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  • Syria's crisis

    The UN stands divided

    Feb 5th 2012, 16:09 by The Economist online

    ON FRIDAY February 3rd, three decades to the day since Syria's last president, Hafez Assad, shelled the city of Hama to crush an Islamist uprising, his son Bashar Assad turned to Homs, the hub of the rebellion against his rule. Between 200 and 300 people were killed when troops shelled the north-eastern neighbourhood of Khaldiyeh, the bloodiest day since protests began in March. Activists described gunfire and mortars echoing through streets usually bustling with traders touting their wares. Video footage shows corpses piled up.

    A day later Arab and European states failed in their latest attempt to get the UN Security Council to pass a resolution condemning the Syrian regime after Russia and China wielded their vetos. Had it passed, even without the treat of military intervention, it would have sent a strong signal that Syria could no longer count on the support of Russia, the most powerful of its dwindling allies.

    But amid a divided international response, the regime has little incentive to stop the violence in which 7,000 civilians have already died. The Syrian National Council, the main umbrella opposition group, described the UN's failure as a "license to kill". Frustrated Western states are in uproar: America described the veto as "shameful" and said any further bloodshed would be on Russia's hands. Britain said the failure to get a resolution was "letting the Syrian people down". Before the vote Syrians abroad attacked several Syrian embassies in protest at the massacre in Homs.

    Russia's alliance with Syria is long standing. It has sold Mr Assad and his predecessors arms for decades. Its refusal to back the UN resolution reflects its fears that Saudi Arabia and Qatar, backed by Europe and America, are pushing for regime change in Damascus which would erode Russia's influence in the region. Still angry about the military intervention in Libya last year which was framed as protecting civilians but ended with the death of Muammar Qaddafi at the hands of rebel forces, Russia is unwilling to endorse similar action in Syria.

    But Moscow is looking increasingly isolated. South Africa and India, which abstained in a vote in October, yesterday sided with Arab and European countries. Sergei Lavrov, the Russian foreign minister, is due in Damascus on Tuesday where he is expected to try to initiate a dialogue between the regime and the opposition. He is unlikely to find much enthusiasm among opposition groups. "This is shaping up into a war between Russia and the west and we are paying the price," says a protester in Damascus.

  • Protests in Cairo

    The beautiful game turns ugly

    Feb 3rd 2012, 18:01 by I.A. | CAIRO

    AS EGYPT enters its second day of protests over Wednesday's tragedy in a stadium in Port Said, when 77 football fans died and at least 1,000 were injured, the focus has moved to downtown Cairo. After a night of demonstrations in cities across the country, and the deaths of two protestors shot in Suez, attention has now turned to the ministry of interior.

    Street battles have raged in the 19th-century neighbourhood around the ministry, reminiscent of those in mid-November when over 50 protestors were killed and many more blinded by riot police snipers. This time the police have only used tear gas—for now.

    The stadium disaster—only the latest in a series of security breakdowns—has added to the growing anger with Egypt's military rulers. Rumours are rife that the security forces may been not only negligent but may have caused the incident, either as revenge on football fans who defeated them in the early days of last year's uprising, or to justify prolonging military rule.

    Both the army and senior government figures immediately expressed their contrition about the violence in Port Said, unlike on previous such occasions. The city's security chiefs are said to be under arrest. On Thursday, parliament began to make inquiries into whether the minister of interior could be prosecuted. Many of Egypt's new MPs went further and called for the government, barely a month old, to be replaced.

    The violence in Port Said and the protests that have followed have increased the pressure on Egypt's rulers, both military and parliamentary. Last week protesters called for the transition to civilian rule to be speeded up. They proposed a series of alternatives to the army's promise to hand over power by July. Islamist MPs, who make up around 70% of parliament and who prefer the army's schedule, opposed the move. But calls are now mounting for them to challenge Egypt's military leaders themselves—on the transition, on accountability for the disaster and recent clashes with protestors, and on the terms of the military's exit. If they do, they may find themselves the next objects of Egyptians' anger.

  • The week ahead: February 3rd 2012

    A blast-off without the rip-off

    Feb 3rd 2012, 16:43 by The Economist online

    MARIO MONTI visits Washington D.C., the Falcon 9 rocket is launched from Cape Canaveral, France's presidential election campaign heats up and America prepares for the Super Bowl

  • Predictions for the French election

    Election season has finally begun

    Feb 2nd 2012, 22:05 by The Economist online

    François Hollande and Nicolas Sarkozy lead the polls in France, but Marine Le Pen and François Bayrou are not out of the race

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  • Dennis Ross on Syria

    The pressure to do more is inevitable

    Feb 2nd 2012, 20:10 by The Economist online

    THE COUNSELLOR to the Washington Institute for Near East Policy on the diplomatic response to the violence in Syria.

     

  • The Economist

    Digital highlights, February 4th 2012

    Feb 2nd 2012, 15:53 by The Economist online

    An Australian view of China’s rise
    As China’s neighbours eye its economic and military development with increasing caution, Kevin Rudd, Australia’s foreign minister and former prime minister, discusses the challenges posed by the Middle Kingdom’s dominance and the importance of multilateral negotiations 

    All aboard the Vivek Express
    Our correspondent spends four days on India’s longest train journey, from a remote corner of Assam in the north-east, to Kanyakumari in the far south. He chats with soldiers, cooks and a novelist, recording their conversations and snapping photos along the way

    A necessary example of tolerance
    A Swedish diplomat in Budapest, Raoul Wallenberg saved thousands of Jews from Nazi death camps. But in 1945 he vanished into the Gulag, never to be heard from again. On the centenary of his birth—and with anti-Semitism on the rise in Hungary—he is the subject of new tributes

    United States: Moon Base Gingrich
    Newt Gingrich has been touting space colonisation for three decades. But is the idea workable?

    Middle East: Makeshift medicine
    A rare glimpse inside the secret hospitals set up by opposition groups in Syria

    Europe: Nastase nailed
    Does the conviction of a former prime minister mean that Romania is finally getting to grips with its corruption problem?

    Management: It’s a dirty job
    More and more business graduates are considering a career in manufacturing

    Technology: Forget it
    Thanks to digital technology, people can now remember nearly everything. It is high time they relearned how to forget

    China: Man-made and visible from space
    Satellite data reveal the true extent of air pollution around the provinces

    Science: Walk this way
    Urban planners increasingly put the needs of pedestrians before those of motorists

    Technology: Ten million billion and counting
    America is poised for a comeback in the supercomputing race—but is it willing to go the distance?

    Technology: Difference engine
    American carmakers may soon be mandated to build vehicles that consumers are not mandated to buy

    Economics: Mick Jagger’s top ten
    A soundtrack for the World Economic Forum

    Language: Enough English for public office?
    A woman in Arizona is told her English is too poor to allow her to run for the city council

    Sport: The magic formula
    Why are Korean women so good at golf?

  • Syria and the UN

    Libya bitten, Syria shy

    Jan 31st 2012, 20:59 by R.L.G. | NEW YORK

    IN 2005 all the world's countries signed up, in theory, to a new norm called the "responsibility to protect". In short, the idea is that a government is sovereign because it protects its people. When it cannot do so—or worse, is the perpetrator of mass violence against its own—the responsibility to protect them may devolve to the international community. For a while, this norm was mostly airy, referred to when other countries or United Nations diplomats got involved to stop violence in its earliest phases. But some construe the "responsibility to protect" as a mandate for "liberal interventionism": the right of outside countries to step in militarily when abuses get serious enough.

    Now outsiders are clamouring to do something serious about Syria. No one is pushing a military intervention—not even the Western countries sounding the harshest notes about Bashar Assad, Syria's dictator. But two of the veto-wielding members of the Security Council, China and particularly Russia, feel that the "responsibility to protect" has already gone far enough, thank you very much. Last year, they signed on to a resolution that authorised "all necessary means" to protect Libyan civilians from Muammar Qaddafi. That intervention became a NATO-led air war against Libya's regime, and ended with Qaddafi's bloody death at the hands of the rebels. The Russians felt duped.

    This is behind the Russian reticence, this week, to sign on to a draft resolution that would have Mr Assad delegate power to his deputy. This is despite strong support not only from a unified West, but from the Arab League, which has suspended Syria. The assertiveness of the league, once a do-nothing talking shop for tyrants, has been striking. It suspended its observer mission in Syria because of threats to its personnel and inability to do a proper job monitoring. Observers hope that a personal briefing by league representatives about the bloodshed will sway the recalcitrant Security Council members.

    But the Russians, citing Syria's sovereignty, have shown no sign of budging (which suits the Chinese, who do not like vetoing resolutions alone). The frustrated other members of the 15-seat council are still trying to craft a resolution everyone can agree to. But if they cannot, they have hinted that they will force a vote anyway, to get a Russian veto on the record at least. For those dying in Syria, the manoeuvring must seem absurdly abstract, and Russia's desire for "a peaceful settlement without foreign intervention and with respect to the sovereignty of Syria" somewhere between cynical and downright ridiculous.

    (Photo credit: AFP)

  • Syria's secret hospitals

    Make-shift medicine

    Jan 31st 2012, 17:06 by The Economist online

    IN SYRIA, opposition groups have set ups secret hospitals to treat those injured in the fighting with government troops.

  • Syria

    Pulling out

    Jan 30th 2012, 17:06 by The Economist online

    ON SATURDAY January 28th the Arab League suspended its observer mission in Syria due the escalating violence by regime forces. The league's chief, Nabil el-Araby, cited the "continuation of violence and exchange of shelling and shooting". Opposition groups said that the regime's forces killed 98 people on Saturday alone. The uptick in violence came as government forces assaulted suburbs of Damascus that had slipped from their control into that of the Free Syrian Army, a group of defected soldiers and armed civilian volunteers.

    The mission was already floundering after the league's six Gulf states withdrew their monitors in protest at Damascus's refusal to implement a plan the government had signed intended to end the crackdown. The violence has continued unabated since the observers arrived on December 26th. President Bashar Assad has failed to withdraw tanks from residential areas or to release political prisoners, believed to number in the thousands. The UN last week said it could no longer keep track of the number of people who have been killed in the unrest. Other groups have documented the names of between 6,000 and 7,000 people who have died since March.

    On Tuesday Mr Araby will present a transitional plan, backed by European states, to the UN under which Mr Assad would hand power to one of his vice-presidents and form a unity government before elections at some point in the future. Mr Assad's government has rejected the proposal, but diplomats hope that this rejection and the ongoing violence will force Russia to reconsider its support for Mr Assad. So far it has blocked any action in the UN Security Council against Damascus.

  • France's presidential campaign

    Sarkozy's German fixation

    Jan 30th 2012, 15:15 by S.P. | PARIS

    IF THERE was one recurring theme during Nicolas Sarkozy’s live prime-time television interview last night, it was the French president’s obsession with Germany. In an appearance that lasted just over an hour, watched by a massive 16m viewers, Mr Sarkozy repeatedly held Germany up as a model for France, which is still reeling from the loss of its triple-A credit rating at the hands of Standard & Poor's earlier this month.

    France has to bring down labour costs to improve its competitiveness, Mr Sarkozy declared, just as Germany did so successfully a decade ago. France should do this by transferring the cost of social protection from labour to value-added tax, as Germany did. France must develop far more apprenticeships for the young, he announced, along German lines. France needs to focus on preserving jobs by making working time more flexible, as Germany has done. 

    Mr Sarkozy identified two specific German-inspired measures that he insisted he would put in place before his five-year term runs out in May. First, he wants to abolish €13 billion ($17 billion) of social charges paid by employers, which are earmarked for family benefits. He would finance this by increasing the full rate of VAT from 19.6% to 21.2%.

    The idea is to remove a big obstacle to creating (and keeping) jobs in France. Mr Sarkozy cited figures suggesting that, for an employee on a salary of €4,000 a month, a German employer pays €840 of social charges while a French boss will pay twice as much.

    Second, Mr Sarkozy wants to allow employers to negotiate changes to working time at company level, in return for the company agreeing to keep the worker in the job. This sort of flexibility, he pointed out, has helped Germany to keep unemployment levels relatively low, even during the current downturn. With the French jobless rate at nearly 10%, next to less than 7% in Germany, Mr Sarkozy’s immediate aim is to stop unemployment rising.

    When the economy recovers, Mr Sarkozy hopes to give employers more flexibility to get staff to work longer hours, although he stopped short of announcing an end to the legal maximum working week of 35 hours. The French work 1,679 hours a year, next to 1,904 in Germany, according to a study by COE Rexicode, a research group.

    Not only did Mr Sarkozy hold up Germany as an economic model for France, he has also secured the electoral support of its chancellor, Angela Merkel. Although Mr Sarkozy has yet to declare officially his candidacy, the secretary-general of Mrs Merkel’s Christian Democratic Union announced this weekend that the chancellor would back him for re-election because he was “the right person for the Elysée”.

    Mrs Merkel would even, the party said, take part in campaign rallies on Mr Sarkozy's behalf. For a president who badly needs to maintain the appearance of parity with Germany in Europe, this is quite a gesture.

    It is far from clear that Mr Sarkozy’s last-minute, half-improvised conversion to these structural reforms will get anywhere. Parliament is due to rise in early March, which leaves little time to push the new measures through. But, by embracing the Germany model, Mr Sarkozy seems to be making a double calculation.

    On one level, he simply wants to capture a bit of the stardust of German economic success. Over the past few years, the economic performance of the two countries has diverged markedly in Germany’s favour. Germany’s export-led success, built on the back of fiscal consolidation and labour-market reform, has contrasted with low growth, low exports, high budget deficits and high unemployment in France.

    Mr Sarkozy has been talking for a while about the need for a “convergence” of the two tax systems (which, in reality, implies reducing taxes in France). Copying Germany looks like a credible electoral message. “If it worked for them”, he said last night, “why wouldn’t it work for us?”

    But there may be a second, more subtle calculation at work. The French president has been much taken recently with the experience of Gerhard Schröder, the former centre-left German chancellor, who dropped in to see Mr Sarkozy in late December at the Elysée palace. On his watch, Germany boosted flexibility for employers with measures known as the Hartz reforms, and reduced social charges in favour of a VAT increase. These reforms helped to lay the ground for today’s economic performance nearly a decade later.

    Mr Schröder’s reforms were unpopular at the time, and he lost power in 2005 to Mrs Merkel. Now, though, he is credited with a certain courage. In France, polls continue to suggest that Mr Sarkozy will be beaten by his Socialist rival, François Hollande, at the two-round presidential election in April and May. Could it be that the French president is preparing for the possibility of defeat by trying to enact last-minute labour-market reforms for which history might one day judge him well too?

  • The World Economic Forum

    Mick Jagger’s Davos Top Ten

    Jan 30th 2012, 11:15 by M.B. | DAVOS

    TOP celebrity at this year’s World Economic Forum (WEF) in Davos was Sir Mick Jagger, front-man of the Rolling Stones (and longtime Economist reader). At his various appearances in the Swiss Alpine resort, he asked questions, joked, briefly shook his legendary hips, but refused to sing. Had he done so, here are a few tunes from his back catalogue that would have captured the mood.  

    “Paint It Black”: Gloom was the official on-stage state of mind at this year’s Davos. The toxic combination of the euro crisis and the ubiquity of longtime Cassandras such as George Soros, Martin Wolf of the Financial Times and Nouriel “Dr Doom” Roubini was more than enough to give anyone a 19th nervous breakdown. In private conversations, however, there was a bit more optimism, though no one was getting carried away. Cautious encouragement was taken from better recent economic news in America and, above all, a shift towards activism by the European Central Bank, which was seen by many as greatly reducing the risk of a catastrophic failure in the banking system.  

    “Angie”. She is not his usual type, but Sir Mick has the perfect ballad for the top political star of this year’s Davos. Sadly, Angela Merkel’s keynote failed to answer his question, “When will those clouds all disappear?”

    “Some Girls”. There was much comment about the fact that Davos Men still far outnumber Davos Women. (In the Congress Centre, that is, where the serious talking is done. Curiously, at the many Davos parties, the gender balance is somehow evened up considerably, even as the age gap widens.) Aside from the Chancellor of Germany, the most prominent females on stage this year were two pioneers of social media, Arianna Huffington and Sheryl Sandberg, who was talked about less for the upcoming initial public offering of Facebook, where she is chief operating officer, than her long-term political ambitions (Treasury Secretary? President?). According to WEF, the percentage of women participants this year was 17%, which is progress of sorts from 9% ten years ago, but still far too low. At least there is gender parity in the WEF’s new under-30s youth wing, the “Global Shapers”, who were given prominent roles in this year’s Davos.  

    “Sympathy for the Devil”. The public image of the sort of political and business leaders who attend Davos has never been worse, and a large part of the agenda was given over to worrying about inequality and how to redesign capitalism to make it produce more inclusive growth and jobs. Yet your correspondent was struck by how many of the capitalists he encountered—especially from the Newt Gingrich-bashed private-equity industry—felt that their current unpopularity was undeserved, so this Rolling Stones classic about why the baddest of all bad guys at least deserves some courtesy would have gone down a treat.

    "Gimme Shelter". The Occupy movement has benefited from all that public anger towards leaders. The protestors who turned up in Davos found themselves occupying a few yurts and giant igloos in a coach park a long way from the Congress Centre.  Particularly in need of shelter were three female protesters from Ukraine who removed their shirts to reveal chests emblazoned with slogans such as “Crisis: Made in Davos”. 

    Representatives of Occupy were invited to take part in a WEF public meeting, which they tried to disrupt only to be voted out by the vast majority of the audience, who seemed actually to want to discuss how to remodel the capitalist system. The speakers included Ed Milliband, the leader of Britain’s Labour Party, and Stephen Roach, a veteran Wall Street economist.

    “Time Is On My Side”. Two dynastic youngsters had a Davos coming out: Howard Buffett, grandson of Warren, is one of the Global Shapers; Chelsea Clinton moderated a roundtable on e-philanthropy. Expect them to become Davos regulars in the years to come. (On the subject of giving, Bill Gates turned up as usual, this year celebrating the 10th birthday of the Global Fund for Aids, Tuberculosis and Malaria, an innovative approach to fighting disease that was born in Davos in 2002. Surprise guests at the celebration dinner included Mr Jagger and notable signatories of the “giving pledge” launched by Mr Gates and the elder Mr Buffett, George Soros and Ray Dallio, boss of Bridgewater, the world’s biggest hedge fund company. Mr Gates gave a vote of confidence to the Fund, which has been criticised for mismanaging money, announcing a new grant of $750m.)

    “Street Fighting Man”. A year ago, the start of the Arab Spring caused considerable excitement and enthusiasm in Davos. This year, the focus was more on the difficulty of democratising the Middle East than the potential for positive change. The most upbeat speaker was Hammadi Jebali, the newly-elected president of Tunisia. On the other hand, there was a growing sense that some sort of military strike against Iran’s nuclear program is inevitable this year, probably led by Israel. 

    “Start Me Up”. The most optimistic people in Davos came largely from the tech industry, which was represented by some of its biggest stars. As well as Ms Sandberg, there was Eric Schmidt of Google, John Donahoe of eBay, Sean Parker of Napster and Facebook fame, and several faces of European tech, including Niklas Zennstrom, a co-founder of Skype. All seemed convinced that entrepreneurship can answer everything from worries about the shortage of jobs to how to accelerate solving big social problems, from ending disease to giving everyone a decent education.

    “Brown Sugar”. An unusual abundance of snow did not deflect Davos goers from their usual drug of choice, alcohol. The dozens of parties in the Belverdere Hotel were as crowded as ever, with the McKinsey and Google parties the best (as usual), though an excellent choice of band enabled PriceWaterhouseCoopers to give McKinsey a run for its money. An event hosted by Skybridge Capital, a hedge fund, in support of an organization combining philanthropy with buying fine wine, was perhaps the best party in the Piano Bar at the Hotel Europe, where in the wee small hours of the morning chief executives can be found leading the singing. 

    The big disappointment was the closing gala, hosted this year by Brazil, where before midnight the cocktail waiters ran out of alcohol to put in the caipirinha. This national embarrassment added to the sense that Brazil had put on a poor show in Davos, with its president, Dilma Rousseff, preferring to stay away and instead attend the rival World Social Forum. No such complaints could be heard about Mexico, which the previous night threw a bash where margarita flowed like water, whilst a beaming President Calderon enthusiastically shook hands.  

    And to finish? If the choice was made by the public, looking on from afar, Sir Mick surely would have to end his Davos show with that anthem to frustration, “(I Can’t Get No) Satisfaction.” At the end of five days of big thoughts, fierce debate, countless conversations and almost no sleep, your exhausted correspondent would have settled for “Shattered” followed, with mixed feelings, by “It’s All Over Now.”

  • The week ahead: January 27th 2012

    Battle of organisation

    Jan 27th 2012, 1:17 by The Economist online

    FLORIDA republicans vote in the next GOP primary, European leaders hold another summit, the UN security council meets about Syria and the Australian Open crowns a champion 

  • Syria's crisis

    A new front in a regional struggle

    Jan 26th 2012, 18:31 by The Economist online

    AN ACTIVIST in Homs and an analyst in Washington, DC discuss Syria's risky slide towards outright civil war

  • The Economist

    Digital highlights, January 28th 2012

    Jan 26th 2012, 18:18 by The Economist online

    A page of one’s own
    To accompany The Economist’s new China section, the Middle Kingdom is also getting a dedicated home online. All manner of subjects—from politics and economics to business and culture, reported from the halls of Beijing to rural paddies—appear on one web page

    Scottish questions
    With Scottish thoughts turning towards a referendum on leaving the United Kingdom, this video looks at some of the issues that will require resolution before the people vote. Questions about oil revenues, defence and the currency will not be settled quickly

    The wiggle-room index
    If the euro-area debt crisis worsens it will hurt exports and growth in emerging economies. Which governments and central banks are best able to stimulate domestic demand? Our analysis ranks 27 economies according to their potential monetary and fiscal firepower

    Debate: State capitalism
    Do you agree that state capitalism is a viable alternative to liberal capitalism?

    Asia: Terra nullius
    This Australia Day, the aborigines’ fellow countrymen face an historic opportunity to recognise that the continent was indeed inhabited before Europeans arrived

    United States: Democracy and its flaws
    Does it matter that a vote in North Carolina is more valuable than a vote in South Carolina?

    Africa: Galloping ahead
    A horseback trip outside Addis Ababa reveals how Ethiopia is changing

    Business: Supreme Vittorio
    India decides not to reinvent the rules of mergers and acquisitions

    Management: Something must be done
    As Britain’s proposed high-speed rail link demonstrates, leaders too often succumb to the lure of the grand idea

    Science: Politics and physiology
    Republicans and Democrats are, in fact, biologically distinct

    Europe: A gorilla in Bratislava
    A huge corruption investigation has rocked Slovakia’s political elite, less than two months before a general election

    Americas: Talk is cheap
    Cuban mobile-phone prices start to drop

    Technology: Starting from scratch
    A new model may help people in poor countries light their homes with solar power

    Culture: Phew, the Oscars are still irrelevant
    It is almost a relief to see the awards return to uninspired form

    Sport: Coming up short
    Why women should play grand-slam tennis matches over five sets

  • Dispatches from Davos

    The joy of e-giving

    Jan 26th 2012, 17:56 by M.B. | DAVOS

    ONE of the more unpredictable events each year at Davos is the Philanthropy Rountable hosted by Ukrainian oligarch Victor Pinchuk. Last year Damien Hurst had the audience of movers and shakers messily doing art. This year Chelsea Clinton—here in loco parentis—moderated a discussion on e-philanthropy, featuring Eric Schmidt of Google; Sean Parker of Napster, Facebook and The Social Network; Yuri Milner, a Russian internet investor; and Alec Ross, who oversees technology for America's State Department. 

    Advertised, but sadly absent, was Tony Blair, apparently "stuck in the Middle East"—hopefully doing something constructive. What he would have added to the discussion is unclear, as even his own wife publicly describes him as "useless" with technology. When Katie Couric, an American news anchor, once asked him, "do you Tweet?" he replied, "Never intentionally."

    Still Mr Blair presumably has some familiarity with the role of Twitter and Facebook in last year's Arab Spring, which might have prompted him (unlike Ms Clinton) to ask Mr Milner what he is doing to help bring about a Russian Spring, and Mr Ross what the US State Dept had learned from last year about how technology could be used to thwart Vladimir Putin's attempt to resume the presidency of Russia. 

    You might think this all hass little to do with philanthropy, but all of the panelists saw e-philanthropy in broad terms as the way tech can be applied to bring about social change. Mr Parker spoke about his "quarrel" with traditional philanthropy, and questioned with tax-advantaged non-profits are really the best vehicle society has to advance social change. He did not believe that a non-profit would be able to develop the technological tools necessary to create efficient social movements, which is why he structured his do-gooding social network organisation, Causes, as a for-profit. 

    Alas, he was not asked why Causes has failed to live up to the early hype that it would transform fundraising for non-profits by making giving and building support for a cause easy. He implicitly acknowledged this slow progress, with phrases such as "early days" and admitting that relatively little money has been raised so far via Causes. One problem, he suggested, is that most non-profits are incapable of making good use of the latest technology and the data it produces. After starting out aiming to get all of America's million-plus non-profits connected, he says Causes will now focus on 10,000 or so he says are sufficiently tech savvy. Will this targeted apprpoach deliver better results?

    Mr Schmidt was at his most interesting on the subject of the next generation of Silicon Valley rich, who he says are more concerned about society's problems and much more generous than his own Baby Boom generation. The "one percent rule", whereby a firm gives away 1% of annual profits, 1% of its equity and 1% of its employees' time, pioneered by Salesforce.com and adopted by Google, is now the norm for Silicon Valley start-ups, said Mr Schmidt. Alas, he was not asked what went wrong with Google.org, which was launched with much fanfare as the future of corporate philanthropy, but has since sunk almost without trace.

    Mr Schmidt predicts that the mobile phone will be the most philanthropic (in the broadest sense) of all the new technologies, especially once its cost in the developing world falls to around $70. One of the striking things about mobile telephony is that it is already delivering huge social benefits even though it is largely commercially driven, rather than relying on charitable donations or government aid. 

    Mr Ross agreed, highlighting how money had been raised cheaply by text to help in Haiti after the earthquake in 2010. He talked excitedly about the benefits of a mobile app that has been developed to let Masai warriors more effectively monitor the menstrual cycles of dairy cows, and thereby greatly increase their productivity. As he rightly pointed out, this is not something that would ever be thought of by government or "in Davos".

    Perhaps the most interesting new idea came from the audience where, this being Davos, sat Tim Berners Lee. The inventor of the internet suggested a radical approach to improving the effectiveness of philanthropy through extreme charity: it should become a routine activity, he suggested, that anyone receiving a donation should publish in cyberspace exactly what they do with it, all the way along the line until the money reaches its ultimate charitable destination. Now, wouldn't that be an e-philanthropy game changer?

     

  • The caption competition closes

    Caption competition 19: The results

    Jan 26th 2012, 11:09 by The Economist online

    THANK you for all your entries in our latest caption competition. We asked you to provide a pithy caption for a photo accompanying an article in our Business section. It showed Kim Dotcom, the eccentric co-founder of file-sharing site Megaupload, who has been arrested in New Zealand at the request of American officials.

    We received a treasure chest of gems this week. Many readers went with a pirate metaphor. New Conservative suggested "A pirate and his booty", a theme several others echoed. (We emphasise that Mr Dotcom denies all wrongdoing.) For some reason, quite a few readers drew attention to Mr Dotcom's physical appearance. "If only I could touch my toes" was suggested by fU4Fra7snWguest-ijaiojo came up with "Too big to fail?"

    Other fine efforts included:

    chocolatecity "I had one simple request: sharks with frikken' laser beams attached to their heads"
    JW_uncapped:  "The YMCA dance was not one of Kim Dotcom's strongpoints"
    Devin423: "
    She's also my lawyer"
    guest-iioaenw: "In hot water"

    Both our correspondent in San Francisco and a reader called Vectorly suggested "Dotcom bust", which we've used as the title of the article. The (lightly edited) winner is: "This year's beach sumo contest was surprisingly one-sided". This was suggested by Harry Krishna and appears in the paper tomorrow. We offer our congratulations to the winners and our thanks to everyone who took part.

  • This week's caption competition

    Caption competition 19

    Jan 23rd 2012, 17:42 by The Economist online

    CAN you write an Economist picture caption? The excellent standard of entries in our previous competitions suggests that many of you can. Here's a new chance for you to see your wit in print.

    The photograph above will accompany an article in the Business section in this week's issue. It shows Kim Dotcom (pictured, wearing sunglasses), co-founder of file-sharing site Megaupload. Last week police in New Zealand arrested Mr Dotcom at the request of American officials, who also shut down Megaupload, claiming it encouraged users to share copyrighted content (the firm says that the vast majority of its traffic is legitimate). The eccentric businessman, who changed his name from Schmitz, is reported to have enjoyed a lavish lifestyle: with a mansion in New Zealand, a fleet of luxury cars and a slight tendency to show off.

    As before, it's up to you to provide the caption: please leave your suggestions in the comments thread below. The captions should be as short and snappy as possible, and ideally no more than about 30 characters long. The best contribution will appear beneath the picture in this week's print edition, which is published on Friday morning. Entries close at midnight London time on Wednesday evening, so you've got a little more than 48 hours. The winner can truthfully claim to have written (at least a few words) for The Economist. Over to you.

    Update: The competition is closed, and the winner has been announced.

  • Faith in world leaders

    Busted trust

    Jan 23rd 2012, 10:19 by M.B. | NEW YORK

    TRUST me, I’m a politician, has never been a terribly convincing argument at the best of times, and trust me, I’m a businessman has rarely been much better. But as the global political and corporate elite head to the Swiss alpine town of Davos this week for the annual World Economic Forum, where they will make all manner of big claims about their plans to get the world out of its current mess, the court of public opinion seems less inclined than ever to believe a word they say.

    That, at least, is the message of the latest annual “trust barometer” published by Edelman, a PR firm, on January 24th to put the global elite in a bad mood as they board their private jets and head for the mountains. This year, overall trust has declined in the leaders of the four main categories of organization scrutinized—government, business, non-governmental organizations and the media. Of the 50 or so countries examined, 11, nearly twice as many as last year, are now judged “sceptical”, with less than 50% of those polled saying they trusted these institutions. Trust in Japanese institutions plunged to 34%, from 51% in 2011, not surprising given the handling by leaders of the Tsunami and its aftermath. But the collapse in trust was even more striking in Brazil, the country in which trust was greatest in 2011, at 80%, but now, following ab series of corruption scandals, has slipped to 51% (admittedly, still above America and Britain, among others).

    This headline slump in trust is due, above all, to the public losing faith in political leaders. In 2011, across all countries, Edelman found that 52% of those polled trusted government; this year, it was only 43%. Government is now trusted less even than the media, which actually enjoyed a modest recovery, to 52% from 49% last year. Trust in business fell slightly, from 56% to 53%, as did trust in NGOs, which still remain the most trusted type of institution, at 58%, down from 61% in 2011. As in previous years, the barometer is based on a poll of what Edelman calls “informed people”, which typically means professional and well-educated, though this year for the first time the views of the informed were benchmarked against a poll of the public as a whole. For each institution, the broader public was even less trusting than the informed, with government trusted by 38%, business 47%, NGOs 50% and the media 46%.

    These averages hide some significant variations. Trust in government has actually increased modestly in Ireland, India, Canada and even America, and ranges from 88% trusting (or saying they do) in China and the United Arab Emirates to only 20% in Spain (despite the handover of power in the recent general election). Nobody will be surprised to learn that the least trusted businesses are banking and financial services, and the most trusted (to a remarkable degree in China and India) is technology.

    In recent years, changes in trust in government and business increasingly have been in the same direction, as they were again this year, even though the loss of trust in government was larger. Remarkably, worldwide 46% of informed people say they “do not trust government leaders at all to tell the truth”. By that extreme standard, business leaders do much better, with only 27% of those polled saying they do not trust them to tell the truth at all. Nonetheless, says Edelman, the credibility of chief executives has now returned to the low of 2009. Will anything these leaders say or do this week in Davos start to reverse this reputational decline, or has it now reached the point of no return?

  • JAS's cartoon

    The week ahead

    Jan 22nd 2012, 14:35

  • The week ahead: January 19th 2012

    Tensions ratchet up with Iran

    Jan 20th 2012, 12:37 by The Economist online

    DAVOS kicks off, Greece takes steps to refinance its debt, the State of the Union address and the European Union votes on more sanctions against Iran

  • A very hard sell

    The Republican primaries

    Jan 20th 2012, 10:55

    Our Business this week news page missed a breaking story yesterday:

    America’s political futures market had a turbulent Thursday afternoon when PerryCo, a regional player from Texas, withdrew its bid for leadership of the Republican Party company. PerryCo urged more consolidation in the conservatism industry, and suggested that Gingrich (Limited), a growing concern from the South, was the best placed candidate to take on the job of chief executive.

    But Mitt Capitol, a national powerhouse with roots (and homes) in the north-east, south-west and Midwest, could benefit from the demise of PerryCo. A fund-raiser for Mitt told ABC News that now that PerryCo had folded, he can make an approach to the donors that had invested in the Texan start-up. This could bring in even more capital for Mitt Capitol, as it works to seal its takeover deal through an offer to shareholders at a series of general meetings in the states.

    Despite a possible loss from a transaction in South Carolina (and some trouble with its tax returns), analysts still think Mitt Capitol will have a very profitable quarter, though the outlook for the rest of the year is less certain.       

  • The Economist

    Digital highlights, January 21st 2012

    Jan 20th 2012, 10:16 by The Economist online

    Brazil’s elder statesman
    Fernando Henrique Cardoso brought macroeconomic stability to Brazil as finance minister and then as president. A distinguished sociologist in his former life, he shares his thoughts on Brazil’s multiracial culture, the drug war and his relationship with the current president

    A long time in politics
    The Republican candidates debate, the Republicans of South Carolina vote in their primary and the president delivers his state-of-the-union address. In a week teeming with politics, our correspondents and bloggers provide live commentary on all of the action

    Modern tragedy
    A new film version of “Coriolanus” marks the directorial debut of Ralph Fiennes, who also plays the title role. He talks to us about Shakespeare’s contemporary relevance and wonders whether people are more interested in watching tragedy during times of economic hardship

    United States: The value of a good education
    How much would a high school education be worth on the free market?

    Asia: Media after the meltdown
    Japan’s hopelessly insular press club loses a little ground, increasing candour

    Asia: Yam yesterday, yam today
    Nepal has ever felt itself a “yam between two boulders” (the giants India and China) yet now hopes to benefit from its situation

    Europe: We’ll always have Prague
    Why so many Ukrainians, including Yulia Tymoshenko’s husband, make their homes in the Czech Republic

    Europe: Down to earth
    A corruption case may encourage Poles to think a little more soberly about their shale-gas revolution

    Business: Sharper focus
    How Fujifilm managed to reinvent itself

    Finance: Average common denominator
    If the euro zone stays together, an opportunity for a different sort of convergence play should emerge

    Technology: Difference engine
    America needs to boost dwindling water supplies with reclaimed stuff from sewage works. How to sell the idea to the public?

    Finance: Owe dear
    An updated interactive debt graphic shows how deeply in hock the big economies are

    MBA diary: Start-up school for grown ups
    It is a myth that entrepreneurs and business schools are incompatible

    Technology: Something bad out of Africa
    Google fails to live up to its motto in Kenya

    Middle East: Entering the fray
    The father of Gilad Shalit is to stand for Israel’s Knesset

  • Israeli politics

    Entering the fray

    Jan 19th 2012, 15:56 by D.L. | JERUSALEM

    IN PUBLIC, at least, the Israeli political establishment has responded graciously to the emergence of a new competitor for power–Yair Lapid, a television anchorman. When Mr Lapid recently announced his decision to set up a new, centrist-secular party, Binyamin Netanyahu, Israel's prime minister, along with Tzipi Livni, the leader of the opposition, and other politicians from whom Mr Lapid hopes to wrest voters all claimed to welcome him into their midst. Pundits, too, generally wished Mr Lapid well in his bid to re-enthuse young middle-class Israelis, many of whom have lost their faith and interest in politics.

    Markedly less generous was the welcome accorded to another high-profile Israeli who announced his own entry into the political fray just a day after Mr Lapid’s announcement. Noam Shalit, father of the kidnapped-and-released soldier Gilad Shalit, declared he would run in the Labour Party primaries for a seat in the Knesset–and found himself immediately under attack for cynically exploiting the public's sympathy for him and his family.

    His son was captured by Palestinian militants in June 2006. He was held in the Gaza Strip, his whereabouts unknown, unvisited by the Red Cross, for more than five years while his parents, Noam and Aviva, led a ceaseless public campaign, at home and abroad, to procure his release. Their goal was to persuade the Israeli government to trade Gilad for hundreds Palestinian prisoners. The final price was more than 1000 Palestinians handed over in return for the young soldier. Talks with Hamas, the Islamist group that runs Gaza, through a German government mediator, focused less on the lopsided arithmetic of the deal than on the names on the Hamas's wish-list. Israel balked at freeing men responsible for suicide-bombings and other terror attacks during the first intifada.

    Noam's pained but serene face, his kindly voice, and his dogged determination became part of the lives of every Israeli family. When he marched to Jerusalem thousands marched with him. When he camped on the pavement outside the prime minister's home, hundreds camped beside him. When in October Mr Netanyahu caved in, many attributed his change of policy to Noam and Aviva's restrained but relentless campaign.

    Noam insists now that neither Gilad nor Aviva will have any part in his politicking. His Labour Party membership dates back to the mid-nineties, he points out. His father has long been active in the party. A family of salt-of-the-earth socialists. Why should their five-year nightmare deprive him of his right to compete for a Knesset seat?

    But muted mutterings from Mr Netanyahu's supporters about Noam's alleged ingratitude have resonated strongly among politicians and commentators. Granted, many say, Mr Netanyahu has benefited politically from his decision to pay the exorbitant, dangerous price to free Gilad. His poll ratings leapt up and have since stayed high.

    It was a risk, nonetheless, and may come back to haunt him if new terror outrages are traced to the released men. The Shalits owe Mr Netanyahu a huge, personal debt. Noam, the critics contend, a model of self-restraint through those tortured years, should have curbed his sudden surge of (pro-Labour, anti-Likud) political energy until Mr Netanyahu leaves the stage.

  • Spanish justice

    Investigating the investigator

    Jan 18th 2012, 11:57 by G.T. | MADRID

    A FRESCO on the ceiling of Madrid's Supreme Court shows a menacing scene of Goya-inspired intensity, with knife-wielding savages and children being throttled to death. On a wall a large sculpture depicts the crucifixion of Jesus.

    As the country's most famous magistrate, Baltasar Garzón, went on trial here yesterday his supporters claimed he was suffering something akin to the crucifixion scene. His enemies, who want him banished from the judiciary for 17 years for, they believe, abusing his powers, see him as more like the villains on the ceiling.

    Few people divide Spanish opinion as absolutely as the slick-haired investigating magistrate. Some think he should be awarded the Nobel Peace prize. Others demand public pillory.

    Mr Garzón has made many enemies. They include supporters of Augusto Pinochet, the former Chilean dictator, who was arrested in London in 1998 on Mr Garzón's orders, and backers of the military strongmen who once ran Argentina. Mr Garzón has successfully expanded international human-rights law to prosecute and jail their henchmen in Spanish courts.

    If his enemies abroad are numerous, those at home are legion. Mr Garzón has taken on Socialist-led state terrorism and corruption in the conservative People's Party, which now runs Spain, as well as drugs barons, arms traffickers and ETA, the Basque terrorist group. He has trodden on many toes, including those of fellow judges.

    It was no surprise, then, that while protesters chanted about “fascists and the corrupt putting the judge on trial”, viewers of Intereconomia, a conservative television channel, sent gleeful tweets accusing Mr Garzón of being “arrogant”, “overbearing” and backed by “vengeful communists”.

    Mr Garzón faces not one trial, but three. In each he is charged with what Spaniards call prevaricación, or knowingly dictating unjust measures during investigations (as a magistrate he prepares cases, but does not try them). The charge is rare. To face it three times over is unknown.

    The trial that began yesterday involves a PP corruption case known as “Gürtel”. During his investigation Mr Garzón ordered police to tape conversations between suspects remanded in prison and their visitors. That included their defence lawyers, some of whom the judge suspected of laundering their clients' money. The lawyers claim this damaged their clients' right to a fair defence.

    In a second case due to start on January 24th, Mr Garzón stands accused of abusing his powers by opening an investigation into the deaths of 114,000 people under the dictatorship of Francisco Franco between 1936 and 1975. In that case Mr Garzón named 34 former generals and ministers, including Franco himself, who he suspected of crimes against humanity. All were already dead.

    A third case alleges that Mr Garzón should have disqualified himself from court decisions involving Banco Santander. Those bringing the prosecution claim Mr Garzón had received money from the bank during a sabbatical at New York University, although the university denies this.

    Some see jealous Spanish judges trying to get rid of a colleague who has outshone them. Others see a rogue magistrate getting a taste of his own medicine.

    The case mostly raises questions about guarantees in Spain's judicial system. If Mr Garzón is a multiple prevaricador, why was he not stopped long ago? And if not, can Spanish judges be independent without facing prosecution?

  • An interview with Mario Monti

    Italy's great liberaliser?

    Jan 17th 2012, 15:54 by J.H. | ROME

    ITALY's prime minister, Mario Monti, is due to arrive in London tomorrow on the latest stage of a diplomatic offensive that has once again made his country a leading player in the euro-zone crisis.

    Before the next European Union summit, on January 30th, Mr Monti is expected to hold a meeting with the German chancellor, Angela Merkel, France’s president, Nicolas Sarkozy, and Herman Van Rompuy, the head of the European Council. Italy, it seems fair to say, is back at the top table after being quietly shoved off under the leadership of Silvio Berlusconi.

    Britain’s refusal to sign up to the proposed fiscal compact between EU member states in December makes David Cameron, the prime minister, a special case. Mr Monti feels it would be unrealistic to expect him to go back on his decision.

    But he is anxious to involve the British as much as possible. “The more the UK feels distanced from European construction the less others are able to benefit from the full influence of the many good things that the UK can help us all to achieve, and therefore there are many areas where I think it would be beneficial to have the UK fully at the table,” says the former economics professor in his characteristically unhurried, measured way.

    Mr Monti, who served as the EU’s competition commissioner between 1999 and 2004, is that rare thing, an Italian economic liberal. That should help him to build bridges to the isolated Mr Cameron.

    On the contentious issue of a financial-transactions tax, however, Mr Monti, once a critic of the idea, now shares Mrs Merkel’s view that it would be desirable if only it could be agreed among all 27 EU member states. Still, given that Mr Cameron has a veto this is unlikely to happen.

    Mr Monti's central message, to both Mr Sarkozy and Mrs Merkel, has been that the EU must move beyond enforcing fiscal discipline to stimulate growth, a view repeated by Standard & Poor's as it downgraded nine euro-zone countries, including Italy, on January 13th. That, thinks Mr Monti, means not only finding ways to lower interest rates, but encouraging liberalisation wherever possible.

    Mr Monti is not a proponent of harrying Berlin to boost its domestic consumption. But he would very much like to see the Germans do more to liberalise services. He acknowledges that “It is rather unusual for Italy to be at the forefront of pro-market initiatives.” But he plans soon to practise at home what he has been preaching abroad. “I am convinced that it is also in Italy's national interest,” he says.

    Within a few days Mr Monti is expected to unveil an extensive package of measures designed to free up markets and increase competition in a country where cosy cartels have long been the norm. Since his government of technocrats, which took office in November 2011, is also trying to force labour-market reform on the trade unions and fiscal compliance on Italy’s legendarily tax-shy self-employed, this might seem a bridge too far.

    But the prime minister has at least two advantages: his experience in Brussels grappling with multinationals and national governments, and the fact that his government is not beholden to any one political faction or interest group.

    Though unelected, and responsible for an emergency budget in December that inflicted considerable pain on Italians, Mr Monti’s administration remains surprisingly popular. Mr Monti believes that “there was in Italy a hidden demand for a boring government which would try to tell the truth in non-political jargon.”

    Some would add that it has also benefited from the sheer terror spread among Italians by the way the euro-zone crisis has engulfed their country. Benchmark sovereign-bond yields that have repeatedly bobbed above 7% and a spread between Italian and German debt that has frequently topped 500 basis points may help explain why they have been so ready to entrust their fate to a government of perceived experts. So far.

    The danger now is that the “spread effect” could turn against the prime minister. Many Italians believed that the ditching of Mr Berlusconi would save them from further contagion. The fact that bond yields have not returned to anything close to normal makes some wonder if it was worthwhile.

    “Austerity is not enough, even for budgetary discipline, if economic activity does not pick up a decent rate of growth," Mr Monti warns. "A lowering in interest rates does not depend only on Italy's efforts but also, and essentially, on Europe's ability to confront the crisis in a more decisive way." He has told the leaders of the less-indebted euro-zone nations that unless they act soon to bring interest rates down, his government could be replaced by something far harder for them to deal with.

    When Mr Monti referred earlier this month to the threat of growing Euroscepticism in Italy, it was widely taken as an allusion to the populist Northern League, Mr Berlusconi's junior coalition partner during his time in office. But, he says, the danger is much broader than that. “What I see now, week after week, in parliament is a widening of the spread of this attitude... The degree of impatience-cum-hostility to the EU, to Germany and to the ECB is mounting.”

About Newsbook

In this blog, our correspondents respond to breaking news stories and provide comment and analysis. The blog takes its name from newsbooks, the 16th-century precursors to newspapers, which covered a single big story, such as a battle, a disaster or a sensational trial

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