JANUARY 2012 THE VIEW FROM DAVOS SIGNS OF ECONOMIC LIFE PAGE 26 THE HAVes vs. THE HAVE LOts PAGE 48 THE 2011 MONEY SHOts PAGE 6 CODE: TOM-11-1 D PUB/POST: DAVOS 12/21 PRODUCTION: Don Hanson LIVE: 16.5” x 10.375” DESCRIPTION: 2011 TR Print WORKORDER #: 003336 TRIM: 17” x 10.875” Delivery Support: 212.237.7000 FILE: 07A-003613-02B-TOM-11-1D.indd SAP #: TOM.TOMBRA.10017.K.011 BLEED: 17.25” x 11.125” THERE’S A PRINCIPLE SOME CALL THE BUTTERFLY EFFECT. IT SAYS A RANDOM EVENT IN ONE PART OF THE WORLD CAN HAVE A DRAMATIC EFFECT IN ANOTHER. CHAOS REIGNS. WE BELIEVE IN A DIFFERENT PRINCIPLE. THAT KNOWLEDGE ALLOWS US TO STEER THE COURSE OF EVENTS. TO GROW ECONOMIES. PROMOTE JUSTICE. EVEN SAVE LIVES. ©2012 Thomson Reuters. Thomson Reuters, the Kinesis logo, and The Knowledge Effect are the trademarks of Thomson Reuters. of the trademarks are ©2012 Effect The Knowledge and the Kinesis logo, Thomson Reuters, Thomson Reuters. THE RIGHT INFORMATION IN THE RIGHT HANDS LEADS TO AMAZING THINGS. 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In the world in which we live. THAT’S THE KNOWLEDGE EFFECT. SEE HOW WE’RE PROVING IT EVERY DAY AT THOMSONREUTERS.COM Art: 85731_Reuter_P4C_01_v6_400dpi.tif (CMYK; 381 ppi; Up to Date), TOM- Thomson Reuters-4C.ai (Up to Date), small circles.ai (Up to Date), Knowledge effect.ai (Up to Date) EDITOR’S LETTER Page .06 CONTENTS FRAMING THE GLObal EcONOMY Page .26 Page .44 folio produced by Alexia Singh and Russell The Top Business Boyce in Framing the Global Economy. Pictures of 2011 Warning: some of the photos are not for WHAT’S GOING WIKILEAKS’ the faint of heart—then again, 2011 was that kind of year. Page .16 RIGHT 16TH MINUTE Are drones a silver bullet? Pulitzer Prize-winning reporter David Rohde, THE ELEPHANTS Searching for signs of life in the His organization is in disarray, his sources have who spent seven months as a prisoner IN THE global economy dried up, and Julian Assange is desperate of the Taliban, offers a unique personal SKI LODGE for a second act. His leaks over the past perspective—he can vividly recall the The four issues that could five years have told us plenty, but have they incongruous buzz the pilotless fighters ruin the view from Davos made as they hovered in the sky—and changed anything? suggests the United States is paying a Page .32 steep if hidden price for its reliance on REUTERS AND the World Economic this high-tech weaponry. Page .18 Forum have much in common. We’re both In What’s Going Right, Reuters SPRINGTIME FOR THE HASHTAG global in outlook, dedicated to generating Chief Economics Correspondent Alan Page .48 insights that drive better, smarter deci- Wheatley interrupts our gloom-fest and EUROPE? sions and committed to bringing together shows that despite the debt crisis in A return to the 1930s is not REVOLUTION the world’s most interesting people. As a Europe and sundry other financial prob- inevitable, provided leaders and the THE HAVES vs. middle class don’t waste the crisis As politics and Twitter grow more intertwined news organization, Reuters has a further lems, parts of the world economy, from there’s a lot riding on a business model that is yet mission: to deliver trustworthy, timely and Brazil to Zambia, are thriving. ThE haVE LOTS What do the Tea Party and Occupy Wall to be discovered inspired journalism that powers markets Millionaires of the world, unite! and media. We do this as a proudly elec- Street have in common? To Nick Carey, Page .21 tronic news agency that whisks text, pho- both movements represent a return to tos, and videos to financial, professional, old-school activism—as well as a threat to HEll NO, and media customers around the world. their professional counterparts: the often I WON’T GO! That is not to say, however, that we are well-heeled NGOs of the world. Even with Glock-packing Page .38 averse to print, particularly on special So shut off your gadgets for a few security, an armada of private Page .52 helicopters and $20,000-a-night occasions like the annual meeting of the minutes, turn away from your screen suites, talk is cheap. One man’s World Economic Forum in Davos. The (after setting your home page to Reuters. problem with Davos THE DRONE WARS magazine you are holding was created to com) and dig in. RETURN OF THE coincide with the 2012 session. Stepped-up strikes by America’s pilotless Among the highlights: Warm regards, fighters have been cost-efficient, ACTIVIST Page .22 Each day Reuters produces roughly though not without cost. I lived in their menacing A new generation of protesters struggles to 1,500 picture images, so coming up with faiTH-basED the top pictures illustrating the harrowing shadow for seven months avoid the fate of its elders year in economic and financial news was ECONOMIC no easy task. Check out the stunning port- STEPHEN ADLER, Editor in Chief THEORY America’s Republican presidential candidates all agree on the root cause of the financial Page .58 daVOS BY THE NUMBErs crisis, and they are all wrong EDITOR IN CHIEF Stephen Adler REUTERS EXecUTIVE EDITOR Chrystia Freeland ThE N viEw from MANAGING EDITOR Jim Impoco COVER d a v o S Page .60 THE DEVIL IN THE Cds CREATIVE DIRecTORS Priest+Grace IllusTRATION RIEDMA BY SignS of ASSISTANT MANAGING EDITORS Roger D. Hodge, Bob Roe F Y Page .24 Economic LifE D ThE ha v ES ZOHAR Lazar vs. SENIOR EDITORS James Ledbetter, Paul Smalera ThE ha v E LoTS ThE 2011 N: AN N: monEy ShoTS ASSOCIATE EDITORS Atossa Abrahamian, Peter Rudegeair THE GLObal Page .62 CONFEssiONS OF A daVOS SPOusE PICTURE EDITORS Russell Boyce, Alexia Singh stratio MIDDLE INFO GRAPHICS Maryanne Murray A surprising shift in income COPY EDITORS Lauren Casper, Charles Petersen ILLU levels worldwide Page .64 THE FIGHT OVER Russia’S SOUL portrait �o. �o. REUTERS 2 JAN.2012 REUTERS 3 JAN.2012 CODE: TOM-11-15D PUB/POST: The Davos Issue, Due Date: PRODUCTION: Don Hanson LIVE: 8” x 10.375” DESCRIPTION: 2011 Thomson Reuters Print WORKORDER #: 003591 TRIM: 8.5” x 10.875” Delivery Support: 212.237.7000 FILE: 02B-003576-01A-TOM-11-15D.indd SAP #: TOM.TOMBRA.11017.K.011 BLEED: 8.75” x 11.125” ©2012 Thomson Reuters. Thomson Reuters, the Kinesis logo, and The Knowledge Effect are the trademarks of Thomson Reuters. Reuters. Thomson of trademarks the are Effect Knowledge The and logo, Kinesis the Reuters, Thomson Reuters. Thomson ©2012 CONTRIBUTORS Jack Shafer David Rohde Jonathan Weber In Wikileaks’ 16th Minute, Reuters col- There are many people with opinions The revolution will not only be tele- umnist and media critic Shafer takes about the moral and military justifica- vised, it will be covered exhaustively on the task of explaining how Julian tions for drones, but few have been by Twitter. In The Hashtag Revolution, Assange’s secrets clearinghouse went on the ground when one is buzzing Weber, the West Coast Bureau Chief from feared to fanglesss, and why the overhead. That’s the illuminating— for Reuters, shows how the seemingly mercurial Assange has found himself and chilling—perspective delivered by endless torrent of tweets is rapidly With advanced solutions trapped in a relationship with the tradi- Rohde in The Drone Wars, which draws changing how we all get our news, and tional media he professes to despise. on his stellar reporting in Afghanistan, even how we select our leaders. from Thomson Reuters, including the seven months he was businesses can better held captive by the Taliban. manage Governance, Risk, and Compliance–ensuring their path to future growth and innovation is not only clear, it’s wide open. THE RIGHT INFORMATION IN THE RIGHT HANDS LEADS TO AMAZING THINGS. In business today, there’s a new mantra: move fast while mitigating risk. With Thomson Reuters Accelus,™ it’s possible. Only Chrystia Freeland Alan Wheatley Nick Carey Accelus provides a powerful suite of comprehensive GRC technologies and services that dynamically connect business The world’s plutocrats don’t just have Global Economics correspondent The reporting Carey has done in the strategies, operations, and transactions to the ever-changing regulatory environment. With greater transparency across to worry about those surly members of Wheatley has reported for Reuters from past couple of years for Reuters has their organizations, companies in highly governed industries can anticipate, manage, and report emerging regulatory the 99 percent, says Thomson Reuters more than 40 countries over the past taken him from the front-lines of and legal risks with confi dence.