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The Battle for Mosul Private Equity's Barbarian Establishment Why Is Hillary Hated? The battle for Mosul Private equity’s barbarian establishment Why is Hillary hated? Ground control to Elon Musk OCTOBER 22ND–28TH 2016 Putinism A SPECIAL REPORT ON RUSSIA Contents The Economist October 22nd 2016 3 5 The world this week 31 Election brief: Infrastructure A view from the bridge Leaders 32 Lexington 7 Russia How to shoot a man in Putinism Reno 8 The battle for Mosul Crushing the caliphate The Americas 8 Business in America 33 Canada’s climate policy Float like a butterfly Let the haggling begin 9 Thailand’s succession 34 Bello Establishment barbarians A royal mess A model artist Public companies are out of 10 Trade agreements 36 Clowns in Cuba fashion. They need to be Asterix in Belgium The red-nosed gold rush revived: leader, page 8. On the cover 36 Informality Private equity has prospered How to contain Vladimir Letters Workers in the shadows while other approaches to Putin’s deadly, dysfunctional business have stumbled, 12 On Brexit, Bob Dylan, empire: leader, page 7. pages 15-18 bonds, Donald Trump When the Soviet Union Middle East and Africa collapsed 25 years ago, 37 Iraq Russia looked set to become Briefing Marching on Mosul a free-market democracy. 15 Private Equity 38 Jordan What went wrong and how The barbarian The uneasy crown much is Mr Putin to blame? establishment See our special report after 39 Saudi Arabia’s religious page 40. Russia and the police European Union haggle over Asia Advice for the vice squad Ukraine, page 41 19 Thailand’s monarchy 39 South Africa An empty throne A plan for a white enclave 20 Bhutan 40 Justice in Africa The Economist online Happy-grow-lucky Cheaper law Daily analysis and opinion to 20 South Asian media Why Hillary is hated America’s supplement the print edition, plus All hail Special report: Russia most likely next president is deeply reviled. What did she audio and video, and a daily chart 21 Assisted suicide in Inside the bear Economist.com do wrong? Page 27. Economic Australia After page 40 hardship and racial divisions E-mail: newsletters and On the brink both fuel support for Mr Trump: mobile edition 21 Japan’s maternity culture Free exchange, page 64. In the Economist.com/email Europe No pain, no gain third debate, he played up 41 The future of Ukraine Print edition: available online by fears of a rigged election, 22 Preservation in India Bone of contention 7pm London time each Thursday Brick by brick page 30 Economist.com/print 42 Ukraine’s rock-star 24 Banyan Audio edition: available online politician Duterte’s pivot to China to download each Friday Front man Economist.com/audioedition 43 Russia’s Bashneft deal China Not exactly privatisation 25 The power of Xi Jinping 43 Italy’s Five Star Movement Master of nothing Requiem for a dreamer 44 The Canada-EU trade deal Hot-air Walloons Volume 421Number 9012 United States 27 Election 2016 46 Charlemagne Published since September 1843 Hating Hillary Primaries in France to take part in "a severe contest between intelligence, which presses forward, and 30 The third debate an unworthy, timid ignorance obstructing The battle for Mosul The right our progress." Final insult 30 The campaigns way to capture the jihadists’ Editorial offices in London and also: most important stronghold: Atlanta, Beijing, Berlin, Brussels, Cairo, Chicago, Heard on the trail Lima, Mexico City, Moscow, Mumbai, Nairobi, leader, page 8. Iraq’s New Delhi, New York, Paris, San Francisco, second-largest city will be São Paulo, Seoul, Shanghai, Singapore, Tokyo, Washington DC liberated from Islamic State. But at what cost? Page 37. What jihadists believe and why it matters, page 69 1 Contents continues overleaf 4 Contents The Economist October 22nd 2016 Britain Science and technology 47 Social mobility 65 Making sex cells from A class apart body cells 48 Inflation The ancestor’s tail Only the beginning 66 Urban planning 48 Politics The music of the city Theresa’s way 67 Anti-malaria drugs 49 Bagehot Do you yield? The spectre of Scoxit 67 Exploring Mars Triumph or disaster? Chairman of everything Sexual cannibalism After sex, International 68 Sexual cannibalism Xi Jinping is China’s most Nature’s cruellest male spiders try to escape 50 Migration to Europe powerful leader in decades. one-night stand from females, who eat them. Even so, local officials don’t Across desert and sea The male dark fishing spider listen to his orders, doesn’t even bother, page 68 Books and arts page 25 Business 69 Jihad 53 Elon Musk’s empire History of an idea Countdown Subscription service 70 The migrant business For our full range of subscription offers, 54 Media models including digital only or print and digital Profits out of hope Trump TV combined visit 70 Ngugi wa Thiong’o Economist.com/offers 55 Biotech You can subscribe or renew your subscription A writer’s awakening The trials of Juno by mail, telephone or fax at the details below: 71 Latin American art Telephone: +65 6534 5166 56 Retailing Facsimile: +65 6534 5066 A time of gifts Push my buttons Web: Economist.com/offers 71 Fiction from Israel E-mail: [email protected] 56 Ethiopian airlines Post: The Economist Good people Well-connected Subscription Centre, 72 Steven Isserlis Tanjong Pagar Post Office 57 Manufacturing in India PO Box 671 Music from heaven All at sea Europe’s worst Turning the tables Singapore 910817 Subscription for 1 year (51 issues)Print only migrant crisis no longer comes 58 Schumpeter Australia A$425 from Syria, but from the Techno wars 76 Economic and financial China CNY 2,300 indicators Hong Kong & Macau HK$2,300 countries of Africa, across the India INR 7,500 Mediterranean, page 50 Statistics on 42 economies, Japan Yen 41,000 Finance and economics plus a closer look at Korea KRW 344,000 Malaysia RM 780 60 Bond markets commodity prices New Zealand NZ$460 Singapore & Brunei S$425 Who’s scary now? Taiwan NT$8,625 61 Venezuelan debt Thailand US$288 Obituary Other countries Contact us as above Running out of time 78 Dario Fo 61 Italian banks Italy’s jester Spectral forms Principal commercial offices: 62 Buttonwood 25 St James’s Street, London sw1a 1hg Tel: +44 20 7830 7000 Mutual incomprehension Rue de l’Athénée 32 63 AI and financial 1206 Geneva, Switzerland regulation Tel: +4122 566 2470 It knows their methods 750 3rd Avenue, 5th Floor, New York, NY 10017 Ground control to Elon Musk 64 Free exchange Tel: +1212 5410500 The entrepreneur’s finances American electoral 1301Cityplaza Four, 12 Taikoo Wan Road, Taikoo Shing, Hong Kong are as jaw-dropping, inventive economics Tel: +852 2585 3888 and combustible as his space Other commercial offices: rockets, page 53 Chicago, Dubai, Frankfurt, Los Angeles, Paris, San Francisco and Singapore 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) The world this week The Economist October 22nd 2016 5 ruckus came after the farce of centred on Petrobras, the state- mourn the death ofhis father, Politics its previous leader resigning controlled oil company. He King Bhumibol Adulyadej. after just18 days in the job. denies wrongdoing. The Maldives withdrew from Fright night A text of wills the Commonwealth, after the At the final presidential Hong Kong’s Legislative organisation had warned the debate Donald Trump said Council again witnessed government ofthe archipelago that he might not accept the stormy scenes over the swear- that it might be suspended for result ofthe election, which ing-in oftwo lawmakers who subverting democracy. Hillary Clinton described as support self-determination for “horrifying”. Mr Trump has the territory. In theirfirst at- The long haul asked his supporters to watch tempt they had changed the The long-expected operation over polling places forfraud, wording to disparage China. to recapture Mosul from Islam- leading to fears that voters will As they prepared fora second ic State began. Iraqi govern- feel intimidated on the day. attempt, dozens oflegislators ment troops and Kurdish BarackObama told him to sympathetic with the Chinese Peshmerga converged on Iraq’s Vladimir Putin attended a “stop whining”. Communist Party walked out. second city, taken by the jiha- summit with Angela Merkel in dists in June 2014. At least a Berlin that also included the Underlining the ugly mood of A Chinese spacecraft docked million civilians are thought to leaders ofFrance and Ukraine. the election, local Republican successfully with a new space- be still inside, though thou- Russia’s involvement in the offices in North Carolina were lab. Two astronauts entered sands have fled. Earlier, IS lost war in Syria has put a further firebombed and graffitied. the orbiting module fora the town ofDabiq, in Syria, to strain on its relations with month-long stay—the longest Turkish-backed rebels. Dabiq is Europe and Mrs Merkel is The government ofEcuador in space by Chinese citizens. held by Muslim tradition to be threatening sanctions.
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