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The Economist June 24Th 2017 5 Saudi Arabia’s risky succession Is the Fed bad for productivity? Hong Kong: 20 years of coping with China Fire-proofing tower blocks JUNE 24TH–30TH 2017Modi’s India The illusion of reform Always one step ahead of the game. Predictions prove a bright future for you. Our autonomous vehicle will be safer, smarter and instinctively more brilliant than anything on the road. HYUNDAI is a registered trademark of Hyundai Motor Company. All rights reserved. ©2017 Hyundai Motor Company. s. gistered trademark of salesforce.com, inc., as are other names and mark © 2017 salesforce.com,© 2017 inc. All rights reserved. Salesforce.com is a re Their products already power one out of three buildings in the world’s major cities. Now they’re working to bring energy and automation to everyone on the planet — efficiently, safely, reliably, and sustainably. Guess who partners with them on their journey? Salesforce. The Customer Success Platform, powered by Einstein artificial intelligence, unites their workforce of 144,000 people, helps 2,800 service agents solve 12 million cases each year, and connects them to customers in a whole new way. What if you had a guide helping to illuminate your trail? Visit salesforce.com/blazeyourtrail. Contents The Economist June 24th 2017 5 8 The world this week Asia 33 Free speech in India Leaders Falling into line 11 Modi’s India 34 Mongolian politics The illusion of reform Herd it all before 12 Divided Britain 35 North Korea The tower and the anger Another victim 12 American health care 35 Smoking in Japan Sunlight needed Passive obsessive 13 The Saudi monarchy 36 Banyan The new crown A shake-up in Riyadh Gay rights in Asia Saudi Arabia prince should curb his 14 Human rights in Hungary impetuousness abroad and Stop spoiling Viktor Orban China pursue reform at home: leader, India Narendra Modi is not as 37 Hong Kong under China page13. King Salman’s choice much of a reformer as he Letters Twenty years on of a new successor was both seems: leader, page11. As shocking and predictable, 16 On Japan, Chinese prime minister, he has done page 41. The world’s biggest oil officials, MPs, tax, tech Middle East and Africa a decent job administering company cannot be seen in unicorns and punctuation the Indian economy but not 41 Saudi succession isolation from the kingdom enough to reform it, page 20. The new number two that it bankrolls, page 55 India’s normally raucous Briefing 42 Escalation in Syria democracy is becoming more 20 India’s economy The Iranian envelopment subdued, page 33. The The constant tinkerer 42 Israel’s culture wars billion-dollar meat industry A horse walks into a bar is in limbo, page 58 fight United States 43 Zambia 23 Privatisation Road-rage rules The Economist online The art of the deal 43 African travellers Daily analysis and opinion to 24 Gerrymandering No papers, no passage supplement the print edition, plus Boundary police 44 Democracy in Africa audio and video, and a daily chart 24 Government waste First we take Nairobi Economist.com An improper mess E-mail: newsletters and 25 Children’s welfare Health care For Senate mobile edition Foster the people Europe Republicans to rush through a Economist.com/email 26 Policing and race 45 Hungary’s young liberals sweeping health-care reform Print edition: available online by Measuring bias Magyars en marche! without scrutiny would be 7pm London time each Thursday 28 Georgia’s sixth district 46 France gets a government reckless and undemocratic: Economist.com/print A kick in the Ossoff Macron mixes ministers leader, page12 Audio edition: available online 29 Lexington 47 Dutch refugee policy to download each Friday America First Keep them away Economist.com/audioedition 47 Romania yanks its leader A good man is hard to find The Americas 48 Naples’ baby gangs 30 Cuba and Trump Young blood Looking backwards 49 Charlemagne 31 Bello Volume 423 Number 9046 Germany’s pipeline to Who governs Peru? Russia Published since September1843 32 Canada to take part in "a severe contest between intelligence, which presses forward, and Lassoing icebergs an unworthy, timid ignorance obstructing 32 Mexico our progress." Hacking the hacks Hungary When a country’s Editorial offices in London and also: prime minister erodes Atlanta, Beijing, Berlin, Brussels, Cairo, Chicago, Lima, Mexico City, Moscow, Mumbai, Nairobi, democracy, Europe should New Delhi, New York, Paris, San Francisco, punish him: leader, page 14. São Paulo, Seoul, Shanghai, Singapore, Tokyo, Inspired by Emmanuel Macron, Washington DC a new party challenges Viktor Orban, page 45 1 Contents continues overleaf 6 Contents The Economist June 24th 2017 Britain 69 Basic incomes in Finland Northern pilot 50 After Grenfell Tower Embers still glowing 69 Argentina’s 100-year bond 51 Terrorism in London Bully-beef bulls Attacked at prayer 70 Free exchange 52 Bagehot The Fed and productivity Philip Hammond, the designated adult Science and technology International 71 Exoplanets Hong Kong Since its return to Sorting the sky The Fed Janet Yellen’s doubts 53 Fire safety China 20 years ago this week, about America’s poor Death in the city 72 Zoonotic disease the territory has seen its Unknown unknowns productivity could prove economy go sideways. Blame 73 Political morality self-fulfilling: Free exchange, politics, page 37. Now that Business Talk is not cheap page 70 Chinese stocks and bonds have 55 Saudi Aramco’s IPO 73 Antibiotics been included in global A king-to-be’s ransom indices, investors will have to The enemy of my enemy Subscription service 56 Amazon buy them, page 65 74 Agriculture For our latest subscription offers, visit Whole hog Silence, please Economist.com/offers For subscription service, please contact by 58 Uber telephone, fax, web or mail at the details Gear change provided below: Books and arts 58 India’s meat business North America The Economist Subscription Center Meatpacking district 75 Classical music In pursuit of perfection P.O. Box 46978, St. Louis, MO 63146-6978 59 Retailing in Pyongyang Telephone: +1 800 456 6086 76 Johnson Facsimile: +1 866 856 8075 Minisocialist E-mail: [email protected] Chatty Cathy and Taciturn 60 General Motors Latin America & Mexico Tom The Economist Subscription Center Shrink to fit P.O. Box 46979, St. Louis, MO 63146-6979 77 Democracy’s discontent Telephone: +1 636 449 5702 60 Artificial intelligence Where do we go from here? Facsimile: +1 636 449 5703 Deep minds for hire E-mail: [email protected] 77 South Korean fiction 61 Cisco Dark before the dawn Subscription for 1 year (51 issues) Tower blocks and fires As the Flicking the switch United States US $158.25 (plus tax) 78 Performance art planet urbanises, life in tall 62 Schumpeter Canada CA $158.25 (plus tax) Body talk Latin America US $289 (plus tax) buildings is becoming more Semper Fidelity common. It need not be dangerous, pages 53. 80 Economic and financial Principal commercial offices: A horrific fire in London raises Finance and economics indicators 25 St James’s Street, London sw1a 1hg more questions for Theresa 65 Global indices Statistics on 42 economies, Tel: +44 20 7830 7000 May’s embattled government: Made in China plus a closer look at drug Rue de l’Athénée 32 leader, page12. Anger grows use 1206 Geneva, Switzerland 66 Hong Kong Tel: +4122 566 2470 over a catastrophe and the Down market? government’s slow response, 750 3rd Avenue, 5th Floor, New York, NY 10017 page 50 66 Aircraft finance Obituary Tel: +1212 5410500 Maximum altitude 82 Helmut Kohl 1301Cityplaza Four, 67 Buttonwood 12 Taikoo Wan Road, Taikoo Shing, Hong Kong Germany’s helmsman Tel: +852 2585 3888 Fund management Other commercial offices: 68 Barclays and the SFO Chicago, Dubai, Frankfurt, Los Angeles, Capital charges Paris, San Francisco and Singapore 68 Financial technology Licence to bill Fund managers Why they do PEFC certified not perform consistently: This copy of The Economist is printed on paper sourced Buttonwood, page 67. Reports from sustainably managed of the death of conventional forests certified to PEFC asset management are greatly PEFC/29-31-58 www.pefc.org exaggerated: Schumpeter, page 62 © 2017The Economist Newspaper Limited. All rights reserved. Neither this publication nor any part of it may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of The Economist Newspaper Limited. The Economist (ISSN 0013-0613) is published every week, except for a year-end double issue, by The Economist Newspaper Limited, 750 3rd Avenue, 5th Floor, New York, N Y 10017. The Economist is a registered trademark of The Economist Newspaper Limited. Periodicals postage paid at New York, NY and additional mailing offices. Postmaster: Send address changes to The Economist, P.O. Box 46978, St. Louis , MO. 63146-6978, USA. Canada Post publications mail (Canadian distribution) sales agreement no. 40012331. Return undeliverable Canadian addresses to The Economist, PO Box 7258 STN A, Toronto, ON M5W 1X9. GST R123236267. Printed by Quad/Graphics, Saratoga Springs, NY 12866 TO GET TO A HEALTHIER WORLD FIRST REMOVE ALL THE OBSTACLES. Administrative paperwork, confusing data, budget overruns— these are a few of the things that stand in the way of delivering good care. As a health services and innovation company, Optum is tackling the biggest challenges in health care by partnering across the entire system. Our modern, data-driven solutions help eliminate frustration and ine ciency and smooth health care delivery, which improves outcomes for everyone. optum.com Data and Analytics | Pharmacy Care Services | Population Health Management | Health Care Delivery | Health Care Operations 8 The world this week The Economist June 24th 2017 Cuba.
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