COVER

A Tsar Is Born (Cover Story / Person of the Year)

Vladimir Putin is no ordinary politician. He is charmless yet adored by his nation. He took a country in chaos and remade it in his own image: tough, aggrieved, defiant. An interview--and dinner--with the man who tamed Russia

Russia Needs Putin (Person Of The Year / Viewpoint: Mikhail Gorbachev)

His firm hand will smooth the transition to democracy, says the author of Glasnost and Perestroika

His Place in History

To understand how Putin became a modern icon, look to the heroes--and villains--of Russia's past

Choosing Order Before Freedom

His final year as Russia's President has been his most successful yet. TIME's 2007 Person of the Year is Vladimir Vladimirovich Putin

#2 Al Gore (Person Of The Year Runner-up)

The former Vice President, now a Nobel laureate, has become America's environmental conscience

The Gore Interview (Person Of The Year Runner-up / Al Gore)

Why he thinks, he's failed--but lives in hope nonetheless

#5 David Petraeus (Person Of The Year Runner-up)

The commanding general in Iraq fought America's most difficult foreign war--and one at home

Farewell

These people left us in 2007, but they left us with something

TO OUR READERS

Person of the Year

Individuals can make a difference to history, and Russia's Vladimir Putin, our choice for 2007, proves the point

ESSAY

The Year of Them

You had a great run as Person of the Year 2006. But what have You done for us lately?

Striving Valiantly (Commentary)

The annual Teddy Awards honor bravery--including that shown every day by those in uniform

It's Payback Time (Viewpoint)

What will history make of 2007? That a lot of Big People met their match in the Little People

WORLD

Memories of a Bethlehem Christmas (Postcard: Bethlehem)

In the birthplace of Jesus, Muslims and Christians used to celebrate the season in peace. A TIME correspondent recalls holidays past in a troubled land

ALSO IN THIS ISSUE

How Rolls-Royce Got Its Rebound (Global Business: World Trade - High Finance - Small Business - Life At The Top / Life At The Top)

New boss BMW restored the luster, while Asia restored the demand for ostentation

Governments Get a SWF Financial Kick (Global Business: World Trade - High Finance - Small Business - Life At The Top / High Finance)

Funds run by rich states such as Abu Dhabi and Singapore are investing in big banks--and worrying the West

Skin Care Becomes a Seaworthy Idea (Global Business: World Trade - High Finance - Small Business - Life At The Top / Small Business)

A chance discovery sends a fledgling ballast-water-treatment firm on a beauty detour--skin care

Canada's Loonie Creates a Conundrum (Global Business: World Trade - High Finance - Small Business - Life At The Top / World Trade)

Shoppers rejoiced when the loonie caught the U.S. dollar--but industry is paying the price

BRIEFING

'Tis the Season ... (The Moment)

in Iowa, for buttonholing voters. Message to pols: It's the holidays!

LETTERS