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Into the Brexit Endgame Coping with a 100-Year-Life Society America's Into the Brexit endgame Coping with a 100-year-life society America’s latest tax boondoggle China’s plan for stimulus NOVEMBER 17TH–23RD 201 PUTTINGYOUATTHECENTEROFOURWORLD BUSINESS CLASS Relax with a Clarins beauty treatment* in our dedicated lounge. Once aboard, savor a menu crafted by leading French chefs, and all from the comfort of a fully horizontal seat-bed.** AIRFRANCE.US *Departing from Paris-Charles de Gaulle - Terminal 2E - Halls K, L, M, from New York-JFK and from London-Heathrow. **Available on select long-haul Boeing 777 flights and Boeing 787 flights. Contents The Economist November 17th 2018 5 The world this week United States 9 A round-up of political 29 Fire in California and business news 30 Water in California 31 The new attorney-general Leaders 32 Florida recounts 13 Competition The next capitalist 34 Opportunity zones revolution 36 Lexington Adam Schiff 14 Britain and the EU Into the endgame The Americas 16 Japanese demography 37 Gun control in Canada Coping with the 38 Corruption in Colombia 100-year-life society 38 Culling green iguanas 16 Opportunity zones On the cover 40 Bello A fight to spend Oh, the places you’ll grow public money better To rebuild public faith in 18 Ed-tech markets, restore competition: Click to download teacher leader, page 13. Across the Asia West powerful, profitable Letters 41 Ageing in Japan firms are becoming even more powerful and profitable. See 20 On Australia, shipping, 42 Sri Lanka’s chaotic our special report, after aliens, Napoleon, politics page 46. Technology has metaphors 44 Jihadists in Indonesia eroded union power. 44 India’s nuclear subs Harnessing it may help Briefing 45 Banyan Renaming India organised labour to stage a 23 Trade unions and revival, page 23 technology 46 Fiji’s rival strongmen Workers of the world, 46 Imelda Marcos is • Into the Brexit endgame How log on! convicted Parliament should weigh up the Brexit deal: leader, page 14. The chances of approval look small, Special report: China page 59. The case for having Competition 47 World-class universities another vote on Brexit is gaining Trustbusting in the 48 Against political vetting 21st century strength: Bagehot, page 61 49 Chaguan Dreaming of After page 46 • Coping with a 100-year-life online fame society Shinzo Abe must be bolder if a fast-ageing Japan is to stay solvent: leader, page 16. The prime minister outlines his Middle East & Africa plans, page 41 51 An Israeli election looms • America’s latest tax 52 Plastic surgery in Lebanon boondoggle A scheme to draw 52 Struggling Dubai capital to deprived areas looks more like a massive giveaway: 53 Nigeria’s mysterious Shias leader, page 16. Superstar cities 54 Looking back in the sweep all before them. How can Charlemagne Europe’s Gambia the understudies get a lucky populist wave is stirring 54 The economics of break? Free exchange, page 77 up tensions between chocolate national minorities and • China’s plan for stimulus The their neighbours, page 58 scale of debt limits the country’s options today, page 71 1 Contents continues overleaf 6 Contents The Economist November 17th 2018 Europe Finance & economics 55 Macron and Europe 71 China plans its stimulus 56 Migrants and politics 72 Buttonwood America in Sweden first 57 EU budget rules and Italy 73 Oil’s ups and downs 58 Charlemagne Resurgent 73 America and Europe regionalism talk trade 74 Financial inclusion Britain 75 The Philippine economy 59 At last, a Brexit deal 76 Stock exchanges turn to 61 Bagehot The case for a blockchain second referendum 76 Italy’s pharmacies 77 Free exchange Superstar cities Science & technology International 78 Redefining the kilogram 62 How technology can 79 Responsibility for climate improve education in change poor countries 80 A caffeine-free tea plant 81 Reinventing the watch spring Books & arts Business 82 Austria’s history wars 65 The backlash against Michelle Obama’s memoir chemicals 83 84 Rediscovering Lucia Berlin 66 Bartleby Nokia’s saga 84 Warhol’s prophetic art 67 MTN’s trouble spots 85 Johnson Translating in a 68 Juul and the FDA crisis 68 Indian supermarkets 69 CP Group’s winning Economic & financial indicators business model 88 Statistics on 42 economies 70 Schumpeter China v America Graphic detail 89 Global wildfires fizzle out Obituary 90 Ruth Gates, champion of corals Subscription service For our full range of subscription ofers, including digital only or print and digital combined, visit: Economist.com/ofers Volume 429 Number 9118 Published since September 1843 You can also subscribe by mail, telephone or email: One-year print-only subscription (51 issues): Please to take part in “a severe contest between North America intelligence, which presses forward, The Economist Subscription Center, United States....................................US $158.25 (plus tax) and an unworthy, timid ignorance P.O. Box 46978, St. Louis, MO 63146-6978 Canada................................................CA $158.25 (plus tax) obstructing our progress.” Telephone: +1 800 456 6086 Latin America.......................................US $289 (plus tax) Email: [email protected] Editorial o ces in London and also: PEFC certified Amsterdam, Beijing, Berlin, Brussels, Cairo, Latin America & Mexico This copy of The Economist Chicago, Johannesburg, Madrid, Mexico City, The Economist Subscription Center, is printed on paper sourced Moscow, Mumbai, New Delhi, New York, Paris, P.O.Box 46979, St. Louis, MO 63146-6979 from sustainably managed San Francisco, São Paulo, Seoul, Shanghai, Telephone: +1 636 449 5702 forests certified to PEFC Singapore, Tokyo, Washington DC Email: [email protected] PEFC/29-31-58 www.pefc.org © 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. 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, N Y 10017. The Economist is a registered trademark of The Economist Newspaper Limited. Periodicals postage paid at New York, NY and additional mailing oices. 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, Saratoga Springs, NY 12866 The world this week Politics The Economist November 17th 2018 9 Last week Mr Acosta asked too choice between peace and country’s alleged support for many follow-up questions for disorder. Mr Trump boycotted armed groups in Somalia. Mr Trump’s liking (the presi- a meeting of the Paris Peace Eritrea’s rapprochement with dent called him a “terrible Forum after the ceremony. Ethiopia earlier this year and person”). Other networks, improved relations with Dji- including the Republican- Mrs Merkel followed Mr Mac- bouti have raised hopes for a leaning Fox News, also rallied ron in calling for the creation more stable Horn of Africa. in cnn’s support. of a “real, true European army”. It is not clear what that would mean in practice. Who overcomes Darkness visible Sri Lanka’s Supreme Court The trial of Joaquín Guzmán, A deadline set by the European overturned the president’s After an “impassioned” five- the alleged head of Mexico’s Commission for Italy to revise order to dissolve parliament, hour meeting Theresa May, Sinaloa drug gang, began in its budget to deal with what are which, in turn, voted to reject Britain’s prime minister, said Brooklyn, New York. Mr Guz- termed excessive deficits the prime minister the presi- her cabinet had approved a mán, also known as El Chapo, passed without Italy com- dent had only just appointed, provisional withdrawal deal faces17 charges related to drug plying. A formal infringement Mahinda Rajapaksa. It is not from the European Union. trafficking, money laundering procedure now looks likely. clear who is now in charge. After the meeting Mrs May said and violations of firearms she believed the draft deal was laws. His lawyer contended Voters in Fiji chose between “the best that could be negoti- that the real leader of the gang All hell broke loose parties led by two former coup ated”.She now needs Parlia- is Ismael Zambada, who re- Avigdor Lieberman resigned as leaders in a general election. ment to back it, but may strug- mains free because he has Israel’s defence minister and They plumped for the incum- gle to find enough votes to get bribed “the entire government called for an election to be held bent FijiFirst party, led by it passed. Several of her min- of Mexico”.El Chapo “con- as soon as possible. Mr Lieber- Frank Bainimarama, who has isters, including the Brexit trolled nothing” that Mr Zam- man clashed with Binyamin presided over relative political secretary, resigned over the bada did, the lawyer claimed. Netanyahu, the prime min- and economic stability for the deal. Mrs May herself could yet ister, over the government’s past four years. be toppled. A judge in Chile convicted Juan pursuit of a truce with mil- Emilio Cheyre, a former chief itants in Gaza. Violence erupt- A court in the Philippines of the army, of participating in ed earlier, when a secret oper- sentenced Imelda Marcos, a Paradise lost the “caravan of death”,which ation by Israeli special forces politician and widow of Ferdi- Wildfires continued to rage in murdered leftists after a mil- inside Gaza was exposed, nand Marcos, the country’s California. At least 50 people itary coup led by Augusto leading to the death of seven strongman of 20 years, up to 77 are confirmed to have died in Pinochet in1973.
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