r arn TEM) oUt Economist Troubled tax havens a eae SUR te ead Nowhere to hide TIO RMU) Ret The Republican contest hots up Lec Tee Ac) Ce CyA date 1m co] 0 heme should know about selling acar before you buy it. Crue eae CNY ere ees When shopping fora new RESALE VALUE isan admittedly strange thing tothink about. -», Nottomention, a seemingly odd way toconvince folks tobuy acarin the fist place. Howcanyouthinkabout yourbaby moving out when you haven't even broughtherhome yet? It's quite theconundrum, Yet 'ssomething worth bearing: inmind, especialy if we're talking about the Ford Fusion.(Hint: weare.) see, Fusion is projected tohold its resale value better: than Toyota Camry." ‘and Camryisa car which, t we'rebeing completely honest (hint: we are), one wouldexpect tohold its ‘value quite well, So that's someserlously good news for potential Fusion owners. Ga \ \Well,it’scomplicated. 4 Butbasically, projected resale valueisthe result of thoroughly consideringallof vehicle's features, attributesandasprinkle ofitspublic perception. But whatis PROJECTED RESALE VALUE, exactly? ‘And while some may consider “projected” to be a fancy ‘word for “guess,” well, they wouldn't be entirely wrong, Just mostly wrong. See, it's these carefullyandextensively Crafted “guesses” that go into determining automotive leaserates. Something, we assure you, dealers definitely do theirhomeworkon. Sowhile youmiay now knowmore about resale = Petiairen feuerstiasaate el eeaclan now yualsonem hy kates. Turns out the features that givea vehicle higher projected resale valueare the same features that make it so tempting inthe fist place Which makes Ford Fusion appealing to future owners ‘and aistant future owners ake Toctunch the numbers,and toseewhat eal Fusion owners =-ORD pores FUSION | ford.com. Drive one.The Econo} a 3 8 The world this week ros 47 Pakistan and America imam Tote biter end 15 Investing during a crisis 48 Polio in Pakistan Nowhereto hide Paras 16 Ukraine and the West 48 Thailand's government Oranges are not the only ‘Swept away fruit 50 Soca housing in China 16 Trade with china Howey home Iindnom.protedionisn 51 South Korean 38 Civil war, famine and mega-churches Pakistan and America Though aston For od andcourtry eae Detain tooth 52 Baman Pakstancowvermoce 7 20 Solar power Myanmar's taste of Pee eee een vata tert acaba Subsiies and scandal freedom pao reeee ay time in the recent past. The ui EL immediate future looks. —_—— : idle East and Africa eed pete bee 22 On Samsung, Palestine, 53 Somalia's woes ‘the ITU, utilitarianism, Hope on four Legs Prion em Russa, Steve obs, 54 The Mo Ibrahim award huge holes in pension plans: ‘oxymorons ust desserts Buttonmood, page 84 55 Liberia atthe polls Briefing ASwedsh Octaer 29 Women andthe Arab Saprie aera wong 55 Isractand Palestine Daily analysis and opinionfrom Now is the time Prisoner exchange rates } ‘our 19 blogs, plusaudio and video 56 American visas for lragis 7 " content, debates anda daily chart Lost in translation Ukraine and Tymoshenko The Economist.com blogs United states 58 Eqypt’s polities Westneedsto respond E-smaitznenslettersand 35 The Republican race Uncomfortably polarised _‘reefullyto Yulia tymoshenka's motte edtton fassng cin Conviction: eader pages Economist.com/email 36 America and Iran —_ Might it createa chance for = fon: avail nt Abomb plot in owi-ad Russia? Page 59 (i arpa Washington, DC? 59 Ukraine and Russia Fr gare ert ; ; Economist.com/print 38 Air-quality regulations ‘Yulia Tymoshenko’s trials ictal Darvenoldyour treat 60 The Balkans and Europe ‘todownload each Friday 40 Unmarried black women The pull of Brussels ovumistcon/oaeedon Deven are 61 Turkey and Europe ‘otha uncertain path ec Fengegement 64 Slovakia andthe euro a2 thinsand jobs Radieove'sament Whos ata ofthe 62 France's suburbs tragon? From Clichy to ciché eeanionnetias 42 Omithology 62. AGerman army museum Dead orale? NogutsNoglary 43 Lexington 64 Charlemagne Gniteee cece Romney sforeign poly Meak nce, tong eee easel “thorstficesin London and Germany front-runner, page 35. Mr ee ete, Tre knw Ramey proddcesan co Britain unimagative blueprint for fuioyaisea terri natieree, 45 Central American justice “America’s foreign policy: cee Paacang sum oa aon 4s hata uN 66 Shing andres each eeannewoeon 66 Royal succession Equality and the monarchy 67 Bagehot Of foreigners and famities > Contents continues overleafInternational 68 Taxhavens Trouble island 69 Cybercrime Measuring the black web riefing 174 Business education Trouble in the middle 73 Which MBA Theworld’s top business schools Ourrankings, and Thetop thirty Wat's happening in the business of business education, Business, pages 71-73, 75 Solar power painful eclipse 76 Branding Japan We're cool, really 76 European gas Pipeline pressures 77 RIM and its troubles Blasted BlackBerries 177 Law firms Homebodies rule 78 Pepsi Thecase fora break-up Taxhavens ublicangerand 79 Schumpeter shareholder unease threaten Mickey Mouse governance theirtranquility, page 68 Briefing 80 Asset returns Twouldn’tstart from here 83 Insider trading Tipping the scales 84 Buttonwood Pension-plan problems 85 Recapitalising Europe's ee banks Propping up Europe's banks Cushion calculations Policymakersagreethatthey 85 Fighting financial crisis, ‘nead more capital Little alee What if Lehman happened ‘sclear, page8s. What would ‘again? happenin Americaiftherewas 36 Chinese banks another crisis? Page 85. TheA-share team China's banks geta boost, enenid Bees ‘conomics focus The Nobel prize Finance and economics Science and technology 89 Electromagnetic weapons Frying tonight 90 The gonetics of happiness Transporter of delight 91 Climate and the solar gydle Chilling out in the winter Books and arts 93 Homer's “Itiad” Winged words 94 Jeffrey Eugenides Tohaveand to hold 94 Sonia Gandhi Strongwoman ina sari 95 Emest Hemingway's boat The old man and thesea Business books quarterly 97 High-beta rich Thevolatility of modern wealth 98 Extreme money More luck than judgment 98 Amazon worldwide bestsellers Making money out ofthe 99 Mortgage finance Greed and ambition Obituary 100 Dan Warren and Fred Shuttlesworth Fighters for desegregation 113 Economic and financial indicators Statistics on 42 economies, plus closer looks at newspapers and exchange-rate forecasts Nextweek ‘We publish our special report ‘on Indian business. tis rewriting the rules of ‘capitalismina distinctive ‘and unexpected way, says Patrick Foulis Principal commercial ofces: 5Shdaness Suet Landon ses 90 eeoa07E307000 aude archos ‘aoe GereraSitaetand ‘sone th os Newer Wo oytenvalPa {Bharat Hong ng eessazses a (hp, Du Font LosArales, PasonFnescoordSnapee Subscription service fororiest abi fess ‘Eserircanfaree Feria en else corey ‘tone tahun Boveedada Wonton 1290 4s64ots fon ude ‘Selsar cance sica7 Son) Fair 1846 6t07s rem ae SeiSerd cede tinea? So Coat conomeheaecnenitcom ‘Sibserion or yet (8 us) Untestane ssa Wy certs Perc Ean Roos aaLIVE FOR GREATNESS aa Pee CR oa er ar eae Rep er ea ieee er eee Se CN eC Oa ned eC eee Uns eee aFOR HER LATEST COLLECTION, FASHION DESIGNER JEN KAO FOUND INSPIRATION BENEATH THE WAVES. Credit Suisse has helped a new talent surface.w CREDIT SUISSEcorruption charges.Separately, of the European Financial Yoweri Museveni,the Ugan- Stability Facility, the euro: dan president, denied thathis _zone's bail-out fund. Alter talks government engagesingraft the opposition agreed to back when handing out oil con: the bill in asecond vote, in tracts. Uganda’sparliament exchange for early electionsin hassuspendedall pendingoil March 2012. The EFSF dealsfollowing allegations expansion hasbeen ratified by that oilcompanies paid bribes thes othercountriesin the toministers eurozone, Officials from the “traika" of ‘AcourtinKievhanded Yulia the European Union, Furopean Donald Tusk’s government ‘Tymoshenko, aformerprime Central BankandIntemation- easily won reelection in ministerof Uaine,aseven- al Monetary Fundsaidthat_ Poland. His Civic Platform Atleast 25 peopledied and300 yearprisonsentencefor'ex- Greecehiaddone enough to _partyislikely toremain in ‘were injured in Cairoinclash-ceedingher authority"in receive its latest tranche of coalition with tsjunior esbetween Coptic Christians, signingagasdeal with Russia _bail-outfundingworthes _partner,the Polish Peasants’ who makeup 8% of Egypt's" in2009. Many observers, billion (Subillion).theGreck Party. population,and security includingthe European Union, government had said it would forces. The Copts weredemon- saw theease asashow/trial | run out of money in Nove r trating against eligious dis- designed topunish MsTymo- ber without the/unds. Student groupsin Chile crimination and the burning shenko for her politcal ambi vowed o continue their prot of achurch.Fgypt’sfinance tions. Viktor Yanukovych, who Francois HollandeandMar-__estsdemandingan end to minister, who wasappointed defeated Ms Tymoshenko in tine Aubry cametop of thefirst university education for profit. bytheruling military council lastyear'spresidentialelec- _—roundoftheFrenchSocial-_Theirstreet protestshave after Hosni Mubarak was tion, hinted thatthe sentence ists‘ presidential primary vote. already lasted five months, ousted aspresidentin Febru» could be adjusted. The pair will square off inthe paralysing the education ary, resigned over the govern second round, on October system. The students broke off ment'shandling of the protest. Slovakia found itself the 16th. Thereal surprise wasthe _ talks with the government of centreof attention whenits _strongfirstround performance President Sebastian Piflera, Uganda's foreign ministerand parliamentiailed to passafirst of Amaud Montebourg,a afteritsent Congress a bill hat two other members of the voteinsupportoflegislation _farleftcandidate who calls for _penalises them for occupying rulingparty resigned to face designedtoboostthe powers “de-globalisation”. schools and blocking roads. LINDT’S CEO ERNST TANNER SALUTES ANOTHER YEAR OF GROWTH.Venezuela's president, Hugo havea, said he planned to “nationalise” Los Roques, a chain of islands off his coun try’s Caribbean coast, and expropriate ts luxury holiday homes. Peru's new president, Ollanta Humala, who isa former army officer, sacked 50 of the coun iuy’s a5 police generals in what officials said was an attemptto clean up corruption. Myanmar'sgovernment spranganother big surprise, by granting amnesty to more than {6300 prisoners. The group included monks and former rebel fighters, but only around 200 political prisoners. Hus ‘man-tights groupssaid the regime should free its most influential political detainees ifitwantsto show itis serious about reform. The president of Vietnam went to Delhi to formalise a plan by which one of India’s state-owned oil-and-gas com: paniesisto explore territory in the South China Sea thatis claimed by both Vietnam and China. The Chinese have ‘maritime border disputes with several oftheir neighbours. But Vietnam also signed a separate statement with China todiscuss their border pro- Dlems further Jiang Zemin, a former presi dentof China, showed up ata formal celebration marking theiooth anniversary of the revolution that ended the Oing dynasty. Some China-watch ersbelieve the reappearance of the 85-year-old MrJiang, so close to HuJintao, the current president, suggests that he ‘wants say in Beijing's forth coming transfer of power. Floodwaters thathad already submerged Thailand's central plains moved towards Bang: kok, thenation’s capital and home to 40% of the country's economy. The deluge has killed atleast 270 people and caused perhaps $4. billion in damage, ‘America accused “elements of. theIranian government” of plotting to kill heSaudi ambassador in Washington. Thealleged plotters, who include four senior members of lran’s special-operations al-Quds force, are said to have twied tohire assassins from a Mexican drug gang. Plans were also discussed to blow up the Israeli embassy in Washington and the Saudi and Israel em bassies in Argentina. twas unclear how high up the con: spiracy went in fran. Barack Obama's 447 billion jobsbill failed toclearitsfirst hhurdlein the Senate, as Demo» cratsfell short on a procedural vote. Various parts of the legislation, such asacut in payroll taxes, will probably now be separated out for consideration, America’s unemployment ratein Sep- tember wasstuckat 91% for the third consecutive month, Umar Farouk Abdulmutallab pleaded guilty o trying to blow up a flight o Detroit on Christmas Day in 2009 witha bomb hidden in hisunder pants. The Justice Department claims that Mr Abdulmutallab, 24-year-old Nigerian, had linksto Anwaral-Awlaki, who wwaskilled last month ina drone attack in Yemen. Mitt Romney'seampaign for the Republican presidential nomination got a big boost by ‘winning the endorsement of Chris Christie. Mr Romney's religion also made the political headlines when Robert Jeffress, an influential evangeli cal pastor from Texas, de seribed Mormonism asa cult” after endorsing Rick Perry.Jon Huntsman, another Repub lican candidate and whois alsoa Mormon, called Mr Jeffress“a moron”, Credit Suisse has helped raise his company's standing. wa CREDIT SUISSEBLY The world this w. ee Business ‘The American Congress passed three long stalled free-trade agreements with South Korea, Colombia and Panama. Taken together the pactstepresent a bigleap forward in America's commit mentio free trade, though they ‘were passed only afier five ‘years of tortuous negotiations in Congress on extending aid to American workers who lose theirjobs because of cheaper labour abroad. Good cop, bad cop twas a mixed week for free taders, as China stepped upits criticism ofa bill n Congress that would impose retaliatory tarifis on counties with “mis aligned” currencies, whichis aimed at China's export boost ing policy of maintaining ‘weak yuan. Senators passed the billthis week. Beijing wamed of severe conse: quences for global tradeif the ‘measure becomes law; hough that seems unlikely, with Republican leadersin the House inclined toresist taking upthe legislation. ‘New figures showed Chinese exports growing at amuch slowerrate than had been forecast,even given the aling economies in Furopeand America. China's exportsin September grew by 171% com pared with the same month last year, dawn from agrowth rate of 24.5% in August. Exports to Europe rose by 9.8%, com- pared with 22.3% in August. (China's sovereign-wealth fandintervened'o shore up confidence in the country’s bbanksfor the first time since the height of the financial crisis, by increasing ts hold ingsin the four biggest lenders. ‘The banks' share priceshad come under pressure partly because of concerns about the ‘opacity of data on bank debt and company earnings, and partly on concermsabout the economy, Dexia’s board agreed toa rescue plan under which the Franco-Belgian bank will be broken up in return for up 10 €90 billion ($120 billion) in ‘government funding guar sion will benationalised. Germany's Angela Merkel and, France's Nicolas Sarkozy put theircollective heft behind a “comprehensive package” for recapitalising the eura’zone's banks, whichis due to be discussed atasummiton October 2yrd.The European Central Bank on Octoberéth reactivated measuresit had, taken previously to head off a ‘banking liquidity crisis, by offering to buy up to €40 billion ($55 billion) in bonds issued by the banks, and by launching two long-term refinancing options Drennan tes, ‘The numberof unemployedin Britain rose to a17 year high of 257m. With Gor growth vir ally non-existent the Bankof England on October sth added e7sbillion ($8 billion) to its asset-purchase programme, or quantitative easing, bringing the ally to€27s billion, sofar. Banking regulatorsin America released a consultation docu- ‘ment ahead of the imple- mentation of the “Volcker rule” next year. Therule would limit proprietary trad: ingat banks and restrictthe investments they can make in hedge funds and private equ- ity Therule is expected to comeinto force next July; banks have until midJanuary toairtheir views offically. Atleast 37 employeesata Walmart store in the city of CChongging, in south-west China, were detained for questioning, The local govern ment saidit wasinvestigating whether ordinary pork was being mis-sold asthe costlier organic sort. With a big reshut- fein the Communist Party duenext year politicians are keen to appear tough on food prices, and on foreign firms. BlackBerry and Apple vie BlackBerry users cursed their devices, which stopped work: ing because of problems at servers for which a back-up system failed to work. Around 10m of BlackBerry’s 7om customers were affected, ‘mostly in Europe and the Middle East. Research In Mo tion, which makes the Black Berry, was criticised forre- sponding slowly tothe highly irritating outage, another blow tothe company asit grapples with its sliding share of the smartphone market Despite what was generally seen asa weak product launch, Apple revealed thatithad ‘akenam pre-ordersin asingle day foritsnew iPhone,the 4s. Some anecdotal evidence suggested that Apple enthusi- astsmay have been moved by thedeathof Steve Jobs to upgrade thei existing phone. Horrible bosses Netilix reversed course and abandoned aplanto sphit off itspvp rental service from its, internet streaming business, aftera customer revolt. The ‘company had wanted to create separate website for DvD rentalsso thatitcould upgrade technology forfilms streamed online at its existing site. ts customers were soangry about the change, for which they would need two ac- counts, that Reed Hastings, Netflix’s boss, joked thathe “might need. food taster. Other economic data and news ‘ean be found on pages 113-114DNR aa eae eed eee ees td eee ie etal Peete tae: eo nea et ae a aa Coe 140 destinations worldwide.” With her inng ee acs Dee Cac! Pym ULE eum Seer reas >+@ a CATHAY PACIFICIT’S 2011. SO WHY IS THIS OUR FIRST HYBRID? Its not «a question you'd expect from the world’s fourth largest automaker. Especially when technology like hybrid cars, aug- ‘mented reality and even jetpacks have been around for years. To some it might imply that we're late to the ‘game. To others, that were merely following a trend. At Hyundai, we don't see it that way. ‘Truths, we could have followed other car companies and licensed an existing hybrid platform years ‘ago. But making progress is not about following. We wanted to make something better. And, like a lot of people when it comes to hybrids, there were certain perceptions we held, too. “Hybrids are weird looking” ‘Most hybrids are designed to be invisible to the wind. ‘But when it comes to style theyre also pretty invisible to the eye. We think if you're doing something good by driving a hybrid, you should get to look good, too. So we found a way to work with the design qualities we built into our Sonata to create a coefficient of drag of 0.25, equal to that of the Prius. “Hybrids are too small.” Achieving greater mileage in a hybrid typically ‘meant giving up interior space to accommodate a bulky battery. We didn't think that was a sacrifice that people should have to make. Then we discovered a new battery technology that would provide more than a litle wiggle room. Lithium polymer properties allow us to shape the battery to the car, not the other ‘way around. And the Sonata Hybrid, with the largest interior in its class, isthe first non-plug-in hybrid to ‘feature this technology. “Hybrids have no guts.” Drive a hybrid and surrender power. Until now, that’s been the conventional thinking. But it hardly 4a fair trade. That's why every Sonata Hybrid also comes with a class-leading 206 net hp and our proprietary 6-speed automatic transmission to enhance performance, But its not just a show of strength, considering that the Sonata Hybrid is equally gentle when transitioning from engine- powered to hybrid-drive mode, while also delivering better highway MPG than any other vehicle in its class So why is this our first hybrid? Because we're not ones to jump on a bandwagon, no matter how fuel-efficient it may be. And because technology has caught up to where we can build a hybrid that not only goes beyond what’ expected, but is also more like what we've wanted all along: a comfortable, roomier, more stylish car that’s also better for the environment. The Sonata Hybrid. To learn more, visit HyundaiSonata.comTRANSPARENCY matters, SESE eid with the Chartered Financial Analyst® designation, managing Pe Ld ccertain that decisions are fully Ree ce La Comat ad Pee ee ee) Ree) Cee aU ood Cn Cee ced RNC ced DAY reaha nas Some in many countries around the wold fLeaders Nowhere to hide The Econo} Investors have had a dreadful time in the recent past. The immediate future looks pretty rotten, too ITY the world's savers, Econ: ‘omists and other busybodies chide them for not spending more, thereby stimulating the economy: Meanwhile their pen- sion schemes are steadily being made less generous, a process that will require them to save ‘more, not less if they want to enjoy a comfortable retirement, Britons now retiring on private pensions will receive an in- come 30% less than those who left work three years ago (see Buttonwood). When savers try to find a home for their money, they face daily headlines about bank bailouts, sovereign-debt ctises and the possibility of another recession. Given the scale of the risks, investors are not being offered ‘much in the way of reward. In much of the developed world, yields on cash are15% or below. The most liquid government bond markets (those of America, Britain, Germany and Japan) offer yields of 25% or less. In both cases, such meagre returns are part of a deliberate policy: governments and central banks ‘want companies that might create jobs to start borrowing again. Even American equities, despite a dismal record over the past decade, offera dividend yield of just 22% a level that historically has been associated with low returns for several ‘years to come (see our briefing on page 80). That isa legacy of the stratospheric valuations attained by Wall Street at the height of the dotcom bubble. The danger for savers is not simply of disappointing re turns, but of devastating blows to their wealth. Just after the second world war, British government bonds (gilts) offered yields similar to today’s; those who bought them lost three- quarters of their money, in real terms, by 1974. Investors with more of an appetite for risk may do even worse. Those who bought Japanese shares at the peak in989 are now sittingon a nominal 80% loss. Polish up your crystal ball Investors’ choices will be guided by how they think the crisis will unfold. The best hope is that the authorities will “muddle through”: stabilise the European sovereign-debt crisis, steer de veloped economies back on to a path of 2-3% annual growth while simultaneously devising realistic plans to reduce gov- ‘emment debt over the medium term, But f that rosy prospect does not materialiseand the odds are against it-the world is looking at three scenarios. One possibilty is that the developed world will attempt to inflate its debt away, perhaps by ever-larger doses of quantita tive easing, A surge in commodity pricesin 2010 and early 201, has pushed inflation higher than it was a year ago in each of the G7 countries, and in Brazil, Russia and China as well (india isthe exception amongthe rics). Inflation normally suggests investors should go for gold. But its stratospheric price,and the fact that most economists think that inflation will fall back as, the global economy slows,argue against ‘A second possibility is that the European authorities make a fatal miscalculation, allowing Greece to default chaotically, withoutadequately propping up the region’s banks or protect- ing bigger economies such as Italy and Spain from collateral damage. The result could bea very sharp fallin European Gor, with knock on effects in the rest of therich world. That scenar- ioarguesin favour of us Treasuries. ‘This newspaper persists in believing that Europe’s polit cians cannot be stupid enough to allow the euro to collapse: but like their equally uninspiring peers in America, they are unlikely to do much to help the West’s economies grow. So we suspect that the rich world faces a third scenario: Japanese style stagnation. Recessions ae likely to be more frequent than they were in the 1980s and 1990s, and the overall growth rate sluggish. Such an outeome would make it very difficult for the developed world to work off its debts; more countries would fallinto the kind of debt tap faced by Japan. Different quotes for different folks On the face of it,a gloomy outlook argues for Treasuries. In re- cessions, they have generally been a good bet, delivering an average positive return of 10.4% while equitieshave delivered an average negative return of 15.3%. But that depends on negli- sible inflation;and given that the current American rateis3.8% and that the average rate since 900 has been 32%, this a big, risk for investors to take. It was inflation that wiped out British gilttholdersafter the second world war. Equities offera better hedge againstinflation, but American shares stilllook expensive. On a cyclically adjusted price-earn: ings measure, which smooths profits over ten years, they trade on a multiple of 19.4, compared to a historic average of 16.4. European equities, which have on average underperformed American ones, look more attractive: the price-earnings ratio. inthe euro zone ist But there's a case for holding cash on the ground that things may get worse before they get better, If markets continue downwards, equities could be a bar gain next year; already some companies with global brand names trade on dividend yields of more than 5%. Many big companies are sitting on piles of cash and are benefiting from. the continued growth in Asia. A purer bet on emerging mar kets would be to buy shares in China and India: but Asia will not beimmune from a global downturn and their markets are still opaque. Atthe moment many of the best refuges are to be found in corporate bonds. European high-yield bonds pay 10 percentage points more than government issues, even though default rates are currently very low-in the year to September, only 19% of issues defaulted. But, once again ifthe economy stalls, even corporate bondsmay become cheaper. It would be better for the global economy if savers piled their cash into equities and corporate bonds now, rather than waiting for better news. But savers are understandably reluc tant to buy in the face of political dithering; whether itis Eu- rope's failure to sort out the Greek crisis or Washington's ure to devise a plan that combines short-term economic stimulus with a long-term plan to reduce the deficit. Thatis yet. anotherreason for politicians to get their various acts together: doing so will encourage savers to remove their cash from un- der their mattresses and put itinto productive assets. 15Leaders Ukraine and the West Oranges are not the only fruit The Economist October 1sth 2011, A forceful response is required to Yulia Tymoshenko's conviction OLITICAL leaders, however grand or glamorous, should ‘be held to account for their ac tions, even to the extent of being prosecuted. Yet the seven-year 4 jail sentence meted out to Yulia ‘Tymoshenko, a former prime minister of Ukraine, for exceed: {ng her powers in a gas deal with Russia, has all the hallmarks of a show trial, Ukraine's politicians are no saints, and Ms Ty moshenko isno exception, But her alleged crime dates from a Soviet-era law, the evidence against her was thin and the ser: tence appears designed to eliminate her asa political challeng- cer to Ukraine's president, Viktor Yanukovych, European and American leadersissued several clear warn ings o Mr Yanukovych about the consequences if Ms Tymosh- enko were convicted and kept ftom running in future elec tions, Ukraine’s relations with the West, they insisted, would suffer and a trade and association agreement with the Euro: pean Union under negotiation for four years would be junked. They should now carry out these threats. Different camps make different arguments against a tough response. Mr Yanukovych’s backers say the constitution bans him ftom interfering with an independent judiciary. Some doves in the West, meanwhile, say that a fierce reaction is ur likely to have any impact. Others maintain it may be counter: productive. If Ukraine iscold-shouldered, they say, it may turn toRussia instead—where Viadimir Putinis trying to seduce Uk- raine into a “Eurasian union” with Belarus, Kazakhstan and otherex Soviet countries. ‘These arguments donot wash. Ukraine's judiciary is hardly independent. Since Mr Yanukovych narrowiy defeated Ms'Ty moshenko for the presidency in February 2010, he has repeat edly acted toovertum all obstacles to his authoritarian rule, in cluding through politically driven prosecutions. The idea that a strong reaction from the West will have no impact is also ‘wrong. Mr Yanukovych is already talking of changing the law to decriminalise Ms Tymoshenko’salleged offence. During the “orange revolution’ in 2004, outside pressure helped thwart his bid to steal the presidential election from Ms Tymosh- enko's erstwhile ally, Viktor Yushchenko, ‘The least persuasive argument is the one that suggests a slighted Mr Yanukovych might fall into Russia's arms. AF though he remains a thuggish autocrat whose power-base is mostiy in Ukraine’s Russian-speaking east, he has long since fallen out with Mr Putin, who has criticised Ms Tymoshenko's convietion and would surely have preferred her to win the presidency last year. Russia can offer Ukraine cheaper gas and. other economic benefits, but at the price of undermining Uk- raine’ssovereignty.In the end astronger link (othe Westisafar ‘more enticing prize (see page 5). ‘The membership challenge ‘The West needs to do more to persuade Ukraine of that. Many of the hopes raised by the “orange revolution” were later dashed by the squabbles between Ms Tymoshenko and Mr Yushchenko. Little wonder that voters became so disillu sioned that they turned to the revolutionaries’ rival. But it is also true that the European Union was oo cautiousin encour- aging Ukraine's democratic reforms, The future of Ukraine, which with 45m people is the most important former Soviet republic after Russia, sof vital concern to Brussels, asan ener- gy corridor and as.a potential agricultural and manufacturing power. The best option isto hold out the real prospect of even: tual Eu membership, which a revived trade and association. deal should explicitiy point towards. But it should be on offer only if Ms Tymoshenko is freed and Mr Yanukovych gives up histepressive use of the courts. Trade with china And now, protectionism Ame HEE global economy is sicker thanaman with abellyfulof bad oysters. The last thing it needs now isa trade war. Yet on *% October uth America’s Senate 62 passed the Currency Exchange 7 Rate Oversight Reform Act, which would allow any “funda ‘mentally misaligned” currency to be labelled a subsidy sub: ject to countervailing duties. No prizes for guessing which Jarge Asian nation the senators have in mind. Variants of this bill have been introduced regularly since 2003:all have failed. But this time may be different:anti-China TD esansssint te clr Se 'slatestanti-China bill tackles a problem already being solved sentiment in both parties has grown. Republican leaders have so far resisted holding a vote on a similar bill in the House of Representatives and look unlikely (o change their minds; butif ‘they do, the bill would almost certainty pass. Itmay seem contradictory that the Senate is threatening to raise barriers o trade with China even ast has just passed bi- lateral trade pacts with Colombia, South Korea and Panama. But those treaties were first signed four tofive years ago. Public supportforfree rade has been withering fora decade, tracking the decline in middle-class American manufacturing jobs. The main cause ofthat decline i rising productivity which lets fac- tories produce more stuff with fewer workers, but cheap nese imports have also been a factor (see page 42). America’s »FS Fi Pa AFAR Re) 37,18 AAT Ra esc ae ete 0 ch eon and immigrate to the US. | didn't speak English so | learned the languagaly attending cooking and carpentry classes. Dee Mie ee Une ee eae edie ere huekte DO eee een Cec eat ev urere MSO 2) fee seca eee ents PTE rata ae18 Leaders The Economist October 1sth 2011 > resentmentof China has grown asits economy sputters while purports to address are already being resolved. The Economist China's has galloped ahead. Barack Obama has pinned his has long argued that a flexible yuan isin the interests of both hopes for recovery on a doubling of exports, goal that Chi- China and its trading partners. t would hasten the reorienta- na’s many barriers to trade, from discriminatory government _ tion of China's economy from exports to consumer spending, procurement to the undervalued yuan, impede. give its central bank more fteedom to ightinflation, and divert America has legitimate beefs with China, but thisbillisthe demand to depressed Europe and America, catalysing an es- ‘wrong way to address them. Itis legally flawed, economically _ sential rebalancing of the global economy. dangerous and unnecessary. Were itevertoreach MrObama’s __Belatedly, China recognises this. Since June last year the desk, he should veto it. Start with the legal flaws. The rules of _ yuanhas appreciated 7% against the dollar. The rise in China’s the World Trade Organisation (wo) generally do not recog: relative costs has been even greater given its higher inflation rise undervalued currencies as an illegal subsidy. Currencies rate. With stimulative fiscal and monetary policy bolstering are considered part of a country's monetary sovereignty,tobe domestic demand, China's current-account surplus has dealt with, if at all, by the International Monetary Fund. The _ shrunk by tworthirds, from 10% of GDF in 2007. Meanwhile ‘odds are that if America imposed tariffs on China under the America's trade deficit has narrowed, and manufacturing em- bil’s provisions, China could successfully bring a complaint ployment has stopped falling, All this means the yuan is far against America atthe wo. less undervalued thanit was a few years ago-if at all. By the time the wrorrules,the American firmslobbying or protection from Chinese imports will doubtless have enjoyed heal thyself several years of it, But American consumers will have suffered Chinaishardly blameless. Its tariffs may be low, but itavishes by being denied cheap products, and China will almost cer- _ subsidieson favoured domestic companies and discriminates tainly have retaliated. Therein lies the greatest danger. This bill against foreign ones, especially in sectors such as energy and ‘would escalate tensions between China and America, and _ transport, forcing them to surrender their technology and tol- risk sparking a tade war. It is broad enough to be wielded erating brazen intellectual-property theft. The yuan is still not against other countries, which may mimic America’s tactics _a free-floating currency, and only seems to appreciate when ‘against China or each other. It would wallop global investor tempers in Washington, De, reach boiling point. Mr Obama and business confidence at a time when both are scarce. should resist the protectionist impulses of Congress. But his If jittery politicians are looking for another argument to job would be easier if China would offer him proof that gen- sway sceptical voters, how about this? The problems this bill _tlerformsof persuasion bringresults. Civil war, famine and piracy in Somatia Don’t aim too high Outsiders need to clear the way for Somalisto solve their many problems GoMALAhssheenamessfor. harp. led by Somalis bu protected by Aftiean Union decades. The mostrecent troops, who recently won back control ofthe capital from the functioning government was Shabab,amurderous Islamist militia (see page 53). sweptaway ini9o1.Thestatehas This approach, however well-intentioned, is bound to fal failed utterly and rival militias ‘The transitional government is seen by many Somalis as sim- viefor control. A droughtearlier ply another militia, and a foreign-backed one at that. Govern- this year quickly turned into a mentleadersmostly come from a single factionin the civil war. full-blown famine that has hit They have not helped their cause by being corrupt. Perhaps 4m people and already killed tens of thousands. Somalia's _half of all the money going into Somalia is embezzled. Some misery also threatens the outside world. Unconstrained by a senior government leaders were robber barons before they coastguard or police force, growing numbers of Somalis are donned state robes. Others find dusty, dangerous Mogadishu turning to piracy, threatening foreign seamen and costing the _ so disagreeable that they spend much of their time abroad. rest of the world anything from $7 billion to $12 billion a year— including extra spending on fuel, security and §400m in ran- Bemodest~and stop backing one faction som paymentsover the pastfive years. Outside powers have repeatedly tried to impose order on So- ‘Asolution to Somalia's problems will not be found on the _ maliatwice militarily: America invaded in 1992 and Ethiopia high seas or on the country's barren farmland, but only in the _in 2006. Both campaigns, which failed to establish a national capital, Mogadishu. A thorough politcal setilement, rather authority, succeeded only in turning the vast majority of So- than yet another piecemeal fx, is needed to end its civil war malis against any form of foreign intervention. The solution and, by backing one faction, foreigners are nothelping, must come from Somalis themselves. They have done it once Despite all the fighting, no armed group has been able to before. In 2000 Islamists formed the Union of Islamic Courts, gain a nationwide victory and hold power for long enough to _anational federation of shariajurists,that had atleast some le- secure the country’s trade routes and establish patrols in its _gitimacy and held large swathes of territory, until it was over- coastal waters, With thisin mind, Westernand African govern thrown six years later with foreign help. ments have over the past few years propped up a transitional ‘The emergence of another national movement is still So- federal government, which they hope can eventually take malia’s best hope of escaping misery. Though the country’s »»The captain and his crew wish you an enjoyable business trip to Paris, Tokyo or Dubai...and more than 900 other cities, letting you take advantage of one of the world’s leading networks with our SkyTeam partners. AIRFRANCE / 4%) Amamance xm airfranceus making the sky the best place on earth20 Leaders » clans are intense rivals, Somalia has few differences of ethnic ity, language or religion and is among the most homogeneous places in Africa, But the transitional governmentis standingin the way, protected by it foreign backers. It would be much bet terif the Americans, the Europeans and the African Union en: couraged the government to bringin more of its opponents, i: cluding the Islamists. Otherwise there will never be peace. ‘That would put the main onus on the Somalis to sort out their own affairs. But the West can still do things to help on both piracy and famine. International naval pattolsin the Indi an Ocean have reduced the success rate of pirates, bt the fight against piracy should be extended to the godfathers, mostly based inthe Gulf, who finance hijackings and rake off much of the ransom. Mote pirates must also be prosecuted rather than, as now, set free at times afier being caught-which calls for The Economist October 1sth 2011 new laws, courts and prisons in nearby states. More govern- ments should be encouraged to join or pay for) naval patrols. South Africa and Nigeria, Africa's biggest foreign-policy beasts, contribute little, even though piracy has crep! towards theirshores. International donors have dispatched almost $800m of famine-aid so far this year. After some hesitation, neighbour- ing Kenya has allowed in hundreds of thousands of refugees. ‘That work must continue along with economic development designed to help local communities sustain themselves. Fish- ing and livestock exports could be supported. Turkey has seta ‘worthwhile example by boosting trade. Given the scale of Somalia's misery, all this will no doubt sound woefully unambitious. But experience has shown that trying anything morein Somalia will achieve even less. Solar power Thou orb aloft full-dazzling The solar industry is taking off, but that doesnot justify the wasteful subsidies that created it I HE rush to subsidise solar Solar panels power over the past decade ih ‘ems has been massively wasteful ‘ % and squalidly political. No —— ® Whereis thismore obvious than i © in the sorry saga of Solyndra, @ Californian maker of novel tu: bular solar panels down the ‘maw of which the Obama administration shovelled $535m in. the hope of “green jobs" and photo ops. It gotinstead misman: agement, bankruptey and scandal. The money wasted on So- lyndra, though, is as nothing compared to the tens of billions of euros squandered on solar panelsin Germany. So litte elec tricity do these panels produce underits cloudy northern skies that the emissions from a single large coal-fired power station are enough to nullify all the benefits that their carbon-free con- tribution might bring. The green jobs they, too, were meant to bring are largely, though not entirely in China, Solar boosters will argue that all this money has neverthe less brought down the price of solar power. It is undeniable that massively subsidised demand has been largely responsi ble forrecent sharp drops in the price of panels, But to see that as. justificationis to ignore the vast, albeit to some degree un- knowable, opportunity costs of programmes so expensive. Defenders of solar subsidies point out that, unlike those on biofuels, they do not actually take food from the plates of the hungry. That is tue; but its pretty low bar. Fixating on solar power, whichis still more expensive way to generate electric: ity than most, has delivered little by way of emissions reduc- tions for the subsidy buck, and left governments paying through the nose for whatever the industry can ship, rather than encouraging true innovation. ‘Europe's solar subsidies have proved not just expensive, but also unreliable. As so often happens with such regimes, their excessive generosity has led to a glut of output, and their cost has risen, leading governments to cut rates. Capacity will probably shrink as a result, discouraging innovation. A high price on carbon, set in sucha way that investorscould counton it lasting for decades, would have created a more stable busi ness environment and thus, over the long run, brought about ‘more innovation inclean energy. Still, by pushing the price of panels down, subsidies have created possibilities that were not there before. In some sunny parts of America, and elsewhere, people who can afford the upfront costs of solar panels on their roofs can now get elec- tricity from them more cheaply than they can get it down the wires from a power station. Solar panels with battery back-up can now compete with diesel generators for many off-grid ap- plications in developing couniries~such as powering mobile phone masts, which are spreading like unsubsidised wildfire through much of the world. ‘The right way to doit ‘Thereismuch that governments can do to encourage such pro- gress in the future without repeating the mistakes of the past. ‘They should limit the grounds on which people can object to neighbours’ solar installations through the planning process. ‘They should remove subsidies for technologies that compete with solar. In India, which has lots of sun and lots of backup generators burning subsidised diesel, that could be a game changer in self. Above all they must ix price of carbon that gives innovators the confidence that competing with fossil fu- els for the long term will be a rewarding, and perhaps hugely profitable, undertaking. If politics prevent them from setting a substantial carbon price, they might consider requiring uti ties to have a carbon-free component to their generating port folios, as happens in many American states. But that needs to be open to all carbonfiee technologies, not just the ones that the politicians like,so that the most efficient can prosper. In the long run, there is litte reason to doubt that a great deal of the world’s energy will come from solar systems. The sun is hugely powerful-it delivers more energy in an hour than humankind uses in a year-and unlike fossil fuels it will, never run out. The application of new materials science and. nanotechnology offers the possibility of costreductions much. larger than can be imagined in windpower or hydropower, in biomass orin nuclear power. But massive subsidiesarenot the way to build the business.rTM ota vy teeta RBC Wealth Management is the global wealth business of Royal Bank of Canada and affiliates. *Scorpio Partnership Global Private Banking KPI Benchmark 2011, the value of investments may fall as well a rise. You may not get back the full amount that you originally invested. © / ™ Trademark(s) of Royal Bank of Canada. Used under licence. Above mentioned services are offered through Royal Bank of Canada or its affiliates, Inthe U.S. RBC Wealth Management isa division of RBC Capital Markets, LLC. Member NYSE] FINRA/SIPC.> The Econo q Sinan Gaem Youalsoseemedtomake violence,despitethesiten _—_oftheseamlessinterconnec Sort eoaning Sama lightof Samsung's Byzantine voice of Hamas. tions between fixed, wireless, six-Samsungisindeeda governance. Yet third gener Twitnessedallthisat first satelite and fibre-opticnet- phenomenon, and your ac reditary successionis_handasthe senior British ‘works on which the internet countofitslatestplans ("The asgrotesqueatSamsungasin army oficerresponsiblefor___depends.The Tu'sinnova nextbigbet", Octoberist) was Pyongyang.LeeJae-yongwill assistingthePa inreforming tions, developed by ourin- informative andtimely.Buttoinheritacompany biggerthan securitybetween 2007and” dustry members, include tumpetthis mighty yetflawed North Korea, but by what 2009.These positive devel- pst, whichisthe basisof behemothinanassociated right? opmentsareverymuchin __mostlixed broadband connec- leader as“Asia'snew model Koreansareaskingthat _Israe'Sinteresisioo.General___tions,14DTv, mobile broad company" wasaleaptoofar. question:itwasa shameful Gavriel Ashkenazi,command- band (30),optical networks Lastyear youaverred, saying: lapse hat you did not erofthelsraeliDefence Forces andthe 1.264 video-coding “ivstime tostop coddlingthe _AIDAN FOSTER-ARTER atthetime,putitinamilitary standard used by YouTube, allconquering chaebol" "The Honararysenioresearchfellow context whenhestated that, _Bluray,smartphones, tablets, ehaebolconundeum”, April3rd insociologyand modern Korea “asthePalestiniansdomore, _ete. Not bad fora“classicex- aoto)andinan accompanying Leeds Unversity sowill we doless” ample of asluggish interna report offered a balanced and Teis unfortunate that tional Bureaucracy with ant critical appraisal of Korean Tinwoaiiledine Binyamin Netanyahuseems _quated diplomatic rituals.” conglomeratesandofSam- Palesting unable to endorse publicly ‘Andalthough the 1's Sungin articular Return of siR-Charlemagne(Septem- _ whathisownofficialsreadily members willbe reviewing theoverlord”).Now,alas,you ber agth) wastighttoargue admitted tome. international telecommunica have joined the codalers. that European leadersshould —BR0GAoIER (ETI) 205 tion regulations thereisno Whathas changed? Notthe support Palestine's application chaebol. Ahn Chul'soo,aKore- tothe UN. The Palestinian basis for the claim thatany of, them intends to pursue an anrrentrepreneurand polit) Authority has worked hard to agenda that would see the ru calsensation,callsthem zoos, demonstrate that Palestine’is feo “take aver therunning of the Whereemployeesarecaged” worthy of statehood. Huge ™e7TUmat internet”(“A playthingof animals,andaccusesthem of progress, unimaginablein the sR ~The suggestion thatthe __powerfulnations", October “squeezingsmall companies _Arafatera hasbeen made. Intemational Telecommunica- as). TherTU,asanimpartial forevery penny" Even Presi-__ Palestinian forceshave en: tion Union cannotfosterin- organisation, neither seeks nor dentLee Myung-bak, himself a sured thatall cities in the West novation (“in praise of chaos”, supports such amove, former chief executive at Bankareterroristfree,andthe Octoberist)isatodds with the aMADOUN TOURE Hyundai,haschided the chae- vast majority of Palestinians _factthat our technical stan Secretary-generaloftherTu bolforstiling start-ups. have no desiretoreturn to dardsremainthefoundation Geneva » SU a Coury Saha loud their Ti oa = SanaThe Economist October 15th 2011, » Onliberty sie ~Your assertion that wil tarians cannot respect the ‘moral rights of individualsis not wholly accurate (*Good: nesshas nothing to do witht”, September 24th).Itis perhaps true that Jeremy Bentham's principle of “the greatest happiness of the greatest number" as the foundation of, ‘morality istoo callous. But John Stuart Millrefined the doctrine generation later, advancing the idea of an indi vidual’s right to personal liberty as absolute and notto beinterfered with by others. ‘Therefore, a utilitarian could notin his good conscience “push the fat guy off” the railway bridge, as you putit,to save the lives of other men. Thisalso negates your assumption that utilitarianism, ‘automaticaly gives politicians free hand to rample on the rights of particular members of society, suspected terrorists, say. Inany case, itis only fair that you avoid lumping Mill together with those whoseck to make inappropriate use of society's chubbier itizensin order io cut the financial cost of rail-safety improvements 30 KEARINS. Northampton ‘The coming Russian winter sim ~Yourartile discussing the shape of a Putin presiden: cy saidthat the Kremlin often defends its actions “by point: ingto the 'mindlessness' of, Russians and the lack of a strong civil society” ("Guess who!", Octoberssb. Unfortu nately this is largely corret. The great majority of Russians display no interestin politics, for they regard all politicians, athome as well as abroad, as crooks. How politicians get themselves elected and how they ruleis of litle orno interest to Russians, as ongas they protect them from domes ticand foreign enemies. This mentality enables theirrulersto act with impunity under the guise of, “managed democracy” and bodes for Russia's future, ICHARO PIPES Cambridge, Massachusetts LosingJobs ste -Thank you for acknow edging the aspect of Steve Jobs’ life that made him an icon in my eyes ("The magi cian", October 8th).Long before Apple stores and iPods there wasaman “who liked to see himself asa hippy, perma: rently in revolt against big companies”. Thatsuch aman, infaded blue jeans anda ‘shirt (much less man who dropped out of college only to drop acid), could becomea corporate Success meant that my youthful optimism was not simply naive. Yousold this ‘man short, hawever, by de seribing his life a an inspira tion only to businesspeople. hhave yei to meet a person of any vocation who isnot genu inely moved by his 2005 com: ‘mencement speech, Tempe, Arizona sim ~Surely alittle bit of per spective isneeded on Steve Jobs. The worldisa big place. He managed successfully 10 sell some overpriced toystoa Letters 23 comparatively small number ‘of wealthy people in industri alised nations who could afford to play with them. Whatis the big accomplish mentin that? HERMAN KAISER Bortin Oppositesattract, sig - One of your readers doesn't like the use of oxymo: rons in your newspaper (Let ters, Septemberz7th). And yet termshave ingrained in the ver nacular of economists. Profes sional dismal scientistshave noted recently that*negative growth” isexplained by “toxic assets”, but this wil ultimal lead to “creative destruction ANDRE HARBOE Salem, Oregon m Lettersare welcome and shouldbe aédrened tothe Editor at The Economist, 25 Sedamess Street, London sma Erna letters@economistcom Fexs020 rss0002 Horeletersav availabe at: Economist. com/letters Drive one.* Executive Focus Poet ening unicef @® New and Emerging Talent Initiative ‘The New and Emerging Talent Initiative (NETI) is an entry point for professionals interested in an international career with UNICEF. As part of UNICEF's global talent management strategy to achieve its current and future ‘goals, NET! focuses on attracting, selecting, developing and. retaining new talent from entry to mid-career levels to {grow and to develop in the organisation, NET participants work actively in multicultural environments within the development and humanitarian arenas, while contributing to delivering results for children. ‘The NETI Programme is currently recruiting suitable candidates in the following areas: Communication for Development, Social and Economic Policy, Monitoring & Evaluation, {and Education, Apart from recruiting suitable candidates for the NETI programme, UNICEF is also seeking qualified applicants in the following areas: Health, Nutrition, WASH, and Child Protection, For full programme details and information on how to apply, please visit the NETI website at: ‘www. careersatunicet org/neti Applications will be accepted online until Midnight (EST), Novenber 4, 2011 CHIEF EXECUTIVE OFFICER LS Fear Sstons Gn at gon td dane ay and ‘oragaan secaed cctoe wi ad Be nd ‘fam svc cect wih Accent Aba i {eran dane an trend Cet Enc Oe Aen ‘ecto ih ase sh Aeon "witseonsting de About sess Bank Azerln Secret as bon at oui aco Econ gan of fan ‘Stes ro ier ard oral bares seri aba we, cut houses ‘wo tam pat of hi eommunty. ew cele & mee eka anlar fen Euros re an 200 tousad cert, onda et ay of abe 60h (hen olin ee ours, aceasta has cr oo eaang benoit STE yes aoe vd Hs Ran 200 a 31 ezesankicomredby a goupcteatonl onsets nudge atone Ie re EBRD, IFC and KAY, and pat fhe Accessing newer of ernarce Aut ne poston ‘The Cun Crean Of oreo hoor manga ol hbk ond ereerte ‘ower ena aera stent n Aztlan a boa ta teang a to-porson Maragarant Sor, se epost x Iplrerthg Dance staan bose pan acura eens ark Elncince her sage and portonal manage ption of «eucessts ‘tant puton (Surmre Bar, Mecca Banca Proven scart cern ne pep ae 2oeng fr new Chalenges end embrace cles of moo en sal uses Shealeetpcian ard en Engh Pas sn your CY slong with maiaton tee Katjnkoe-conuting se nore November 20h 204, Fr phone ngs, you can ell on B30 3067071, Vice President, Communications & Community Partnership Yorcove, anda Pc Fu Suan MN AT aM HE WOLD "i ey ot rt Cob 50 pee crac taipepetes rene Penta reren Conse I Game Pave yc pode kates nd Seat Pe Det a ee may oes nrg en oe te poe 3: rch ot ae wr ey od drone pis) seer wr JC stone BSN Ses {Won dy motes sat 25100 se Raping oe Pest, you wt ad a ad prt ates connate. corm eyagenet operat ers a pik afar Stn you cos sere, you 8 enw ad cela yo comma spid6Sa Pse ‘moked conmayeaenet bast he Uno aes Feces Yor nba nadie wcle yagrg orate Fe {Fe 3 ecg Mean PEIN Ba PPR Uys rage 8. Dating you execs tosh ina compa pte sc, pte sect NGO on put agua yo ha en wre ‘ecgaanions pion an gout pele arory ad oat wh act sles Apron Rou ate ae trioa ope You oper wi low a acess ase Pas ad Ser sect wae co he Ue To erp tis cg oper te, peas cra Bata Wor srt Caner cs Veco ced 6508 Tobe cesses BANCODEESPANA Eurosistema JOB OPPORTUNITIES RESEARCHER ‘The Banco de Espata, he Spanish central bank, is interested in hiring experienced or newly quaified Ph.D s in economics of related fields forts headquarters in Madrd. The areas of interest include ‘monetary poly, iteratonal economics and macro fnance, banking and finance, industrial organisation, and applied micro- and ‘macroeconomics. The main tasks ofthe potential candidates would be to conduct high-quality pocy-oriented researc. to produce reports for the Bank's senior management and to write for the Bank's publications Appicants would be expected fo travel and participate In meetings organised by itemational institutions Permanents of fixed-term ful-tme contracts couks be offered. A sound ‘command of writen and spoken Spanish will be highly valued. The Banco de Espana provides an excellent working and research environment Salary and benefits are compettive Application procedure: Applicants should e-mail a CV, a sample of recent research and at least thee references tothe Head of the Training and Recruttment Dwvsion by 30 November 2017, The actual leltes of reference may be posted by ordinary mail Deadline: 30 November 2011 Contact Tolophone: +34 91 338 8860 8842 Faxt +34 913 306 082 Training and Recruitment Division: ro ewesigacion-becas@bde es Website: tip www bde.es/ Economic Research Portal The Economist October 15th 2011Executive Focus We're in the market for big hitters ctor - Economist ctor - Lawyer Research Assistant £80k-£85k depending on skis and experience Basel Switzeriand YoU wil beable o lead and win high profile casos. with a ciaiaia iaia notable track recordin applying your specialist sills othe vary oe ees tight standard in competion cases Stirewer oars spect Sed ata provening bn propor Director of Competition Law irate Wisi etd tou ton snd nw £804-€85k depending on skills and experience cxvritnts, aaconconomc You will combine extensive experience inthe application of tone ‘competition law withthe ability to deliver high-quality legal {Senpend tad tapes esti echaien er ‘advice and analysis. You must be able to lead yout lal tear ‘manta wl be prowce Sati we econemeti ‘nd influence at senior levels {Al three posts offer a unique professional experience working ‘none ofthe top ve global conpation ators as wel as 8 pardons siecenanep ompottive sry ane bans pctage For more information secs, ploase vist www povsh/vecancies SEES eC Wear tan to ment antes Ones seaneue aan esema The oe pe WN PEOPLE ‘SNevember 2011 Supporting giobel monetary and financial stabulty Invitation for Expression of Interest (EOD for Consultancy Services Republic of Mauri Debt Management Capacity Building Project Sector: Debt Management Project ID No, P-MU-KAQ-002 Grant No. 5500155004101 ‘The Minisuy of Finance and Economic Development (MOFED) ofthe Republic of Mauritius hus received a technical assistance grant fom the Afican Development Bank (AFDB) through the Middle Income Coustres Trust Fund for Hnancing the above project. Part of the grant is designed for meeting the 0s forthe abave eonsultaney’ services “The aim ofthe projct i to enhance the instiuonal, poly and legal framework for public sector deb management, improve data quality and pratoes felating (o public sector debt and 2d value 10 the eview of debx management strategy, assessment of risks fom public enterprises and development of secondary market for Goverment securities also aims at building capacity in all aspects of debt management in Mauritius. The assignment will involve provision of technical asitance through a resident aviser for aperod of to years “The MOFED is ivi service Imerested consultants mast provide dels of thee capability and experince relevant to the proposed assignment Eligibility criteria, establishment ofthe shorts and the selection procedure shall bein accordance with the A\ican Development Bank's "Rules and Procedures forthe use of Consultants ‘May 2088 edition, which s available onthe Bank's website at hupz/www afab.org, MOFED is un ‘The EOI should be submited in Uhree copies athe adress below by not later than 13:00 hours (lol time) on 16 November 2011 and must be clstly marked: “EOI Consulaney for Debi Management Capacity Buiing Projet g imerested individual consultants from State Participants or Member States of AFDIB to indicate their interest in providing this er 0 obliga ont shonlist any consultant who expresses, ‘The Financial Secretary, Ministry of Finance and Economie Development, Attention: Chairperson, Departmental Procurement Committee ‘5th Floor, New Government Centre, Port Louis, Mauritius ‘Tel: (4230) 2012580 Email: bseetul@ mail.gov.mu Further particulars on the assignment may be obtained fom the Public Procucinent Portal thi bbe obiine fromthe above named between 9:00 hs and 16:0 brs, !publicprocurement gov, Additonal information may The Economist October 15th 2011, 25Netflix, a Silicon Valley firm thatsends DVDs through the pastas wellas streaming filmsand television via the internet, has gradually builta reputation fortwo things: ood customer serviceand impressive technological foresight. But recently, it hasstood out formessing up Fconomist.com/node/21532068 #Occupytheweb The rotestsin America have a good claim to bethefirst true socialemedia uprising Fconomist.com/node/21532071 ‘And then there were four The release ofa Cuban spy from an American jailhas not placated Fidel Castro Economist.com/node/21531993, Jumping ahead of the pack Erste Group, a big Austrian banking group heavlyinvoived in central Europe, is not waiting while politicians dither ver whether to recapitalise banks Economist.com/node/21532051 lure: Sx things afm actor should never do Avoid working with children or animals, and steer clear of James Bond parodies Economist.com/node/21532007 [service fortranseribing print nto bitsis ‘boon farallthasewhofindithardtolet {go of musty tomes butare running out of shelfspace. The company concerned chaps ‘upyourbooks, scans them, and recycles the remnants—while paying careful heed to America'sambiguous copyright laws Economist.com/node/2i529030 Don’task, don'ttelt, Certain questions are hest avoided in discussions about Liberia's recent elections Economist.com/node/21532174 Now therearetwo The French Socialists narrow down their hunt fora candidate to take on Nicolas Sarkozy nextyear Feonomist.com/node/21532013 A deeper law than Moore's? The eneray efficiency of computing is doubting every 18 months Economist.com/node/21531350 An unlikely blockbuster South Koreans are flocking to seea film aboutthe sexual abuse of children-crimes ‘the country’s courts have long ignored Economist.com/node/21532106 Egypt's constitution has long discriminated againstwamen. Their formal participation in politic remains limited but they were on the front-line of ‘the recent protests. As Eaypt creeps towards democracy, we lookat what the revolution might mean forts women Economist.com /node/ 21532207, Wil-and-Kate for Bhutan The Himalayan kingdom cheersto see} 31-year-old king marry a commoner Economist.com /node/21532104 Difference Engine Screening for prostate cancer does not always make sense Economist.com /node/21532089 Know when tofolé’em Pokeris nata game of chance. Skilled players are"atwar wi Economist.com/node/215320368 SteveJobs's legacy With Apple, the medium made the message Economist.com /node/21532085 Links to all these stories can be found at Economist.com/node/21532205, Ue Sm ee yt a 0 download the free app, search for ‘The Econom ee eng Now on Android. es SessSCAM Re] MU RV meyer ue RUE Fe ~ How do you handle cross-border virtual teams in India? » How do you manage business risk in Brazil? ua UC UL Drawing on The Economist tradition of reporting and SE ec online courses to help you thrive in a global economy. You'll get practical tools to address the real challenges of doing business in emerging markets. Now through November 30th 2011 Te eer eae Ie) Economist Education Petes ce teen)Now is the time InFgyptand Tw revolutionsmightmean for them 66 AULofus were there throwing stones, moving dead bodies. Wedidevery- thing, There was no difference between ‘men and women.” So says Asma Mah fouz, an Egyptian activist, remembering the protests tha felled Hosni Mubarak at the beginning of the yeat. Though some men told her to get out of the way, others held up umbrellasto protecther. In Tunisia Lina Ben Mhenni,an activist travelled round the country decurnenting protests on herblog, “A Tunisian Gil” Be Sides photographing the ead and wound: ed, she inchided pictures of herself with male protesters at sitins in the Kasbah in Tunis. Tawakul Karman, awarded the No bel peace prize at the beginning of Octo ber has been a leading figure in the pro-de mocracy demonstrations in Yemen, camping out for months in front of Sana'a University calling for Ali Abdullah Saleh, Yemen's president, to step down. Defying their stereotype as victims of oppressive patriarchies, Arab women have made their presence a defining feature of the Arab spring, The position of women in the Arab world has long been difficult. In 2009 the first Arab Human Development Report ‘women are both hopeful and fearful about what the Arab cited the lack of women’s rights as one of three factors, along with lack of political freedoms and poor education, that most hampered the region’s progress. Amid the oud calls for democracy in the early days of the uprisings litle was said specifically about women's rights. Butnow that consti {tions are being rewritten, many women in Egypt and Tunisia, whose revolutions are most advanced, hope to push their own liberation In Egypt, the sight of women protesting ishardly new. In. veiled women in Cai ro marched against British rule, calling for independence. In 1957 Egypt became the first country in the Arab world to clect a woman to parliament, having allowed votes for women only the year before During the rule of Gamal Abdel Nasser girls were encouraged to goto school, and ‘women exhorted to join the workforce, as part of the general push for economic de- velopment, In the 1970s under Anwar Sa dat, and with encouragement from his wife Jehan, women made further gains. But ince then progress has been stalled by the growing power of conservative reli- ‘glows groups. Today Egypt's women may work out side the home, goto school and university, andare ee to vote andruninallelections. But women’s literacy stands at just 58%, and only 23% of workers are women. The country's lawsarea mixed bag. The consti tution outlaws discrimination on the grounds of sex, but women are entitled to inherit only half as much as men. Hus: bands may divorce their wives in mo ‘ments in front ofa civil servant, but wom cen endlure lengthy court proceedings to do the same. A woman who remarries loses therightto custody of her children. The condition of Tunisia's women, by contrast, is unmatched in the Arab world. That is mostly thanks to Habib Bourguiba, the founding father of the modern Tunk sian state, who outlawed polygamy, grant ced women equal divorce rights and legal ised abortion. Zine eFAbidine Ben Ali ‘Tunisia’s toppled dictator, continued Bour guiba’s work, expanding parental, divorce and custody rights for women and pro ‘moting their education and employment. In 2960 nearly half of women were mar- tied by the time they had turned 20. By 2004 only 3% of girisbetween the ages of 5 and 19 were married, divorced or wid owed. The literacy ate for women in Tank siaisnow over70%, though only 27% of the labour force is female. Women make up nearly wo-thirds of university students, compared with two-fifthsin Egypt ForMrBen Aliand to alesser extent Mr ‘Mubarak, defending women’s ights wasa useful sop to the West. I provided an ex- ccuse for cracking down on their Islamist opponents. Their wives-Suzanne Muba-