We present a theory of low-frequency Raman scattering in glasses, based on the concept that light couples to the elastic strains via spatially fluctuating elasto-optic (Pockels) constants. We show that the Raman intensity is not proportional to the vibrational density of states (as was widely believed), but to a convolution of Pockels constant correlation functions with the dynamic strain susceptibilities of the glass. Using the dynamic susceptibilities of a system with fluctuating elastic constants we are able for the first time to describe the Raman intensity and the anomalous vibration spectrum of a glass on the same footing. Good agreement between the theory and experiment for the Raman spectrum, the density of states, and the specific heat is demonstrated at the example of glassy As(2)S(3).