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The Economist August 6Th 2016 3 How Sisi is ruining Egypt Hunting down stealthy submarines Erdogan crushes Turkey’s media The Japanese way of death AUGUST 6TH–12TH 2016 Trailblazers China’s world-class tech giants (and why Uber lost) Contents The Economist August 6th 2016 3 5 The world this week Asia 29 Myanmar’s economy Leaders Miles to go 7 Technology 30 Sri Lanka’s missing China’s trailblazers Refusing to give up hope 8 After the Arab spring 30 India’s sales tax The ruining of Egypt A welcome overhaul 9 Energy policy 31 Canine couture Hinkley Pointless Furry fashionable 9 Vietnam’s economy 32 Japan and mortality Repression and the The other Asian tiger Peak death Egypt incompetence of Abdel-Fattah 10 International adoption al-Sisi are stoking Egypt’s next Babies without borders China uprising: leader, page 8. By On the cover 33 The Cultural Revolution treating the young as a threat, The Western caricature of Letters Unlikely hero Arab rulers are storing up Chinese internet firms needs trouble, pages16-18. Egypt 12 On Thailand, Stuttgart, 34 A Tibetan horse festival a reboot: leader, page 7. has squandered billions of Saudi Arabia and Yemen, And the policemen danced China’s Didi Chuxing and dollars in aid. With more on China, the sea America’s Uber declare a the way, is it at last ready to truce in their ride-sharing Middle East and Africa contemplate reform? Page 35 war, page 49. WeChat shows Briefing 35 Egypt’s economy the way to social media’s 16 Arab youth State of denial future, page 50 Look forward in anger 36 The war in Syria Kerry talks while Aleppo bleeds The Economist United States online 37 A Middle Eastern Daily analysis and opinion to 19 The presidential race heatwave supplement the print edition, plus Trump in the dumps Infertile Crescent audio and video, and a daily chart 20 Partisan politics 37 South Africa Economist.com In plain words A blow for the ANC E-mail: newsletters and 21 Voting restrictions 38 Gabon mobile edition Back in the booth Trying to get past oil Economist.com/email 21 Convention bounces Turkey The government’s Print edition: available online by Up, then down crackdown extends to Europe 7pm London time each Thursday 24 Wilderness living journalists and poets, page 39 Economist.com/print The last big frontier 39 Media freedom in Turkey Sultanic verses Audio edition: available online 25 The NYPD to download each Friday Goodbye to Bratton 40 Turks in Germany Economist.com/audioedition Old faultlines 26 Lexington Gridlock Central 40 Norway and Finland Peak diplomacy 41 Battling the Mafia The Americas Dead dogs and dirty tricks 27 Venezuela Volume 420 Number 9001 41 Britain and Europe Army rations The start of the break-up Published since September1843 28 Brazil 42 Charlemagne to take part in "a severe contest between Lula on trial intelligence, which presses forward, and Imagining Frexit an unworthy, timid ignorance obstructing 28 Cannabis in Colombia Trump in the dumps The our progress." Weeds of peace divisiveness of his campaign, Editorial offices in London and also: and his own loutishness, are Atlanta, Beijing, Berlin, Brussels, Cairo, Chicago, Lima, Mexico City, Moscow, Mumbai, Nairobi, giving Donald Trump a ton of New Delhi, New York, Paris, San Francisco, trouble, page 19 São Paulo, Seoul, Shanghai, Singapore, Tokyo, Washington DC 1 Contents continues overleaf 4 Contents The Economist August 6th 2016 Britain Science and technology 43 Nuclear power 62 Anti-submarine warfare When the facts change... Seek, but shall ye find? 44 Chinese investment 64 Lithium-air batteries Not so gung-ho Their time has come 45 Bagehot 64 Artificial neurons The PM’s one-man You’ve got a nerve think-tank 65 The right to die What is unbearable? International Peak death in Japan As a Submarines A proliferation of 46 Cross-border adoption Books and arts baby-boom generation ages, quieter submarines is leading Home alone society is struggling to cope 66 J.M. Coetzee’s fiction navies to seek better ways to with record numbers of Life and afterlife track them, page 62 deaths, page 32 Business 67 “Negroland” 49 Ride-hailing in China A world apart Uber gives app 67 Easternisation Subscription service For our latest subscription offers, visit 50 China’s mobile internet The Asian century Economist.com/offers WeChat’s world 68 Fortuny and Morris For subscription service, please contact by telephone, fax, web or mail at the details 52 Tobacco regulation Peacock and vine provided below: No logo 68 Paths well travelled North America Trails and error The Economist Subscription Center 53 Bosses’ salaries in Japan P.O. Box 46978, St. Louis, MO 63146-6978 Pay check 69 Stephen Hough Telephone: +1 800 456 6086 Facsimile: +1 866 856 8075 53 Posh chocolate Playtime E-mail: [email protected] Cocoa nuts Latin America & Mexico The Economist Subscription Center 54 Schumpeter 72 Economic and financial P.O. Box 46979, St. Louis, MO 63146-6979 The limits of leapfrogging indicators Telephone: +1 636 449 5702 Vietnam The success of Asia’s Statistics on 42 economies, Facsimile: +1 636 449 5703 newest tiger merits a closer E-mail: [email protected] plus our monthly poll of look: leader page 9. Having Economics brief Subscription for 1 year (51 issues) forecasters 8 attained middle-income 55 Tariffs and wages United States US $15 .25 (plus tax) status, Vietnam aims higher, Canada CA $158.25 (plus tax) An inconvenient iota of Latin America US $289 (plus tax) page 57 truth Obituary 74 Luc Hoffmann For birds and for Finance and economics Principal commercial offices: wilderness 25 St James’s Street, London sw1a 1hg 57 Asia’s next tiger Tel: +44 20 7830 7000 Good afternoon, Vietnam Rue de l’Athénée 32 1206 Geneva, Switzerland 58 Buttonwood Tel: +4122 566 2470 The yield shift 750 3rd Avenue, 5th Floor, New York, NY10017 59 European banks Tel: +1212 5410500 Still stressed out 1301Cityplaza Four, 60 Property taxes 12 Taikoo Wan Road, Taikoo Shing, Hong Kong Tel: +852 2585 3888 Vancouver’s change Other commercial offices: 60 Japanese economy Chicago, Dubai, Frankfurt, Los Angeles, Economics brief The third in Levitation speed Paris, San Francisco and Singapore our series on seminal 61 Free exchange economic papers looks at the Independent central banks Stolper-Samuelson theorem, which predicts that freer trade can hurt wages, page 55 PEFC certified This copy of The Economist is printed on paper sourced from sustainably managed forests certified to PEFC PEFC/29-31-58 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. The Economist (ISSN 0013-0613) is published every week, except for a year-end double issue, by The Economist Newspaper Limited, 750 3rd Avenue, 5th Floor New York, NY 10017. The Economist is a registered trademark of The Economist Newspaper Limited. Periodicals postage paid at New York, NY and additional mailing offices. Postmaster: Send address changes to The Economist, P.O. Box 46978, St. Louis, MO 63146-6978, USA. Canada Post publications mail (Canadian distribution) sales agreement no. 40012331. Return undeliverable Canadian addresses to The Economist, PO Box 7258 STN A, Toronto, ON M5W 1X9. GST R123236267. Printed by Quad/Graphics, Hartford, WI. 53027 The world this week The Economist August 6th 2016 5 be stationed around the North Korea fired a missile Politics capital’s landmarks. that travelled 1,000km (620 miles) over land and sea before Shameless falling into Japanese waters. Donald Trump came under Tensions are high in the region pressure from Republicans to ahead ofAmerica’s annual tone down his act and run a joint military drills with South professional campaign. Mr Korea, which always rankle Trump has been conducting a the North. feud with the parents ofa slain American Muslim soldier. Hong Kong’s electoral com- Oddly, he likened his own mission blocked Edward “sacrifice” as a casino-builder Leung, a pro-independence to the soldier’s. A Republican candidate, from standing in South Africa voted in munici- congressman became the first September’s elections to the pal elections, seen as a crucial to declare that he will vote for legislative council, even test ofthe popularity ofPresi- Continuing his crackdown, Hillary Clinton in the presi- though he had signed a form dent Jacob Zuma and his Afri- Turkey’s president, Recep dential election. declaring that the territory is can National Congress. Early Tayyip Erdogan, issued a an “inalienable” part ofChina. results suggested big gains for decree allowing the govern- An appeals court struckdown An arm ofthe Chinese govern- the opposition. ment to issue direct orders to a law in North Carolina that ment called America the “dark the commanders ofthe army, had made voting harder, in- shadow” behind Hong Kong’s Heading to court air force and navy, bypassing cluding a requirement that pro-independence movement. A judge ruled that a case the chiefofthe general staff. voters show photo identifica- against Brazil’s formerpresi- Mr Erdogan also sparred with tion. The judges found that the The head ofMalaysia’s anti- dent, Luiz Inácio Lula da Silva, Italy’s prime minister, Matteo law was designed specifically corruption agency resigned along with six other people Renzi, over his son, Bilal Erdo- to reduce the turnout ofblacks. abruptly. He had been in- should proceed. Prosecutors gan, who is under investiga- vestigating the prime minister, allege that they conspired to tion formoney laundering in Freed at last Najib Razak, and a related pay a formerexecutive of Bologna.
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