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Now We're Talking Turkey torn apart Theresa Maybe, Britain’s indecisive PM Nestlé goes on a health kick Meet China’s Shakespeare JANUARY 7TH–13TH 2017 Now we’re talking Voice computing comes of age EconCow.com Latest video (Jan 2017) Were Richer Voters More Likely to Vote Trump? Sorry for this ad. I’m just a random guy on the internet. I’m also a new YouTuber who makes educational videos (mostly on economics). Please help me by checking them out and let me know how I can improve! Thank you! Contents The Economist January 7th 2017 3 6 The world this week 26 Charleston Cobblestones and bones 26 Markets for tickets Leaders Battling bots 7 Voice technology 27 Lexington Now we’re talking Learning to love Trumpism 8 Japan’s economy The second divine wind The Americas 8 Trumponomics Men of steel, houses of 28 Brazil’s prisons cards Horror in the jungle Theresa Maybe It is still 9 Fixing failed states 29 Bolivia unclear what Britain’s new First peace, then law Run, Evo, run prime minister stands 10 British politics for—perhaps even to her: On the cover Theresa Maybe Middle East and Africa leader, page 10. The making Voice technology is making 30 South Africa’s schools and meaning of a prime computers less daunting and Letters Bottom of the class minister, pages 14-16. The more accessible: leader, page sudden departure of Britain’s 11 On China, management, 31 Astronomers v sheep 7. Computers have got much man in Brussels lays bare the elections, nuclear power, farmers in South Africa better at translation, voice lack of Brexit plans, page 41. Japan, the elderly, Stars and baas recognition and speech The “WTO option” for Britain is economists 31 Zimbabwe’s sex trade synthesis. But they still Less stigma, more far from straightforward: Free don’t understand what competition exchange, page 55. The first language means: Technology Briefing crop of Brexit books includes Quarterly, after page 34 32 Iraq’s long war entries rich in detail and 14 Theresa May A goody and Abadi Steering the course analysis, page 59 33 America and Israel The Economist online Unsettled by Trump Asia 34 Israel’s divisions Daily analysis and opinion to Convicting a soldier supplement the print edition, plus 17 Ageing in Japan audio and video, and a daily chart Cities vie for the young Economist.com 18 Japan’s elderly workers Technology Quarterly: E-mail: newsletters and Keep on toiling Language mobile edition 18 Alcohol in Indonesia Finding a voice Economist.com/email Calls for a ban After page 34 Print edition: available online by 19 New Zealand’s national parks 7pm London time each Thursday Europe Economist.com/print Lord of the ker-chings 36 Terror in Turkey Audio edition: available online 20 Banyan Turkey torn apart From celebration to to download each Friday Selling Malaysians down The murderous Islamic State Economist.com/audioedition the river carnage attack on a nightclub widens 37 Obama sanctions Russia the secular-religious divide, Putin gets the last laugh page 36 China 37 Bavaria’s angry drivers 21 Selection year Taking their toll A reshuffle looms 38 Spain and Catalonia Volume 422 Number 9022 22 Literature Catalexit? Meet China’s Shakespeare Published since September 1843 39 Charlemagne to take part in "a severe contest between Martin Luther’s Germany intelligence, which presses forward, and an unworthy, timid ignorance obstructing United States our progress." 23 Inequality Editorial offices in London and also: Fat tails Atlanta, Beijing, Berlin, Brussels, Cairo, Chicago, Lima, Mexico City, Moscow, Mumbai, Nairobi, 24 Congressional ethics New Delhi, New York, Paris, San Francisco, Old bog, new tricks São Paulo, Seoul, Shanghai, Singapore, Tokyo, Washington DC 25 Recruiting police officers Failed states How to save The force is weak nations from collapse: leader, 25 Gun laws page 9. The lessons from Still standing Afghanistan and South Sudan, page 43. Why South Africa has one of the world’s worst education systems, page 30 1 Contents continues overleaf 4 Contents The Economist January 7th 2017 Britain Science and technology 40 Crime 56 Medicine and computing How low can it go? The shoulders of gAInts 41 Brexit preparations 57 Olfactory medicine Rogers and out Whiff of danger 41 Foreign aid 58 Atmospheric physics A stingy new year The storm before the calm 42 Bagehot 58 Palaeontology Pierogi and integration Cracking a puzzle Ageing Japan An older China’s Shakespeare Officials International Books and arts population is changing have been using the 400th suburbia, page 17. Japan’s 43 Fixing fragile nations 59 Britain and the EU anniversary of Shakespeare’s workforce is ageing, too, page Conquering chaos Why Brexit won death to promote a Chinese 18. Toshiba, an enfeebled 60 Johnson bard who they claim stands Japanese giant, faces a Business Word of the year shoulder to shoulder with the multi-billion-dollar write- Swan of Avon, page 22 46 Nestlé 61 Chinese economics down, page 47. The strong A life less sweet Western takeaway dollar has given Abenomics 61 Fiction another chance. Now 47 Toshiba Subscription service Crazy city corporate Japan must do its Losing count For our full range of subscription offers, 62 Car-park architecture including digital only or print and digital bit: leader, page 8 48 Donald Trump and Ford combined visit Wheel spin Pile ‘em in style Economist.com/offers You can subscribe or renew your subscription 49 Schumpeter by mail, telephone or fax at the details below: The three Rs of banking 64 Economic and financial Telephone: +65 6534 5166 indicators Facsimile: +65 6534 5066 Statistics on 42 economies, Web: Economist.com/offers Finance and economics E-mail: [email protected] plus a closer look at GDP Post: The Economist 50 Indian economics forecasts Subscription Centre, Many rupee returns Tanjong Pagar Post Office PO Box 671 51 Impact investing Obituary Singapore 910817 Coming of age Subscription for 1 year (51 issues)Print only 66 Vera Rubin 51 Bank capital Australia A$425 Astronomy’s dark star China CNY 2,300 Polishing the floor Hong Kong & Macau HK$2,300 India INR 7,500 Nestlé’s health kick As rivals 52 Buttonwood Japan Yen 41,000 Korea KRW 344,000 encroach and consumers fret The new global regime Malaysia RM 780 about their waistlines, the New Zealand NZ$460 53 Sub-national currencies Singapore & Brunei S$425 incoming boss of Switzerland’s Local difficulties Taiwan NT$8,625 food multinational must find a Thailand US$288 53 Futures and options Other countries Contact us as above new formula for growth, Out of the pits page 46 54 Anthony Atkinson For poorer, for richer Principal commercial offices: 25 St James’s Street, London sw1a 1hg 54 Insuring talent Tel: +44 20 7830 7000 Death Star Rue de l’Athénée 32 55 Free exchange 1206 Geneva, Switzerland Brexit and the WTO option 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: Chicago, Dubai, Frankfurt, Los Angeles, Paris, San Francisco and Singapore The third regime First there was Bretton Woods; then PEFC certified capital controls ended and This copy of The Economist regulations were slashed; now is printed on paper sourced from sustainably managed comes the third post-war forests, recycled and controlled financial regime. But what sources certified by PEFC PEFC/01-31-162 does it entail? Buttonwood, www.pefc.org page 52 © 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) 6 The world this week The Economist January 7th 2017 BarackObama expelled 35 Amazonas left 56 inmates The European Central Bank raise tariffs, portending what Russian diplomats and im- dead. Some were decapitated; raised its estimate ofthe capi- may be one ofhis biggest fights posed new economic sanc- severed limbs were stacked by tal shortfall at Monte dei with Mr Trump. tions in retaliation against the entrance. Paschi di Siena to €8.8bn Russian hackers’ interference ($9.1bn). The troubled Italian Luis Videgaray was rehabilitat- in America’s election. Ameri- Odebrecht, a Brazilian con- bankhas requested a bail-out ed in Mexico’s government by can intelligence agencies say struction company, and Bras- from the government after being appointed foreign min- that Russia released stolen kem, a petrochemical firm in running out oftime to raise ister. Mr Videgaray resigned as e-mails ofDemocratic Party which it owns a stake, pleaded new capital privately. finance minister after suggest- officers in order to aid the guilty to bribing officials and ing that Donald Trump visit campaign ofDonald Trump. political parties to win con- Shortly before Christmas, Mexico last year, a hugely Vladimir Putin declined to tracts in Latin American and Deutsche Bank agreed to pay unpopular move at the time. strike back, winning praise African countries. The compa- $7.2bn to settle with America’s from Mr Trump. nies agreed to pay a penalty of Department ofJustice for Japan’s prime minister, Shinzo at least $3.5bn, the largest mis-selling subprime mortgage Abe, paid his first visit to the A gunman attacked a night- settlement ever in a global securities, about halfthe American naval base at Pearl club in Istanbul during New bribery case.
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