Hadronic contributions to the photon vacuum polarization and their role in precision physics

I review the 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 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 of further possible progress are discussed.