western allies if it is to assert its independence, but it may find the pressure from a muscle-flexing Russia and an indecisive West so unbearable that the nation loses its viability. In the longer run, Russia may have gone too far by using its military force when the lack of real dialogue frustrated Moscow. The danger is less that the attack will goad the west into countervailing action and more that the Russians may have edged themselves closer toward one of their chronic weaknesses: isolation.

The Russian Duma’s resolution calling for recognition of the Georgian breakaway regions of South Ossetia and Abkhazia is non-binding, so President Dmitri Medvedev and Prime Minister Vladimir Putin have the option of ignoring it. Indeed, they may not wish to stop short of a step liable to stir up secessionist fever in Chechnya and other restive regions within Russia’s own borders.

But Russia will certainly play the “recognition card” in negotiations about the outcome and future shape of Georgia. For one thing, Russia wants to pay back the West in its own coin for recognizing Kosovo’s independence in defiance of Moscow.

Each of the two regions has also expressed the wish to join Russia officially if they gain independence. This would expand Russian territory deep into Georgia. In practice, South Ossetia and Abkhazia are already independent, but Georgia depends on each region for key transportation infrastructure — such as the port of Sukhumi in Abkhazia for imports.

Europe is highly concerned that Russia could recognize secessionist regions in Georgia and in other nearby countries, according to Stratfor, a U.S. company offering on-line intelligence analysis. When Europe recognized Kosovo, it had control of the security situation there. In contrast, “there are countless other secessionist regions - Transdniestria in Moldova, for example - that were already stirring because of Kosovo’s independence and could really light up if they see Russia as a new guarantor of independence,” Stratfor reported.

In Russia itself, formal recognition of the breakaway republics on the ground of self-determination could create a dangerous domino effect within Russian borders. Russia has more than a dozen secessionist regions, many of which are powerful and organized. Moreover, some of these regions could attract strong foreign support - a situation the West could use to destabilize Russia or get Moscow involved in another set of wars within its own territory.

The Kremlin has worked very hard in the past few years to clamp down on the most volatile places, like Chechnya, Ingushetia and Dagestan, but there is always the possibility that these regions could flare up again very quickly.

In Georgia, reports indicate that organized cyber-warfare attacks continue against key government websites - attacks that appear to be coming from organized groups in Russia.

Suspicions that these attacks - like an even larger cyber-assault last year on Estonia - are offensive tactics orchestrated and used by the Russian government and have triggered fresh thinking in the U.S. and European capitals about what strategy might help deter such cyber-aggression in the future.

“Cyber-attack by a nation is very different from cyber-attack by a hacker,” says Admiral Bill Owens, a specialist about the threat. He told the Financial Times that the risks for major nations are rising to the point where it may be time to consider a defensive doctrine similar to “mutually assured destruction.” That was the name for a balance of nuclear weapons between the superpowers during the cold war that convinced both sides that it would be self-destructive to launch a nuclear attack.

Similarly, Owens said, diplomats might take another page from cold war arms-control and urge countries to pledge “no first use” of cyber-war - along the lines of the “no first use” pledges about nuclear weapons.

Although Georgia does not have enough web infrastructures to be very vulnerable in this area, the organized hacking it sustained comes against a background of reported attacks on government facilities in the U.S., France, Britain and Germany that were apparently probes of Western defenses or espionage to glean secret information. Both Russia and China have specialized military units that specialize in cyber-warfare, according to Western specialists. NATO is developing similar expertise.

Evoking the possibility of Western retaliation against attacks masterminded by another government, Owens said “I think that the U.S. and China have an ability to shut down each other’s societies on the internet today.”

This latest cyber-attack has spurred Europe and the U.S. to seek policy clarifications, new technical ripostes and closer cooperation, including via NATO. Michael Chertoff, U.S. Homeland Security Secretary, outlining plans for a “Manhattan project” for IT-security, warned recently that “a big and successful attack would have cascading effects across the country and across the world”.

Though there are similarities in both attacks there are also key differences between Estonia and Georgia specialists say. This time the hackers are targeting specific government websites such as the president’s, the parliament’s and the foreign ministry’s. In fact, web traffic is being redirected to sites in Russia and Turkey that could be the first step towards controlling Georgia’s incoming and outgoing high-level communications. That is the kind of control Russia would need to help oust President Mikheil Saakasvili.

Moscow’s use of military force against neighboring Georgia is bound to be a major setback for the West in its “pipeline war” with Russia in which the US and the EU are trying to devise ways of getting oil and gas directly to European markets without going through Russia.

Much of these Western hopes center on the territory of Georgia as a passageway from Central Asia to Turkey and its European neighbors.

Now it will be much harder to convince investors that these new pipelines are safe long-term bets for their money, according to Georgia Falls Victim to Pipeline Politics by a Platt’s specialist writing for the BBC.

This U.S. plan was described in European Affairs by its top US architect, Assistant Secretary of State Matthew Bryza in a recent issue.

The escalation of Russian pressure on Georgia, since the West supported Kosovo’s declaration of independence, has been charted in our European Affairs blog.

In textbooks, globalization may have its good sides and less-good sides, but there are no redeeming features to the dark side of globalization - organized crime with global reach.

To get a ripe taste of this dark underbelly of globalization and its spread in Europe, dip into the latest book by Misha Glenny, a journalist who gained international attention with his reporting on the horrors of wars and bloodshed in the collapse of the former Yugoslavia. In McMafia: A Journey Through the Global Criminal Underworld, Glenny makes the case, all too convincingly, that Eastern Europe, with its new and fragile democratic systems, has become the gateway for criminal syndicates that match the best multinationals in their professional skills in exploiting the new potential for illicit goods and services to pass borders with the freedom enjoyed by normal trade.

According to Glenny, the “global shadow economy” now accounts for 15-20% of the world’s economic transactions and its epicenter resides in new EU states where governments are still trying to organize their defenses against the criminal spillover from the collapse of the Soviet empire.

Glenny’s book of reportage and analysis is reviewed by Michael Mosettig, a foreign affairs producer at the NewsHour with Jim Lehrer, in the forthcoming issue of European Affairs. He starts by admiring Glenny’s title - “McMafia” - as a way of evoking “[their] global reach as criminal ‘corporations’ aspire to penetrate markets the world over - mirroring the global goals of legal entities such as McDonald’s.”

In this global overview, Glenny implicates Europe in McMafia’s success because it provides the market for illegal labor, drugs and illicit goods. This traffic uses the Balkan states as a highway, but other Eastern and Central European states play their roles, too, as gateways for criminal activity to enter the EU. Glenny makes it clear that, so far, EU crime-fighting strategies have failed to curb McMafia’s activities. Just last week, Enlargement Commissioner Olli Rehn confirmed that the EU may freeze millions of euros in aid to Bulgaria because of its government’s inadequate efforts to fight the organized crime and corruption which has flooded the country.

Preview Mosettig’s review of McMafia on the European Institute’s website.