I review recent evaluations of the hadronic contribution to the shift in the
fine structure constant and to the anomalous magnetic moment of the muon.
Substantial progress in a precise determination of these important observables
is a consequence of substantially improved total cross section measurement by
the CMD-2 and BES II collaborations and an improved theoretical understanding.
Prospects for further possible progress is discussed.Comment: 17 pages 7 figures 2 tables, update: incl. CMD-2 data, reference