The third of three annual assessments concentrating on the relationship between the world economy and its environmental support systems, this edition expands earlier themes on how economic demands of a world population approaching 5 billion affects the earth's natural systems and resources to embrace threats to security as well. The first of 11 sections, "A Generation of Deficits" (Lester R. Brown) examines not only deficits and debts in the United States, but in other countries as well. In section 2, "Assessing Ecological Decline," Lester R. Brown and Edward C. Wolf discuss profiles and social consequences of ecological decline, economic costs, "political fallout," and the need for integrated analysis. Next, in "Increasing Water Efficiency," Sandra Postel describes water-saving irrigation methods, new cropping patterns, recycling and reuse, conservation in cities, and balancing the water equation. The next section, "Managing Rangelands," (Edward C. Wolf) is followed by two articles, "Moving beyond Oil," and "Reforming the Electric Power Industry" by Christopher Flavin. Section 7, "Decommissioning Nuclear Power Plants," (Cynthia Pollock) addresses issues concerning decontamination and dismantlement, waste disposal, and cost. Two health articles: "Banishing Tobacco," and "Investing in Children," by William U. Chandler are followed by a look at "Africa's Decline," (Lester R. Brown and Edward C. Wolf). In the final section, "Redefining National Security," Lester R. Brown addresses new threats to security, militarization of the world economy, costs to the two super-powers, countries reducing arms outlays, and challenges to world peace. (LH)