The effect of dissipation on confinement is studied for compact QED. T
his model is relevant to the recently developed gauge theory of high-T
(c) superconductors. The global phase diagram of the gauge field is cl
arified in the parameter space of the coupling constant g, the strengt
h of dissipation gamma, and the temperature T. Confinement is drastica
lly suppressed by dissipation, and the deconfining phase appears even
in the strong-coupling and zero temperature limit when gamma exceeds a
critical value. This result supports the spin-charge separation in th
e resonating-valence-bond state.