The Manchester Bombing Another Brazilian President in Trouble India's
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The Manchester bombing Another Brazilian president in trouble India’s deepening Kashmir problem Rethinking prison MAY 27TH–JUNE 2ND 2017 Ocean warning Contents The Economist May 27th 2017 5 7 The world this week The Americas 33 Brazil’s president Leaders Dangling man 9 The marine world 34 Temer’s accusers Deep trouble The fabulous Batista boys 10 The Manchester bombing 34 A Canadian culture war Almost is never enough Cross-fertilisation or theft? 10 Brazil The Temer tape 35 Bello Argentina’s honest data 12 Tech unicorns Manchester bombing The best Not the enemy answer to a suicide-bomber is Middle East and Africa 14 Reforming prisons the scrupulous, iron-willed Jail break 36 Donald Trump’s visit application of the law: leader, On the cover Mission not accomplished page 10. Security services are Humans are wrecking the Letters 37 Iran’s election hunting for Salman Abedi’s ocean. Technology shows the Triumph of the liberals accomplices before they strike 16 On data, France, Poland, scale of the problem—and again, page 45. Two prime Theresa May, Silicon 38 Islamic State in Libya offers some solutions: ministers were on display this Valley, Donald Trump Down but not out leader, page 9. A swell of week: Bagehot, page 47. In 38 Building in Kenya support for better fishing Libya, the jihadists have The last dance practices could yet save Briefing retreated to the desert, where blighted stocks. But 39 Eritrea and migration they are a threat, page 38 18 Ocean fishing The road less taken managers must balance All the fish in the sea commercial concerns with changing environmental Europe conditions, page 18 Asia 40 Ukraine’s stalemate 21 India’s Kashmir problem Theatre of war Talking to the enemy The Economist online 41 Fighting corruption in 22 The South China Sea Ukraine Daily analysis and opinion to Shoals apart Harsh medicine supplement the print edition, plus 22 Martial law in the 42 Greece’s debt odyssey audio and video, and a daily chart Philippines No relief Economist.com Marauding in Marawi 43 Czech politics E-mail: newsletters and 23 After Japan’s tsunami Paper tiger mobile edition Repopulating Fukushima Trump and health care 43 Optimism in France Economist.com/email Before Republicans replace 24 Banyan Yes, oui can Print edition: available online by Japan’s shrinking monarchy Obamacare, the White House 7pm London time each Thursday 44 Charlemagne is killing it, page 27. Donald Economist.com/print The EU’s terrible trio Trump’s budget goes from China Audio edition: available online unrealistic to innumerate, to download each Friday 25 Provincial politics Britain page 28 Economist.com/audioedition A hand up for Xi’s people 45 Terror in Manchester 26 Espionage After the bomb, the hunt Spy kids 46 Social care 26 Dolphins in Hong Kong U-turn if you want to Pink and imperilled 47 Bagehot Volume 423 Number 9042 The two Theresa Mays United States Published since September 1843 27 Reforming health care to take part in "a severe contest between International intelligence, which presses forward, and First, do some harm an unworthy, timid ignorance obstructing 48 Prisons our progress." 28 Investigating Russia Turning villains into Each to his own Editorial offices in London and also: neighbours Atlanta, Beijing, Berlin, Brussels, Cairo, Chicago, 28 The budget Lima, Mexico City, Moscow, Mumbai, Nairobi, 49 Women in prison Brazil’s political crisis Who is New Delhi, New York, Paris, San Francisco, Zero sums Girls, incarcerated president matters less than São Paulo, Seoul, Shanghai, Singapore, Tokyo, 29 Italians in the South the continuation of economic Washington DC Moses in the Ozarks and political reforms: leader, 32 Lexington page 10. Michel Temer is in The impeachment delusion serious trouble. But he has reserves of strength, page 33 1 Contents continues overleaf 6 Contents The Economist May 27th 2017 Business Science and technology 51 Airbnb 65 Aviation A rare breed of unicorn The towers vanish 52 Ford 66 Sexual competition Can he Hackett? Beetle genitals 53 SoftBank’s tech fund 67 Fingerprints for paper A vision of $93bn Shining a light 54 Netflix 67 Synthetic biology Curtain call Lights, bacteria, action 54 Trainer markets 68 High-tech weaponry Reforming prisons America’s Sole trading Follow the leader Virtual control towers approach to incarceration is 55 The chemicals industry Remote centres using video an expensive failure. It does Chain reaction are replacing airfield control not have to be this way: Books and arts towers, page 65 leader, page 14. Too many 56 Schumpeter 69 Big data, new data prisons are “an expensive way General Eclectic Remodelling social science of making bad people worse”. 70 Grave New World Subscription service But some work well, page 48 For our full range of subscription offers, Finance and economics The future of globalisation including digital only or print and digital 57 Stockpicking 70 Spanish flu combined visit Economist.com/offers Quants and the quirks The 100m dead You can subscribe or renew your subscription 58 Buttonwood 71 Johnson by mail, telephone or fax at the details below: Telephone: +65 6534 5166 Bumper buy-backs Translator blues Facsimile: +65 6534 5066 59 Africa-EU trade 72 Rachel Seiffert’s fiction Web: Economist.com/offers E-mail: [email protected] Blown off course A gleam in the darkness Post: The Economist 59 Noble Group 72 Television Subscription Centre, Damsel in distress ”Twin Peaks” is back Tanjong Pagar Post Office PO Box 671 60 Foreign-exchange trading Singapore 910817 Be good, or else Subscription for 1 year (51 issues)Print only 76 Economic and financial Australia A$465 61 Tax evasion indicators China CNY 2,300 A Hong Kong loophole Hong Kong & Macau HK$2,300 Airbnb A cohesive culture and Statistics on 42 economies, India 10,000 61 The bitcoin bubble plus a closer look at Japan Yen 44,300 unusual financial discipline Korea KRW 375,000 mark the firm out, page 51. Good as gold external financial flows Malaysia RM 780 into Africa New Zealand NZ$530 Startups can stay private for 62 Machine-learning Singapore & Brunei S$425 longer. That doesn’t mean Unshackled algorithms Taiwan NT$9,000 Thailand US$300 they should: leader, page 12 64 Free exchange Obituary Other countries Contact us as above Lessons for Macron 78 Roger Ailes The man for the message Principal commercial offices: 25 St James’s Street, London sw1a 1hg Tel: +44 20 7830 7000 Rue de l’Athénée 32 1206 Geneva, Switzerland Tel: +4122 566 2470 750 3rd Avenue, 5th Floor, New York, NY 10017 Tel: +1212 5410500 1301Cityplaza Four, 12 Taikoo Wan Road, Taikoo Shing, Hong Kong Tel: +852 2585 3888 Other commercial offices: General Electric The record of Chicago, Dubai, Frankfurt, Los Angeles, Jeff Immelt, GE’s boss, shows Paris, San Francisco and Singapore that capital allocation is hellishly difficult: Schumpeter, page 56 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 © 2017 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 May 27th 2017 7 ment. The event now faces Trump, seeing his visit as a tal, after protesters demanding Politics cancellation forthe first time reset in relations following a Mr Temer’sresignation set fire since 1982, when the country tetchy eight years during Ba- to a government building. languished under communist- rackObama’s tenure. Mr imposed martial law. Trump’swhirlwind tour took Lenín Moreno was sworn in as him to the Vatican to meet the Ecuador’s president. He prom- The people have spoken! pope and to Brussels fortalks ised to follow the socialist path Iran’s moderate reformist with the EU and NATO. ofhis predecessor, Rafael president, Hassan Rouhani, Correa, but also to engage was re-elected with a solid 57% James Comey, whose sacking more with the private sector. ofthe vote. Only candidates by Mr Trump as director ofthe vetted by a committee of12 FBI has sparked a political Quelling an insurrection Islamic clerics were permitted storm, agreed to testify to The president ofthe to run. Congress. He will give his Philippines, Rodrigo Duterte, testimony after meeting Robert declared martial law in the The authorities in Bahrain Mueller, the special counsel southern island ofMindanao An Islamist suicide-bomber violently broke up a sit-in by investigating alleged links following clashes between killed 22 people and left more supporters ofa prominent between the Trump campaign Islamist separatists and the than 60 injured in Manches- Shia cleric. Five people were and Russia. But Michael Flynn, army. The militants tookover ter, Britain’s third-largest city. It reported by the government to Mr Trump’sfirst national- schools and burned a church was the country’s bloodiest have been killed, and 286 were security adviser, invoked the in the city ofMarawi. Mr terror attacksince 2005. The arrested. Fifth Amendment when he Duterte said they had also bomb was detonated in the declined to appear before a beheaded a local police chief. foyer ofa venue staging a pop Eight security officers in Kenya Senate committee.