Newsweek (ISSN0028-9604) Is Published Weekly Except One Week in January, July, August and Nevada October

Europe’s Uber Right and the Stuff Masses

09.30.2016

THE HIDDEN HISTORY OF AMERICAN SPYCRAFT

09.30.2016 VOL.167 NO.12

+ GO FIGURE: Donald Trump claims there would be no confl icts of interest between his foreign business dealings and American national security if he were elected president (“Blind Trust Issues,” page 12).

PAGE ONE

12 Politics Blind Trust Issues

16 Prostitution My Hooker Has a Face!

18 Russia In God We Bust

20 Hungary Quota Approval

NEW WORLD

48 Kenya Wet Work

50 Transportation Ready for the L-pocalypse?

DOWNTIME

54 Art Haring, Impaired FEATURES DEPARTMENTS 60 Media Grudge Gone Wild 22 Not Your Daddy’s CIA BIG SHOTS 62 Intelligence You can’t secure America with just one Snowden, demographic. by Abigail Jones 4 New York a Love Story Chelsea Blast 6 Douma, Syria 64 Rewind No End in Sight 20 Years ILLUSTRATION BY DELIZA/SHUTTERSTOCK COVER CREDIT: 8 North Las Vegas, Newsweek (ISSN0028-9604) is published weekly except one week in January, July, August and Nevada October. Newsweek is published by Newsweek LLC, 7 Hanover Square, 5th Floor, New York, NY 10004. Stand-In Periodical postage is paid at New York, NY and additional mailing offices. POSTMASTER: Send change of address to Newsweek, 7 Hanover Square, 5th Floor, New York, NY 10004. 10 Washington, D.C. For Article Reprints, Permissions and Licensing www.IBTreprints.com/Newsweek Monumental FOR MORE HEADLINES, NEWSWEEK.COM JOE BURBANK/ORLANDO SENTINEL/TNS/GETTY JOE BURBANK/ORLANDO PARS International (212) 221-9595 x210 [email protected] Changes GO TO

NEWSWEEK 1 09/30/2016 EDITOR-IN-CHIEF Jim Impoco

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BIG SHOTS

USA Chelsea Blast New York— Passers-by stand behind police lines after a homemade bomb in a dumpster injured 29 people in Manhattan’s Chelsea neighborhood on September 17. Police found a second device made with a pressure cooker four blocks away. There was no immediate word on a motive for the attack, which came the same day as a pipe bomb exploded before a running race in New Jersey. The following day, a number of pipe bombs were found in a backpack on top of a municipal garbage can in Elizabeth, New Jer- sey. About 36 hours after the Chelsea blast, police announced that they had arrested a suspect.

SPENCER PLATT SPENCER PLATT/GETTY

BIG SHOTS

SYRIA No End in Sight Douma, Syria— Wounded children receive care at a makeshift hospital in the rebel-held town of Douma after an airstrike on September 12. The attack was blamed on government forces and came on the day the cease-fi re brokered by Russia and the United States went into eff ect. A few days later, the truce appeared close to collapse after U.S. forces accidentally bombed Syrian army troops instead of an Islamic State (ISIS) target and following continuing violations by other parties in the confl ict.

ABD DOUMANY ABD DOUMANY/AFP/GETTY ETHAN MILLER/GETTY BIG SHOTS

USA Stand-In North Las Vegas, Nevada—Bill Clinton speaks at a campaign event on September 14 while his wife, Hil- lary, the Democratic presidential nominee, was recovering from pneumonia. The former president was due to preside over the Clinton Global Initiative’s meeting this month but has promised to step away from the Clinton Foundation, which the CGI is part of, if Hillary is elected president. The foundation has been rated one of the most eff ective global charities in pro- viding medical care, food and development assistance around the world, but Republi- cans claim it creates a confl ict of interest.

ETHAN MILLER

BIG SHOTS

USA Monumental Changes Washington, D.C.— Nobel Peace Prize winner Aung San Suu Kyi visits the Lincoln Memorial on Septem- ber 14 during her fi rst trip to the U.S. capital since her party won elections in Myanmar. President Barack Obama said the Unit- ed States was ready to lift sanctions on her country, although human rights groups remain concerned about the situation there, particularly for the Rohingya ethnic group, who are not recognized as citizens. Suu Kyi has been criticized for not doing enough to help the Muslim minority.

JONATHAN ERNST JONATHAN ERNST/REUTERS JONATHAN PAGE ONE

HUNGARY POLITICS REFUGEES PROSTITUTION RUSSIA ECONOMY

THE SCOOP BLIND TRUST ISSUES You’d have to be very gullible to buy Donald Trump’s claim that his global business deals won’t jeopardize national security

LIKE A POLITICAL Elmer Gantry, Donald Trump fashion designer and former model, jumped in goes from city to city, proclaiming that only he with her goofy explanation, saying she and her can save America, spinning outrageous state- siblings would fi gure out how to avoid deals that ments and spewing lies before heading off to his might raise confl icts of interest for their father. next revival meeting. Serious questions about The onslaught of words, to the uninformed, his candidacy for the presidency are left unan- may have sounded persuasive. Voters could be swered or buried under a fl urry of deceit. excused for thinking the Trumps had solved the Confronted with the recent Newsweek cover problem. They haven’t. Worse, if the Trumps story detailing numerous potential confl icts of believe what they are saying, there is no ques- interest between his foreign business dealings tion a President Trump would be America’s and American national security should he be most confl icted chief executive, forcing the elected, Trump and his children responded with United States to confront a problem that would a litany of nonsensical claims. There would be be unprecedented. no confl icts, he said, because he would put his The Newsweek article dug into the deals of the company, the Trump Organization, into a blind Trump Organization, a private entity with a global trust. Then he said he would sever his connec- web of fi nancial ties. The company—which made tions with the business. With both answers, its name as a real estate developer and a (failed) BY though, he said his children would run the casino operator—has not been in either business KURT EICHENWALD company. Then his daughter, Ivanka Trump, a for years. Instead, it sells two things: the Trump @kurteichenwald

NEWSWEEK 12 09/30/2016 + CARDBOARD TIGER: Trump’s claim that he’d put his company in a blind trust if elected suggests he has no idea how such ar- rangements work. PAUL SANCYA/AP PAUL

NEWSWEEK 13 09/30/2016 illness that cripples his memory, the confl icts will not be resolved just because those deals are in a PAGE ONE/POLITICS blind trust. Another obvious problem here: It will be awfully diffi cult for Trump not to know what the Trump Organization is up to if, on a state visit to Russia, he sees “Trump Tower Moscow” on a high-rise there. Lastly, a blind trust is not blind unless the person managing it is independent of the owner, and Trump has said his children will name and, until he began his national campaign, manage the company if he wins in November. the reality television show The Apprentice, for Trump says he will “sever” his relationship with which Trump was host and executive producer. the Trump Organization, and his children will be The global confl icts that could undermine running the company and will be its primary fi nan- national security are in Trump’s branding busi- cial benefi ciaries. In a true blind trust, the bene- ness. He has many overseas partners with undis- fi ciary continues to receive the fi nancial rewards closed ties to factions within their governments; of the investment. So will money keep fl owing a troubling number of them are criminals or to Trump? He won’t say. And it doesn’t matter, under indictment. All of them are paying, have because it is clear he could easily enrich his kids paid or about to start paying millions of dollars and “their” company from the Oval Offi ce. to the Trump Organization for the privilege of Before anyone recites Trump’s “America is putting his name on their buildings. more important than the Trump Organization” So, if Trump gets into the White House, the shtick, take a look at what he has done during president of the United States will be in a business his candidacy: Repeatedly, he has shown that deal with an Azerbaijani billionaire whose father he is more concerned about his company than he is a prominent government offi cial identifi ed is with either his campaign or the international by American intelligence as a money launderer economy. When a majority in the U.K. voted in for the Iranian military. The Trump Organization’s partners in India would place America’s crucial but shaky alliance with Pakistan at risk. Relations IF SOMEONE DROPS A HUGE between Trump and Turkey’s government are deteriorating in part because CURTAIN IN FRONT OF TRUMP of his business connections there, and TOWER, WILL TRUMP NO that country’s president has told people close to him that he will not allow LONGER KNOW IT IS THERE? a Trump-led America to use a military base that has been a critical staging area for the bombing campaign in Syria against the Islamic State group, known as ISIS. favor of leaving the European Union, the value of In other words, all these entanglements would the pound collapsed. On that day, Trump was in imperil the national security of the United States. Turnberry, Scotland, presiding over the opening These confl icts cannot be resolved with the ceremony for a new Trump golf course. Asked simpleminded solutions off ered by the Trump about the vote to leave, known as Brexit, Trump family. Start with Trump’s “blind trust” argu- spoke not of the global economic chaos set off by ment. Politicians using a blind trust hand over the event, but of the benefi ts to his golf resort. their investment portfolios to independent third “When the pound goes down, more people are parties that make trades of stocks and bonds coming to Turnberry,” he said. without seeking permission or informing the pol- Earlier this month, when Trump abandoned itician. As a result, the politician doesn’t know his yearslong eff ort to prove the risible claim what is in the trading account, thus eliminating that President Barack Obama was born in the danger that fi nancial interests will infl uence Kenya, he made the statement at his new hotel governmental decisions. in Washington, D.C. He devoted just one sen- The lunacy of Trump’s argument is evident. If tence to recanting his birther lie and spent the someone drops a huge curtain in front of Trump rest of the time praising his new hotel. Once Tower, will Trump no longer know the building again, Trump business trumped truth. is there? And Trump already knows who his over- Finally, there was the explanation of this blind seas partners are, so unless he suff ers from an trust ruse advanced by Ivanka Trump on Good

NEWSWEEK 14 09/30/2016 Morning America. Regarding the Newsweek arti- suggesting that she and her brothers will be in cle, she said, “There’s something so much bigger the White House for foreign policy and national than our business at stake, and that’s the future security briefi ngs, or that their dad will give them of this country. As a private business, we can occasional phone calls to discuss classifi ed infor- make decisions that are not in our best interest…. mation, how will the Trump children know how We can say, ‘You know what? We’ll do less deals,’ to steer clear of U.S. foreign policy? Her argu- and, ‘Not going to do that deal, even though it’s a ment here suggests she would not do well on the fi ne deal.’ It’s economically reasonable because reality show Are You Smarter Than a Fifth Grader? it could create a confl ict of interest, and we’ll act The confl icts of interest between the Trump incredibly responsibly.” Organization and American national security, Let’s unpack this stunning statement. First, should Trump become president, cannot be fi xed. note that it contains an admission that Trump The dangers created by having a president whose DOUBLE-BLIND Organization deals would create multiple con- decisions could be based on his own and his chil- BIND: Trump knows what buildings and fl icts of interest for a President Trump. Second, dren’s fi nancial interests are unprecedented. The partners he has, so we should just trust the Trump children to fi gure Trumps have a choice: They can sell the Trump even a blind trust would not prevent out which deals they pursue could aff ect Amer- Organization, or Donald Trump can be president. him from favoring ican national security. Unless Ivanka Trump is They cannot have both. both in the White House. OZAN KOSE/AFP/GETTY OZAN +

NEWSWEEK 15 09/30/2016 PAGE ONE/PROSTITUTION

MY HOOKER HAS A FACE! How some sex workers are defying stigma and the cops

WHEN DELILAH began work as an escort last when I showed my face, so I kind of got addicted year, she chose to blur her face in the photos she to showing,” Holiday tells Newsweek, explaining posts on her website and Twitter profi le. The that her annual earnings spiked from $150,000 Ottawa, Ontario, college student made the deci- to $300,000. sion to hide her features to keep her sex work Now Holiday posts photos with her face uncov- from her conservative Muslim family and so she ered, both for the money and because she’s proud can transition smoothly and without stigma into of what she does and what she’s accomplished. a diff erent career when she graduates. “Everybody knows I do this with integrity. My But hiding her face has its drawbacks. “I would kids have gone on nice trips; we have a hot tub certainly get a lot more clients. And no one in the yard. I’m a good provider,” says Holiday, would be in for a shock when they saw me,” says who doesn’t see smokers or men under 35. But the 23-year-old, explaining that her baby face can she warns new sex workers that covering their surprise new clients. “I wish we lived in a world faces in online photos doesn’t guarantee their where I could show my face.” protection or privacy. “You’re probably eventu- An escort’s decision to reveal or obscure his ally going to get outed, so you should really be or her face online sheds light on the compli- comfortable with it,” she says. cated issues sex workers navigate as they seek Sex work can also put an escort at a disadvan- to balance profi ts and competition, their plans tage in a custody fi ght, especially when an angry for the future and potential attention from ex-partner uses it to argue the sex worker is an law enforcement. Several escorts also told unfi t parent. “As soon as there’s a dispute with an Newsweek they show their faces in hopes their unscrupulous partner, the partner just says, ‘Your “coming out” will help strip the shame from sex honor, my ex is a sex worker!’ And what do you work and add momentum to their work toward think happens?” says escort and sex work advo- decriminalization—a focus of media and non- cate Maggie McNeill. She adds that her decision profi t attention this year. to show her face was made easier by the fact that Hilary Holiday, a Minneapolis escort, says she doesn’t have children and doesn’t plan on a she covered her face in photos when she began future career that could “potentially be bombed” sex work in the early 2000s. Then, about six by her long history of sex work. years ago, jealous competitors began posting McNeill, who blogs as “the Honest Courte- in online escort forums that she must be hiding san,” says new escorts weigh multiple factors her face because she was hideous, and Holiday when deciding how open to be with their images BY grew frustrated. She fi nally posted photos to online. “I tell young girls, ‘You might want to JOSH SAUL prove them wrong. “My income, like, doubled really consider whether you want to show your @joshfromalaska

NEWSWEEK 16 09/30/2016 Magazine doing the same in May, with “Should Prostitution Be a Crime?” Then, later in May, Amnesty International published its policy on protecting sex workers from abuse, which rec- ommended the decriminalization of consensual sex work. “This is based on evidence that these laws often make sex workers less safe and provide impunity for abusers, with sex workers often too scared of being penalized to report crime to the police,” the organization said. Like other issues surrounding prostitution and decriminalization, choosing whether to reveal one’s face online is a bigger concern for

“MY INCOME, LIKE, DOUBLED WHEN I SHOWED MY FACE, SO I KIND OF GOT ADDICTED TO SHOWING.”

well-off escorts who charge $400 an hour and have their own websites and Twitter profi les, while poor and marginalized prostitutes have other, more pressing worries. Escorts still risk arrest. Posting their faces online can help law enforcement investigate and prosecute sex workers. “Having your face on Twitter could be an opportunity for police to reach out to you and entrap you,” says Philadelphia escort Mike Crawford, who calls himself a “full- time queer, part-time cashsexual” on his Twit- ter profi le. “If you have the same image on your Facebook page and on your ads, an investigator could quickly use Google search to match them up.” (When Holiday was arrested on prostitution charges in 2013, police said they matched photos on her escort website to her driver’s license.) Still, Crawford says his decision to show his face is cemented by his work as an advocate for + sex workers and decriminalization. He and other WITH INTEGRITY: Minneapolis escort advocates believe sex worker rights today are Hilary Holiday says face or not,’” McNeill says. “‘You may get mar- evolving but are at the point where gay rights she’s able to pro- ried, you may have children. Even if your family were in the 1950s, where coming out can jeopar- vide for her family through her work of birth is cool with it, how do you know your dize a person’s job and family ties. in the sex industry. in-laws will be cool with it?’” “I’ve had sex workers apologize to me for Prostitution has been a center of conversa- not being out,” says McNeill. “And I’m like, ‘Oh tion in the media this year, with New York mag- honey, don’t apologize to me! You have a life. I azine running a cover story, “Is Prostitution Just made my decision. If I were 30, I might not make

HILARY HOLIDAY HILARY Another Job?,” in March and The New York Times the decision to show my face.’”

NEWSWEEK 17 09/30/2016 PAGE ONE/RUSSIA

IN GOD WE BUST Inside Russia’s new crackdown on religion

ON A RECENT Sunday morning, Donald Ossewaarde, a Baptist preacher from the United States, hosted an informal Bible study group at his home in Oryol, a small city 225 miles south of Moscow. Most of the dozen or so people there had been coming to Ossewaarde’s weekly gatherings for years, and they were looking forward to an hour of Christian song, prayer and discussion. But as the lesson began, three police offi cers walked into Ossewaarde’s house. They waited silently until the lesson was over, then started questioning everyone, before insisting that Ossewaarde and his wife, Ruth, accompany them to the local police station. Police told Ossewaarde a woman had fi led a complaint against him, saying she was outraged that “foreign religious cult- ists” were allowed to operate in the city. At a court hearing within hours, a judge found Ossewaarde guilty of illegal missionary work and fi ned him 40,000 rubles (about $600). For Ossewaarde, a Russian speaker who has lived in Oryol since 2002, the ruling was shocking. “We had been perfectly free all these years to give out literature, to talk to people on the street,” he says. “People have either been friendly or indiff erent.” Not anymore. In July, President Vladimir Putin signed a law that cracks down on missionary work and evangelism. Among other things, it mandates that people share their religious beliefs only at state-registered places of worship. Critics say shows us how many people of diff erent faiths have the law, which was approved as part of a swath of been persecuted for spreading the word of God,” “anti-extremism and terrorism” legislation, con- wrote Sergei Ryakhovsky, head of the Protestant tradicts Russia’s post-Soviet constitution, which Churches of Russia, in an open letter to Putin. BY guarantees citizens and foreigners the right to “This law brings us back to that shameful past.” MARC BENNETTS disseminate their religious beliefs. “Soviet history The law comes at a time when the Kremlin is @marcbennetts1

NEWSWEEK 18 09/30/2016 pushing a major anti-Western propaganda cam- against the convictions of both Ossewaarde and paign, from accusing the U.S. and U.K. of plotting Tuah, and others charged under the new law. to overthrow Putin to boasting about Moscow’s Andreev, who is also a Protestant preacher, ability to reduce the U.S. to “radioactive ash.” So believes the legislation is part of a broader crack- far, the law has exclusively aff ected members of down on civil liberties since Putin became pres- minority “foreign” religions—the Church of Jesus ident for the third time, amid mass protests, in Christ of Latter-day Saints, the International Soci- 2012. He says the courts and police enforcing the ety for Krishna Consciousness, Jehovah’s Wit- law are doing so with a fl awed understanding of nesses and Protestants with Baptist, Pentecostal it, as it technically concerns only members of and Seventh-Day Adventist roots. Believers of organized religious groups attempting to convert these religions have frequent problems gaining those who do not share their faith. In reality, crit- state permission for churches and temples, and ics say, the authorities can label almost any reli- they often have little choice but to gather infor- gious activities not carried out in state-registered mally at the homes of their congregants. churches as missionary work or evangelism. The Russian Orthodox Church, a powerful “This law has been joyfully welcomed by CHURCH AND Kremlin ally that has traditionally been hostile to nationalist-minded people, who say at last we STATE: A new law targeting mis- minority faiths, has not been aff ected, and Ortho- have a means of fi ghting against those who are sionary work has dox offi cials have dismissed criticism of the law, not Russian Orthodox Christians and do not aff ected minority “foreign” religions saying it does not prevent believers from sharing share our ideas,” Andreev says. such as Jehovah’s their faith. Russia’s Muslims, who make up some Mormons in particular have had problems Witnesses and Mormons. 10 percent of the population, seem divided, with since the law came into eff ect. In August, Russian ALEXANDER AKSAKOV/THE WASHINGTON POST/GETTY WASHINGTON ALEXANDER AKSAKOV/THE + regional muftis split on whether the law is a gross authorities deported six Mormon missionaries for violation of human rights or a necessary step in violating compulsory registration requirements. the fi ght against Islamic extremism. Although the deportations were not directly Ossewaarde believes it’s the former. Two days linked to the law on sharing beliefs, analysts say after his conviction, he received a warning from the expulsions are part of a new intolerance for his court-imposed lawyer, Andrey Butenko; if he and his wife chose to stay in Russia, the lawyer said, they could be in danger. Concerned that Butenko’s warning was an indirect message “ALL RELIGIONS EXCEPT from authorities, Ruth Ossewaarde fl ew to the United States on August 22. Donald Ossewaarde TRADITIONAL RUSSIAN remained in Oryol to appeal his conviction. FAITHS ARE BEING Butenko tells Newsweek he was not acting on anyone’s orders and says his warning was SLOWLY FORCED OUT.” inspired by genuine concern for the couple’s well-being. “All religions except traditional Rus- sian faiths are being slowly forced out of Russia,” he says. “The state will do whatever it thinks it foreign religions in Russia. “Lawmakers have needs to do in order to achieve this. This is how decided that missionaries are dangerous people,” the security forces work. If they need to, they says Roman Lunkin, a religion analyst at the Rus- could do something bad to him.” sian Academy of Sciences in Moscow. The Ossewaardes are not the only ones who Some in the Orthodox Church have also criti- have been aff ected. In late July, police offi cers cized the legislation. “This law plainly contradicts detained Ebenezer Tuah, a student from Ghana, the Gospels,” wrote Karina Chernyak, who runs as he carried out a baptism at a swimming pool in an Orthodox youth club in Moscow, in an article Tver, a small city near Moscow. Tuah and a group for the Sova Center, a nonprofi t that monitors of Ghanese nationals had rented the pool for their religion and Russian society. “It is the mission of Protestant group for the day, and there were no every Christian to go and teach his or her belief to Russian citizens present. The offi cers handcuff ed others. In many ways, this is the essence of belief.” Tuah and held him overnight. He was later fi ned Back in Oryol, Ossewaarde is preparing for his 50,000 rubles (about $780) for “conducting reli- appeal. For now, he has shuttered his Bible study gious rites and ceremonies” without the neces- group. A Russian-language notice on the door sary documents. (He declined to comment.) of his home reads: “Dear friends! Until further “They treated him like a common criminal,” notice, there will be no meetings here. There is an says Konstantin Andreev, a lawyer at the Slavic offi cial assertion that these activities are illegal. Center for Law and Justice, which has fi led appeals Sorry for the inconvenience. Donald.”

NEWSWEEK 19 09/30/2016 PAGE ONE/HUNGARY

QUOTA APPROVAL Voters in Hungary look likely to reject an EU plan to settle refugees in the country—delivering another blow to European unity

VIKTOR ORBÁN, Hungary’s prime minister, is not outnumber us,” Orbán said last year. “It’s math- taking any chances. On state television, adver- ematics. And we don’t like it.” Many Hungarians tisements warn of a growing migrant menace. agreed with him. Billboards proclaim that Brussels plans to relocate Now, as he rallies the country for a “no” vote, a city’s worth of potential terrorists to Hungary. Orbán is also pushing back against another per- And lawmakers from the ruling right-wing Fidesz ceived threat to Hungary’s identity—the Euro- party are calling on supporters to go to the polls on pean Union. Under the terms of the European October 2 to make sure Orbán gets the answer he Council’s Emergency Response Mechanism, wants to the following referendum question: “Do adopted last September, member states agreed you want the European Union to be able to order to relocate 160,000 people under a quota system the mandatory settlement of non-Hungarian citi- (those asylum seekers are currently living mainly zens in Hungary without Parliament’s consent?” in Greece and Italy). Hungary was penciled in to The latest polls suggest at least two-thirds of take 1,294 refugees, but, along with Slovakia, the electorate will vote “no.” That probable out- the Czech Republic and Romania, it was hos- come will be in part because Hungary, like its tile to the quota system from the start and voted neighbors in the former Soviet bloc, has almost against it. So far, Hungary has accepted no refu- no experience with immigration. The country gees under the plan. Instead, it has joined with remains overwhelmingly white and Christian. Slovakia in challenging the plan in the European But people will also be voting “no” in reaction Court of Justice. to recent events. A year ago, Hungary was the Hungary may be resisting the decision-makers epicenter of Europe’s refugee crisis. Keleti train in Brussels, but, for now, nobody is talking station in Budapest became a giant open-air about a Huxit—a Hungarian exit from the EU. refugee camp as thousands of asylum seekers The referendum is not legally binding, nation- poured into the country across the southern bor- ally or internationally. But neither can the EU der and stayed in the capital before eventually stop it or sanction Hungary. “There will be a lot heading west to Germany. In response, Orbán’s of cluck-clucking in Brussels but nothing seri- government built fences on its southern borders ous,” says György Schöpfl in, a member of the BY with Serbia and Croatia. “If we let the Muslims European Parliament for Fidesz. “This is about ADAM LEBOR onto the continent to compete with us, they will strengthening the government’s position when @adamlebor

NEWSWEEK 20 09/30/2016 including the second generation of migrants, are committed to destroying our way of life.’” Critics in Europe and across the globe have slammed Orbán’s policies. In September, Zeid Ra’ad al-Hussein, the U.N. high commissioner for human rights, lumped Orbán in with the Islamic State militant group (ISIS) and right-wing popu- lists such as Donald Trump and Marine Le Pen, the leader of the French National Front, accusing them of peddling “half-truths” and “oversimpli- fi cations.” Such leaders, he said, “seek in varying degrees to recover a past, halcyon and so pure in form, where sunlit fi elds are settled by peoples united by ethnicity or religion—living peacefully in isolation, pilots of their fate, free of crime, foreign infl uence and war. A past that most certainly, in reality, did not exist anywhere, ever.” Al-Hussein’s remarks angered Hungarian offi - cials. Péter Szijjártó, the Hungarian foreign minister, said it was “unacceptable and outrageous that + an unelected U.N. bureaucrat should compare a BORDER FORCE: Hungarian police democratically elected European politician to the detain a Syrian it is negotiating with Brussels.” ideology of the Islamic State.” family in August With the EU weakened by Brexit—Britain’s As tensions build between Hungary’s right- 2015 after they entered the country upcoming exit from the union—many in central wing administration and more liberal govern- from Serbia. Europe believe now is the time to roll back the ments and institutions outside the country’s liberal immigration policies favored in Western borders, the reality on the ground has changed. Europe. As pressure builds, old political fault lines Each day, only a handful of refugees try to enter are re-emerging. The Visegrád Four—Hungary, Hungary before being turned back; in the sum- Poland, the Czech Republic and Slovakia—often mer of 2015, thousands crossed the border every supported by the Baltic nations, are increasingly day. Orbán has promised to reinforce the fron- confi dent and vocal. Orbán and his Polish allies tier fences he ordered built last year—just in case are open about their aim: to destroy what they see as a liberal consensus among Western European nations on the benefi ts of immigration. “We are at a his- ORBÁN IS PUSHING torical cultural moment,” said Orbán in early September, appearing with Jaro- BACK AGAINST ANOTHER slaw Kaczynski, the leader of Poland’s PERCEIVED THREAT TO ruling party. “There is the possibility of a cultural counter-revolution right now.” HUNGARY’S IDENTITY— In Hungary, Orbán’s opponents say THE EUROPEAN UNION. he’s stirring up dangerous nationalist feeling by holding the vote. “The referendum will feed anger and intolerance here,” says Viktor Szigetvári, co-chair of another infl ux of refugees reaches the country’s Together, a liberal opposition party. “It will fur- borders. “Technical planning is underway to ther undermine the cohesion of our society.” erect a more massive defense system next to the Orbán’s allies disagree. “Hungary’s referendum existing line of defense, which was built quickly,” will reinforce the position of other states that have he said on August 26. “Then, if it does not work grave doubts about the quota, not just the Viseg- with nice words, we will have to stop them with rád countries,” says Schöpfl in. “A lot of people are force, and we will do so.” EU leaders are unlikely uneasy about compulsory quotas, and the mood to ever receive such threats from Orbán—but on has darkened after the attacks in Paris, Brussels October 2, they’ll likely get another strong indi- and the events in Cologne. People are saying, cation that, like the British, Hungarian voters are ‘Yes, we are generous and open, but maybe there becoming increasingly hostile to Brussels telling

BERNADETT SZABO/REUTERS BERNADETT is something in the argument that some people, them what to do.

NEWSWEEK 21 09/30/2016 Gicium archica turibusdae latur,Ta, nobit wx eatquae peditasped milit, ipsamus nihit volup sturestium aut fuga. Itatquidus eum ent do kimpor rest debis ne porpos magnimet et ipide Erorae. Ut ad que ab imo imilit que explabo rend onihiciu samenimolore dolorion commo om Aximus, sit apisinusam nat. ebitiosam, eos et as dolorestiae. Uptatu? dolupta audam, voluptas cus, sunt excest, ut Orit antions equaes maionempore nobis et audan Edigenia ipsus eaqui consequam re nih rAximus eveles est, ulpa con re dusanis ma Lorrum re dolo cus conecatio. Occus. Archille nisint volor repedis magnimi, ommo 3. Dus dunt. Osam voluptium qui dolor s aeptaquia ndaeptur, omnitaspe ventur ma comni teedigeni hitatiisi dignimus il maximilibus, t Sque ea veriasit od est moloritis modis et ullen une erumendebis volorib eatisquia qui am, san yoolorem que voloris quae nus est, odi sita con ocomnimolo dolupta ectatatem ex est, et re reae prehen dae perum volupti optat voluptas pemporio. Itae moluptas et, to mostiun ti mendis evel eium aut as maiossit, ut vella dolecae que volorro velestibus aut volorro viducim porru Ronsequi ulparum quati nestiis et et quidus r gret dis delendi nest, quid minisque nobissi vo urbiti utem verum qui intum eos accus aliquam, illessunte mporibus et ut volo voluptur Yousaperferit voluptam que pa nis ea vel ip cus endanih iliquam sedior aliqui dit, omni m weri ad quis re event, quia ipsaecto everum re no Rum liquianti int qui alicillupta pra dit dolor Omnisci que dolorectate nos nihilla borem. Fuga. dellend andit NEWSWEEK 22 09/30/2016 andam, sintiis dolup QEpe rehenis moji tam comnihil essitae pratemo lupture re, ad quas oloreptat. s, ebitatet a in pratest iu ure, quidem qu ducide is suntotatecae p NOT s magnihi llp mnihil iquias dolendi offi cip sandit, conem ; Nitatqui sandi con perrovit as moluptat re im. ut aut offi cid modigentis et es vent officit h ndae di tem venimus daeceat voluptatur sequ hil es exeribu sandipsum illa dolestius et alis et pr doluptatur? Bis ilit,YOUR inctissitat osapient et omnis que et facestiuntem as sercitio sim eiur, qui incidem. Nam, inulparit, quam. is milis dendanditi temquid qu tecto occulle sequis et omnim DADDY’S ntu remque cuptaquias autat dunt volor ndis magni ab inctem in fres ma nis digenimus a nseque venda identia nimpori dit om epratur? Iquam fugi CIA conseruptat. molorro et et imporiti aut quassuntium imolorr. iurere molorro berum quidunt. e odit, sus apideseccue rendis diorum um hilicim YOU CAN’T SECURE AMERICA cimin em. remodit aestor alitae sinvel mint as doluptc oluptinctia dolupid maxi WITH JUST ONE DEMOGRAPHIC quatusam, a quiaero vitamus nis ma volupta ti aliquam dolor arum et qui acestenem entem psuntius modi oditaspere eribeaqui ut et quide velit utatusdandae sequam hit expliti n obis di qui rem il ipsapienimusBY ABIGAIL re derumytop. JONES r ad magnis inti inverch itatem re ditaspe rioribu . Itae deniendis dio. Et experuntis doloreni ptae. Et harum venis moditibuscia nus natis reru “MY FIRST O Y SON N M. S M WAS MY 1993 Y A WORLD TRADE T S CENTER T S CENTER S Y E BOMBING BABY,” A R, O P SAYS GINA BENNETT,

a veteran CIA analyst who has spent her career tracking “most people didn’t know I was pregnant,” she says. Her down the perpetrators behind some of the worst inter- fi fth child, a girl, was her “Fallujah baby.” national crises in recent memory. Bennett, a divorced We’re sitting in the CIA’s Offi ce of Public Aff airs, sur- mother of fi ve, can match the birthdate of each child by rounded by framed posters of blockbuster thrillers like the bad guys she was pursuing at the time. She calls her Patriot Games, Clear and Present Danger and Spy Games. second son her “Khobar Towers baby” (born shortly after Ever since British secret agent James Bond appeared on the 1996 bombing of a military housing complex in Saudi fi lm in the 1960s, Americans have been entranced by Arabia); her third child, a daughter, her “African embassy covert spies leaping onto moving trains moments after bombing baby” (she arrived a few weeks before the 1998 bedding exotic babes, or military-grade muscle men bombings of the U.S. embassies in Kenya and Tanzania); slicing through society’s criminal underbelly with the and her fourth, another son, her “9/11 baby.” latest guns and gadgets. Bennett was in the early stages of her pregnancy during We don’t picture Bennett: a woman, a mom. that attack, and despite all of her morning sickness, Bennett wrote the fi rst report warning of Osama bin

NEWSWEEK 24 09/30/2016 A MOTHER’S WORK: Bennett wrote incredibly nasty foreign weapons developments,” Leh- the fi rst report warning about Osama bin Laden and briefed Secretary of nus says. “There’s reason to be afraid. There’s reason to State Rice about it while in labor. be afraid all the time!” She laughs. “People would say, + ‘What keeps you up at night?’ And I’d say, ‘I’ve got a list of nine, and I rotate through them,’ because there were just so many bad things that could happen, whether it’s a loose nuclear weapon or North Korea deciding they are gonna lob one over…. So I say, ‘My job is to worry for you.’” She laughs again. “It’s a bad world. We’ve got bad things going on out there.” At a time when the country may be just weeks away from electing its fi rst female president, many Americans still have no concept of who’s keeping them safe—and that women play a critical role in that eff ort. Some may think CIA women were confi ned to the counterterrorism unit that pursued Osama bin Laden, which gained extraordinary attention after his death. In fact, women are operating at unprecedented levels on every fl oor of CIA headquarters and throughout its far-fl ung global outposts. Laden in the early 1990s, years Perhaps hoping to combat this misconception, the CIA before 9/11, and she was one of the granted Newsweek access to seven women from all parts six women in the CIA’s “band of sis- of the agency, including a clandestine operations offi cer, a ters” that tracked down bin Laden bombing expert and a weapons and space analyst. A hand- and inspired the 2012 thriller Zero ful of them are undercover and cannot share their names Dark Thirty. She briefed Secretary because of the sensitivity of their work (their names appear of State Condoleezza Rice while in here in quotes). Some are married and have children. Two labor and has brought newborns are single mothers. One was the to the offi ce so she could lend her fi rst CIA offi cer to come out as expertise during crises. (After the “MY JOB IS gay and not get fi red for it. And if Africa embassy bombings, Bennett’s TO WORRY you found yourself sitting across boss, who loved babies, whisked from any of them on the New away her 3-week-old daughter for FOR YOU. York City subway, she’d look hours while Bennett typed up a IT’S A BAD more like a tourist from the Mid- cable. It wasn’t until weeks later that west than a master spy. she learned her daughter had been in the CIA director’s WORLD. Despite their extraordinary offi ce for a meeting about President Bill Clinton’s order for WE’VE GOT accomplishments, these women a retaliatory bombing raid on Afghanistan.) BAD THINGS have faced double standards Women have been central to American spycraft since and sexism, and for some, 1776, and they continued to play important roles in the GOING ON success has come at great per- World War II–era Offi ce of Strategic Services (OSS), the OUT THERE.” sonal cost. As former covert CIA’s predecessor. Even so, the agency has a long history CIA Operations Offi cer Valerie as a chauvinistic old boys’ club rife with sexism, where Plame says of many women she men do the spying and women shuffl e papers. “People worked with, “They were smart and ambitious and funny, treat it as only men have a calling to serve their coun- but to be very honest, they had stepchildren. They had not try and it’s unnatural for women to do it,” Bennett says. raised their own children. Or they were divorced. Or they “Women have been extremely involved and integral! went home to cats. They had really paid a personal price.” It burns me up to no end. Women in intelligence is not “The work can break you,” says “Vivian,” a scientist new. We’ve always been important, and there’s nothing and explosives expert. “It is 24/7. It is always at a high strange with us wanting to do this role.” pace, and if you don’t step outside of it every once in a Hollywood hasn’t prepared us for women like Bennett— while, it will eat you alive.” or, say, Maja Lehnus, the CIA’s deputy chief fi nancial offi - cer, who’s been married for 29 years, has two children and ‘CHIEF OF STATION OF NOBODY’ was the fi rst woman to hold six diff erent leadership positions at the agency, including serving as the fi rst female HOLLYWOOD HAS convinced us all that women in the chief of the center responsible for combating the spread of CIA belong to a sorority of badass bitches who stab chemical, biological and nuclear weapons. by day and seduce by night. From Homeland’s Carrie

FROM LEFT: LEXEY SWALL/GRAIN FOR NEWSWEEK; DAVID HUME KENNERLY/GETTY; HUME KENNERLY/GETTY; DAVID NEWSWEEK; FOR SWALL/GRAIN LEXEY LEFT: FROM SPREAD: SPENCER PLATT/GETTY PREVIOUS “I lived in a world where every day we talked about Mathison to State of Aff airs’s Charleston Tucker, we have become so accustomed to this repository of inter- pected who I worked for,” she says. changeable female CIA screwups and honeypots, and When a new boss came on board, their unstable, erratic behavior, that we forget that the Brookner wrote a memo summariz- job involves saving lives and preventing atrocities, and ing her contacts and their access to you must be able to compartmentalize your emotions at information. He was impressed. “He precisely the most horrifying moments. Thanks to Hol- was one of the few men in the agency lywood’s clichés, the American public has been largely in those days where it didn’t matter kept in the dark about Virginia Hall, who joined the OSS whether you were a man or a woman; in 1944, organized sabotage operations across France, if you could do the job, he would use mapped drop zones, and helped POWs to safety—all you. He gave me my opportunity. Not while disguised as an elderly female farmhand and with only did I do well there but he made a prosthetic leg she named Cuthbert. The Gestapo con- sure everybody at headquarters knew sidered her “the most dangerous of all Allied spies.” about me.” “It was easier to be a woman in the OSS than in the CIA Brookner once made a deal with a in the early days,” says Toni Hiley, the CIA Museum direc- division chief: She’d work in his sta- tor. Eloise Page was one of 4,500 women who served in tion for a couple of years, and if she the OSS. She began her career as the secretary to General did well, he’d make her a station chief. William Donovan, head of the OSS, and ended it as the When it came time for that promo- third-highest ranking offi cer in the CIA’s Directorate of tion, he off ered her one of two unde- Operations, the home to case offi cers who carry out covert sirable positions in Latin America, assignments and recruit spies. Page, who was known where she’d have no chance of being among some colleagues as “the promoted and no operations to over- Iron Butterfl y,” also became see. “I’d be chief of station of nobody! the fi rst female station chief, THE I said to him, ‘What will I do there?’ the highest-ranking job for case GESTAPO He said, ‘You could go shopping.’” offi cers abroad, and the fi rst Brookner ended up accepting a sta- woman to head a major intelli- CONSIDERED tion chief position that “none of the gence community committee. VIRGINIA guys wanted...because of the dangers Before Julia Child introduced and problems in the station and in American families to French HALL “THE that country. But it was the only one cuisine, she, too, worked for MOST DAN- I could get, and at least we had oper- General Donovan and the OSS. GEROUS OF ations and a staff .” (While she cannot “In the early days, it was say where she was posted, The New benign neglect. There were ALL ALLIED York Times reported that she was the more men than women. They SPIES.” station chief in Jamaica. It was “the didn’t even think about [us],” CIA station from hell,” according to says former clandestine offi cer the Los Angeles Times. “Jamaica had a Suzanne Matthews, who joined the CIA in 1975 as a sec- notorious reputation as the agency’s retary. When she entered the operations training course, dumping ground, a dead-end post for the precursor to becoming a case offi cer, she was one of misfi ts and losers.”) “three or four” women in her class. “Some of the instruc- Another time, Brookner was close to recruiting a critical tors down there misbehaved and made sexual advances target she’d been developing for six months when her sta- to the students—and they were rebuff ed, of course—but tion chief was removed. The new chief arrived and wanted the students were just trying to get through this very someone else to recruit the target. “When that happens, intense program,” she says. you don’t lose your cool. You say, ‘Let me think about it.’ “They tried to push all the women into becoming Then you come back in calmly and say, ‘I thought about it, analysts. Or reports offi cers. That was acceptable,” says and this is why I think I should make the recruitment.’ He Janine Brookner, who joined the CIA in 1968. “I insisted was still reluctant, but when I did it, I succeeded—and it on going into operations.” She says she was one of six made him look good,” she says. “Over the years, almost all women in her 66-person offi cer training program. When the time, especially as a woman, you had to start at square she landed her fi rst job as a case offi cer in Asia, her sta- one again and prove yourself. There were very few of us tion chief saddled her with “ridiculous” paperwork and who succeeded.” assignments. “In the meantime, I went out and met peo- Yet Brookner did succeed—she infi ltrated the Commu- ple. I used my training and background. By the time my nist Party, recruited a Soviet bloc agent and became one of next chief of station got there, I knew people from the the CIA’s fi rst female station chiefs—until subordinate offi - presidential palace all the way to the Communist Party. I cers (including her deputy chief of station, whom she had

was in my 20s—this little blond woman. No one ever sus- reported for abusing his wife) accused her of being a lush NEWSWEEK FOR SWALL/GRAIN LEXEY + A LEADER AMONG MEN: Lehnus, who has claimed the “fi rst woman to...” title six times in the CIA, interviewed all the senior women in the directorate during her early days. Commission, but a judge dismissed it for not having “Didn’t take me long,” she says. “There weren’t that many.” enough women in the class, so she fi led individual cases for the women and won settlements for each of them. who sexually harassed men and wore provocative cloth- Today, women make up 45 percent of the CIA working. It was 1992, and Brookner was, at that point, a 24-year force and 34 percent of senior leadership. Between 1980 veteran of the clandestine service. She vehemently denied and 2012, female representation increased from 9 per- their claims, sued the CIA and won. In December 1994, cent to 44 percent of midlevel to upper-midlevel posi- the agency settled for $410,000. Brookner resigned soon tions, like team chiefs or deputy team chiefs, according after. Today, she’s a lawyer in Washington, D.C., special- to a 2013 report led by former Secretary of State Made- izing in cases against the CIA and other federal agencies. leine Albright. But as of 2012, just 19 percent of agency As women continued to fi ght for more opportunities offi cers promoted to executive-level jobs in the Senior in the 1990s and 2000s, legal troubles plagued the CIA. Intelligence Service (SIS) were women. The report In 1995, it paid $1 million in a class-action case accus- sounded the alarm for “signifi cant reforms” and said ing the CIA of blanket sexual discrimination. In 2007, a that “not maximizing women’s talents and expertise group of women fi led a class action alleging that female directly and negatively impacts the mission.” offi cers were punished more severely than their male Since 2013, the agency says, it has “produced tangible colleagues for having aff airs with foreigners. Brookner progress.” In the past three years, for example, there’s brought the case to the Equal Employment Opportunity been “a minor increase in the percentage of women”

NEWSWEEK 27 09/30/2016 who take key leadership courses critical to being pro- league was told she needed to show more executive pres- moted to the SIS. Women also hold the No. 3 and No. 4 ence and should stop dominating meetings. “You can act positions at the CIA: Meroe Park is the executive direc- like a man, but you’ll be judged like a woman,” Bennett tor, and Carmen Middleton is the deputy executive says. “If you act like a woman and try to get into executive director. In 2013, Avril Haines became the fi rst female leadership, you’re shamed. Every woman here believes deputy director; she’s now deputy national security they’re being measured by behaviors of professionalism adviser to the White House. defi ned by white men decades ago. Still, problems persist. A woman has yet to hold the “I’m so sick of the deputization of women. Deputy is agency’s most prestigious job, head of the Directorate of the worst thing you can be. You’re carrying out the vision Operations. Women are more likely than men to decline of someone else. It’s not a glass ceiling; it’s a wall.” high-profi le assignments—which are critical to advance- ment—because they require long, unpredictable hours. “I THE FIRST TO DIE have about seven years out of my career when I could not take certain assignments that were high-profi le, incred- THE CIA’S visitor center looks more like the waiting room ibly demanding and involved travel,” Bennett says. “So for a car wash than the portal to America’s foreign intelli- naturally, when you look at my depth and breadth of gence service: gray chairs, fl uorescent lights, a TV hang- experiences compared to a man of my rank and age, you ing in the corner, the Today Show on mute. A man sitting will see a disparity. You won’t see any points for the skills behind a large glass wall slowly issues guest passes. I I gained being the mother of fi ve.” hand him my driver’s license and take a seat next to a She also rattles off anecdotes about female colleagues stack of hunting magazines. Outside, three men in dark who’ve been told they talk too much, or have sharp suits linger on the sidewalk, talking. I pick up a copy of elbows, or are too pushy or too emotional. Once, a col- Outdoor Life’s Meat Issue and wait.

NEWSWEEK 28 09/30/2016 117 stars and explains that only 11 are for women. One honors Barbara Robbins, who joined the agency in July 1963 as a secretary-stenographer and was killed two years later when terrorists bombed the U.S. Embassy in South Vietnam. She was the fi rst female CIA offi cer to be killed in the line of duty, and, at 21, she remains the youngest. Another star is for Monique Lewis, who was just hours into her fi rst day as a CIA offi cer when a suicide bomber attacked the U.S. Embassy in Beirut in 1983. Her husband, James Lewis, a paramilitary offi cer there, was also killed. Another star honors Jennifer Matthews, a top Al-Qaeda expert who was killed in 2009 when a Jordanian double agent blew himself up at a CIA base in Khost, Afghan- istan. The deadly incident, which took the lives of six other CIA offi cers, ignited + a debate over Matthews’s A WOMAN’S PLACE: Julia Child was a spook before she taught America how to cook. Below, the agency’s “IF YOU fi eld experience, her role in Memorial Wall, which has 117 stars for offi cers killed in the tragedy (she’d been the the fi eld; 11 of those stars are for women. EXPECT A base chief) and the fact that PROMOTION, she had a family. “Being a After I’d read more than I’d planned to about hunting, YOU HAVE mom and a wife really has butchering, freezing and feasting on often adorable for- nothing to do with it,” says est creatures, the man behind the glass wall fi nally calls TO SERVE IN Suzanne Matthews (no rela- my name, hands me a guest pass and returns my ID. WAR ZONES, tion to Jennifer). “There Why had it taken so long? Was he doing a background are lots of moms serving in check? Kali Caldwell, my main contact from the CIA’s WHETHER areas like that. Nowadays, Offi ce of Public Aff airs, says the agency doesn’t do that YOU’RE A if you expect a promotion, kind of thing. “I wish I could tell you I knew what ele- MAN OR A you have to serve in war mentary school you went to, but I don’t,” she says, add- zones, whether you’re a ing that she did “a little research” on my writing, mainly WOMAN.” man or a woman.” to confi rm I wasn’t a conspiracy theorist. “There were a lot of peo- I then drive into the belly of the CIA’s 258-acre cam- ple criticizing her for being pus, passing joggers, leafy vistas and seemingly endless there because she had three kids at home, but no one stretches of parked cars. If Hollywood gets one thing right, criticized the men,” Bennett says. “It was such a low it’s the awesomeness of this place. In the lobby of the Origi- point for us. We realized people still thought that way, nal Headquarters Building, the CIA’s famous granite seal is even in our organization!” emblazoned on the fl oor, 16 feet in diameter, with an eagle, shield and 16-point compass star surrounded by the words ‘NICE TRY, ABBY, BUT...’ “Central Intelligence Agency United States of America.” Off to the left, there’s the OSS Memorial, a single star THERE’S A sexy myth about how people join the CIA: honoring offi cers who died in World War II. And on the mysterious phone calls, taps on the shoulder, strangers right, Memorial Wall, where 117 stars are carved into mar- telling you they’ve been watching you for years. And ble, honoring agency offi cers who’ve died in the fi eld. An then there’s reality. American fl ag hangs on one side, the CIA fl ag on the other. “Abby” saw a sign posted on campus during graduate I stand there committing the scene to memory (iPhones school. “It said, ‘The agency is here to interview. Please and cameras are not allowed in here) when I suddenly drop your résumés in this packet.’ Right next to it was a realize that a handful of very offi cial-looking men are sign that said, ‘Department of State is here to interview. walking straight for me. Was I in the wrong place? I riffl e Drop your résumés in this packet.’ And so on and so through my purse, looking for my guest pass, when I hear forth,” she says. “It’s easier to tell the ‘tap on the shoul- a woman’s voice calling my name. I look up. The men der’ story. It’s a bit more sensationalistic.” are getting closer, but there’s that voice again. A woman Abby, Caldwell and I are sitting at a long, rectangular emerges from the left. I wave. The men retreat. She intro- table in a nondescript conference room while a couple of duces herself as Toni Hiley, the museum director, then more women sit in chairs against the wall, listening and ushers me over to the Memorial Wall. taking notes. After each interview, one of them collects LEXEY SWALL/GRAIN FOR NEWSWEEK; AP NEWSWEEK; FOR SWALL/GRAIN LEXEY “Where you are standing now is where every new my recorder, dumps out the batteries and stores all the agency offi cer, on that fi rst Monday of their career, swears parts in a ziplock bag, which she returns to me before the

FROM LEFT: LEFT: FROM the oath to serve our nation,” she says. She points at the next interview. “I was born in South Asia,” Abby says tentatively, hope I’ve demonstrated that I’m not being dramatic. This ghost-doodling circles on a white legal pad with an is real…. You are on a dark street corner. You are passing unopened pen. “I grew up overseas.” She’s nervous, and something in the middle of the night or in a crowded train Caldwell explains that she should be: Abby is the fi rst station. All those things are true, but it’s not a guy who’s fi rst-generation, naturalized female case offi cer from a doing them; it’s me. But behind me back at headquarters certain South Asian country to join the CIA. She’s also a is a whole bunch of people looking to see how I did it...and Muslim-American, and her work often takes her to what a whole bunch of guys ready to go do the same thing!” She Caldwell calls “the tip of the spear” in America’s fi ght laughs. “So if I didn’t do it correctly, it’s ‘Hey, Abby, nice against terrorism. try, but we’re gonna send John.’” “I agreed to do this [interview]—” Abby stops short. Yet Abby did excel, so much so that she’s now a senior “You should know this: Really, case offi cers do not speak manager overseeing a team tackling the Islamic State to the press. There aren’t that many like me here. It group (ISIS) and other militants in the Middle East. She would be very easy to identify me if I gave you enough, also works on one of the most critical issues for the White even minor details.” House and policymakers (she can’t say which one). “My Here’s what she can say: After attending “high- friends, average New Yorkers, I think even they can’t performing, rigorous” high schools, she arrived in the fathom that I would have the amount of responsibility I U.S. with two suitcases, $400 and an acceptance letter to do here,” she says. college. Eventually, she moved to New York City to work Caldwell explains that most people from South Asian in women’s rights. In 2000, four years after being nat- backgrounds are recruited to the CIA as linguists or sup- uralized, she joined the CIA. port offi cers. “That’s about as far as they go,” she says. “There’s the opportunity. I “Being a linguist is incredibly critical, but you wouldn’t reach for it. I did it. Now I’m “TAKE A be a manager in cutting-edge policy. You’re swimming in in, and now it’s catching up to GOOD LOOK the deep end there,” Abby says. “That’s the big deal. If I me. I can’t talk about it! I can’t was doing all of this in Silicon Valley, they’d be writing this tell anyone! My family—these AROUND up like crazy: ‘Oh my God, look at what she’s achieved!’” are the people who are, like, THIS ROOM. Abby adds that her success has come with a cost: She’s ‘Go do something benign, single. “My male colleagues are all married. They have and then we’ll support you!’” WHEN WE’RE kids. Interestingly, it’s only the single women who are Abby went straight into the DONE, SOME here until 9 p.m. Do we carry more of the water? Sure. CIA’s secretive operational- OF US AR- Are we willing to do it? Yes. Are we complaining about training program, which we’ve it? No. Because God, it’s delicious!” come to know as the Farm (a EN’T GONNA Case offi cers face a unique set of problems when it nickname the agency is still BE HERE.” comes to dating and raising children. They often live reluctant to acknowledge). overseas, move to a new city (or country) every few years Abby is reticent to share and have a cover identity to protect. The work really isn’t details. It’s “quite a few months” long, has a high failure family-friendly, and there’s little time for a personal life. rate…and very few women. “What I felt in the fi rst few days “Typically, you do a cover job all day, then you’re out [after joining the CIA] was fear. I was just scared out of my doing CIA work all night. Not great if your baby sitter mind. If I was scared before, the Farm was a whole diff er- cancels,” Plame says. “When I left [the CIA] in 2007, I ent level of ‘Oh shit, what have I gotten myself into?’” still found it very hard to fi nd a female mentor who had The Farm isn’t the only subject that’s off -limits. Viv- achieved great ops success who also had something ian, the explosives expert, can’t describe her work in any resembling a family life. That was very telling, right? detail: “Nope. Sorry.” Asked to explain what she does as You want to fi nd someone that you feel like, ‘I can emu- a nuclear expert, “Julie” ends a rambling minute-long late this career. I can do this.’ I found it impossible.” explanation with “I’m not doing a good job of explaining Abby says her female friends in the agency are fi nan- this.” (She was right.) Asked if she travels for work, she cially independent, drive “the best cars” and have replies, “Diff erent people travel diff erently,” then laughs “amazing homes” decorated with “the best stuff from at the absurdity of her answer. There comes a point when around the world. We have really succeeded. But what so many of the women have described their work as put- do you do when you retire? You’re by yourself. It takes a ting together a 1,000-piece jigsaw puzzle with only 200 bit to process that.” of the pieces that Caldwell pipes up and says, “We don’t coordinate [our answers]!” ‘ON A TERRORIST HIT LIST’ As a case offi cer, Abby wasn’t solving puzzles; she was recruiting spies. “Dozens” of them. “It is everything ONE OF the worst experiences that Lehnus, the CIA’s that’s in the movies,” she says. “We’re meeting with peo- deputy CFO, ever had with sexism at the agency was ple who are giving us information that would defi nitely when a supervisor implied she’d received high marks at get them; jailed or killed or their families tortured. And I her review because she’d been sleeping with her boss. “I sat there in stunned silence,” Lehnus recalls. “I didn’t was really depressing.” react at all. I wasn’t equipped to deal with it.” She was Lehnus and her husband, an electrical engineer, have a student at Virginia Tech at the time, studying electri- two kids—a daughter, who’s a nurse, and a son in col- cal engineering while analyzing foreign weapons at the lege. Growing up, they knew that Mom worked for the CIA. She was also the only female analyst in her group, CIA. She took them to the agency’s family days and, and male colleagues routinely slung crude, inappropri- when her son started playing Call of Duty, she intro- ate comments at her. duced him to her unmanned aerial vehicle team. Once, Since then, Lehnus has claimed the “fi rst woman to…” he came home “talking a mile a minute” about an IMAX title six times and received the National Intelligence movie he saw about a moon launch. “I said, ‘Mom used Distinguished Service Medal, all while raising two kids to run the missile and space group!’ Suddenly, there was and becoming that rare symbol of success for younger a new appreciation.” female offi cers looking for proof that they don’t have to But it was hard juggling work and family, Lehnus says. sacrifi ce family for work. She was shuffl ing young kids to and from day care, stay- In her early days, during a yearlong women’s execu- ing on top of activities, grocery shopping and taking tive leadership program, Lehnus had the chance to inter- calls in the middle of the night on a secure line the CIA view all of the senior women in the directorate. “There had set up at her house to discuss nuclear tests. She even weren’t that many, and it didn’t take me that long,” she recalls. “What I took away was, most of ’em were single

MATTHEWS FAMILY MATTHEWS and a few were married, but none had children. So that MARRIED, WITH ASSETS: Matthews and her husband were what the CIA calls a “tandem couple,” and raised their children overseas, sometimes in very dicey places. +

NEWSWEEK 31 09/30/2016 OUR GAY SPIES fi elded calls from her hospital bed, right after giving birth to her daughter. “SARAH” KNOWS about being one of the “onlys” at How female CIA offi cers navigate this muddy terrain the CIA: She’s a single mother and a black woman depends on their jobs, their personalities and their sup- working in a largely male-dominated fi eld—she’s port systems at home. “I’ve hauled breast pumps to more a weapons and space analyst, responsible for countries than I care to admit and gotten milk back from the technical side of what bad guys stash in their places that I don’t think people thought you could get milk arsenals. In her fi rst year at the CIA, a colleague back from,” Vivian says. “I love what I do, but I love my started “ranting and raving” about the futility children more…. I could have every accolade from here, of having a day off for Martin Luther King Day, and if it’s not working at home, it’s not worth it, to me.” arguing that “there are other holidays that are far Suzanne Matthews and her husband, Jason, were a more important,” she says. “I told him that his “tandem couple” (CIA-speak for married spies), and they comment made me wonder whether he really raised their children overseas, moving to a new city every wants me sitting next to him, because without two or three years. It’s easy to tout the benefi ts of raising the likes of Martin Luther King there would be kids abroad: They grow up understanding diff erent cul- no me sitting next to him. I would have remained tures and are exposed to a wider, more fascinating world. a slave…. He was so quiet. He came back the next But Suzanne admits that their work could be terrifying. day and apologized.” “We’ve been in places where my Arguing for diversity in the CIA is ludicrous, husband was on a terrorist hit verging on insulting. The CIA is a global organi- list and had to drive an armored “THE FARM zation, responsible for national security; how do car,” she says. A guard stationed WAS A you achieve a global perspective if you’re all white outside their apartment “would WHOLE men? “You really do need diversity of thought. You walk around the car with one of don’t get that if you’re hiring people who look like those mirrors on a stick look- DIFFERENT you, think like you, talk like you, walk like you—if ing for bombs,” she says. There LEVEL OF you’re only willing to promote your buddy—that’s were a lot of strays in the area, not gonna help anybody,” says Sarah. “You can’t and when her children asked ‘OH SHIT, secure this nation with one demographic.” what the guard was doing, she WHAT HAVE The CIA admits it has a diversity problem. told them he was “looking for I GOTTEN Since 2008, the percentage of minorities hired has cats who might have climbed fallen, according to the 2013 Diversity in Leader- under the car to sleep at night, MYSELF ship Study. While racial and ethnic minorities so we wouldn’t run them over.” INTO?’” account for 24 percent of the agency’s workforce, In the late 1990s, Suzanne they make up just 11 percent of senior executives. and Jason were stationed in an And after an increase in African-American offi - unstable Balkan country (she can’t say which one). “We cers reaching the highest rungs of the organiza- evacuated three times. I had to drive all the spouses fi ve tion between 1984 and 2004, that progress has hours away. We did home-school in hotels and tried to reversed in the past decade. Earlier this month, keep the kids calm while we’re just freaking out. Jason was CIA Director John Brennan acknowledged this issue the chief. It was a very stressful time.” when he told students and dignitaries at Birmingham City When Lehnus became a second-level manager over- Schools’ Central Offi ce that “I don’t want the agency to seeing a “pretty large group. It was just too much,” she says. Her husband scaled back his career to help out at home. “Not everyone has that,” she says. “My husband is not threatened by my job. He always felt that my jobs here were important, and he was going to support me.” One of their greatest hurdles came when their young daughter was diagnosed with Type 1 diabetes. “I’m running a large organization at that point, and suddenly we had all these doctor appointments.” Lehnus didn’t miss one, not even when she was asked at the last minute to brief a new director about the “Iraq WMD Lessons Learned” report. (She sent a senior analyst instead.) To comply with a policy at her daughter’s school, she and her husband also became permanent fi xtures on fi eld trips. “You’ve got this large number of people working for you, and they’re saying, ‘OK, tomorrow we have to do this and this.’ I’m like, ‘Oh, sorry! Going to the zoo!’” + COUPLES THERAPY: Plame was outed by the White House, which was angry at her husband, Joe Wilson, left, be full of individuals who look like me, talk like me, who for his criticism of its narrative about Saddam Hussein’s have similar backgrounds and experiences. I do think if alleged weapons of mass destruction. you all are looking the same and acting the same you tend to have a ‘group-think’ which does not help us understand ble, cleared person” to come out at the CIA. She was raised all the complexities of this world.” by her single mother in Bladensburg, Maryland, and Before Lehnus became the deputy CFO, she was chief of joined the agency as a young, single mother herself. It was the Diversity and Inclusion Offi ce. “I gotta say, that was a the mid-1980s, when being gay was considered a threat to really hard job. I said, somewhat jokingly—but not really— national security. “We all knew you could be weeded out that protecting America from weapons of mass destruction if you happened to be LGBT,” Ballard says. She quickly was easier than leading diversity and inclusion.” learned to live a double undercover life, not talking about Over the past decade, Sarah has seen positive change, work at home and hiding her true self at work. as well as frustrating setbacks. “You have someone come By the time her daughter turned 5, she couldn’t keep in, and they’ll be a champion for diversity. Then once that up the lie any longer. “I was raising a girl in a society that director leaves, you’ll see another shift, which typically already had limitations on young ladies,” she says. “It was goes back to the way things were,” she says. “I honestly important for me to be myself and stand up for myself so believe it was better when I fi rst started, in terms of I could teach her to do the same thing.” diversity…. There are still leaders who think white males Ballard came out during a routine polygraph test and should be leading the organization.” spent the next year and a half under investigation. Col- Tracey Ballard, a technical analyst who joined the leagues, including those who were gay, ostracized her. It

TOM WILLIAMS/ROLL CALL/GETTY; NIKKI KAHN/THE WASHINGTON POST/GETTY WASHINGTON NIKKI KAHN/THE CALL/GETTY; WILLIAMS/ROLL TOM agency over 30 years ago, calls herself “the fi rst vocal, visi- was the most stressful time of her career. She considered

NEWSWEEK 33 09/30/2016 MOM’S A BADASS leaving, but “the more pushback I got, the more I realized it had to happen from here, and I needed to stay.” BENNETT AND I are eating lunch in the CIA’s dining Ultimately, Ballard wasn’t stripped of her security room—a bright room with tall windows, fl oral table- clearance, and she didn’t lose her job. “Later I learned cloths and white linen napkins folded like hats—when almost everybody who’d [come out] prior to me had been she says, “I want to tell you a story I haven’t told yet.” dismissed from the organization.” It’s an intriguing tease from a woman who’s been inter- Ballard, who married her longtime partner two years viewed by many news outlets, including The New York ago, has become a pioneer for LGBT issues at the agency. Times, Makers and the 2015 documentary The Spymas- In 1996, she helped found the CIA’s Agency Network of ters: CIA in the Crosshairs. Gay and Lesbian Employees, or ANGLE. Three years “A couple days after 9/11, Cofer [Black, then-chief of later, the agency held its fi rst pride month event. In 2012, the Counterterrorism Center] brought us into the main two years after President Barack Obama repealed “don’t CTC vault. This was just after approval for the war plan ask, don’t tell,” the CIA held the fi rst-ever intelligence and the strategy for the agency’s role in the overall U.S. community LGBT summit. “When I [joined the CIA], response to 9/11. Cofer said, ‘We’re going to war, and basically LGBT were not welcome,” Ballard says. “We we’re gonna do our part our way,’” Bennett recalls. have done a 180. We do outreach into the LGBT com- “I remember looking around the room. Everyone was munity. We have a director who’s extremely vocal in his looking at Cofer, but inside, we all knew what he meant. support, not just of LGBT but all minorities and people. Who knew better than us? We’d been there for over a We have allies at every level of our organization…. We are decade fi ghting Al-Qaeda already. Al-Qaeda was new for becoming a more inclusive organization.” the rest of the government and America, but not for us.

NEWSWEEK 34 09/30/2016 We knew to go to war with a terrorist network coping mechanisms for trauma that also created a wall in was not a conventional war. These were terror- being able to feel in any environment: with my children, ists who use their wives and children as human my ex-husband, my boyfriend, my friends,” Bennett says. shields. We knew the costs.... “My colleagues and I know fully that sacrifi cing our life “Cofer said, ‘Take a good look around this might be the ultimate price we pay but didn’t really pay room. When we’re done, some of us aren’t attention to how we sacrifi ce our living—by suppressing gonna be here.’ We all knew what he meant, emotion. We may stay alive in the end, but [it’s] poten- and no one looked around.” tially an empty life…. I don’t think the American people Bennett glances up, tears in her eyes. It’s nor the agency ever expected that kind of sacrifi ce of me.” a rare emotional moment for a woman who Bennett’s kids didn’t either. Her voice softens as boasts that she’s become a master of apathy. she describes her children admitting to her that she The CIA stereotype is that operatives (Abby) sometimes comes across as “cold and uncaring,” or are badass Jason Bourne types and that ana- emotionally unavailable. “Imagine how your children lysts (Bennett) are nerdy brainiacs, the ones feel when they feel like nothing they do—or don’t do— sitting in front of computers calling paper cuts aff ects their mother?” their war wounds. Yet the real cost of being an Bennett never worked undercover, so she didn’t have to analyst is invisible. lie to her kids about her job. Their general understanding “I’ve always felt very strongly that the toll was this: Mommy works on the computer and helps the taken on analysts comes from our need to be police fi nd bad guys. Still, she treads carefully. When one stoic and objective and unemotional in our of her sons was 3 and a half, she was working in terrorism analysis. That requires you, in situations that at the State Department. One are very emotional, to shut emotion down, so weekend, she had to bring him that you are able to think very clearly,” Ben- “YOU DO to work. “I’m in this window- nett says later. “You do it not just within these A COVER less vault with all these wanted walls but within—” She stops talking. When posters and pictures of terrorist she begins again, her voice cracks. “Within all JOB ALL attacks. I had him playing with of your relationships. I’m kind of experiencing DAY, THEN crayons. I was working on the that right now. Just within the last week, the computer. At one point, I had to love of my life is moving out, and this is part of YOU’RE take him to the bathroom, and it, because I don’t allow myself to feel when the OUT DOING we’re walking through the cubi- feeling is most strong, because that’s precisely CIA WORK cle farm, and he says, ‘Why is when I need to shut it down the most. that guy holding that gun to that “When there’s 3,000 dead and everyone ALL NIGHT. woman’s head?’ It was a photo else in the world is freaking out, and you have NOT GREAT of a hostage. I walk by that every to fi gure out how to stop the next attack com- day and hadn’t thought about ing in the next hour, you can’t aff ord to be IF YOUR it. It hadn’t occurred to me the emotional. Right when a human being should BABY impact of that image on my son.” be most passionate, you cut it off . You do it for as many SITTER When her eldest son gradu- years as I have, it becomes more than habit. It’s just ated from high school, she made default, and that’s not healthy.” CANCELS.” him an online photo album. “I In moments of crisis, Bennett says, she knows how didn’t remember a lot of those to “exist outside” herself. She feels cool. Calm. She’s photos—birthday parties, fi eld unemotional and objective. Her work at the CIA may trips. I got really sad. I felt I had missed so much of my have demanded this skill, but she didn’t learn it there; son’s life,” she says. “He said, ‘That’s not what I remem- it’s something she developed out of necessity—some- ber. I remember you being at every baseball game I thing that’s been ingrained in her since childhood, when needed you to be at.’ Unfortunately, that [conversation] she says she endured years of sexual abuse. only happened when he turned 18 or 19. Up until that This kind of reaction is not uncommon among people point, I did think that success at work took a greater who’ve survived early-childhood trauma, and Bennett toll on me than it does on a man. It did because I let it. harnessed her survival instincts and applied them hero- It’s the mindset. How many men would have made that ically at the CIA. “From Pan Am 103, to the fi rst World website for their son and felt remotely guilty?” Trade Center bombing, to the [Khobar Towers] bombing It wasn’t until Bennett’s children got older and read in Saudi Arabia, to the African embassy bombing, to 9/11 her book, National Security Mom: Lessons for America, that and every single thing before and after, I had this ability they grasped just what their mother’s job entailed. “My to shut off fears, feeling and emotion and just stay very 11-year-old, my youngest, just read my book to do a book clearheaded. I always thought that was a great strength. report at school,” Bennett says. “She thinks Mom is awe-

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uatemala is undergoing a period of profound change. Its national anthem, as though it were a metaphor for this juncture, alludes to the quetzal, the country’s national bird, which hopes will WDNHÁLJKWDQGFDUU\WKHFRXQWU\WRWKH heavens vis-à-vis its neighbors: Mexico, GBelize, Honduras and El Salvador. The country recently lived through a watershed moment in the history of Latin America when Otto Pé- rez Molina went from being President of the Repu- blic of Guatemala to being a common prisoner in a matter of hours. Guatemala’s Congress took away his immunity so that he could resign; the National Public Prosecutor asked for his detention and a judge made him declare in court in relation to a corruption case. He ended up going to jail charged with bribery, XQODZIXO DVVRFLDWLRQDQGÀVFDOIUDXGUHODWHGWRWKH “La Línea” customs administration corruption case. Roxana Baldetti, Guatemala’s former Vice President, was also accused of leading a corruption ring and was charged with passive bribery, unlawful association and customs fraud. This placed the Central American country and its protagonists – Guatemala’ civil society, public Ad- ministrations, and the International Commission against Impunity in Guatemala, CICIG, (an independent body working under the auspices of the UN and which has become the country’s main upholder (*) “Indian bird that lives on your seal, of the law) – in the international spotlight. a Palladium protecting your soil, Guatemala is one of the region’s strongest and most 4H`P[Å`OPNOLY solid economies. American companies are aware of than the condor and the royal eagle! this and have continually trusted a country known And may its wings take to the heavens, for its hardworking skilled laborers, which are keen Guatemala, your immortal name!” to improve their knowledge base and feel a great cul- WXUDODIÀQLW\ZLWKWKH86 GUATEMALA / SPONSORED SPECIAL REPORT A Government for Change Jimmy Morales was elected the coun-

try’s 50th president during the 2015 0& General Election and he has spent nine months as the head of a Government intent on bringing about change. ith hardly any political experien- FHKLVÀIWHHQ\HDUVDVDFRPHGLDQ WRQ WHOHYLVLRQ KDG PDGH KLP D ZHOONQRZQKRXVHKROGQDPHVRPHWKLQJ ZKLFKKHOSHGKLPWRREWDLQRI WKHUXQRII YRWH$WWKHWLPHKHVDLGKH IHOW UHDG\ WR IDFH WKH SROLWLFDO FKDOOHQ- JHDQGWRRNRYHUWKHOHDGHUVKLSRI WKH )&1SDUW\HYHQWKRXJKKHZDVDGYLVHG DJDLQVWLWEHFDXVHLWFRXOG´UXLQKLVFD- UHHUUHSXWDWLRQDQGKLVJRRGQDPHμ +LV SUHVLGHQWLDO FDPSDLJQ FHQWHUHG DURXQG WUDGLWLRQDO YDOXHV VXFK DV GLJ- QLW\ DQG KRQHVW\ DQG KLV FDPSDLJQ VORJDQ´1HLWKHUFRUUXSWQRUDWKLHIμ -LPP\0RUDOHV3UHVLGHQWRI *XDWHPDOD ZDVIRUJHGLQDFOLPDWHRI FLYLOXQUHVW 'XULQJ WKH HOHFWLRQ KH SXW IRUWK RQH DQGÀVFDORIIHQVHVVRPHWKLQJWKDW·VHQ- 6HFXULW\ -HK -RKQVRQ IRU WKLV WZLFH UHTXHVWWRWKHHOHFWRUDWH´'R\RXZDQW sured year-on-year tax collection is up Recently we have even asked President DGLIIHUHQW*XDWHPDOD"7KHQVWRSEH- E\ 2EDPD 7KHVH DUH WKH SHRSOH ZKR LQJLQGLIIHUHQWμ 7KH86(PEDVV\LQ*XDWHPDODSXEOL- FRXOGDWDFHUWDLQSRLQWLQWLPHDZDUGD -LPP\0RUDOHVVDLGWKDWKHZRXOGOLNH VKHG D FRPPXQLTXp GHVFULELQJ SRVLWL- 736GHVLJQDWLRQWRWKRVHFLWL]HQVIURP WREHUHPHPEHUHGDVWKHFRXQWU\·VEHVW YHO\ZKDWRXU$GPLQLVWUDWLRQKDVGRQH *XDWHPDOD ZKR KDG WR WUDYHO RXWVLGH 3UHVLGHQW RU JLYHQ WKH FRXQWU\·V FX- LQLWVÀUVWVL[PRQWKV$WDQLQWHUQDWLR- RXUERUGHUVORRNLQJIRUDEHWWHUIXWXUH UUHQW FLUFXPVWDQFHV ´D ;;, FHQWXU\ QDOOHYHO0RRG\·VKDVUDLVHGRXUFUHGLW 7KHLPPLJUDWLRQLVVXHLVVRPHWKLQJZH UHIRUPHU RI *XDWHPDOD D FRXQWU\ UDWLQJ SUHFLVHO\ EHFDXVH RI RXU ÀJKW KDYH WR ZRUN RQ EHFDXVHLW UHSUHVHQWV ZLWKLWVDUPVZLGHRSHQWRDQ\RQHZKR DJDLQVWFRUUXSWLRQDQGRXUDGPLQLVWUD- several interests which criss-cross each ZDQWVWRJHWWRNQRZWKLVEHDXWLIXODQG WLYHPHDVXUHV RWKHURQWKHZD\7KH86KDVDQHHGWR IULHQGO\ODQGμ GHFUHDVHWKHZDYHRI LPPLJUDWLRQDQG Question: Tell us about your Admi- *XDWHPDODQHHGVWRHQVXUHWKHUHDUHQR nistration’s achievements in the past “GUATEMALA IS A PRUH PLJUDQWV EHFDXVH ZH DUH ORVLQJ nine months. RXU KXPDQ WDOHQW WKH PRVW LPSRUWDQW Answer: :H·YH KDG SRVLWLYH UHVXOWV COUNTRY WITH ITS ARMS DVVHWDQ\QDWLRQKDV :HDUHZRUNLQJRQÀYHJUHDWD[HVZLWK WIDE OPEN TO ANYONE $V D VRYHUHLJQ VWDWH *XDWHPDOD KDV DEXGJHWJHDUHGWRZDUGVVWUHQJWKHQLQJ WKH UHVSRQVLELOLW\ WR VWUHQJWKHQ LWV VR- RXU MXGLFLDO V\VWHP FULPLQDO LQYHVWLJD- WHO WANTS TO GET TO FLRHFRQRPLFV\VWHPVRDVWRFUDIWPRUH tions, health, education and national KNOW THIS BEAUTIFUL RSSRUWXQLWLHVDQGFUHDWHD´*XDWHPDODQ VHFXULW\ :H KDYH FRQWULEXWHG GLUHFWO\ GUHDPμ VRPHWKLQJ PRUH PRGHVW DQG in this way to the concurrent investi- AND FRIENDLY LAND!” DXVWHUHWKDQWKH´$PHULFDQGUHDPμEXW JDWLYH SURFHVVHV RI WKH 1DWLRQDO 3UR- D GUHDP ZKLFK FDQ JXDUDQWHH FKLOGUHQ VHFXWLRQ 6HUYLFH DQG WKH &,&,* 7KH JURZLQJXSKHDOWK\ZLWKDJRRGHGXFD- ÀJKWDJDLQVWFRUUXSWLRQKDVSURGXFHGD Q: How would you rate your rela- WLRQDQGLQDVWURQJIDPLO\HQYLURQPHQW VDYLQJVRI ELOOLRQ4XHW]DOV tionship with the U.S., a destination )XUWKHUPRUH ZH KDYH EHHQ ZRUNLQJ PLOOLRQ LQWKHÀUVWKDOI RI VRPH- for thousands of Guatemala´s citi- DORQJVLGH WKH $OOLDQFH IRU 3URVSHULW\ WKLQJWKDWZLOOEHUHÁHFWHGRQWKHQDWLR- zens? 3ODQ RQ UHJLRQDO DQG FRQWLQHQWDO VH- QDOEXGJHWDQGZLOOEHSDVVHGRQWRWKH A:,WLVYHU\JRRG:HKDYHUHTXHVWHG FXULW\LVVXHVDVZHOODVHFRQRPLFPD- Justice, Health, Education and Security 9LFH 3UHVLGHQW -RH %LGHQ IRU D 736 WWHUV WR ERRVW RXU FRPPHUFLDO WLHV EUDQFKHVRI *RYHUQPHQW 7HPSRUDU\ 3URWHFWHG 6WDWXV GHVLJQD- We have also worked very closely with )XUWKHUPRUH RXU 7D[ $GPLQLVWUDWLRQ WLRQIRU*XDWHPDOD:HKDYHDOVRDVNHG $0&+$0WKH*XDWHPDODQ$PHULFDQ 6$7 KDVIRFXVHGRQLQYHVWLJDWLQJWD[ 8QLWHG 6WDWHV 6HFUHWDU\ RI +RPHODQG &KDPEHURI &RPPHUFH SPONSORED SPECIAL REPORT / GUATEMALA Guatemala, a Reforming Country THE AMCHAM .\H[LTHSH^P[OHWVW\SH[PVUVMTPSSPVUHUKPUÅH[PVUYH[LVM PZ*LU[YHS Guatemala is part of the (TLYPJH»ZSHYNLZ[LJVUVT`0UP[NYL^I` HUKP[Z.+7YLHJOLK IPSSPVU Alliance for Prosperity Plan ment-backed institutions such as MCC C

–alongside Honduras and El M

© (Millenium Challenge Corporation Salvador– an international Guatemala) and USAID” are giving a body which works alongside lot of support. the U.S. to reactivate and stren- Amador Carballido Oriols, General gthen their economies, as well Manager of Agexport, a private bu- as to, in some way, diminish the siness development institution highly amount of U.S.-bound local focused towards Guatemala’s export immigration. offerings, said that businessmen “have Juan Pablo Carrasco is a law- DGLYHUVLÀHGRIIHUEHFDXVHRI H[- \HUDSDUWQHUDWWKHÀUP&HQ- ports are made up of a wide variety of tral Law, and vice-president products. Leading Guatemala’s list of and speaker of AMCHAM. non-traditional exports are clothing and Rubén Morales Monroy, Minister of Economy +H GHÀQHV LW DV WKH FRXQWU\·V textiles, followed by agricultural goods most important bi-national ubén Morales Monroy is Guate- and, lastly, manufactures, food, canned goods, and light manufacturing.” Chamber, and points out that mala’s Minister of Economy and the U.S. is Guatemala’s main Rhe is interested in promoting stra- According to Julio Héctor Estrada, commercial partner, as well as tegic investment, stating that he means Guatemala’s Finance Minister, the coun- its biggest investor. Therefore “items like ports, airports, roads, irriga- try’s biggest challenge is to have a Com- tion systems, industrial and technological Guatemala’s bilateral relations petition Law as a basis for the country’s zones. We are looking for public-private progress and economic growth. with the U.S. are very strong investments to identify and boost these for political, economic, social projects. Our efforts are geared towards inance and historical reasons. boosting those investments and making F AMCHAM’s strength lies in the them happen so they can help our coun- inistry of

representation it has on several try’s development and productivity”. M © different committees –such as Acisclo Valladares Urruela, PRO- Energy, Customs, Foreign In- NACOM’s (National Competitiveness vestment, Intellectual Proper- Program) Presidential Commissioner, is ty, Labor– and it is constantly pleased with the Government’s projects developing activities with Go- and policies, which place Guatemala vernment members on com- as one of the world’s most reforming mercial, judicial, and training countries within the World Bank. issues, as well as lobbies related Foreign exchange earnings from remit- to legal initiatives. tances to the end of March 2016 reached a total of $1.7 billion, following on from Julio Héctor Estrada, Minister of Finance the recovery of economic activity in the U.S. “More investment is, indeed, necessary. The U.S. represents I preside over ANADIE (Guatemala’s around 30% of National Partnership Alliances for the Guatemala’s foreign Development of Economic Infrastruc- investment total, ture Agency) and during the second and the diplomatic half of 2016 we will boost investment,” relations between adds the Minister. both countries are PUBLISHER: at the forefront of Alfonso Corcuera Groth

Guatemala’s fo- PROJECT COORDINATOR & TEXTS: reign policy. Acisclo PUBLISHING Javier Rodríguez Infanzón Valladares stated AMERICA TRANSLATION: that the American Anthony Oruña-Goriaïnoff Government “as LAYOUT & DESIGN: Pedro Conesa well as Govern- [email protected]

,*6564@ -05(5*, GUATEMALA / SPONSORED SPECIAL REPORT SPONSORED SPECIAL REPORT / GUATEMALA © MC

Tourism, a State Policy Guatemala is the heart of the Mayan world and it is one of the most beautiful countries in the Americas. Visitors are transported back in time when visiting its colonial cities, and become impressed by the natural beauty of its volcanoes, lakes, and landscape.

he country turned its “Sustainable GLQDWLQJDOOWKHSXEOLFDQGSULYDWHDFWRUV VHVDOORI ZKDWZHDUHGRLQJOHJLVODWLYH Tourism Master Plan 2015-2025” RSHUDWLQJ LQ WKH LQGXVWU\ VXFK DV DLUOL FKDQJHV SURPRWLQJDUFKHRORJLFDODQG TLQWR RIÀFLDO VWDWH SROLF\ HQVXULQJ QHVWRXURSHUDWRUVKRWHOLHUVHWF QDWXUDOVLWHVLQYHVWLQJLQLQIUDVWUXFWXUH WKDW WKH SDWK WR GHYHORSPHQW VXUSDV DQGD&RQYHQWLRQV&HQWHULQ*XDWHPD VHV LQGLYLGXDO DGPLQLVWUDWLRQV DQG WKDW OD&LW\LQDQDUHDRI DERXWP GLIIHUHQWVHFWRUVRI WKHHFRQRP\SRRO © MC ZKLFKZLOOKDYHDVKRSSLQJFHQWHUSDU WKHLUHIIRUWVWRERRVWWKHGHYHORSPHQW NLQJDQGDKRWHO of Guatemala’s tourism industry. Ano- Q: How important are visitors from WKHU *RYHUQPHQW SROLF\ LV WR HQKDQ the U.S.? FH EXVLQHVV WRXULVP DQG LW LV ORRNLQJ A:9HU\LPSRUWDQW7KH86KDVWUDGL WRSXVKWKHEXLOGLQJRI DFRQYHQWLRQV tionally been one of Guatemala’s main GLVWULFWLQDPRYHGHVLJQHGWROHDGWKH SDUWQHUVZKHQLWFRPHVWRFRPPHUFLDO KRVWLQJRI FRUSRUDWHPHHWLQJVDQGUHX WRXULVW DQG HYHQ FXOWXUDO LVVXHV 2XU QLRQVLQWKHUHJLRQ FXOWXUDO LQÁXHQFHV KDYH EHHQ PRUH &DUORV 9HOiVTXH] 0RQJH *HQHUDO 'L $PHULFDQ WKDQ (XURSHDQ *XDWHPD UHFWRURI WKH&LYLO$HURQDXWLFV*HQHUDO OD·VEXVLQHVVPHQKDYHDYHU\$PHULFDQ 'LUHFWRUDWH '*$& VWDWHG WKDW :H mentality. UHFHQWO\LQDXJXUDWHGDQHZWHUPLQDODW Q: What sets Guatemala apart from 5HWDOKXOHXDQGDVLGHIURPIXUWKHULP its neighbors? SURYHPHQWVDW/D$XURUDDQG)ORUHVZH A: More natural and cultural resources H[SHFWDODUJHLQYHVWPHQWWRJRWRZDUGV WKDQPRVWSHRSOHFDQLPDJLQH*XDWH WKHDHURGURPHVDW4XHW]DOWHQDQJRDQG PDOD KDV WKH 0D\D %LRVSKHUH 5HVHUYH Puerto Barrios.” DQGLWLVRQHRI WKHPRVWELRGLYHUVH He also stated that tourism “is one of -RUJH0DULR&KDMyQ'LUHFWRU*HQHUDORI INGUAT FRXQWULHVLQWKHZRUOG,WLVKRPHWRWKH *XDWHPDOD·VSLOODUVDQGZHDUHZRUNLQJ PRVWLPSRUWDQW0D\DQFLWLHVORFDWHGLQ RQDHULDOFRQQHFWLYLW\DWDQDWLRQDOOHYHO +DYLQJDQRIÀFLDOVWDWHSROLF\EDVHGRQ 3HWpQLQFOXGLQJ´(O0LUDGRUμWKHODU ZKLFKZLOOERRVWWRXULVPDQG*XDWHPD D PDVWHU SODQ DQG ZLWK LWV XSFRPLQJ JHVWS\UDPLGRQ(DUWK7LNDO8D[DFW~Q OD·V LQWHUQDO GHYHORSPHQW WKURXJK WKH OHJLVODWLRQ *XDWHPDOD ZLOO KDYH D QHZ DQG3LHGUDV1HJUDV&XOWXUDOO\VSHDNLQJ H[FHOOHQW FRRUGLQDWLQJ HIIRUWV RI WKH LQVWLWXWLRQEXWWKDWLVZK\´ZHKDYHWR ZHFDQIHHODQGOLYHWKRVHFXOWXUHVEH KHDG RI ,1*8$7 *XDWHPDODQ 7RX LPSURYHLQIUDVWUXFWXUHVFRQQHFWLYLW\LV FDXVH WKH\ DUH VWLOO DOLYH

TOURISM A R

IRTRA, the best T IR eal © R thematic and water parks in

© Camino the region Ricardo Castillo Si- nibaldi has been the SUHVLGHQW RI ,575$ ²*XDWHPDOD·V 3ULYDWH (QWHUSULVH:RUNHUV5H creational Institute– for WKH SDVW \HDUV ,W LV 5LFDUGR&DVWLOOR6LQLEDOGL DQ LQVWLWXWLRQ ÀQDQFHG President of IRTRA and administered by the business sector to offer their CAMINO REAL ZRUNHUVOHLVXUHDQGUHFUHDWLRQDODFWLYLWLHV &DPLQR 5HDO &RUSRUDWLRQ LV *XDWHPDOD·V VWURQJHVW KRWHO ,WLVPDGHXSRIÀYHSDUNV;HWXOXO;RFRPLO3HWD JURXS,WKDVWKUHHKRWHOVLQ*XDWHPDOD&LW\RQHLQ$QWLJXD SD$PDWLWOiQDQG$JXDV&DOLHQWHV7KHVHKLJKOHYHO DQGWZRLQ3HWpQWZRWRXULVWGHVWLQDWLRQVSDUH[FHOOHQFH,W UHFUHDWLRQDO SDUNV DUH RSHQ WR HYHU\RQH ,575$·V DOVRKDVWKUHHKRWHOVLQ%HOL]H$FFRUGLQJWR-XDQ*XUUROD SDUNVDUHPHPEHUVRI ,$$3$ ,QWHUQDWLRQDO$VVRFLD *HQHUDO0DQDJHURI WKH:HVWLQ&DPLQR5HDOWKLVLVDJURXS WLRQRI $PXVHPHQW3DUNVDQG$WWUDFWLRQV DQGKDYH WKDW´UHFRJQL]HVDQGJURZVLWVKXPDQWDOHQWDQLQQRYDWLQJ EHHQWKHUHFLSLHQWVRI ,$$3$·VELDQQXDO´$33/$8 DQGHQWUHSUHQHXULDOJURXSμ 6($:$5'μZKLFKLVJLYHQWRWKHEHVWSDUNVLQWKH 7KH&RUSRUDWLRQLVDVWURQJSHUIRUPHULQEXVLQHVVWRXULVP ZRUOG7KHLUSDUNVDUHWKHRQO\RQHVLQ/DWLQ$PHULFD DQG ERDVWV DQ ,QWHUQDWLRQDO &RQYHQWLRQ &HQWHU ZLWK WRKDYHUHFHLYHGWKLVGLVWLQFWLRQ KDOOVDQGDFDSDFLW\IRUSHRSOH,WVXSSRUWV,1*8$7·V 7KH\KDYHSODQVWRODXQFK;HMX\XSLQDWKHPHSDUN HIIRUWVWRDWWUDFWWKLVVHFWRUDQGWKH\DUHSDUWRI *XDWHPDOD·V ZKHUHWKHUHZLOOEHQRPHFKDQLFDOULGHVDQGHYHU\WKLQJ &RQYHQWLRQV%XUHDX ZLOOEHQDWXUDOLWZLOOKDYHDODJRRQKRUVHULGHVDQGD 7KLV\HDUWKH\DUHFHOHEUDWLQJWKHLUWKDQQLYHUVDU\&DPLQR IDUPDQGZLOOEHVXUURXQGHGE\ZRRGODQGVZLWKJXHVW 5HDORSHQHGLWVGRRUVLQ1RYHPEHUDQGDFFRUGLQJWR accommodation to be built on trees. Ricardo Castillo -XDQ*XUURODLVFKDUDFWHUL]HGE\´LWVFRPPLWPHQWWRFXVWR 6LQLEDOGLKRSHVWKDWWKHLPSUHVVLYHSDUNVKHKDV´WKH PHUFDUHμ$VLGHIURP:HVWLQWKH&RUSRUDWLRQDOVRKROGVWKH KRQRURI PDQDJLQJμZLOOEHFRPHDZHOFRPHDGGLWLRQ Holiday Inn franchise. WRWKHFRXQWU\·VJURZLQJOHLVXUHRSSRUWXQLWLHV SPONSORED SPECIAL REPORT / GUATEMALA uatemala G © Tigo

Tigo Guatemala Headquarters in Guatemala City.

GUATEMALA, WORLD LEADER IN CELL ario López Estrada is a Civil Engineer who graduated from PHONE COMPETITIVENESS. MSan Carlos de Guatemala Uni- versity. His career started as a public em- The country offers a regulatory frame ployee at the Municipality of Guatemala with clear investment laws in the as well as the National Government. He got his professional training in the technological sector, which is interested construction of homes and roads and in attracting long-term investment. decided to change professions when he became interested in cellular telecom- Guatemala’s Government plans to tender munications, a practically unknown dis- a large phone spectrum to cell phone cipline in Guatemala and one he saw as a long-term opportunity. That is how Tigo operators, following the forecast set out Guatemala, one of the country’s leading by the International Telecommunication companies –and one which has greatly contributed to its development– was Union for 2020, where cell phone born. With 9 million clients trusting it operators will require from 1340 to 1960 for their telecommunications, the company is the largest cell phone operator in MHz for mobile phones. Central America and is present in Gua- temala, El Salvador, Honduras, Paraguay, Colombia and Bolivia and is a data provider in Nicaragua and Costa Rica.

GUATEMALA´S SUCCESS STORY GUATEMALA / SPONSORED SPECIAL REPORT

Question: Guatemala has more cell Q: Tell us about the work of the xRV &RFLQDV ZKLFK KDYH EHHQ ÀWWHG phones than it does people. How ‘Tigo Foundation’ with computers and the necessary fur- would you explain this phenomenon? A: In the past few years we have tried nishings, and where around 100,000 Answer: What explains this is Guate- to give back to the community part of FKLOGUHQ KDYH DOUHDG\ EHQHÀWWHG :H mala’s Telecommunications legislation what it has given us with its support, have also concentrated on Health initia- because it allows for free competition. that is why we created the Tigo Foun- tives and have worked alongside several The World Economic Forum declared dation. I have been its president from companies, as well as the Government Guatemala as the most competitive of Guatemala, to develop a hospital for country in the telecommunications sec- children diagnosed with cancer, where tor, as well as naming it the country with “THE HUMAN ZH DUH WKH SURMHFW·V ODUJHVW ÀQDQFLHUV the world’s highest rate of cell phone ASPECT IS THE MOST This health facility has the latest state- penetration. It has grown so much be- of-the-art equipment, the most up-to- cause competition forces you to use IMPORTANT FACTOR date drugs and the best-trained doctors your imagination and all necessary LEADING and specialists which have made possi- efforts to get customers. A few years ble to cure around 75% of all the chil- ago we witnessed the arrival of the TO SUCCESS” dren who have gone there.Everything smartphone and we knew they were the they need to get their health back they re- future. People started to communicate the start and I have overseen all of the ceive for free. Furthermore we have also through data (Whatsapp, Twitter, etc.). Foundation’s investments towards tho- created an alliance with the U.S. Em- We decided to make a large investment se parts of society which are most in bassy to work together on the Alliance in the procurement of smartphones for need, focusing primarily on Education. for Prosperity Plan. We are very com- our clients, giving them a large subsidy. Thus far we have built 300 of what we mitted to undertake all actions needed At present we are selling around 130,000 call ‘ABC’ schools -the acronym stands to try and help the poorest members of to 140,000 cell phones per month. With for the Spanish words for Classrooms, society living in the northwestern part FRQFXUUHQW VDOHV ÀJXUHV ZH H[SHFW Restrooms and Kitchens (Aulas, Ba- of the country. that most of our clients will have a Smartphone in the next two years. Q: A list with the richest men of Cen- uatemala tral America was recently published. G

lobal CALL CENTERS – from Guatemala to the World G GUATEMALA HAS POSITIONED ITSELF AS ONE OF CENTRAL AMERICA’S MOST

© Allied IMPORTANT MARKETS WHEN IT COMES TO ATTRACTING BPO INVESTMENT AND THE DEVELOPMENT OF CONTACT CENTERS FOR MULTINATIONAL COMPANIES. Analysis, etc. Allied Global is a young A: It is an association which comes and dynamic company which is taking under Agexport because it exports ser- advantage of its proximity to the U.S., vices. We have focused on a report by the largest Service Industry market the- Tholons which analyzed the necessary re is. According to Manuel Gordo, the elements to ensure this industry grew company has three core elements: to in the country and the main conclusion EHD¶SHRSOHÀUVW·W\SHRI FRPSDQ\WR was that the teaching of English is a GRDQH[FHOOHQWMREDWDOOWLPHVDQGWR priority. always create value. Allied Global founded its own English Question: Where is Guatemala as a academy in 2007 to teach people with BPO and Contact Center hub? DQLQVXIÀFLHQWOHYHORI (QJOLVKVRDVWR Manuel Gordo, President of Allied Global Answer: Guatemala represents the be able to hire them after graduation. ALLIED GLOBAL most important hub in Central America Allied English Academy is the only teaching institution offering a salary to Manuel Gordo started with a small and the Caribbean. It has the largest po- VWUHQJWKHQ D ZRUNHU·V ODQJXDJH VNLOOV Call Center and 50 employees in 2005. pulation. Guatemala City, with a popula- and represents a $2 million investment Today he heads Allied Global, has a tion of almost four million people in its per annum for us. Other companies VWDII RI RYHUDQGRSHUDWHVLQÀYH metropolitan area, is the largest source have followed our model and we are countries (Guatemala, Honduras, Beli- of human resources in Central America. very proud to have been able to teach ze, the U.S. and Canada). Allied Global 7KHFRXQWU\DOVREHQHÀWVIURPKDYLQJ English to around 5,000 people in the is a communications company offering around 250,000 graduates entering the past six years. Call Center support and BPO offe- labor market every year. rings such as IT Services and Quality Q: You also work alongside AGEX- Q: What are your short to medium $VVXUDQFH ,W DOVR RIIHUV %DFN 2IÀFH PORT’s BPO & Contact Center Com- term expansion plans? solutions such as 3D modeling, Data mission. How does the guild work? A: We have recently expanded into Belize

CALL CENTERS / INSURANCE GUATEMALA / SPONSORED SPECIAL REPORT lobal G GUATEMALA’S INSURANCE MARKET

© Allied GUATEMALA’S INSURANCE SECTOR IN 2015 HAD A TURNOVER OF $795 MILLION IN HEALTH, MOTOR AND DAMAGES DIRECT WRITTEN PREMIUMS. IT IS A SECTOR CHARACTERIZED FOR HAVING A HIGH ASSET SOLVENCY AND REPRESENTS 1.26% OF THE COUNTRY’S GDP. GUATEMALA’S INSURANCE MARKET HAS BEEN STABLE IN 2016 AND SHOWS OPTIMUM FINANCIAL AND TECHNICAL INDICATORS. SEGUROS UNIVERSALES where we hope to create around 1,000 Seguros Universales covers all kinds of niversales U

jobs next year. We will also launch a insurance and, although it also caters to © customer service center in Guatemala, large companies, its market is made up which will create 1,200 new jobs. In the primarily of SMEs. U.S. we have just launched centers in Seguros Universales is one of the com- Denver, Colorado, and Wichita, Kansas, panies with the most international with the intention of expanding our bu- FHUWLÀFDWHV DQG DZDUGV LQ *XDWHPDOD siness in the country. Towards the end LQFOXGLQJ ÀUVW SODFH LQ *UHDW 3ODFH WR of the year we will also launch a center :RUN·V´%HVW3ODFHWRZRUNLQ&HQWUDO in Tegucigalpa to add to the one we al- America Award” for 2016. Furthermo- ready have in San Pedro Sula, thus dou- re, seven years ago it achieved ISO cer- bling our presence in Honduras. WLÀFDWLRQVIRUDOOLWVSURFHVVHVDQGFHUWL- $OOLHG *OREDO·V RULJLQDO LGHD LV QRW WR ÀFDWHVDZDUGLQJLWVH[WHUQDODQGLQWHUQDO say that we are a services provider from customer care. Guatemala but, rather, that we are a Felipe Sicilia, General Manager of Se- globalized company which can provide guros Universales, went to University in services anywhere you want it to. If you the U.S. and did an MBA at UCLA. He Felipe Sicilia, General Manager of Seguros Universales GRQ·WZDQWWRWDNHDMRERXWRI WKH86 has headed the company for the past because your client is very sensible to 13 years and is one of the main execu- implemented changes to ensure it beco- this type of change, we can provide you tives of the investment group. Since he PHVPRUHHIÀFLHQWDVZHOODVPRUHFXV- with a service within the country itself. joined the insurance company he has tomer and staff-oriented. SPONSORED SPECIAL REPORT / GUATEMALA

GUATEMALA´S BANKING SECTOR ACCORDING TO FITCH RATINGS, GUATEMALA’S MOSTLY LOCAL BANKING SYSTEM HAS ONE OF THE LOWEST RATES OF LATE PAYMENTS IN THE REGION (1.4%), AND THE STRONGEST PORTFOLIO INSOFAR AS LOAN QUALITY IS CONCERNED. niversales U © BANTRAB Question: What is the key to the Ronald García is a banker with over 25 years of experience behind him. success of Seguros Universales? © Bantrab Answer: We are a group that believes BANTRAB is an organization created an open-door policy is fundamental, 50 years ago by decree law whose main that gives power to upper and middle REMHFWLYHLVWRJLYHÀQDQFLDORSWLRQVWR management and constantly trains all its Guatemala’s workers, giving economic staff. We worry about the wellbeing of VXSSRUWWRWKHLUÀQDQFHVDQGVDYLQJV our employees and we like to offer them He spoke proudly about keeping the HFRQRPLF LQFHQWLYHV DV ZHOO DV ÁH[LEL rating Guatemala got from Fitch. lity with their working hours. We want When asked about the banking sector’s them to balance positively their work strength in Guatemala he went on to and their families. Being a family-owned say that: “The monetary, exchange and business we like to look after the health credit policy decisions which the Mo- and wellbeing of all families. netary Board has taken these past few years have been very successful. The Q: What is Seguros Universales’ star stability shown in these decisions regar- product? ding the macroeconomic aspects has, A: All three branches are very well ba- in turn, given stability to Guatemala’s Ronald García, Managing Director of Bantrab lanced insofar as volume is concerned banking system.” and we are the strongest aviation insu- stable exchange rate, which offers se- rer. In the medical expenses branch we curity to foreign investors, ensuring are the largest-growing company and “WE EXPECT TO DOUBLE there will be no loss on their returns. Its the one that has obtained the largest judicial security and legal framework QXPEHURI QHZDFFRXQWVÀQGLQJSUH OUR CUSTOMER pertaining to foreign investment are a viously uninsured niche markets where BASE BY 2020” very attractive and positive issue. Its we have been able to implement an in- risk rating, although variable of course, surance satisfying their needs. is steady within a very stable margin, Question: BANTRAB is the coun- as are the country’s macroeconomic Q: What can you tell us about the WU\·V VL[WK ÀQDQFHJURXS $UH\RX LQGLFDWRUVLQÁDWLRQUDWHDQGHFRQRPLF company’s future projects? comfortable with that ranking? growth. A: There are plans in the pipe-line to Answer: Our primary cover the rest of the country since all aim is to offer Guate- 17 insurance companies operating in mala’s workers the best Guatemala do so in the capital, which possible service because is where the business is at. We have a ZHDUHWKHEHVWÀQDQFLDO network of ten branches in the country solution for them. We and we want to cover all 22 of Guate- expect to double our PDOD·V'HSDUWPHQWVZLWKLQWKUHHWRÀYH customer base by 2020 years. and we want to become Q: What social engagement projects the leader within our ob- are you currently undertaking? jective market, which is A: We support ten, mostly local, foun- consumer credit, throu- dations. We focus on people in need gh Guatemala’s workfor- who have no way of making a living. We ce. Nevertheless we also believe strongly in education and mini- expect to grow develo- mum health and housing conditions. We ping and strengthening are also conducting several programs our business area. where we acknowledge those Guate- Q: What are Guate- malan citizens which have stood out in mala’s competitive their profession. You can learn more advantages when it about this program on the website: comes to investment? www.guatemaltecosilustres.com A: Guatemala keeps a

INSURANCE&BANKING / EXPORTS GUATEMALA / SPONSORED SPECIAL REPORT

der the name ‘Pure

© MC Fresh’ and provides to the country’s largest supermarket chains year round. Planesa has production centers in both Guatemala and Mexico. The company is a heavy investor in technology and agricultural research, and has Roberto Castañeda, President of Planesa an ongoing state- of-the-art genetics GUATEMALA EXPORTS program. GUATEMALA’S AGRICULTURAL SECTOR Question: As the ACCOUNTS FOR 13.7% OF GDP AND largest expor- ITS MAIN EXPORTS INCLUDE SUGAR, ter of berries in COFFEE, FRUIT AND VEGETABLES. Guatemala. What does the Ameri- PLANESA can market represent to you? A: We will be exporting blueberries to Roberto Castañeda is the President, Answer: We currently have several part- WKH86IRUWKHÀUVWWLPHLQ*XDWHPDOD·V and owner of Planesa. He learned the ners and commercial deals with Ameri- history at the end of 2016. And we are business from his successful father and can supermarkets. Planesa guarantees trying once again to break into the rasp- is now passing on his knowledge to his year-round delivery of its products, and berry market. We also wish to maintain children, Roberto and Andrea, who are, always with the highest quality. This is our strong presence in organic crops. what he calls, the company’s “driving a demanding market where we manage We have been working closely with a force.” Planesa, a dynamic company well, complying with their requests and fast food chain, offering blackberries which has grown exponentially and staying ahead of their needs. They are for one of their salads. Lastly, we are operates in four different countries, is very happy with us. buying berries straight from producers mostly dedicated to the cultivation of in several states in the U.S. and we are berries as well as vegetables, among Q: What development plans for the looking into starting our own crops in other crops. In the U.S. it operates un- U.S. can you tell us about? the country.

COFFEE: GUATEMALA’S STAR EXPORT Question: What would you highlight about Guatema- Evelio Alvarado is the General Manager of ANACAFE, la’s coffee? Guatemala’s National Coffee Association, a public service Answer: Several international experts declared that Gua- private institution founded under the auspices of the Coffee temala’s coffee is one of the world’s top three. Proof of Law of 1960. Its main objective is to strengthen the natio- this are the record amounts achieved at international coffee nal economy through the production and export of coffee auctions, such as ACE (Alliance for Coffee Excellence), and to represent Guatemala’s coffee-growing sector –which which is held annually and where the produce of “El Injer- encompasses 120,000 coffee growers all over the coun- to” –one of Guatemala’s coffee plantations– obtained the try– issue export licenses, develop and execute coffee-re- highest-ever price for a specialty coffee at $80.20 per pound. lated policies, promote Guatemala’s coffee and protect the country’s coffee plantations which today number around Q: Is coffee part of Guatemala’s Nation Brand? 754,000 acres. Coffee crops make up 2.8% of Guatemala’s A: Of course it is. I would say that coffee is Guatemala’s surface and they are found in 21 of its 22 Departments. best Ambassador to the world since it started being grown Coffee represents an annual income of $666 million to in the country in the 1850s. The country was the largest Guatemala’s economy, with an export volume of 3,816 producer in the region until 2011, and today it is the world’s million Quintals of gold coffee. tenth coffee producer. + BANK BYPASS: In a country where many people don’t have a bank account, M-Pesa allows residents to pay bills and make other payments via a text on their mobile phone.

NEWSWEEK 48 09/30/2016 NEW WORLD

MEDICINE INNOVATION AGING TRANSPORTATION BRAIN ANIMALS

GOOD SCIENCE WET WORK Mobile banking helps spread basic services in Nairobi’s slums

IN KAYOLE, a slum on the outskirts of Nairobi, Customers receive bills via M-Pesa, a mobile Joab Omondi has been selling water from a cart payment service that uses texts to transfer money since the government connected his neighbor- between customers, banks and companies. Since hood to the local water system. Two years ago, its adoption, around 100,000 Kayole residents are water was a scarce commodity here. Residents regularly paying their water bills via their phone. used to have to hunt around to buy a 5-gallon can “Almost every resident here has piped water...and of water for 30 shillings—about 30 cents. That’s we sometimes sell clean water to other neighbors changed since the World Bank and the Nairobi who have not yet been connected,” says Omondi. City Water and Sewerage Co. started allowing According to Joseph Ambajo, the World Bank’s residents to pay their water bills by mobile phone. water and sewerage program sociologist for “This new initiative has really changed our Africa, the system works not only because it’s con- lives,” says Omondi. “Our water cannot be dis- venient but because it makes it easy for customers connected again, as it used to be. We can now to aff ord the startup cost associated with tapping request and pay our bills through our own mobile into the water system. The cost of connecting a phones instead of queuing at the banking halls.” household to the water system in Kenya is around Kenyans often have to wait hours in line at banks $100, Ambajo says. Because defaults are now rel- to reach a teller and make a payment or conduct atively rare, customers are allowed to pay that bill other business. Lack of running water and proper in increments over the course of a couple of years. sewage disposal is a major impediment to eco- Cellphones have also helped expand access to nomic development in East Africa. But now the electricity and spread health information. “The BY water company is more confi dent it will be able to mobile technology has helped Kenyans in so many TONNY ONYULO collect revenues, it is working to connect water to ways,” says Rebecca Njeri, a Kayole resident. “We

TREVOR SNAPP/BLOOMBERG/GETTY TREVOR @TonnyOnyulo every household throughout Kenya. are now sure of getting basic services anytime.”

NEWSWEEK 49 09/30/2016- NEW WORLD/TRANSPORTATION

READY FOR THE L-POCALYPSE? The shutdown of a major subway line in New York City could be a huge disaster—but an even bigger opportunity

LAST YEAR, Altamonte Springs, Florida, a sub- change their lives to fi t the transit model.” urb of Orlando, learned that it could not use the The integration of ride-hail companies like $1.5 million it had designated for FlexBus, a bus Uber and its main rival, Lyft, into the nation’s service whose fl eet would be dispatched accord- public transit infrastructure is a sign of maturity ing to user demand indicated via kiosks. The city for Silicon Valley darlings looking to both grow had a SunRail commuter train station, but also the and grow up. Initially, these companies appealed fi rst-mile–last-mile problem many municipalities to tech-savvy coastals, who didn’t want to drive, face: For residents who don’t live next to the sta- or take a bus, or fumble with dollar bills in the tion, getting there was a commute. And if you’re back of an ordinary taxi cab. That made Uber already driving a decent distance to light rail in extremely useful but not exactly necessary. Its Altamonte Springs, you might as well keep going pitch to urban planners indicates that the com- and drive yourself to Orlando. pany wants to expand well beyond its base in FlexBus would trade fi xed routes for the needs cities like New York, San Francisco and Los of users, eliminating the prospect of steaming at Angeles—in other words, that Uber wants to be a bus shelter in the Florida humidity. Although an essential service, not a luxury good. the idea fell victim to politics, the money had “Welcome to Uberville,” announced a headline already been set aside, so offi cials decided that on The Verge, in an article about the Altamonte instead of expanding public transit, they would Springs experiment. The article’s author, Spen- use the funds for one of public transit’s main cer Woodman, wrote that Altamonte Springs competitors: Uber. is a sort of test case, and that “it’s possible to Last spring, Altamonte Springs became the imagine ride-hail companies taking on the role fi rst municipality in the United States to make the of all-encompassing, smartphone-driven public ride-hailing company part of its mass transit infra- transit providers, one town at a time.” structure. It has done so by subsidizing 25 percent But Altamonte Springs is a town of 43,000: of all Uber rides to and from the SunRail station more a quiz than a test. Uber and Lyft need to and 20 percent of any trip fully within city limits. prove themselves in a big American city. And “Our residents [and] our business owners like the they’re about to be handed that very opportu- fact that Uber puts transit options in their hands,” nity, in the biggest city of all. BY City Manager Frank Martz told NPR. “They don’t ALEXANDER have to rely on public transit. They don’t have to HIPSTERS IN AERIAL GONDOLAS NAZARYAN rely on the fi xed schedules. They don’t have to Before the L train was terrible, it was horrible. By @alexnazaryan

NEWSWEEK 50 09/30/2016 the time I arrived in the Williamsburg section of but just about everyone involved with mass Brooklyn in the very early 2000s, the L was run- transportation in the New York area is already ning well beyond its original capacity, stuff ed desperately trying to come up with a solution. during rush hour like the Manhattan trains you’d Some of the early proposals are fanciful. The moved to Brooklyn to avoid. Despondent hipsters construction fi rm AECOM, which is affi liated stood on the platform at Bedford Avenue, wait- with early work on the Hyperloop transporta- ing for a train into which they could squeeze their skinny, tattooed bodies. People said the train was good for people-watching, but the only sight you were likely to glimpse was the sweaty, pimpled BEFORE THE L TRAIN necks of your fellow commuters. But even inadequate L service is better than WAS TERRIBLE, IT no L service. Soon the L train will be shut down WAS HORRIBLE. to repair the tunnel beneath the East River it tra- verses. Announced this summer by the Metro- politan Transportation Authority, the plan calls for the suspension of L train service between tion system envisioned by Tesla impresario Elon Brooklyn and Manhattan, thus severing a cru- Musk, has proposed a tunnel that would fl oat on cial means of interborough commute (the L will the East River, a sort of giant, translucent snake IF YOU CAN MAKE continue to run through less-traffi cked parts of stretching between Brooklyn and Manhattan. IT THERE: Shutting down the L train Brooklyn). The shutdown, which will begin in It’s a cool idea. Chance it comes to pass: zero. will force many early 2019 and last for 18 months, has already “Aerial gondolas” have also been suggested. thousands who commute daily been given an ominous name: L-pocalypse. That’s also as likely as a Knicks championship. from Brooklyn into The closure is still nearly three years away, Sensible calls have come from Transportation Manhattan to fi nd another ride. Alternatives to make 14th Street more acces- ANDREW BURTON/GETTY ANDREW + sible to cyclists and pedestrians. No, that’s not sexy or revolutionary, but this is New York City, where installing a curbside bike rack might take a decade and involve a dozen lawsuits. No one, though, has been planning for the L shutdown more aggressively than Uber. The company has apparently embraced the famous admo- nition of former White House Chief of Staff and current Chicago Mayor Rahm Emanuel to “never let a serious crisis go to waste.” At the very least, it has been much more bullish than Lyft, which tells me that it has “no concrete plans to share yet.” Uber defi nitely has a plan. The question is, Will New Yorkers embrace it?

THE MAGIC BUS-TRAIN “Imagine if a driver commuting into Manhattan could open up the Uber app,” wrote Uber New York General Manager Josh Mohrer in a News- week op-ed published earlier this month, “enter where they are going, and then be shown nearby riders who are going in the same direction—and get paid for bringing them along.” Mohrer calls this plan Commute Together, a carpooling service that would quickly deputize New Yorkers who weren’t previously licensed to operate a commercial vehicle as Uber drivers. Mohrer’s plan calls for Bus Rapid Transit (BRT) across the Williamsburg Bridge, which spans the East River from Manhattan’s Lower East Side to Williamsburg, closely approximating the current route of the L. The BRT would have its own

NEWSWEEK 51 09/30/2016 + TRAINING WHEELS: Altamonte Springs dedicated lane and pre-board ticketing, making of the Brooklyn Bridge, in lower Manhattan: has solved the it a kind of train with four wheels. City Hall. In 2015, the city’s mayor, the alleged last-mile problem for commuters by Uber argues, however, that given the congestion progressive Bill de Blasio, tried to set a limit on subsidizing Uber on the Williamsburg Bridge, clearing a full lane of the number of vehicles Uber could operate in rides to and from SunRail stations. traffi c would be tantamount to serving a formal an attempt to stunt its growth. Uber fought back dinner for 24 on the rush-hour 5 train. Mohrer says with a public relations eff ort led in part by Obama Uber could clear the way for BRT on the Williams- ’08 veteran David Plouff e, arguing that its drivers burg Bridge through Commute Together: “With are often hard-working immigrants and people enough participation, we could signifi cantly of color, and that they pick up riders in low-in- reduce the 11,000 cars traveling over Williams- come and outer borough neighborhoods that the burg Bridge and carve out space for BRT.” Yellow Cab industry (a major donor to de Blasio’s The plan has received the support of urban- mayoral campaign) shuns. ists like Sarah Kaufman, a transit scholar at Uber won the battle, embarrassing de Blasio New York University who recently co-authored in the process. Since his 2015 defeat, de Blasio a report on the looming shutdown of the L. The has grudgingly conceded that Uber and Lyft will report calls for expanded partnership between remain part of the city’s infrastructure, yet he the city and ride-sharing companies (it also is unlikely to make further concessions. To the fl oats the aerial gondola idea, though that contrary, he could use the L shutdown to exact isn’t the report’s centerpiece). “Anything that revenge on Uber. Given the mayor’s well-known expands transportation options for the public vindictiveness and pettiness, that would surprise is benefi cial,” she tells me. “Our subways are almost no one. crowded, and we need some relief from that.” Nor would it be diffi cult. Any driver picking up passengers for a fee would have to be licensed CARPOOL KABUKI by the Taxi & Limousine Commission, a process Uber’s biggest nemesis is not Lyft, or the sub- that could take months. Mohrer’s op-ed calls for way system, or a bike-share kiosk on every cor- a “fl exible” licensing approach from the TLC, but ner. Rather, its staunchest enemy resides in a the agency cannot compromise on basic safety 200-year-old Federal-style building at the foot standards. Through a spokesman, the TLC tells

NEWSWEEK 52 09/30/2016 me it wants to collaborate “with all of our licensed industries” but won’t provide details. The taxi industry hopes that no such collabo- NEW WORLD/TRANSPORTATION ration comes to be. Bhairavi Desai, who directs the New York Taxi Workers Alliance, sent me an email with 11 reasons why the Uber plan was wrong for New York City. She argues that Com- mute Together “would create more congestion” and that “there are more than enough professional drivers to meet the increased demand.” enjoys a better public reputation. That might She notes that Uber vehicles are not wheelchair not matter to hedge funders, but it could make a accessible and that use of the service requires a crucial diff erence to municipal offi cials evaluat- smartphone, which many people still do not have. ing bids for service. “Carpooling already exists without Uber,” she I asked Mohrer how he would ensure that driv- concludes. “If neighbors want to give each other ers picking up riders through Commute Together rides, they don’t need to give Uber money to do were properly vetted. After all, Uber drivers have so, and no special license is necessary.” been caught (granted, very infrequently) driving drunk or sexually assaulting passengers—and UBER’S OVER-UNDER those are the ones who’ve presumably gone “Is Uber destined to be just another app in a sea through the company’s background checks, not of sharing-economy choices used by a fraction the kind of expedited licensing Mohrer calls for of the population?” wondered David Spiegel of in his Newsweek op-ed. CNBC this summer. “Or will it instead retain its “We have a long time to fi gure this out,” he competitive edge and become the next company says. That’s both true and not. Things move very like Amazon or Xerox or GE—a company that slowly in New York and then move very quickly. starts with a core business model and through Soon enough, the whoosh of the L train will no innovation, clever resource consolidation and longer blow stale air through the Bedford Ave- smart execution becomes something much big- nue station. Thousands each day will want some ger and more important?” way to cross the East River. Maybe they will do so Uber’s fi nances are impressive—but also via aerial gondolas or fl oating tunnels. deceptive. It is worth more than $60 billion, yet Or maybe commerce between Brooklyn and it lost $1.2 billion in the fi rst half of 2016, which Manhattan will radically decrease as a result of points to a troubling gap between perception the shutdown, the two boroughs reverting with and performance. Venture capital from Sand Hill Road can’t grow a company on its own; neither can the boundless confi dence of Wall Street investors. You need the little guy, the ordinary A SORT OF GIANT, American, to fall in love. Uber is clearly aiming for Amazon-level TRANSLUCENT SNAKE relevance, which is why it is so eager to insin- WOULD STRETCH uate itself into the public sphere. Once there, it will be impossible to dislodge, as both support- BETWEEN BROOKLYN ers and detractors well know. Its current push AND MANHATTAN. extends beyond the experiment in Altamonte Springs or the Williamsburg Bridge proposal. Matt Wing, an Uber spokesman, points to uber- POOL, a ride-sharing service that has worked astonishing speed to the separate cities they were to close mass transit gaps in Boston, Seattle before 1898, as if they’d simply been waiting for (uberHOP) and Washington, D.C. Commute an excuse to divorce. This simply because city Together looks as if it will be a close sibling of planners didn’t have the vision to prepare for the uberPOOL, if not an identical twin. L-pocalypse, so that in future years, historians Despite these gestures of apparent altruism, will cite 2019 as the moment in which New York’s Uber continues to struggle with perceptions dysfunction reached a new crescendo, the yuppi- that it is just another heartless corporation, fi ed masses fl ed for the suburbs, as they had in the one that exploits drivers by treating them as 1970s, and Greenwich Village became aff ordable contractors and exploits riders through “surge again, though not quite for the right reasons.

PHELAN M. EBENHACK/AP PHELAN M. pricing.” Though much smaller, Lyft arguably Uber is hoping it won’t come to that.

NEWSWEEK 53 09/30/2016

DOWNTIME

THEATER ART MUSIC INTELLIGENCE MEDIA FILM

HARING, IMPAIRED The mysterious origin and uncertain fate of a forgotten Keith Haring mural

KEITH HARING practiced making art quickly. In running, jumping, embracing—limbs askew and the early ’80s, he would ride the New York City vibrating with curved echo lines that gave the subway, scouting the stations for spots where walls a feeling of constant motion. That night, + sheets of plain black paper hung until adver- dozens of teenagers were inside the Grace House RADIANT BABY: Haring quickly tisements replaced them. He’d saunter up, look youth center, which was run by the Catholic Youth jumped from around for police and fi ll the paper with cartoon- Organization, and they trickled into the halls to graffi ti artist being chased by the tran- like fi gures. Sometimes, it got him arrested. watch him paint. sit cops to being One Saturday evening, most likely in 1984, “I think it took about 40 minutes. It was so chased by gallery owners in Paris Haring walked into a building on 108th Street, fast...and there was no sketch. It just fl owed out and Amsterdam. passing under a small cross above the front door. of him,” says Mallon. “He would paint [the fi g- The thin, bespectacled artist carried a coff ee can ures] as he was moving. It was coming out of his fi lled with black paint and a thick brush, ready to head through the brush and onto the wall.” cover the walls of the former convent. A friend The spontaneous mural ends at the third- invited Haring to tag the wall and got the approval fl oor landing with a fi gure seeming to dive into of Gary Mallon, director of the youth center in the a doorway, only its lower half visible. When building. The leaders of the church that owned the building was a convent, the door led to the the building didn’t know Haring was there. mother superior’s apartment, but in those years Haring started at the bottom of the stairs and it was home to Mallon. “That’s you, Gary,” he BY wound his way up to the third fl oor, crouching remembers Haring saying, explaining that it was STAV ZIV low and then almost reaching the ceiling in some Mallon escaping into his apartment after a long

BERNARD GOTFRYD/HULTON ARCHIVE/GETTY BERNARD GOTFRYD/HULTON @stavziv spots. He painted outlines of fi gures walking, day working with the kids. Back downstairs in

NEWSWEEK 55 09/30/2016 the lobby, Haring added his archetypal “radiant baby” to an empty wall—an outline of a crawling A MASSIVE WORK BY AN child surrounded by sunny beams. Just six years later, the world-famous artist ART ICON—EXTREMELY died from AIDS-related complications at the VALUABLE AND SIMULTA- age of 31. By then, he’d shown his work in more than 100 solo and group exhibitions across NEOUSLY PRICELESS—IS AT the globe; collaborated with artists like Grace RISK OF BEING DESTROYED. Jones, Yoko Ono and Bill T. Jones; and painted murals in prominent spots, including hospitals, museums and the Berlin Wall. Now, more than three decades after Haring South Bronx. Benny Soto, a self-described painted his mural for the kids of Grace House, poor kid who was a regular volunteer at Grace the church is emptying the building of tenants House, had no exposure to any kind of fi ne art and “exploring its options,” which means a mas- growing up; it was an interest in clubbing as a sive work by an art icon—extremely valuable and teenager that brought him into the art world. He simultaneously priceless—could be destroyed. discovered the Paradise Garage in the early ’80s and quickly became a fi xture at the SoHo disco- CRACK IS WACK theque, where he kept seeing pins and T-shirts The story of how the mural came to be is also featuring a mysterious glowing baby. Someone the story of a Puerto Rican teenager from the fi nally pointed him to Haring’s show at the Tony

NEWSWEEK 56 09/30/2016 Shafrazi Gallery, where the artist had turned the basement of an annex around the corner into a “break-dance disco” with black lights, DOWNTIME/ART fl uorescent paint, DJ equipment and a party every night. It was there and at the Garage that Soto befriended Haring, who eventually hired the teenager to be his studio assistant. Soto can’t pinpoint the exact moment he got the idea that Haring should paint at Grace + House. Haring knew Soto and his friends spent Working for Haring was an exhilarating expe- WALL OF FAME: Haring slipped into a lot of time hanging out and volunteering there, rience, Soto says, until he “got wrapped up doing the Grace House and Soto remembers asking him several times if a lot of drugs and hanging out. I had to really building late one he would make something for the kids. Haring night and painted take a step back and get myself together.... Keith his stairwell mural agreed and so did Mallon, who decided it was was very, very supportive,” even after Soto in less than an best not to ask the church for permission. And stopped working for him. hour. so, late on a winter night, Haring arrived with It was Soto, in part, who inspired one of Haring’s his coff ee can. “Keith was such a nice, generous most famous public works in New York City—the guy,” says Mallon, now a professor at Hunter “Crack Is Wack” mural he painted in 1986 on the College’s Silberman School of Social Work. “He wall of an abandoned handball court uptown, on wanted nothing in return.” Harlem River Drive. “Now, there’s a very personal Soto remembers feeling the mural was a gift reason why I wanted to do this particular mural,” for all the kids, most of them poor, who found Haring is quoted as saying in a biography by John a safe space at the youth center. “There’s cer- Gruen. “Back in 1984, I hired a young studio assis- tainly a lot of movement and joy in the fi gures as tant. He was a Puerto Rican kid—very intelligent, you go up and down the steps. In an ultra-sim- top star of his school, and ready to go to medi- plistic way, he captured it: That’s what Grace cal school. He did volunteer work for a Catholic House felt like. There were always kids running community center and he was just an all-around up and down the steps.” good and wonderful person. But, little by little, he Soto worked as Haring’s studio assistant for became a crack addict…. I got really distressed…. about 18 months, running to the art supply store, But because he was also intelligent, he wanted buying lunch, delivering paintings, stretching desperately to stop. Finally, he was put on a pro- canvases. But he also became friends with the gram and, thank God, he was cured.” artist, entering Haring’s social circle, which Within a year after Soto got sober in the late included Andy Warhol as well as pop stars Boy 1980s, Haring was diagnosed with AIDS. Soto will George and Madonna, who performed “Like never forget one of his last visits before Haring’s a Virgin” for Haring’s birthday party in 1984, death in February 1990. The artist was chang- wearing an outfi t designed by the artist, months ing his shirt in his studio before they headed out before the single was released. Haring took Soto somewhere, and Soto saw lesions on his back. He overseas for the fi rst time when he had work in knew what they were but didn’t want to believe Amsterdam and Paris. it, so he asked. “Bennnnny, come on,” he recalls Haring saying, mimicking the impatience on his face and in his voice. “I have AIDS.” The last time Soto saw Haring, he was no longer the same energetic man buzzing around the studio or dancing up the stairs as a mural poured out of his brush. “It was devastating to see…. You feel so powerless,” says Soto, who cried as he walked away from the studio that day. “It was so sad. He was so young and so talented. I think he would have done so much more.”

MOVING IN WITH THE MURAL The Grace House mural went largely unharmed while the fi ve-story building was used for var- ious purposes over the past 30 years. It has been owned by the Church of the Ascension for

FROM LEFT: SHAMINDER DULAI; NICK ELGAR/CORBIS/VCG/GETTY NICK SHAMINDER DULAI; LEFT: FROM nearly a century. From 1977 until 2008 or 2009,

NEWSWEEK 57 09/30/2016 judge denied Savina and Sabeva an injunction that would prevent the church from starting evic- DOWNTIME/ART tion proceedings, and now they’re waiting for the church’s next move. In the meantime, the mural has caught the attention of New York City Councilman Mark Levine, who wants to ensure that it cannot be ruined and believes the “only rock-solid way to protect it is to landmark it.” He has approached the Catholic Youth Organization rented Grace the city’s Landmarks Preservation Commission House for retreats and other programs for kids. about beginning that process. The building then became host to a hodgepodge Savina’s staying, at least in part because of the of organizations and activities, some of which mural. He fi gures that no one can knock down continued after the church started renting out the building while he and Sabeva are living in it. rooms as apartments around 2013. Since then, a motley, multigenerational group, including art- THE FRIENDS THEY LOST ists, students and teachers, has lived there, shar- This summer, more than 30 years after he’d last ing bathrooms and kitchens. hung out at Grace House, Soto went to see what Robert Savina, a production designer for he calls “the forgotten mural.” After Savina let low-budget independent fi lms, found Grace him in, the pair showed each other around. When House while scouting locations. “When I fi rst they reached the rooftop garden, they sat and saw the mural, it was this immediate connec- talked for over an hour about New York City in tion,” he tells Newsweek. He happened to be the 1980s, about drugs and drinking, about AIDS looking for a place to live, and when he heard and the friends they lost, and about the mural. there was a room available on the fourth fl oor, “Can we look at it one more time?” said Soto, he says, “I knew this was home.” He’s been liv- now a promoter for electronic dance music events ing with the Haring for over two years now. It “always energizes me. It’s a very uplifting piece of art. I notice something diff erent about it each time I walk by,” like the spots where Haring must have “THERE’S A LOT OF MOVEMENT started a brushstroke with a fresh load AND JOY IN THE FIGURES. of paint, leaving a few drops trailing THAT’S WHAT GRACE HOUSE below the confi dently drawn lines. Like the rest of his neighbors, Savina FELT LIKE. THERE WERE received a letter in April asking him to ALWAYS KIDS RUNNING UP move and a more formal legal notice in June requesting he vacate the premises AND DOWN THE STEPS.” by July 31. The only explanation was a brief mention of the church’s “fi nancial health.” As the tenants scrambled to arrange for new housing, they worried about and a DJ, and they meandered back downstairs. the mural. They feared it would be destroyed if Beneath the right sleeve of Soto’s black T-shirt, the church leased or sold the property. there’s a tattoo Haring inked when the famous The church has yet to reveal its plans. Joseph tattoo artist Hanky Panky was teaching him to Zwilling, director of communications for the use a tattoo machine in Amsterdam. It’s faded, Archdiocese of New York, tells Newsweek, “There but you can still make out Haring’s well-known has been no decision yet about the future of the “Batman” fi gure, with a cape spread behind him building in question and therefore no decision and an X on the belly. about the mural itself.” As they lingered over their goodbyes by the All but two of the tenants—Savina and a young front door, Soto said he thought Savina might woman on the fi fth fl oor named Yana Sabeva— save the Haring work. “You’re lucky to have the have moved out, even though lawyers believe mural, but the mural is also lucky to have you.” they are protected by rent stabilization laws. After Haring’s old friend walked away, Savina Aaron Kratzat, an attorney at the Goddard Riv- closed the door to Grace House and went to his erside Law Project, says the Grace House tenants room. Though it’s on the fourth fl oor, you can bet should have the right to stay indefi nitely, but a he took the stairs for one more look.

NEWSWEEK 58 09/30/2016

DOWNTIME/MEDIA

GRUDGE GONE WILD Why Joe Francis’s secret war against Gawker is still secret

THE PLOT TO take down Gawker was like high- stakes celebrity Mad Libs: A Silicon Valley billionaire teamed up with an aging wrestler to win a civil suit over a post about a sex tape. And it worked: Gawker.com is done, its former managing editor, Nick Denton, is bankrupt; and Hulk Hogan’s been awarded $140 million in damages. By any account, Gawker’s enemies are very pleased. But few know there was another disgruntled celebrity working to destroy Gawker: Joe Francis, the millionaire soft-core porn mogul best known for the Girls Gone Wild franchise. In several inter- views with Newsweek, Francis boasted about his role, using language better suited to the voice-over for an action movie. “It was an all-out assault,” he says. “I liken this operation to killing Osama bin Laden. And we did—we killed the most reckless, dangerous scumbag in the world: Nick Denton. Now, for the burial at sea, I’d like to see that too.” Denton (not the most dangerous scumbag in the world) did make a lot of enemies with his blog. Gawker enraged Lena Dunham, outed Peter Thiel and Shepard Smith, referred to Zoe Saldana’s infant twins as “hipster scum” and once described Ted Cruz as a “noted skin-haver.” “They were really good at making enemies,” says Nik Richie, a blogger who runs the gossip convicted. Tax evasion and bribery, sure, but not site TheDirty.com. rape.) In an email to Gawker titled “Hey Nick, Which leads us to Francis. In 2009, the porno Your Fucked” [sic], Francis claimed he had lost entrepreneur threatened to sue Gawker for calling a $10 million deal because of Gawker’s post and him a rapist in a post that awarded him the title of wrote, “I am going to wipe you off the grid!!!!” BY Douche of the Decade. (Francis had been accused Wipe Gawker off the grid? That must have ZACH SCHONFELD of rape in a Los Angeles Times profi le but was never sounded pretty ludicrous in 2009. @zzzzaaaacccchhh

NEWSWEEK 60 09/30/2016 Francis had his attorney send a letter to Gawker, the off ending content or not publish,” he says. which amended “rapist” to “alleged rapist.” But Only Gawker declined. his beef with the site deepened when it continued Francis also gives himself credit for Hogan’s targeting him. When Gawker’s sister blog Jezebel secret benefactor—Peter Thiel—though there is mocked his girlfriend’s pregnancy announcement scant evidence to support this narrative. Thiel, years later, he was infuriated. “They called my who made a fortune as the co-founder of PayPal, daughters ‘genetically modifi ed! Number one, spent years plotting his revenge after he was genetic modifi cation is illegal.... But to, like, attack outed by Gawker in 2007. In subsequent years, innocent little babies? It’s just horrible.” the blog mocked his business ventures and his Francis happened to be friendly with Hulk rather bewildering comments on women’s suf- Hogan, and when Hogan was going through a frage. The Hogan suit provided Thiel with the divorce, Francis introduced him to his attorney, opportunity he craved: He paid millions in legal David Houston, who later advised the wrestler fees to fi nance the lawsuit. in his privacy suit against Gawker. (Houston, Francis says he had Houston threaten legal Hogan’s personal attorney, is not to be confused action against Gawker long before the Hogan with Charles Harder, the Hollywood libel lawyer lawsuit. Houston says he hadn’t even heard of hired specifi cally for the case.) Francis, mean- Gawker before the suit was fi led. THANKS FOR while, was in and out of jail after being convicted THE MEMORIES: Francis’s version of false imprisonment and assault in 2013. As THE MEDIA RUIN GREAT THINGS of how he helped Francis tells it, he allied with Hogan and his law- Joe Francis is famous for running his mouth, and take down Gawk- er is colorful and yer to get Gawker. “I would call myself a periph- swearwords pour out of it at a dazzling speed. at odds with the eral player,” he says, “who did a lot of handiwork.” After his 2013 conviction, he called the jurors recollections of his own lawyer. According to his lawyer, Francis’s involvement “retarded” and said they “should be euthanized.” + was minimal, at best. But during a brief, fi nal phone conversation with In 2012 or 2013, after Gawker published a clip Newsweek on August 31, he was uncharacteristi- from the now-infamous video of Hogan having cally taciturn, and he declined to share emails he’d sex with his best friend’s wife, Francis claims he said would confi rm his role in the Gawker case. “I convinced other sites to take down posts on the don’t know.… I don’t want to ruin this thing,” he sex tape. “I worked the phones,” he says. “I called in every favor I possibly could.” Houston tells the story diff erently: He had Francis call Richie because the “WE KILLED THE MOST two were friends and he wanted Francis to “facilitate an introduction” between RECKLESS, DANGEROUS himself and Richie so the latter would SCUMBAG IN THE WORLD.” know Houston would be calling. Hous- ton’s goal was to scrub his client’s sex tape from the internet. Richie confi rms that Francis asked him to take down grainy stills said. “I don’t want to hurt the judgment.” (He from the tape, and two such posts were removed feared a court might use this information as a on May 8, 2013—shortly after Gawker refused a basis to overturn the ruling.) judge’s order to take down the video. “The media has a way of destroying great Francis rang other gossip rags too. “I sat on things sometimes,” he added. the phone for days, begging friends in the media: The infomercial smut tycoon sounded hur- ‘Pull it fucking down.’ And calling off favors.” For ried, saying he was on his way out with his wife whom? “TMZ, all these guys. I traded information and kids, but he off ered to respond to some too. Paid them off . Whatever I could do.” questions by email that night. He didn’t reply to Paid them off ? A few days later, when asked that email. Nor a second one. Nor a third. And to clarify that, Francis backtracked: Did he ask he stopped answering my phone calls. TMZ to take down the sex tape? “No comment.” His sudden reticence is perhaps understand- Did any of these sites get paid off ? “Nope.” able, even though Francis repeatedly compared An email asking TMZ whether the site his eff orts against Gawker to the mission to take amended its coverage on Francis’s orders drew a out the leader of Al-Qaeda. “I killed Osama bin hasty rebuke from a spokesperson: “No and you Laden,” he said. “Or I was the CIA operative who are completely off base.” assisted in the killing of Osama bin Laden.” Houston says he contacted more than 80 sites Or, perhaps, he’s just somebody who has

JEFF BOTTARI/WIREIMAGE/GETTY JEFF after the sex tape broke. “All agreed to remove watched Zero Dark Thirty too many times.

NEWSWEEK 61 09/30/2016 DOWNTIME/INTELLIGENCE

SNOWDEN, A LOVE STORY Oliver Stone’s new ﬁ lm aims to humanize the infamous NSA leaker and convince viewers he’s a hero, not a traitor

BILL BINNEY found a seat just inside the door of Eventually, the government came after him Washington’s Chez Billy Sud, a chic Georgetown and his fellow NSA dissidents, as well as a House pub, as a happy crowd was pouring in after an Intelligence Committee staff er, Diane Roark, advance screening of Oliver Stone’s new fi lm on who had championed their cause. Their story is Edward Snowden. The entrance was an appropri- told in a deeply disturbing Austrian documen- ate perch for Binney, a lanky, 73-year-old former tary, A Good American, due to be released in the top National Security Agency offi cial who’s largely U.S. in February. But on this night, Binney was been overlooked in the fl ood of publicity about thrilled by Stone’s powerful biopic of Snowden, Snowden, the infamous electronic-spying leaker who astounded the world with his massive expo- who now resides in Moscow. sure of the NSA’s global spying programs. Years before anyone had ever heard of “I think it’s great,” Binney says of Snowden, Snowden, Binney, a gifted cryptologist and mathe- a mostly hagiographic take on the largely self- matician, was pushing back against the NSA’s spy- taught computer expert’s journey from patriotic, ing overreach. In October 2001, after more than post-9/11 Green Beret volunteer (he washed out three decades at the agency, he resigned rather after breaking his legs) to CIA recruit to NSA con- than participate in a clandestine, overpriced and tractor and eventually apostate and renegade. “It questionably legal electronic spying system code- did what I hoped it would do. It shows the human named Trailblazer. By most accounts, Binney and side of surveillance and how it aff ects people.” his colleagues had designed a system with built-in For most people, he says, the technical jargon privacy protections and higher effi ciency than that about how the NSA spying programs work, not to one, called ThinThread. But the agency’s boss at mention the complexity of laws that largely fail the time, General Michael Hayden, ditched Thin- to control them, is too hard to understand. “With Thread and poured at least $1.2 billion into the this movie...people can visualize and grasp things. coff ers of contractor Science Applications Inter- I think it will help people understand what is really national Corp. to develop Trailblazer, until the going on behind the scenes.” Bush administration terminated it. Ever since, And that is? “That they are invading the privacy Binney has alternated between grief and rage over of everyone,” he says. “They can turn on your cell- his fi rm belief that ThinThread would have dis- phone and listen to you. They can turn on your covered the 9/11 hijackers before they struck. “It camera and watch you. They can do the same with BY was just revolting and disgusting that we allowed computers...[even] OnStar,” General Motors Co.’s JEFF STEIN it to happen,” Binney says of the attacks. car communications system. “They can use radios @SpyTalker

NEWSWEEK 62 09/30/2016 story for Stone’s focus on Snowden’s catharsis. So he invented a sequence in which a comically evil CIA offi - cial, apprehensive about Snowden’s growing disenchantment, lets his erstwhile acolyte know he’s spying

“IT WAS JUST REVOLTING AND DISGUSTING THAT WE ALLOWED [9/11] TO HAPPEN.”

on him and his girlfriend. Stone, in a conversation with a journalist at the September 7 after-party in Georgetown, allowed that the scene is a cinematic device to explain + Snowden’s decision to download THE LEAKER: Joseph Gordon- thousands of top-secret documents Levitt, right, plays in cars to do that. It’s a total invasion of what you and hand them over to reporters from The Guard- Edward Snowden thought you had as a citizen as rights to privacy.” ian and The Washington Post. The decision will in Oliver Stone’s largely positive What the George W. Bush administration likely re-energize Stone’s persistent, mostly right- biopic about the freed the NSA and other spy agencies to do wing critics, who have hounded the director for NSA contractor. after 9/11, he adds, has continued under Barack decades over his unconventional portrayals of Obama, despite the president’s promise to end U.S.-backed Salvadoran death squads, Vietnam the NSA’s warrantless collection and storage of atrocities, Wall Street greed and especially the bulk phone-call data. assassination of President John F. Kennedy. For the most part, Stone’s version of events, But Stone hews far closer to the facts in Snowden based largely on The Snowden Files, a 2014 book than in his other fi lms. The fi lm climaxes with the by Guardian correspondent Luke Harding, tracks whistleblower, charged with espionage, fl eeing closely with the dissident’s accounts of his grow- from Hong Kong to Moscow, en route, he hoped, ing alienation. His disaff ection begins with his CIA to Ecuador, which has no extradition treaty with posting to Geneva, when the spy agency exploits the United States. Instead, the State Department information collected by the NSA to manipulate revoked his passport, stranding him in Russia. and blackmail a foreign banker. Snowden, who Now, over three years later, a coalition of human joined the CIA to fi ght terrorists, hadn’t signed rights groups is launching a campaign to persuade up for that. Later, his illusions further evaporate Obama to grant Snowden a pardon. It’s not likely when he learns how the NSA’s secret partnerships to be successful. Putting aside Snowden’s depic- with U.S. telecom companies have allowed it to tion as a traitor in many quarters—even Hillary vacuum up the personal emails, telephone calls Clinton has said he needs to come home “to face and fi nancial transactions of any American (not the music”—Obama has shown no inclination to to mention foreigners) with a computer, without a lessen, much less drop, the charges against him. warrant. His estrangement deepens in 2013 when Binney, meanwhile, says the Obama adminis- James Clapper, the director of national intelli- tration has expanded the NSA’s spying programs. gence, lies under oath during a congressional “They are collecting vastly more amounts of infor- hearing about the NSA’s spying programs. mation every year,” he says, with plans to build a Snowden had seen what had happened to Bin- massive new data storage facility at Fort Meade, ney and other NSA executives who came under Maryland, besides the one that opened in Utah investigation and whose careers were ruined. in 2014. “It’s all for naught,” he says, “because it

JÜRGEN OLCZYK/OPEN ROAD FILMS ROAD OLCZYK/OPEN JÜRGEN But those events proved to be too much back- doesn’t help prevent terrorist attacks at all.”

NEWSWEEK 63 09/30/2016 REWIND20 YEARS SEPTEMBER 30, 1996 MASSACHUSETTS GOVERNOR WILLIAM WELD (NOW THE LIBERTARIAN PARTY’S VICE PRESIDENTIAL CANDIDATE) BRAGGING TO THE PRESS DURING HIS DOOMED 1996 CAMPAIGN FOR SENATE “I’m bemused to see so many sena- tors leaving Washington because they’re depressed by the pettiness of politics. I’m delighted by the pettiness of politics.” Inside the case that shocked the nation

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