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The Economist September 1St 2018 5 Not NAFTA, but dafter Farewell to John McCain Lessons from Singapore’s schools Cryptocurrencies: a spent force SEPTEMBER 1ST–7TH 2018 Peak Valley Why startups are going elsewhere Contents The Economist September 1st 2018 5 7 The world this week United States 29 Socialism in America Leaders Shivering the chains 9 Innovation 30 Hurricane Maria Peak Valley Counting 10 NAFTA 32 Honey fraud Going south The bee’s needs 10 Education policy 32 Googling the news Copying allowed Fake views 11 International justice 33 Gender dysphoria Myanmar The world should Genocide in Myanmar Trans parenting hold Burmese generals to 12 Cryptocurrencies 34 Lexington After John McCain account for atrocities against Show me the money the Rohingyas, page11. The UN On the cover accuses the Burmese army of Silicon Valley’s primacy as a Letters The Americas genocide in a damning report, technology hub is on the page 44 14 On climate change, tax 35 Nicaragua wane. Don’t celebrate: Ortega holds on leader, page 9. The Valley has reform, Canada, Brexit 36 Natural disasters become a victim of its own Getting over Maria success, prompting Briefing entrepreneurs and investors 36 Condoms in Cuba 15 Silicon Valley Not just for birth control to look elsewhere for A victim of its own success opportunities, page15 38 Ecuador The power of the purge Britain The Economist online 19 Farming’s future Technology Quarterly A new furrow Daily analysis and opinion to Cryptocurrencies and supplement the print edition, plus 20 High-tech agriculture blockchains audio and video, and a daily chart Harwell, we have a problem After page 38 Economist.com Loneliness It is a growing 21 Labour and Brexit problem—and it is increasingly E-mail: newsletters and Corbyn’s conundrum Middle East and Africa being treated as a serious mobile edition 21 Northern Ireland public-health issue, page 49 Economist.com/email Total recall? 39 Lebanon’s economy When the music stops Print edition: available online by 22 Girls’ happiness 7pm London time each Thursday Sometimes it’s hard 40 Saudi Arabia Economist.com/printedition Loyalty trumps sect 22 Personal finances Audio edition: available online The Wonga paradox 40 A race against time to download each Friday Battling Ebola in a war zone Economist.com/audioedition 23 Theresa May in Africa Doing the Brexit shimmy 41 Ponte City Gentrifying Johannesburg 24 Bagehot Soldier-statesmen Asia Europe 43 Singapore’s schools Volume 428 Number 9107 Can do even better 25 Italy and the EU John McCain The navy pilot, Gearing up for a fight 44 Australian politics Published since September1843 Age of healing senator and presidential to take part in "a severe contest between 26 Sanctions against Russia candidate died on August intelligence, which presses forward, and 44 Human rights in Myanmar an unworthy, timid ignorance obstructing A thickening web 25th: Obituary, page 74. The our progress." Worse than imagined 26 Serbia and Kosovo departure of both of Arizona’s Editorial offices in London and also: Pandora’s box 45 Politics in Thailand Republican senators weakens Amsterdam, Beijing, Berlin, Brussels, Cairo, Election prep Chicago, Johannesburg, Madrid, Mexico City, 27 Naked Europe their party and country: Moscow, Mumbai, New Delhi, New York, Paris, All the young prudes 45 Foreign aid for India Lexington, page 34 San Francisco, São Paulo, Seoul, Shanghai, Help not wanted Singapore, Tokyo, Washington DC 28 Charlemagne The EU and the Austro- 46 Banyan Hungarian empire Crazy rich Asians 1 Contents continues overleaf 6 Contents The Economist September 1st 2018 China Science and technology 47 Falun Gong 64 Machine learning The party’s scourge Curious AI 48 Public opinion 65 Air pollution Furore over a flood A poisoned mind 65 Marine technology International Shiver me timbers 49 Loneliness and health 66 Scientific research Alone in the crowd Betting on the result After NAFTA Donald Trump’s Cryptocurrencies Bitcoin and Books and arts trade deal with Mexico makes Business other cryptocurrencies are little sense for anyone, America 52 Pharma in China 67 Karl Ove Knausgaard’s nigh on useless. As for included: leader, page10. Swallowing bitter pills “My Struggle” blockchains, the jury is still Sins of the fathers A new agreement with Mexico 53 Video streaming out: leader, page 12. Our clarifies what populist trade Missed punches 68 Personality tests Technology Quarterly offers a policy looks like in practice, Jung at heart realist’s guide, after page 38 page 59 53 Airlines in India Into the red 69 Yuval Noah Harari’s new book 54 Atlantia after Genoa In the kingdom of cyborgs Subscription service After the fall For our full range of subscription offers, 69 A history of Oklahoma City 55 Corporate governance including digital only or print and digital How the Thunder rolls combined visit Passive, aggressive Economist.com/offers 70 From Venice to the Oscars You can also subscribe by mail or telephone at 55 BMW in South Korea Do look now the details provided below: Repair job Telephone: +44 (0) 845 120 0983 56 Schumpeter Web: Economist.com/offers As good as it gets 72 Economic and financial Post: The Economist indicators Subscription Centre, Statistics on 42 economies, P.O. Box 471, Philosophy brief Haywards Heath, plus a closer look at RH16 3GY 57 Berlin, Rawls and Nozick corporate profits UK Chinese pharma China is Rawls rules Subscription for 1 year (51 issues) reforming its drugs market. Print only UK – £145 Big Pharma is the biggest Obituary beneficiary—for now, page 52 Finance and economics 74 John McCain 59 The new NAFTA Means of resistance Principal commercial offices: Wheeler dealer The Adelphi Building, 1-11John Adam Street, 60 KPMG’s troubles London WC2N 6HT Tel: +44 (0) 20 7830 7000 In the eye of the storm Rue de l’Athénée 32 61 America’s Community 1206 Geneva, Switzerland Reinvestment Act Tel: +4122 566 2470 Another equity debate 750 3rd Avenue, 5th Floor, New York, NY 10017 61 Emerging markets Tel: +1212 5410500 Crumbling currencies 1301Cityplaza Four, 12 Taikoo Wan Road, Taikoo Shing, Hong Kong 62 African trade Tel: +852 2585 3888 The river between Other commercial offices: 63 Free exchange Chicago, Dubai, Frankfurt, Los Angeles, Education What other Made from concentrate Paris, San Francisco and Singapore countries can learn from Singapore’s world-leading schools: leader, page 10. How the world’s best education system is trying to improve itself, page 43 PEFC certified This copy of The Economist is printed on paper sourced from sustainably managed forests certified by PEFC PEFC/16-33-582 www.pefc.org Registered as a newspaper. © 2018 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. Printed by Wyndeham Peterborough Limited. The world this week The Economist September 1st 2018 7 euro-zone deficit limits in its A judicial commission started Chile’s supreme court ordered Politics next budget, due to be pub- hearing evidence ofcorrup- the family ofAugusto Pino- lished soon. tion in South Africa during chet, a dictator who ruled from the presidency ofJacob Zuma. 1973 to 1990, to return part of Far-right protesters battled Testimony at the commission the money he had stashed in with police in the German city into “state capture” has the Virgin Islands. The family ofChemnitz, in Saxony. They revealed details ofhow friends must give up $1.6m ofa fortune were demonstrating following ofMr Zuma allegedly offered worth $13m. the fatal stabbing ofa German positions in his cabinet, man, reportedly by Middle including that ofminister of The new power generation Eastern migrants. Some ofthe finance. In Florida the party primaries protesters beat migrants and forgovernor resulted in an gave illegal Nazi salutes. Iran’s parliament voted to interesting matchup for the censure President Hassan election. The Republicans Emmanuel Macron, the Rouhani after grilling him on chose Ron DeSantis, whose French president, suffered a television over the country’s campaign tookoffwhen he A report by the UN Human blow when his environment economic problems. Two days was endorsed by Mr Trump. Rights Council concluded that minister resigned during a live earlier parliament sacked the The Democrats selected An- six senior generals in Myan- broadcast, criticising his gov- finance minister. Iran is suf- drew Gillum, an unabashed mar should be prosecuted for ernment fornot doing enough fering from a collapsing cur- progressive who will become genocide forleading a pogrom to combat global warming. rency and surging inflation, in the state’s first blackgovernor against Rohingya Muslims. part the result ofAmerica ifhe wins in November. The army has tried to deflect Alex Salmond, a formerfirst reimposing sanctions after condemnation ofits actions, minister ofScotland and a pulling out ofan agreement to A federal court ruled, once but the UN said the crimes leading figure in the move- limit Iran’s nuclear programme again, that North Carolina’s were shocking forthe “level of ment forScottish indepen- earlier this year. congressional districts have denial, normalcy and impuni- dence, resigned from the Scot- been gerrymandered along ty attached to them”. It also tish National Party amid The UN released a report ac- partisan lines to favour Repub- criticised Aung San Suu Kyi, claims ofsexual misconduct. cusing the governments of licans. The Supreme Court had Myanmar’s de facto leader, for He said he hoped to rejoin Yemen, the United Arab sent the case backto the lower failing to prevent the atrocities.
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