The electronic properties of many transition metal oxide systems require new ideas concerning the behaviour of electrons in solids for their explanation. A recent example, subsequent to that of cuprate superconductors, is of rare earth manganites doped with alkaline earths, namely $Re_{1-x}A_x MnO_3$, which exhibit colossal magnetoresistance, metal insulator transition and many other poorly understood phenomena. Here we show that the strong Jahn Teller coupling between the twofold degenerate ($d_{x^2 -y^2}$ and $d_{3z^2 -r^2}$) $e_g$ orbitals of $Mn$ and lattice modes of vibration (of the oxygen octahedra surrounding the $Mn$ ions) dynamically reorganizes the former into a set of states (which we label $ell$) which are localized with large local lattice distortion and exponentially small intersite overlap, and another set (labelled $b$) which form a broad band. This hitherto unsuspected but microscopically inevitable $coexistence$ of radically different $ell$ and $b$ states, and their relative energies and occupation as influenced by doping $x$, temperature $T$, local Coulomb repulsion $U$ etc., underlies the unique effects seen in manganites. We present results from strong correlation calculations using the dynamical mean-field theory which accord with a variety of observations in the orbital liquid regime (say, for $0.2stackrel{<}sim x stackrel{<}sim 0.5$).We outline extensions to include intersite $ell$ coherence and spatial correlations/long range order.
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