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China's Digital Dictatorship

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The fall of Aleppo Psychoanalysing Park Geun-hye The uselessness of management theory Inside DeepMind DECEMBER 17TH–23RD 2016 China’s digital dictatorship An experiment in social control Contents The Economist December 17th 2016 7 10 The world this week 33 Tiny colleges Small wonders 34 Chopping down trees Leaders Fetch the chainsaws 13 Big data and government 35 The trial of Dylann Roof China’s digital dictatorship Mother courage 14 War in Syria 36 Lexington The fall of Aleppo The Obama way of war 15 South Korean politics Decide and rule The Americas 15 The Federal Reserve Russian hacking America’s Janet’s job 37 Canada’s climate deal Walking the walk election result was not decided 16 The trial of Geert Wilders in the Kremlin. But the response In defence of hate speech 38 Bello Viva la ignorancia! to Russian hacking shows how On the cover partisan division has weakened China is experimenting with Letters the country, page 31. The new means of social control: Middle East and Africa history of Russian meddling, 18 On oil taxes, China, leader, page 13. Mass page 32 renewables, refugees, 39 Syria electronic surveillance and Last rites for Aleppo trees, science, economists big data give China’s rulers 40 Israel’s settlers new ways to monitor and The Amona remainers influence citizens, pages Briefing 20-22 41 Violence in Egypt 20 China’s social-credit A massacre of Copts system 41 Saudi Arabia and the Creating a digital Gregorian calendar The Economist online totalitarian state The prince’s time machine Daily analysis and opinion to supplement the print edition, plus 42 Gambia and Ghana Asia You say goodbye and I say audio and video, and a daily chart Economist.com 23 Democracy in India hello The do-nothing Lok Sabha E-mail: newsletters and The fall of Aleppo Vladimir mobile edition 24 Taiwanese politics Europe The KMT goes from riches Putin’s victory; the West’s Economist.com/email 43 Terror in Turkey to rags failure; and a warning of what Print edition: available online by Semtex pretext happens when interests 25 The economy of 7pm London time each Thursday 44 Romania’s election triumph over values: leader, Turkmenistan Economist.com/print Conviction politics page 14. The fate of up to A stan, a plan, a cabal Audio edition: available online 44 Italy’s new prime 100,000 trapped civilians is 25 Race relations in to download each Friday minister terrifyingly unclear, page 39. Singapore Economist.com/audioedition Spot the difference America’s friends are preparing With reservations for a bumpy ride, page 50 45 Igor Sechin 26 Rodrigo Duterte Russia’s oil boyar A liar or a killer 46 Charlemagne 28 Banyan Brexit, the sexiest job Park Geun-hye, the in Brussels Volume 421Number 9020 daughter in the Blue House Published since September 1843 to take part in "a severe contest between Britain intelligence, which presses forward, and an unworthy, timid ignorance obstructing China 47 Business and Brexit our progress." When the red tape unravels 29 The one-China policy Editorial offices in London and also: Mr Trump wades in 48 Police for hire Atlanta, Beijing, Berlin, Brussels, Cairo, Chicago, BOGOF bobbies Lima, Mexico City, Moscow, Mumbai, Nairobi, 30 Hong Kong’s leadership New Delhi, New York, Paris, San Francisco, A race, of sorts, looms 49 Bagehot São Paulo, Seoul, Shanghai, Singapore, Tokyo, South Washington DC The breaking of Boris Psychoanalysing Park Johnson Korea’s first woman president United States seemed a path-breaker. In 31 Russian interference fact, she is haunted by the The plot against America past: Banyan, page 28. Lawmakers have impeached 32 Interference past Park Geun-hye. They must now Substandard subversion get down to policy, not 33 Rex Tillerson politicking: leader, page 15 Oily diplomacy 1 Contents continues overleaf 8 Contents The Economist December 17th 2016 International Science and technology 50 Pax Trumpiana 68 Oncology America’s anxious allies Cancer’s master criminals 69 Planetary science Business Stardust memories 53 Artificial intelligence 70 Drug addiction Google’s DeepMind Souring the poppy’s milk 54 The future of Alphabet 70 Climate science Still searching How hot is the sea? 55 Fox’s pursuit of Sky 71 Sexual selection Corporate tax in America Curing cancer To tackle Skyfall Boning up Much-needed reforms may tumours, doctors should look to come with some unpleasant 56 Vivendi and Mediaset proteins as well as genes, side-effects, page 60 Breton v Berlusconi Books and arts page 68 56 Packaging and the 72 Nutrition environment Bittersweet Wrap stars 73 Humans and Subscription service For our full range of subscription offers, 57 Older workers in Germany decision-making including digital only or print and digital Elders not betters Thinking about thinking combined visit Economist.com/offers 58 Amancio Ortega 73 Animals and intelligence You can subscribe or renew your subscription Behind the mask of Zara Smart arms by mail, telephone or fax at the details below: Telephone: +65 6534 5166 59 Schumpeter 74 Johnson Facsimile: +65 6534 5066 The flaws in theory Off with their heads Web: Economist.com/offers E-mail: [email protected] 75 Fiction Post: The Economist Finance and economics Managing the traffic Subscription Centre, Tanjong Pagar Post Office 60 American corporate tax 75 New York theatre PO Box 671 DeepMind Google’s parent The Republicans’ big plan Bard off-Broadway Singapore 910817 company, Alphabet, has plenty Subscription for 1 year (51 issues)Print only of AI expertise, so why does it 61 Buttonwood Australia A$425 need DeepMind? Page 53. As Financial globalisation 76 Economic and financial China CNY 2,300 Hong Kong & Macau HK$2,300 Alphabet continues to seek its 62 China and trade indicators India INR 7,500 Statistics on 42 economies Japan Yen 41,000 next big money-maker, its own Market economy or not? 3 plus a closer look at world Korea KRW 44,000 lucrative search business may 62 UniCredit Malaysia RM 780 GDP New Zealand NZ$460 need to be rethought, page 54 Passing Mustier Singapore & Brunei S$425 Taiwan NT$8,625 63 The Asian Development Thailand US$288 Bank Obituary Other countries Contact us as above The incumbent 78 John Glenn Right up there 64 Foreign exchange Principal commercial offices: The dollar’s muscularity 25 St James’s Street, London sw1a 1hg 64 European insurers Tel: +44 20 7830 7000 Feeling squeezed Rue de l’Athénée 32 1206 Geneva, Switzerland 65 Fiscal rules Tel: +4122 566 2470 Freezing spending 750 3rd Avenue, 5th Floor, New York, NY 10017 65 Venezuela’s monetary Tel: +1212 5410500 madness 1301Cityplaza Four, Cash and grab 12 Taikoo Wan Road, Taikoo Shing, Hong Kong Luther and business gurus Tel: +852 2585 3888 66 Free exchange Management theory is Other commercial offices: becoming a compendium of Place-based policies Chicago, Dubai, Frankfurt, Los Angeles, dead ideas. It needs a Paris, San Francisco and Singapore Reformation: Schumpeter, page 59 PEFC certified This copy of The Economist is printed on paper sourced from sustainably managed forests, recycled and controlled sources certified by PEFC PEFC/01-31-162 www.pefc.org © 2016 The Economist Newspaper Limited. All rights reserved. Neither this publication nor any part of it may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of The Economist Newspaper Limited. Published every week, except for a year-end double issue, by The Economist Newspaper Limited. The Economist is a registered trademark of The Economist Newspaper Limited. Publisher: The Economist. Printed by Times Printers (in Singapore). M.C.I. (P) No.030/09/2016 PPS 677/11/2012(022861) EconCow.com Sorry for this ad. I’m just a random guy on the internet. I’m also a new YouTuber who makes educational videos (mostly on economics). Please help me by checking them out and let me know how I can improve! Thank you! 10 The world this week The Economist December 17th 2016 António Guterres was sworn A Dutch court convicted Geert be chosen in March by a 1,200- Politics in as UN secretary-general. Wilders, a populist politician, strong committee packed with The formerPortuguese prime forinciting racial discrim- loyalists ofthe Communist minister and head ofthe UN ination in a speech from 2014 Party in Beijing. refugee agency is taking over in which he asked, “Do you from Ban Ki-moon. want more or fewer Moroc- Copying India cans?” Mr Wilders described A Russian attack the decision as “a great loss for The CIA confirmed that Russia democracy and freedom of had tried to influence the result expression”. He leads the polls ofthe presidential election by fornext year’s election. hacking and leaking sensitive Democratic e-mails. The alle- Park drive gations were rubbished by South Korea’s National Donald Trump’steam. Ameri- Assembly voted to impeach ca’s spooks are sure that Russia ParkGeun-hye, the president. Syrian rebels inside Aleppo, did try to intervene in the The Constitutional Court now who have been reduced to election; some are less certain has six months to review the holding just a sliver ofthe city, than the CIA about the intent charges against her. were reported to have surren- behind its actions. Venezuela withdrew the dered. But a deal under which In Indonesia the governor of 100-bolívar bill, its highest- they would be allowed to Jakarta, Basuki Tjahaja valued banknote, from circula- leave forthe province ofIdlib Purnama (known as Ahok), tion. It represented 77% ofthe promptly ran into difficulties, went on trial forinsulting country’s cash. Savers formed and fighting resumed.
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