The Pearl river delta: a special report Hospitals of the future Jacob Zuma must go Parking, wrong on so many levels APRIL 8TH–14TH 2017 Why computers will never be safe vk.com/stopthepress FRESH MAGAZINES EVERYDAY Contents The Economist April 8th 2017 3 5 The world this week The Americas 34 Venezuela Leaders Undo that coup 7 Computer security 35 Ecuador The myth of cyber-security Correísmo hangs on 8 Chemical weapons in Syria 35 Paraguay Russia’s poisonous client Of arson and re-election 8 America and China 36 Bello The valley and the delta Fear ebbs in Mexico 9 South Africa Pearl river delta To see the Dump Jacob Zuma Middle East and Africa merits of openness, the 10 Parking 37 South Africa American and Chinese Aparkalypse now The president v the people presidents need only look On the cover 38 Chemical weapons in Syria inwards: leader, page 8. Our Computers will never be Letters Assad unleashes horror special report on China’s most secure. To manage the risks, dynamic region, after page 40 12 On Brexit and the 39 The insurgency in Sinai look to economics rather European Union Terror and counter-terror than technology: leader, 40 The United Arab Emirates page 7. Cyber-security is The Gulf’s little Sparta broken from top to bottom. Briefing As the consequences pile up, 16 Parking though, things are starting Sacred spaces Special report: The Pearl to improve, page 66 river delta Jewel in the crown Asia After page 40 The Economist online 19 North Korea The land of lousy options Daily analysis and opinion to Europe supplement the print edition, plus 20 Pacific secession 41 Terror in St Petersburg audio and video, and a daily chart Palm-fringed indecision Underground man Britain after Brexit Smooth Economist.com 21 Islami Bank Bangladesh 42 Anti-gay violence in trading with Europe will be E-mail: newsletters and Cheques and imbalances Chechnya disrupted unless Britain mobile edition 22 Official caprice in India Republic of fear drastically overhauls its Economist.com/email Bar wars customs operation, page 46. 42 France’s left Print edition: available online by 24 Banyan The lesson of Gibraltar, page 47. The crack-up 7pm London time each Thursday An Australia that can say no Striking deals around the Economist.com/print 43 Hungarian universities world cannot replace the EU Audio edition: available online Orban v intellectuals market, page 47. The shadow China to download each Friday 44 Turkey’s president of Enoch Powell looms Economist.com/audioedition 25 Xi Jinping The Kurdish card ever-larger over British All must swear loyalty 45 Charlemagne politics: Bagehot, page 48 26 A new megacity Descending Mount Brexit Relief for Beijing? Britain United States Volume 423 Number 9035 46 Brexit and the borders 27 The economy The customs crunch Published since September 1843 Eyes bigger than their 47 The lesson of Gibraltar to take part in "a severe contest between wallets intelligence, which presses forward, and Rocky grievances an unworthy, timid ignorance obstructing 28 Trump and the unions our progress." 47 The search for trade deals A riveting relationship Editorial offices in London and also: Shared values Atlanta, Beijing, Berlin, Brussels, Cairo, Chicago, 29 The Gorsuch nomination 48 Bagehot Lima, Mexico City, Moscow, Mumbai, Nairobi, Going nuclear New Delhi, New York, Paris, San Francisco, Enoch Powell, the third man São Paulo, Seoul, Shanghai, Singapore, Tokyo, 30 Failing jails South Africa The markets and Washington DC Cruel and usual punishment the trade unions agree that 30 Steve Bannon and the NSC it’s time for a new president: Axis of adults leader, page 9. Jacob Zuma 31 Biology in Alaska faces a revolt after replacing a Climate refugees scrupulous finance minister with a crony, page 37 32 Lexington America’s forgotten war 1 Contents continues overleaf 4 Contents The Economist April 8th 2017 International 64 Short-term lending Payday squeeze 49 Health-care reform Prescription for the future 64 A Fed resignation Lacking judgment 65 Free exchange Business Venezuela’s problems 53 Indian e-commerce Delayed delivery Science and technology 54 Fox News The $13m factor 66 Computer security Everything is hackable 55 Opioids in America North Korea Why Donald Hospitals How they could be A world of pain Trump will find it hard to curb Books and arts rebuilt, better than before, Kim Jong Un’s nuclear 55 Entrepreneurs in Africa page 49 programme, page 19 Hurdles for hubs 69 Religion in America 56 Clothing companies The good-news bearers Green is the new black 70 Markets Subscription service Evolving ideas For our full range of subscription offers, 57 Oil and technology including digital only or print and digital Data drilling 71 Cognitive science combined visit Mind meld Economist.com/offers 57 De La Rue You can subscribe or renew your subscription Swapping notes 71 Political manifestos by mail, telephone or fax at the details below: Time to smash the system Telephone: +65 6534 5166 58 Tesla Facsimile: +65 6534 5066 Revving up, a bit 72 French fiction Web: Economist.com/offers Yearning in the sandstorm E-mail: [email protected] 59 Schumpeter Post: The Economist Jeff Bewkes’s season finale 72 Art festivals Subscription Centre, at Time Warner Athens on display Tanjong Pagar Post Office PO Box 671 Singapore 910817 Venezuela How its leaders are Finance and economics 76 Economic and financial Subscription for 1 year (51 issues)Print only betraying democracy, page 34. indicators Australia A$465 The economics of Venezuela’s 60 Japan’s labour market China CNY 2,300 Statistics on 42 economies, Hong Kong & Macau HK$2,300 catastrophe: Free exchange, Wanted: stroppier India 10,000 employees plus our monthly poll of Japan Yen 44,300 page 65 forecasters Korea KRW 375,000 61 Buttonwood Malaysia RM 780 New Zealand NZ$530 Top-heavy America Singapore & Brunei S$425 Obituary Taiwan NT$9,000 62 Trade Thailand US$300 Back to the 1980s 78 David Rockefeller Other countries Contact us as above 63 Brexit and Ireland Tunnels of influence From farm to pharma Principal commercial offices: 63 Economic development 25 St James’s Street, London sw1a 1hg Why recessions matter Tel: +44 20 7830 7000 Rue de l’Athénée 32 1206 Geneva, Switzerland Tel: +4122 566 2470 750 3rd Avenue, 5th Floor, New York, NY 10017 Tel: +1212 5410500 Parking The average car 1301Cityplaza Four, moves just 5% of the time. To 12 Taikoo Wan Road, Taikoo Shing, Hong Kong improve transport and cities, Tel: +852 2585 3888 focus on the other 95%: Other commercial offices: leader, page 10. Never mind Chicago, Dubai, Frankfurt, Los Angeles, public transport, bicycle lanes Paris, San Francisco and Singapore or elegant architecture. What determines how cities look and move is their parking rules, pages 16-18 PEFC certified This copy of The Economist is printed on paper sourced from sustainably managed forests, recycled and controlled sources certified by PEFC PEFC/01-31-162 www.pefc.org © 2017 The Economist Newspaper Limited. All rights reserved. Neither this publication nor any part of it may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of The Economist Newspaper Limited. Published every week, except for a year-end double issue, by The Economist Newspaper Limited. The Economist is a registered trademark of The Economist Newspaper Limited. Publisher: The Economist. Printed by Times Printers (in Singapore). M.C.I. (P) No.030/09/2016 PPS 677/11/2012(022861) The world this week The Economist April 8th 2017 5 amid clashes between the 2014. But the ruling junta has Trump in January, were re- Politics army and a rebel group. yet to set a date for elections. stored as full participants. Just another day in Venezuela Japan said its ambassador to North Carolina’s legislature Venezuela’s supreme court South Korea would return to repealed a controversial law tookover the powers ofthe Seoul. He had been recalled that required transgender legislature, which is controlled three months ago amid a row people to use public lavato- by the opposition to the social- about statues commemorating ries according to the sex stated ist regime, and then reversed Korean women forced into on their birth certificate. The its decision. The national prostitution by Japan during repeal didn’t go farenough for assembly remains neutered by the second world war. some. A new bill forbids towns the court’s earlier rulings; the and cities from enacting simi- Organisation ofAmerican North Korea tested a ballistic lar statutes, but leaves an States called on Venezuela to missile on the eve ofa summit option open forthe state Capi- restore its full powers. Security between Donald Trump and tol to do so. forces fought protesters in his Chinese counterpart, Xi A chemical-weapons attackon Caracas with tear-gas, water Jinping, at which the two were Republicans in the Senate a rebel-held town near the cannons and pepper spray. expected to discuss how to vowed to force a vote over the Syrian city ofIdlib killed at curb North Korea’s nuclear confirmation ofNeil Gorsuch least 85 civilians, the deadliest Close to 300 people died in programme. to the Supreme Court. Demo- such assault in Syria’s long and landslides in the town of crats said they had enough bloody civil war since August Mocoa in south-western A Chinese academic was votes to blockhis appointment 2013. Bashar al-Assad’s regime Colombia. At least 400 people allowed to return home to by a filibuster. denied responsibility: only the are still missing. Australia after being barred Russians said they believed it.