THE SMART MISSION ADDRESSES THE MOST IMPORTANT SMALL-SCALE PHENOMENA WHICH DETERMINE THE STATE AND EVOLUTION OF THE MAGNETOSPHERE VIA THEIR INTERACTION WITH LARGESCALE PROCESSES. THE PROCESSES ARE: MAGNETIC RECONNECTION WHICH FACILITATES AND DETERMINES THE RATE OF ENERGY CONVERSION AND PLASMA TRANSPORT; TURBULENCE WHICH HAS JUST RECENTLY BEEN IDENTIFIED AS A MAJOR SOURCE OF DISSIPATION IN MAGNETOSPHERIC DYNAMICS AND PARTICLE ACCELERATION WHICH NOT ONLY FORMS AN IMPORTANT FACTOR IN THE OVERALL ENERGY BALANCE OF THE MAGNETOSPHERE BUT ALSO IS OF INCREASING RELEVANCE FOR HUMANS AND HUMAN ASSETS THROUGH SPACE WEATHER EFFECTS.MAGNETIC RECONNECTION (OR MERGING) IS THE MOST EFFECTIVE PLASMA TRANSPORT MECHANISM IN COLLISIONLESS PLASMAS. MAGNETIC RECONNECTION FACILITATES LIKELY THROUGH A DIFFUSION REGION OF TENS OF KM DIMENSIONS PLASMA TRANSPORT OVER MANY TENS OF EARTH RADII. MAGNETIC RECONNECTION IS PERHAPS THE MOST DRAMATIC EXAMPLE OF HOW SMALL-SCALE PROCESSES FACILITATE ACTION ON LARGE SCALES. IN ADDITION MAGNETIC RECONNECTION ALSO ACTS AS AN ENERGY CONVERSION PROCESS CONVERTING MAGNETIC ENERGY INTO PARTICLE KINETIC AND THERMAL ENERGIES. IN ORDER TO UNDERSTAND MAGNETIC RECONNECTION COMPLETELY WE HAVE TO ANALYZE IN THE REQUIRED DETAIL THE STRUCTURE AND FUNCTION OF THE DIFFUSION REGION INCLUDING THE INNER LAYER WHERE ELECTRONS FINALLY CHANGE MAGNETIC CONNECTIONS. THE SMART MISSION WILL PROVIDE THE MEASUREMENTS AND MODELS REQUIRED TO UNDERSTAND MAGNETIC RECONNECTION.WE ARE PROPOSING TO SUPPORT THE SMART MISSION WITH NUMERICAL SIMULATIONS OF THE GEOSPACE ENVIRONMENT. FOR THIS PURPOSE WE WILL USE THE SPACE WEATHER MODELING FRAMEWORK (SWMF) AND ITS PHYSICS MODELS.