  We present an up-to-date analysis for a precise determination of the
effective fine structure constant and discuss the prospects for future
improvements. We advocate to use a determination monitored by the Adler
function which allows us to exploit perturbative QCD in an optimal well
controlled way. Together with a long term program of hadronic cross section
measurements at energies up to a few GeV, a determination of alpha(M_Z) at a
precision comparable to the one of the Z mass M_Z should be feasible. Presently
alpha(E) at E>1 GeV is the least precisely known of the fundamental parameters
of the SM. Since, in spite of substantial progress due to new BaBar exclusive
data, the region 1.4 to 2.4 GeV remains the most problematic one a major step
in the reduction of the uncertainties are expected from VEPP-2000 and from a
possible ``high-energy'' option DAFNE-2 at Frascati. The up-to-date evaluation
reads Delta alpha^{(5)}_{had}(M_Z^2) = 0.027515 +/- 0.000149 or
alpha^{-1}(M_Z)=128.957 +/- 0.020.
