This is a NAVAL POSTGRADUATE SCHOOL MONTEREY CA report procured by the Pentagon and made available for public release. It has been reproduced in the best form available to the Pentagon. It is not spiral-bound, but rather assembled with Velobinding in a soft, white linen cover. The Storming Media report number is A241953. The abstract provided by the Pentagon follows: This thesis argues that the Baltic Sea region still faces significant security challenges in the post-Cold War era. In particular, nations in the region confront a "cooperative security dilemma." Baltic Sea countries are adopting a range of cooperative agreements to strengthen their security. By doing so, however, they may risk alienating other nations that are left out of those agreements, and thereby create an unstable security environment. This thesis examines the nature of the cooperative security dilemma in the Baltic Sea region, and analyzes how Baltic Sea nations can cooperate in the future without posing a threat to other nations, including Russia. This thesis argues that the Baltic Security Assistance (BALTSEA) program offers a model of future security arrangements which could avoid the problems of the security dilemma.