Tunisia’s lesson for the Arabs Could the yuan replace the dollar? The science of sexual abstinence Black gold and tar sands january 22nD–28th 2011 Economist.com Chinese mums: not that good really The rich and the rest A 14-page special report on the global elite When it comes time to transition from employee to employer, many turn just one of the reasons millions of mutual fund investors rely on our strategic their dreams come true. Talk to your fi nancial advisor about mutual Summary prospectuses, if available, or prospectuses for the Funds containing objectives, risks, charges and expenses, and read the summary prospectus prospectus contain this and other information about the Fund. gsam.com ™ You never stop growing. to their personal investments for capital. But that’s expertise and risk management experience to help funds from Goldman Sachs. more information may be obtained from your financial advisor. Please consider a Fund’s and the prospectus carefully before investing. The summary prospectus, and/or the Goldman, Sachs & Co. is the distributor of the Goldman Sachs Funds. ©Goldman, Sachs & Co., 2010. All rights reserved. Φιναλ Ασσεµβλψ Τεαµ, Χαµρψ Ηψβριδ Γεοργετοων, Κεντυχκψ ♥ 2011 Το σεε τηε αττεντιον ουρ τεαµ βρινγσ το τηειρ ωορκ, ψου∏δ τηινκ εαχη χαρ ον τηε λινε ωασ τηειρ οων.Ψου∏λλ ⇒ νδ τηισ σαµε πριδε ιν ουρ 10 Υ.Σ. πλαντσ ανδ νεαρλψ 200,000 πεοπλε, ινχλυδινγ ασσοχιατεσ, δεαλερσ ανδ συππλιερσ αλλ αχροσσ Αµεριχα. Μεετ τηε τεαµ ατ τοψοτα.χοµ/υσα The Economist January 22nd 2011 7 Contents 47 Justice and Haiti 10 The world this week Baby crawls back 47 Cuba and America Leaders The worm that turned 13 Inequality The rich and the rest Asia 14 China’s currency 49 Rail in South-East Asia The rise of the redback China comes down the 15 Tunisia and the Arab world tracks Let the scent of jasmine 50 Japan’s cabinet spread The pol who won’t give up Tunisia How wonderful if it 16 Asian medical innovation 50 Indian politics became a paragon of Life should be cheap More bite needed democracy for other Arab 16 Doing the deals in Russia 51 Reporting in North Korea states: leader, page 15. The On the cover How bad is BP? Not the Pyongyang Times ight of a president leaves the What to do (and not do) about 18 The costs of drug small country’s north African 51 Politics in Malaysia inequality: leader, page 13. prohibition neighbours seriously worried, Najib in overdrive In the information age Let them chew coca pages 31-33 . France’s policy brainy people are rewarded 52 Confucius Institutes of non-interference in with wealth and inuence: China’s soft power Africa, page 62 Letters see our special report after 54 Banyan page 58. The scale of 20 On gun control, Italy, Tiger cubs v precious lambs inequality, page 71. The link public-sector unions, between income disparity London’s bike-hire and the credit crunch: scheme, happiness Middle East and Africa Economics focus, page 90 55 Israel’s rival parties Can the doves take o? Brieng 56 Syria’s economy 31 Tunisia The Economist online Hard choices Ali Baba gone, but what Daily analysis and opinion from about the 40 thieves? 56 Nigeria’s president our 19 blogs, plus audio and video Another term beckons content, debates and a daily chart 58 South Africa’s languages Economist.com/blogs United States Tongues under threat Obama and business The 35 Regulation and the E-mail: newsletters and regulatory state is expanding Obama administration Emcobniolme eisdti.tcioomn/email Red tape rising Special report: Global sharply. Barack Obama hints leaders at moderation ahead, page 35. 36 Dening poverty Print edition: available online by Britain is introducing Measure by measure The few 7pm London time each Thursday competition quickly, page 67. After page 58 Economist.com/print 38 Filibuster reform Our obituary of one of the Audio edition:available online Talking cure great deregulators, page 101 to download each Friday 40 Haley Barbour Europe Economist.com/audioedition Inside man 61 Spain and the euro crisis 40 Sargent Shriver’s passing Zapatero’s great burden Altruism personied 62 France and Africa 42 The cotton industry Ties across the Med Bloom times 63 Silvio Berlusconi 42 The states’ budgets A party animal Volume 398 Number 8717 In search of an answer 64 Lithuania and Poland First published in September 1843 43 Lexington Bad blood to take part in "a severe contest between intelligence, which presses forward, and China in the mind of 64 German history an unworthy, timid ignorance obstructing America The past is another our progress." country Editorial oces in London and also: Chinese mothers The contest A Chtliacnatgao, B Heoinjign gK,o Bnegr,l Jino,h Barnunsesseblsu,r Cga,i Lro,s Angeles, The Americas 66 TChea rmleamrkaegtns eand the euro with the Middle Kingdom Mexico City, Moscow, New Delhi, New York, Paris, 45 Organised crime in moves into the classroom and San Francisco, São Paulo, Singapore, Tokyo, Central America crisis nursery: Banyan, page 54. Washington DC The rot spreads America’s Sputnik moment 46 The coca leaf with China, page 43 Storm in an Andean teacup 46 Brazil After the ood 1 Contents continues overleaf 8 Contents The Economist January 22nd 2011 88 Goldman Sachs and Britain Facebook 67 Reforming public services A risk too far Where Thatcher feared to 88 Commodity prices tread Back with a vengeance 68 The ination scare 89 Oil and wine The long blip Hard to separate 68 Burberry and globalisation 90 Economics focus A checkered story The beautiful and the 69 Cheap booze damned Getting (a wee bit) dearer Tar sands Rising oil prices and 70 Bagehot Sexual abstinence Chastity Science and technology falling production costs Politics in the Grualo before marriage may have its favour the extraction of oil years 93 Premarital sex uses after all, page 93 from Alberta’s tar sands. But The waiting game environmental objections are 94 Planetary rovers erce, pages 81-83 International Principal commercial oces: Space hopping 25 St James’s Street, Londons w1a 1hg 71 Inequality 94 Cigarettes in lms Tel: 020 7830 7000 Fax: 020 7839 2968/9 Unbottled Gini Smoked out Boulevard des Tranchées 16 1206 Geneva, Switzerland 96 Water purication Tel: 41 22 566 2470 Fax: 41 22 346 9347 Business Any old iron? 750 3rd Avenue, 5th Floor, New York, NY 10017 73 Medical technology 96 Palaeontology Tel: 1 212 541 0500 Fax: 1 212 541 9378 Frugal healing Unscrambled eggs 60/F Central Plaza 74 Japan and rare earths 18 Harbour Road, Wanchai, Hong Kong Tel: 852 2585 3888 Fax: 852 2802 7638 Responding to China Books and arts Other commercial oces: 74 BP in Russia 97 India, a portrait Chicago, Dubai, Frankfurt, Los Angeles, Dancing with Mr Putin Over a billion now Paris, San Francisco and Singapore 76 The food industry 98 Pakistan, a tinderbox Coping with higher prices The yuan China will have to Future unrosy 78 Face value: John Quelch open its nancial market if it Subscription service 98 The rise and fall of the wants its currency to rival A Western dean in China For our latest subscription offers, visit dollar Economist.com/offers America’s: leader, page 14. The 79 Live music Go with the ows For subscription service, please contact by plot thickens in the rise of the Pricing the piper telephone, fax, web or mail at the details 99 Dambisa Moyo’s forecasts provided below: redback, page 85. Investors 79 Apple Telephone: 1 800 456 6086 (from outside Fifty years lost selling China, page 86 the US and Canada, 1 314 447 8091) Steve Jobs is unwell 100 The future of the global Facsimile: 1 866 856 8075 (from outside 80 Schumpeter the US and Canada, 1 314 447 8065) economy Web: Economistsubs.com 100 emerging-market Outrageous fortunes E-mail: Until he perfected the invention that would change everything, Thomas Edison would not rest. Until you see us in a diff erent light. A light that reveals a new way of doing business. That shows there are new standards. That challenges convention. And opens up new opportunities. Until you see that what needed to shift has shifted. And what was good is still good. If not better. Until you see that we’re always working. Always improving. Without fuss. Without hype. But with integrity and utter clarity. Until then... We will not rest www.ubs.com/wewillnotrest-us Names and/or references to third parties in this print advertisement are used with permission. © UBS 2010. All rights reserved. 10 The Economist January 22nd 2011 The world this week As the polls closed in South tone down the rhetoric; some new parliament until February Politics Sudan’s referendum on even urged their colleagues to 22nd, to give it more time to whether to secede from the abandon the usual party seat- investigate allegations of fraud north, preliminary results ing divisions at next week’s at last year’s election. suggested that the yes vote state-of-the-union address. would exceed 90%. The Communist Party in Viet- Republicans in the House nam wrapped up an impor- Oh, Silvio! voted to overturn last year’s tant congress with an apology Italian prosecutors said they health-care-reform act. The by the outgoing party chief for were investigating charges that measure was largely symbolic mishandling the economy. Yet Silvio Berlusconi, Italy’s and has no chance of advanc- the prime minister kept his job. prime minister, had paid for ing, but the party has vowed to sex with an underage Moroc- introduce a steady drip of The Association of South-East can-born dancer, among oth- further bills to dismantle the Asian Nations called on West- ers, and had abused his oce reforms. ern countries to lift sanctions As protests persisted across by securing her release from on Myanmar, now that Aung Tunisia, its president for the police custody. Extracts from Reince Priebus won a ballot to San Suu Kyi was free and a past 23 years, Zine el-Abidine the dancer’s wiretapped con- become the chairman of the parliament about to convene. Ben Ali, ed to Saudi Arabia, versations were published in Republican national party, leaving his prime minister to the press, including a com- ending the gae-laden tenure What’s Doc up to? try to cobble together a unity ment from one woman that of Michael Steele. government including several the prime minister had even former members of the oppo- become ugly. Mr Berlusconi Some old hands in the Senate sition. It was unclear whether denied the allegations. decided not to seek re-election this would help restore calm. in 2012: Joe Lieberman, who Several nominees refused to Brian Cowen, Ireland’s belea- was Al Gore’s running mate in join the new government guered prime minister, sur- 2000 but has since occasional- unless Mr Ben Ali’s party was vived a condence vote in his ly antagonised Democrats, no- completely swept from power. leadership of Fianna Fail, the tably over his staunch support Ocials said 78 people had main governing party. He will for the Iraq war; Kent Conrad, been killed in street violence in now lead his party into a a Democrat from North Da- the past few weeks; the opposi- general election, probably in kota; and Kay Bailey Hutchi- tion said the true gure was March, at which it is expected son, a Republican from Texas. Jean-Claude Baby Doc several times higher. to take a pounding. Duvalier, a former dictator, The eagle dances with the tiger returned unexpectedly to A wave of self-immolations, At a meeting of euro-zone Haiti, where he was ques- to copy the action of a young ministers in Brussels, Ger- tioned by prosecutors who man who sparked Tunisia’s many’s nance minister, Wolf- charged him with embezzle- upheaval in December, took gang Schäuble, squashed ment and corruption before place in some Arab countries, hopes of an immediate relax- releasing him. A judge will including Algeria and Egypt. ation in the rules governing now consider whether there is the use of the 440 billion enough evidence to warrant a Ehud Barak, a former prime ($593 billion) rescue fund trial. Mr Duvalier’s return minister who is the defence created last May. The European coincides with a dispute over minister in Binyamin Netanya- Commission had earlier called the result of a presidential hu’s ruling coalition in Israel, for an increase in its lending election. Another exiled presi- split from the Labour party, of capacity. dent, Jean-Bertrand Aristide, which he had been the leader, Hu Jintao visited America. promptly said he too wants to to form a new party called It emerged that British and After a fractious few months return. Independence. He took four of Russian police were investigat- that have brought dierences Labour’s parliamentarians ing the activities of four Rus- to the fore over arms build- Barack Obama’s administra- with him, while the other eight sian government ocials ups, currency policy and other tion relaxed restrictions on left the coalition in the hope of assigned to the European issues, the Chinese president travel to Cuba by academic, rejuvenating the peace camp Bank for Reconstruction and and his American counterpart religious and cultural groups opposed to the government. Development. The bank said were at pains to stress the and indicated that it would it had lifted immunity from benets of the relationship permit more charter ights to In the most lethal attack prosecution for the four. between the two countries. the island. Americans will against the authorities in Iraq China agreed to $45 billion in now be allowed to send mon- since November, a suicide- United we sit trade and investment contracts ey to Cubans to support priv- bomber killed at least 60 peo- Doctors took congresswoman during the trip. Mr Hu said that ate economic activity. ple outside a police-recruit- Gabrielle Giords o the China and America should ment centre in Tikrit, Saddam critical list, though she remains respect each other’s choice of The death toll from the recent Hussein’s home town, north in a serious condition. After development path. ooding and mud landslides of Baghdad. The next day the Tucson shootings, and a in towns located near the another suicide-bomber used well-received speech by Ba- Hamid Karzai, Afghanistan’s mountains behind Rio de an ambulance to kill at least rack Obama calling for more president, agreed to a request Janeiro rose to at least 740. ten people in Baquba, a city civility in American politics, by a special election court to Another 21,500 people have north-east of the capital. congressmen made an eort to delay the inauguration of a been left homeless. 1