Vol. 168 No. 25

COVER

How to Bring Our Schools Out of the 20th Century (Society)
The world has changed, but the American classroom, for the most part, hasn't. Now educators are starting to look at what must be done to make sure our kids make the grade in the new global economy

NATION

The Perils of Being a Frontrunner
John McCain was a straight-talking upstart in the 2000 presidential election. Now he's poised to be the G.O.P. favorite for 2008, But at what cost?

WORLD

The Spy Who Knew Too Much (Crime)
The investigation into the death of a Russian dissident in London heats up and sheds an ugly light on Vladimir Putin's rule

Looking The Other Way
The U.S. wants to turn over security to the Iraqis. But that sometimes means ignoring their crimes

Advice and Grudging Consent (Letter From Washington)
The Iraq Study Group has its say. Now Bush has to figure out what to do next

Avoiding Iraq Syndrome (Viewpoint)
Viewpoint: Richard Haass, president of the Council on Foreign Relations, warns against letting the failure in Iraq cause America to lose sight of its global role

The Big Lie About the Middle East (Viewpoint)
Tell James Baker: Arab nations don't care about the Palestinians

SCIENCE

A Condo on The Moon... (Space)
The manned space program heats up as NASA unveils its plans for a lunar base and finds signs of flowing water on Mars

SOCIETY

Two Mommies Is One Too Many (Viewpoint)
Mary Cheney is starting a family. Let's hope she doesn't start a trend

NOTEBOOK

Verbatim

Doors Wider Open

Milestones

Suffering for Someone Else's Art

The State of Our Health

What's Next

Numbers



There's More Than One Way to Diversity (In The Arena)

All I Wanted For Christmas

Punchlines

BUSINESS

The Big Gulp at Starbucks
The already ubiquitous coffee chain hopes to triple its outlets—without diluting its boutique-y culture

ARTS & ENTERTAINMENT

Holiday Movies
What to do when there are only 12 days of Christmas but dozens of movies on offer? Here's a guide to some worth braving the crowds for

5 Great Photo Books (Worth Your Time)
To wrap up an issue filled with pictures, here are some terrific picture books

Yes, That's David Lynch (Movies)
mad

SPECIAL SECTION

The Best Photos of the Year (The Best Photos Of The Year)
TIME's look back at the major stories of 2006, as seen through the eyes of our photojournalists

YOUR TIME

Where to Celebrate (Travel)

How to Have a Green Christmas (Home)
how you can be kind to the environment and still celebrate in style

Next Year's Diet Books (Health)

PEOPLE

People

10 Questions for Dakota Fanning (Interview)

LETTERS

Read the story

My Person of the Year
To help us make this year's selection, TIME asked people who have been featured in the magazine for their 2006 nominations. A sampling:

ESSAY

Fight for Your Right to Party
lived for holidays. Keep that in mind this season

ALSO IN THIS ISSUE

The Fight For the Middle (Time Bonus Section January 2007: Inside Business / Competition)
Kohl's are duking it out in a market sector they've revived

Play It Again, Boys (Time Bonus Section January 2007: Inside Business / Show Business)
Disney, the Weinsteins have a new label and a new strategy

Telltale Fingertips (Time Bonus Section January 2007: Inside Business / Change Agent)
how you type can allow websites to know who you are--or aren't

Growing Younger (Time Bonus Section January 2007: Inside Business / Management)
services and a savvy marketing campaign are fueling AARP's torrid growth

Hackers For Hire (Time Bonus Section January 2007: Inside Business / Small Business)
holes in their defenses

Q&A Daniel Vasella (Time Bonus Section January 2007: Inside Business / CEO Speaks)
drugmaker Novartis, a physician, has high hopes for cancer vaccines

New Routes To Profit? (Time Bonus Section January 2007: Inside Business / Global Influences)
locales for profit