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                           Hard truths about a Gaza ceasefire
Economist
                           Donald Trump's awful tariff plan
                           The promise of lab-grown embryoids
                           NOVEMBER 4TH-10TH 2023
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                                    eight Indian nationals who          Somalia since 1970, when a            the West in the former Soviet
                                    have been sentenced to death        Marxist government national          Central Asian states. Mean
                                    in Qatar for spying for Israel.     ised the financial system.            while, 46 miners died in a fire
                                    The eight men formerly served                                             at a coal mine in Kazakhstan.
                                    in the Indian navy.                 Li Keqiang, a former prime            The mine's operator, Arcelor
                                                                        minister of China, died of a          Mittal, recently agreed to
                                    An antisemitic mob attacked         heart attack, aged 68. From           transfer ownership to the
                                    the main airport in Dagestan,       2012 to 2022 Li was the               Kazakh government.
                                    a mostly Muslim Russian             Communist Party's second
                                    republic in the North Cauca        highest-ranking official, but he
                                    sus. Hundreds of men                was overshadowed by XiJinp           Lest we forget
                                    swarmed the area looking for        ing, who has consolidated             A senior official at the UN told
Israeli ground forces pushed        Jewish passengers who had           power. Censors have deleted           the Security Council that 40%
deeper into Gaza to attack          arrived on a flight from Tel        many of the online tributes to        of Ukraine's population, or
Hamas militants. The Israelis       Aviv. Scores of them were           Li, fearing they might lead to        around 18m people, are in
said they killed one of the         arrested after they clashed         dissent or demonstrations.            need of humanitarian assis
leaders of the October 7th          with police.                                                              tance, and that the figure is
terrorist attack and a number
of other Hamas men in an air        -                                   Officials in Pakistan said that
                                                                        tens of thousands of
                                                                                                              likely to rise over the coming
                                                                                                              winter. Russia is expected
strike onJabalia, north of Gaza     The haters                          Afghans who reside in the             once again to focus on knock
city; the Hamas-run authori        Attacks on Jewish people and        country illegally had obeyed          ing out power stations once
ties said scores of civilians had   symbols around the world            an order to leave ahead of a          temperatures start to plum
died. One of the 240 hostages       have risen markedly. Accord        November 1st deadline. The            met. The official said that
held by Ham as, a female            ing to the Anti-Defamation          Pakistani government issued           9,goo civilians are confirmed
soldier, was rescued by the         League, aJewish organisation        an order for all illegal              to have been killed in the war,
Israelis. Binyamin Netanyahu,       in New York, antisemitic            migrants, meaning Afghans, to         but that the true figure was
Israel's prime minister, reject    incidents rose in America by        go following a wave of suicide       probably much higher.
ed calls for a ceasefire. He said   388% between October 7th and        bombings that it blames on
people who are calling for one      23rd compared with the same         Afghan terrorists. Around 1.7m        Montenegro got a new
are asking Israel "to surrender     period last year. Britain saw an    of the 4m Afghans who live in         coalition government, follow
to barbarism".                      increase of 689% over three         Pakistan are there illegally. The     ing an election inJune. Miloj
                                    weeks, according to the Com        government says it will               ko Spajic of the centrist
The humanitarian crisis             munity Security Trust, another      forcibly expel them if they do        Europe Now Movement is the
continued to build in Gaza.         Jewish group. Attacks on Mus       not depart voluntarily.               new prime minister. Aged 36
The death toll among Palestin      lims have also increased.                                                 Mr Spajic, a former banker at
ians now exceeds 8,000,                                                 Opposition parties in                 Goldman Sachs, is one of the
according to the authorities in     Republicans in America's            Bangladesh claimed that the           world's youngest leaders.
the enclave. Some 1.4m people       House of Representatives            police had arrested thousands
have been displaced. Shelters       introduced their own bill for       of their supporters following         Venezuela's Supreme Court
are overflowing. More aid           $14-.3bn in emergency aid to        clashes at anti-government            annulled the opposition's
lorries were allowed in, though     Israel, setting up a clash with     demonstrations, in which two          primaries process, nearly two
their number still fell far short   the White House. The Repub         people died. The protesters are       weeks after an overwhelming
of the 500 a day that had been      lican bill hives off money for      calling for Sheikh Hasina to          victory for Maria Corina
entering the area before the        Israel from a wider package put     resign as prime minister ahead        Machado. Ms Machado is a
war started. The first trickle of   forward by Joe Biden that           of a general election that is due     liberal and vocal critic of
civilians left Gaza through the     includes extra funding for          to take place inJanuary.              Nicolas Maduro's autocratic
Rafah border crossing into          Ukraine. It offsets this by                                               regime. Mr Maduro had al
Egypt under a deal negotiated       cutting $14.3bn that has been                                             ready barred her from holding
by Qatar. Only foreign nation      allocated for the Internal                                                office, but it was hoped that
als and the severely wounded        Revenue Service under the                                                 the lifting of most American
are being allowed to leave.         Inflation Reduction Act, Mr                                               sanctions would lead him to
                                    Biden's signature bill.                                                   liberalise. In America Repub
Israel sent missile boats to the                                                                              licans called for the sanctions
Red Sea to head off potential       The main opposition presi                                                to be reinstated.
strikes from Yemen, where the       dential candidates standing
Houthi militia claimed to have      in Congo's general election                                               Saudi Arabia seemed set to
launched rockets and drones         next month called for urgent                                              host the football World Cup
at Israel. The Israeli army said    measures to prevent manipu                                               in 2034, after Australia, the
it had intercepted an "aerial       lation of the results. Electoral                                          other potential host, decided
threat". The Houthis are            authorities have not published      Emmanuel Macron visited               not to bid. Questions have
backed by Iran and control          voters' roles or lists of polling   Kazakhstan, where he praised          been raised about how
large parts of Yemen, includ       stations, malting it difficult to   the country's leadership for          women will be treated at the
ing the capital, Sana'a.            monitor voting independently.       not siding with Russia in its         tournament (public places are
                                                                        war on Ukraine. The French            segregated). Speculation is
India's government said it          Ziraat Katilim, a Turkish bank,     president's trip rattled the          rife that the Saudis may relax
would explore all legal options     has become the first foreign        Russians, who are worried             a strict prohibition on alcohol
to help secure the release of       lender to operate in                about the growing influence of        by creating "fan zones".
    The Federal Reserve left its                            There was also some good            Panasonic reduced the profit         "adverse impacts" relating to
    benchmark interest rate on                              news for the currency bloc,         outlook for its electric-car         supply chains and increased
    hold again, at a range of                               though. Annual inflation            battery business, blaming a          interest rates. The company is
    between 5.25% and 5.5%.                                 tumbled to 2.9% in October,         slowdown in demand for some          writing down $4bn in impair
    Inflation has slowed, but                               from 4.3% in September.             Tesla models. Panasonic has          ments. The industry has been
    uncertainty remains over the                                                                made a big bet on making             hit by a storm of problems.
    sell-off in the bond market, the                        China's manufacturing               batteries for Evs and operates a     General Electric said recently it
    oil price and the tight labour                          industry contracted again in        factory with Tesla in Nevada.        expects its wind division to
    market. The central bank left                           October, according to the           Tesla's share price has fallen       lose $2bn over two years.
     -
    the door open to a rate rise at                         official purchasing-managers'       sharply in recent weeks, as
    its next meeting in December.                           index. On that measure manu        investors fret that it will sell
                                                            facturing has shrunk in six of      fewer cars in the future.            Thinking, fast and slow
                                                            the past seven months.                                                   Britain hosted the first global
     Stockmarket indices
     January 3rd 2023=100
                                                                                                wework is reportedly prepar         artificial-intelligence sum
                                                            The United Auto Workers             ing to file for bankruptcy           mit at Bletchley Park, the base
                                                      140
     NASDAQ composite
                                                            union ended its six-week            protection. The office-sharing       for Alan Turing's band of
                                                      130
                                                            strike after reaching pay deals     company is mired in debt and         codebreakers during the
                                                      120   with Ford, General Motors and       is now worth just tens of mil       second world war. Attendees
                                                      110   Stellantis, the parent company      lions of dollars, a far cry from     included Kamala Harris, the
          -�      ---                                100
                                                 - ·--      of Fiat-Chrysler. All three         its valuation of $47bn in Janu      American vice-president; Wu
                  Dow Jones industrial average 90           Detroit carmakers have agreed       ary 2019, when exuberance            Zhaohui, China's vice-minister
      I   I   I   I   I    I     I   I   I   I    '
                                                            to increase workers' pay by         about its prospects peaked.          of science and technology; and
                          2023
     Source: Refinitiv Datastream
                                                            25% over a four-year contract.                                           Elon Musk, the boss of Tesla.
                                                            Ford said recently that the         Big oil companies reported           The conference aimed to ham
    America's stockmarkets all                              stoppage cost it $1.3bn in          bumper quarterly earnings.           mer out a set of international
    lost ground in October, the                             operating earnings, GM              BP's headline profit came in at      rules for the safe and responsi
    third consecutive month of                              reckoned it was losing $2oom        $4.9bn for the third quarter,        ble development of AI.
    declines and the longest losing                         a week, and Stellantis said it      Chevron made $6.5bn in net
    streak since the start of the                           lost $3.2bn in revenue.             income, ExxonMobil $9.1 and          X, formerly Twitter, is now
    covid-19 pandemic in 2020.                                                                  Shell $5.8bn. Those were all         worth $19bn, according to
    The S&P 500 slid by 2.2% dur                                                               higher than in the previous          internal memos reported in
    ing the month, the NASDAQ                               Putting the brakes on               quarter, and largely reflect         the press. Elon Musk paid
    composite by 2.8% and the                               Meanwhile GM's self-driving         rising oil prices from July          $44bn for the company when
    Dow Jones industrial average                            car business, Cruise, decided       to September.                        he bought it last year. He has
    by 1.4%. Investors are adapting                         to halt all its robotaxi                                                 struggled to turn the platform
    to a world of higher interest                           operations after California         Orsted, based in Denmark and         into an "everything app". Ever
    rates, which reduce the pre                            suspended the service in the        the world's largest developer of     the optimist, in March Mr
    sent value of future earnings.                          state because of safety con        offshore wind power,                 Musk told staff that he saw "a
                                                            cerns. Cruise's other markets       announced that it was with          clear, but difficult, path" to
    The Bank ofJapan relaxed its                            include Dallas, Houston,            drawing from two projects off        achieving a valuation of at
    policy of capping long-term                             Miami and Phoenix.                  the coast of New Jersey, citing      least $25obn.
    interest rates for the second
    time in three months. It will
    now allow the yield on ten                                                                POSESA
    year Japanese government                                                                  POTE�TIAlLY
    bonds to rise above 1%, treat
    ing this level as "a reference"
    rather than a strict ceiling.
    Ueda Kazuo, the bank's
    governor, attributed the deci
    sion to the sharp rise in Amer
    ican Treasury yields. The BOJ
    remains the world's only cen
    tral bank to have a negative
    policy interest rate, of -0.1%.
Lead poisoning
 ► adulteration were enforced and well-publicised stings carried                Bangladesh's response to the problem, if properly under
   out against wholesalers who persisted in it. The prime minister,          stood, could work in many countries. Its key elements included
   S heikh Hasina, discussed the problem on television. Bangla              an openness to foreign expertise; effective N Gos; a willingness
   deshi bazaars were plastered with warnings against it. Local me          by the government to work with them; and the formation of an
   dia also publicised it.                                                   even broader coalition, also including journalists and private
       According to newly published data, the country thereby re            firms, to maximise the effort. This low-cost, co-ordinated and
   duced the prevalence of turmeric adulteration in its spice mar           relentless approach to problem-solving, familiar to admirers of
   kets to zero in just two years. That slashed lead levels in the           Bangladesh, has underpinned its outstanding development suc
   blood of Bangladeshi turmeric-mill workers by about a third.              cess over the past two decades. And Sheikh Hasina deserves
   Nationwide, it probably saved thousands of lives. Early analysis          credit for it-even though her commitment to such enlightened
   suggests that each extra year of healthy life cost a mere $1 to pre      policymaking appears to be flagging.
   serve. Achieving the same benefit through cash transfers is esti
   mated to cost over $800.                                                  Leaders and lead poisoning
      Other countries where lead poisoning is rife should follow             With an election approaching, the world's longest-serving wom
   Bangladesh. Recent estimates suggest a staggering 815m chil              an prime minister, Bangladesh's ruler for two decades, is grow
   dren-one in three of the global total-have been poisoned by               ing more authoritarian and irascible. The importance of the tur
   the metal. According to the Centre for Global Development, a              meric campaign should help persuade her to reverse course. As
   think-tank in Washington, this disaster explains a fifth of the           it shows, the Bangladeshi model rests on organising, collabora
   learning gap between children in rich and poor countries.                 tion and consensus, not political fiat, and there is much more
      The poisoning has many causes . Weak or absent regulators              than her legacy riding on it.
   permit lead-infused cooking utensils, cosmetics and other pro                India, whose leader, Narendra Modi, is in the process of driv
   ducts. Yet adulterated turmeric looks like a major culprit almost         ing out foreign donors and dismantling any NGO he considers
   everywhere, chiefly owing to poor practice in I ndia, which pro          unfriendly to him, has much to learn from Bangladesh's more
   duces 75% of the spice. India was the source of much of the poi          open, pragmatic approach. The developing world has countless
   sonous pigment found in Bangladesh and is estimated to have               health and environmental problems that it might help solve. For
   the highest incidence of lead poisoning of any country.                   these many reasons, it should be sustained and widely copied. ■
Embryo research
                                                     Co01ing of age
                                     Why the rules on experimenting with embryos should be loosened
►   International Society for Stem Cell Research recommended that,         not be the case for ever. If they are right, then a case-by-case sys
    if the public agreed , countries should switch to a case-by-case       tem could apply strict limits to research i nvolving such cre
    review, in which scientists seek approval for every study they         ations without the need for new laws.
    wish to run. Unlike a time-based ban, this would be flexible.              One obj ection to such a system is that researchers may even
    Regulators could grant permission based on the l i kely benefits       tually capture their regulators. But strong feel i ngs around the
    of each proposal, public opinion and developments in the field.        ethics of embryo research make it unlikely that an overly liberal
        This system could be a nalogous to that for animal research ,      regulator could remain out of step with public opinion for long.
    i n which the more human-like a n animal is, the more protection       Another worry is that such a system sets off a race to the bottom,
    it is given (mice therefore receive less protection than mon          with unscrupulous resea rchers decamping to the country with
    keys) . Similar distinctions could hold fo r embryos and em           the most pl iant approval committee. Something s i milar could
    bryoids, too. Given the availability of abo rted embryos, re          have happened with the 14-day rule-but it did not.
    searchers wanting to culture l ive embryos beyond 28 days might           The 14-day rule is a good example of how sensible regulations
    have to work harder to convince regul ators that their study           can make the world safe for valuable but controversial research.
    should go ahead .                                                      After four decades it has reached the end of its useful ness. Just as
        Although today it is not possible to produce embryoids that        a generatio n of test-tube babies now have children of their own,
    can develop into live humans, some scientists worry that might         so it is time to let embryo research grow up. ■
Prisons
     -                                   donations and deceased-            was a renowned architect in           point length really doesn't
     Organ-donation econom ics           donor-initiated kidney-            Barcelona when he was                 matter much, at least in terms
     More than 110,000 Americans         exchange chains.                   appointed as the chief design-        of studio economics, even if it
     are waiting for an organ            ALEX C HA N                        er for the Sagrada Familia            stretches an audience's
     transplant and over 5,000 died      Assistant professor of             basilica in 1883. He completely       patience or bladder control.
     waiting for an organ in 2019.       business administration            changed the designs, every-           DOU G LAS B OW K E R
     Close to 6,000 recovered            Harvard University                 thing from the external               Salem, Massachusetts
     organs were discarded.              Ca mbridge, Massachusetts          structure to the details of the
     "Wasted organs" (September          A LVI N E . ROT H                  interior, and attracted a group       I was among the last to see
     23rd) correctly pointed out that    Professor of economics             of designers, architects and          "Titanic". I was sure a bath-
     the responsibility lies in part     Stanford University                craftspeople to work with him         room break would be needed
     with non-profit Organ               Sta nfo rd, Cal iforn ia           according to his designs. This        for a movie that long and I
     Procurement Organisations
     and in part with the excessive      -                                  continued until his death in
                                                                            1926 (after being hit by
                                                                                                                  have wondered why there was
                                                                                                                  not an intermission. Addition-
     caution exercised by                Hope on mental health              a tramcar).                           al candy sales would surely
     transplant centres when decid-      The history of psychiatry is a         The construction contin-          have resulted.
     ing who to conduct transplants      history of therapeutic enthusi-    ued, exactly according to his         C O N N I E E L L I OT
     for and which kidneys to use.       asm, with all of the tragedy and   vision, through extended              Studio City, Californ ia
         Numerous initiatives in
     Congress, and more proposed
                                         triumph, hubris and humility
                                         that such enthusiasm brings
                                                                            periods of social unrest, a civil
                                                                            war and a world war. The final        -
     by various non-governmental         ("From tents to hospitals",        two towers of the four evange-        For your eyes o n ly
     agencies, such as the Feder-        October 21st). Many of the         lists were only recently corn-        As mentioned in your review
     ation of American Scientists        challenges facing mental-          pleted and the cathedral is on        of Nicholas Shakespeare's
     and the National Academies of       heath treatment in the United      target to finish the tower of         biography of Ian Fleming, John
     Sciences, Engineering and           States are seen elsewhere. In      Jesus Christ at the centenary of      F. Kennedy listed Fleming's
     Medicine, among others, have        high-income countries, just        Gaudi's death in 2026. This           "From Russia, with Love" as
     been focused on tweaking how        one-third of people with           work is not a reconstruction,         one of his ten favourite books
     the performance of organ            depression receive formal          or the redevelopment of plans         in a 1961 interview with Life
     procurers and transplant            care. In low-income countries,     or the projection of other            magazine ("The man with the
     centres should be measured          the rate of minimally adequate     architects onto the plans of          golden pen", October 14th).
     while keeping in place the          treatment is 3%.                   Gaudi. The basilica will look as      What may also be of interest to
     system that put us in today's           Neuroscientific progress is    it did in the original plans          your readers is that the Life
     quagmire. As we indicate in         glacial, but there are reasons     envisioned by Gaudi.                  article began with an agitated
     our recent paper (conditional-      for hope. Despite our rudi-        J . M . I N N ES                      Kennedy asking his secretary
     ly accepted at the Jou rnal of      mentary understanding of the       Visiting fellow                       about the late delivery of the
     Political Economy) , such           brain, we have treatments that     Churchill College, Cambridge          latest issue of The Economist.
     approaches that keep                work, including psychological                                                A few paragraphs (and
     regulations fragmented are          therapies and antidepressants.                                           reminders) later, our hero
     bound to be inefficient, given      Antipsychotic medication is        About ti me                           sallies forth to his waiting
     that the incentives and oppor-      associated with longer life in     "Movie marathons" (October            helicopter the next day, said
     tunities facing organ procurers     schizophrenia. Globally, the       21st) explained how films             issue of The Econom ist safely
     and transplant centres are          suicide rate declined by a third   today are on average 24 %             tucked under his arm.
     intertwined.                        between 1990 and 2016. This        longer than in the 1930s, and         A LO K MO H A N
         We show that "holistic          dramatic improvement in            pointed to competition from           D ubai
     regulation", which aligns the
     interests of organ procurers
                                         global public health does not
                                         mean the work is done (even a
                                                                            streaming and the growing
                                                                            clout of big-name directors as        -
     and transplant centres by           single suicide is one too          possible reasons. But there is a      H ighly i l logical
     rewarding them based on the         many), but it shows that posi-     much more practical factor:           I think Schumpeter was a bit
     health outcomes of the entire       tive change is possible.           costs have come down because          premature in predicting the
     patient pool, can get at the root   B R E N DAN KE L LY                of digital capture and digital        demise of the hand-held
     of the problem. This approach       Professor of psychiatry            projection. Every extra foot of       device (October 7th). One only
     also leads to more organ recov-     Trinity College Dublin             film in older movies cost mon-        needs to watch Captain Kirk
     eries while increasing the use
     of organs for sicker patients       -                                  ey. It also cost a great deal for
                                                                            the initial capture and <level-
                                                                                                                  flip open his communicator in
                                                                                                                  "Star Trek" to realise such
     who otherwise would be left         A church becomes art               opment, and editing was slow          devices will obviously remain
     without a transplant.               The completion of unfinished       and tedious. The average reel         indispensable, even in
         In the end increasing access    work by a dead artist raises       of finished film was around           the 23rd century.
     to kidney transplantation will      interesting questions about        one hour and 20 minutes.              G REG N O L E
     require the improvement of          authorship and merit ("Sort of         Every cinema in America           Cheshire, Con necticut
     the entire supply chain of          by Sondheim", October 21st). In    needed six reels of film, all of
     organs. This means boosting         architecture, the work of          which required costly printing
     donor registrations and donor       Antoni Gaudi i Cornet shows        and shipping. Today, even if a         Letters a re welcome a nd sho u ld be
     recoveries from the deceased.       how the creativeness, vision       film is captured on film stock,        add ressed to the Ed ito r at
                                                                                                                   The Econom ist, The Adelphi B u i ld ing,
     It also means increasing living     and craft of a genius can live     99% of the final projection will       1-11 John Ada m Street, London WC2N 6 H T
     donations, and co-ordinating        on and be completed accord-        be from a digital scan. At most,       Email: letters@economist.com
     donations through mecha-            ing to his original designs 100    this means a hard drive                More letters are availa bl e at:
                                                                                                                   Economist.corn/letters
     nisms like paired kidney            years after his death. Gaudi       shipped to the cinema. At that
        u                                                                                                    e                                     ST 976
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lo @i C .i c. 0)20 7256 5 0 5
► end of 2021 the median maturity of Spanish           Treasuries from 1. 5% at the end of 2021 to                                    there are $2.5trn of unrealised losses, with
  and Italian businesses' debts was only 2.6           around 3 . 5% a year later drove down the                                      about two-thirds at such banks.
  years and 2.1 years respectively. In Sweden,         value of a broad index of Treasury bonds by                                        There are other sources of financial vul
  where corporate debt is an eye-watering              about 10%. That inflicted over $6oobn of                                       nerability, too. Commercial property loans
  155% of G D P, the average effective interest        losses on American banks, the most vul                                        make up around a tenth of bank assets, and
  rate on outstanding bank loans to compa             nerable of which-Silicon Valley Bank and                                       the value of office buildings has collapsed
  nies rose from 1. 5% to 3 . 9% in the year to        First Republic-suffered runs and failed.                                       owing to higher interest rates and lower
  March and will be higher still by now. In            The crisis was eventually forestalled by the                                   occupancy. Some owners have simply
  September the number of corporate bank              Federal Reserve offering to lend to banks                                      handed the keys to lenders. What is more,
  ruptcies was 14 % higher than a year earlier.        against the face value, rather than the mar                                   much lending has migrated in recent years
      Were rates to reach a permanently high          ket value, of their Treasuries, easing the                                     from banks to other sorts of financial insti
  er plateau, even long-dated debt would               pressure on their balance sheets.                                              tutions, such as pension funds and insur
  eventually start to cost companies dear.                 But in a higher-for-longer world, the                                      ance firms. They have never gone through
  That would be painful because during the             crisis could return. The last loans under                                      a cycle of rising rates as big lenders before.
  2010s firms borrowed heavily: America's              the Fed's new lending scheme are to be                                         Although the dispersal of risk is in princi
  non-financial corporations issued a net              made in March. Even if it is extended,                                         ple helpful, it also means a greater number
  $4.1trn in debt over that decade while retir        banks may find themselves unable to af                                        of firms face potential losses.
  ing a net $3.2trn of equity through divi            ford to pay the interest on the Fed loans                                          Last, consider the vulnerability of gov
  dends and buy-backs. In advanced econo              (which is similar to prevailing short-term                                     ernments. After the global financial crisis,
  mies as a whole, corporate debt is around            rates and so has been rising steadily).                                        rich countries' public debts surged to the
  93% of G D P, up from less than 80% in the               And it is not just Treasuries whose mar                                   highest level since 1946. Since the pandem
  mid-2ooos, according to data from the                ket value falls when rates rise. More or less                                  ic they have been larger, relative to G DP,
  I M F . If rates stay higher for longer, this bor   any loan paying a fixed return over a medi                                    than at any time since the Napoleonic wars
  rowing binge may need to be unwound. A               um-to-long duration will follow the same                                       (see chart 3 on next page). The sustainabil
  long period of deleveraging could there             pattern. Erica Jiang, Gregor Matvos, To                                       ity of these massive debts depends not just
  fore inhibit investment in the 2020s, just           masz Piskorski and Amit Seru, a group of                                       on interest rates, but on how those rates
  as low growth inhibited it in the 2010s.             economists, undertook an analysis that                                         compare with economic growth. In the
                                                       valued all the assets of American banks at                                     low-rate era it became fashionable to note
 Home is where the hurt is                             the market prices that prevailed in March                                      that if G D P expands faster than interest ac
 Households, too, will eventually find that            and then tested to see what would happen                                       crues, then a government's debt-to-G DP ra
 higher rates bite. In America and some                if half or all of their uninsured depositors                                   tio can shrink even as it borrows afresh to
 European countries interest rates on mort            withdrew their savings. They found that,                                       pay its interest bill. It may even be able to
 gages can be fixed for decades, which pro            even under the less apocalyptic scenario,                                      borrow more still to fund extra spending
 tects borrowers from rate rises as long as            some 200 or so banks, with col lective as                                     while keeping its debt-to-G D P ratio stable.
 they do not move house. But house prices              sets of $3oobn, would potentially be insol                                        In October the I M F projected that, be
 are likely to fall, because they depend               vent. Another paper, by Mark Flannery and                                      tween 2023 and 2028, the economic growth
 mostly on buyers who borrow afresh, and               Sorin Sorescu, two more economists, con                                       rate in advanced economies will continue
 therefore face much higher costs. On Octo            cluded, "If all unhooked losses were fully                                     to exceed the interest rate their govern
 ber 18th Mortgage News Daily, a data pro             reflected in bank balance sheets, roughly                                      ments pay on their debts, by 1.4 percentage
 vider, reported that the average 30-year              half of all banks, holding roughly half of all                                 points on average, despite recent rate rises.
 fixed-rate mortgage in America carried an             bank assets, would not meet their mini                                        The reason is that governments, like com
 interest rate of 8% for the first time since          mum regulatory capital requirements."                                          panies, have locked in low rates to some
 2000. As a result the monthly payment re                 Since March the bond index has fallen                                      degree by issuing long-term debt.
 quired to buy the median American home                by 5% more. Ms Jiang and her co-authors                                            Yet debt-to-GD P ratios are mostly set to
 with a mortgage worth 90% of the proper              have repeated their analysis. They find that                                   rise anyway, because many governments
 ty's value is now nearly 60% of average               unrealised losses have climbed modestly,                                       continue to run excessive deficits. America
 earnings, up from 33% inJuly 2021.                    but are now concentrated at bigger banks.                                      especially is borrowing with abandon:
                                                        -
     It strains credulity to think that hous          In March only some 30% of the $2.2trn of                                       strip out accounting distortions and its
 ing markets can sustain such ratios. Ac              these losses were at banks labelled "sys                                      deficit for the past year was 7. 5% of G D P, ac
 cording to the Bank for International Set            temically important" by regulators. Now                                        cording to the Committee for a Responsi- ►►
 tlements, real house prices in 12 advanced
 economies fell by 10% between the start of
 2022 and the second quarter of 2023.                   A rising tide and sinking ships
 Should rates follow the path implied by
 markets, real house prices should fall by              Te n-yea r government-bond yiel ds, %                                            Ban kru ptcies, % change on a yea r ea rl ier*
 another i4 % by the end of 2025. In a scenar
                                                                                                                               5                                                                    40
 io in which interest rates stabilise slightly
 above their current level, the peak-to                                                                                      4                                      Eu ro a rea                    20
 trough fall in real house prices would reach
                                                                                                                               3
 35%. For comparison, the fall prompted by                                                                                                                                                           0
 the global financial crisis was 13%.                                                                                          2
     Next, consider the implication of high                                                                                                                                                       -20
 er rates for the financial sector. Traders of
                                                                                                                                                                                                   -40
 ten joke that interest rates go up until                                                                                     0
 something breaks. In the spring of 2023                                                                                                          busi nesses
                                                                                                                              -1                                                                   -60
 something did: banks. They own lots of                 I   I I I I I I I I I I I          I   I I I I I I I I I I
                                                                      2022                             2023                             201 9        20         21             22            23
 government bonds, which lose value as                  Sou rces: Refinitiv Datastrea m; Eu rostat; U n ited States Cou rts                                                   *Years ending J u ne 30th
 rates rise. The jump in the yield of ten-year
 ► ble Federal Budget, a think-tank. Deficits                                                                               rate era of the 2010s made the economy less
   that high are typically seen only during                                                                                 dynamic. "It was easy for relatively ineffi
   wars or catastrophic recessions. The Econo                                                                              cient companies to stay afloat, so there
   m ist calculated the fiscal adjustments that                                                                             wasn't much creative destruction," says
   advanced economies would need to make                                                                                    Kristin Forbes of M I T. In a higher-rate
   to keep their debts stable, given the I M F's                                                                            world underpinned by faster growth, there
   projections. In every big advanced econ                                                                                 would be plenty of dynamism.
   omy bar Germany and Japan, belt-tighten                                                                                     Alas, there is a more worrying explana
   ing is needed to stop the debt-to-G DP ratio                                                                             tion for higher rates: that government debt
   from rising further. America would have to                                                                               has grown so large that it has sopped up the
   trim its primary budget deficit-ie, its def                                                                             world's surplus savings, leaving the private
   icit excluding interest on its debt-by an                                                                                sector to compete for the scraps. In the
   annual 2.4 % of G D P. Such parsimony will                                                                               short term, many traders blame the ava
   be especially difficult given the extra                                                                                  lanche of debt issuance since the pandem
   spending that is needed to cope with age                                                                                ic, as well as the unwinding of big bond
   ing populations, the climate crisis and ris                                                                             purchases at central banks, for rising bond
   ing geopolitical tensions-the annual bill                                                                                yields. Economists often pooh-pooh the
   for all of which, the I M F estimates, will add                                                                          significance of existing bonds changing
   up to about 7.5% of G D P in rich countries.                                                                             hands, but they do think the size of the out
       What is more, in a higher-for-longer                                                                                 standing stock of debt matters. A rule of
   world governments, like companies, must            Yet it would explain why the prospect of                              thumb proposed in 2019 by Larry Summers
   refinance eventually. Ten-year yields are          higher-for-longer has not caused stock                               of Harvard University and Lukasz Rachel,
   now above plausible estimates of long-run          markets to fall much. In theory, higher                               then at the Bank of England, is that a ten
   growth in most rich economies. That                bond yields should reduce the value of                                percentage-point increase in debt-to-G DP
   means much more belt-tightening could              companies' future earnings, an effect that                            raises interest rates by 0.35 percentage
   be needed to keep debts from rising. It is         bites hardest for technology firms, since                             points in the long run, while every per
   hard to escape the conclusion that, on cur        they tend to promise jam tomorrow. In                                 centage point increase in deficits raises
   rent growth forecasts, higher-for-longer           fact, as optimism about A I has spread, the                           rates by a similar amount. That would im
   would force governments into another               value of big tech firms such as Microsoft                             ply that spendthrift governments have
   round of painful budget-balancing like             and Nvidia has soared. Their rising value                             contributed to today's high rates.
   that suffered by Europe in the 2010s. If up       has kept the cyclically adjusted price-earn                              To the extent government debt is to
   heaval in the finance industry prompts ex         ings ratio of the s & P 500 at around pre                            blame for "higher-for-longer", then the
   pensive bail-outs, the fiscal outlook would        pandemic levels, even though bond                                     world economy will have to deal with high
   become yet bleaker.                                yields-and hence the rate used to dis                                er rates without any accompanying fil lip to
                                                      count future profits-are now much high                               growth. That would be painful. "You can't
     There is always cope                             er. And America's strong growth in the                                really take the view that deficits will con
     Can the world economy cope with cor             third quarter was not driven by an unusual                            tinue to push interest rates up and will also
     porate deleveraging, falling house prices,       jobs boom; in fact, the labour market is                              continue unchecked," says Maurice Obst
     turmoil at banks and fiscal frugality? Sur      cooling. If the growth number is accurate,                            feld of the Peterson Institute for Interna
     prisingly, the answer is, perhaps-if rates       productivity must have risen.                                         tional Economics "Something's got to give,
     have risen for the right reason. Economists         To the extent that productivity growth                             whether it's a more restrictive fiscal policy
     typically think that interest rates are deter   explains higher rates, the new era could be                           or some sort of debt crisis."
     mined in the long term by the balance be        a happy one. Alongside the rise in debt-ser                              Other than a fiscal crisis, how could the
     tween the world's desire to save and to in      vice costs, households will have higher real                          tension be resolved? One possibility is that
     vest. All else equal, more saving pulls          incomes, firms will have higher revenues,                             persistently high inflation could erode the
     down the so-called "natural" rate of inter      financial institutions will enjoy low de                             real value of government debts, as it has in
     est; more investment pushes it up. The           fault rates and governments will collect                              the past after moments of economic cri
                                                         -
     most popular explanation for the rock-bot       more tax. Healthy competition for capital                             sis. In that case, though nominal interest
     tom rates of the 2010s was that ageing pop      might even bring benefits of its own. Some                            rates might be higher-for-longer, the real
     ulations were stashing away more money           economists long suspected that the low-                               interest rate would not have risen as much.
     for retirement, while insipid long-term                                                                                Companies and governments would sur
     growth prospects had sapped companies                                                                                  vive high rates because their incomes
     of the desire to expand-a phenomenon                B i nge of the century                                             would be strong in cash terms. Relative to
     sometimes called "secular stagnation".              G ross govern m ent debt as % of G DP                              the high real yields they expect today,
         For rates to have shifted permanently,          Advan ced econom ies                                               bondholders would be squeezed.
     that outlook must have changed. One pos                                                                       1 25        Another possibility is that high rates
     sible reason it might have is the anticipa                                                                            push the world economy into a recession,
     tion of faster economic growth, driven,                                                                        1 00    which in turn causes central banks to cut
     perhaps, by recent advances in artificial in                                                                          them. In line with this thesis, on October
                                                                                                                      75
     telligence (AI). In the long term, growth                                                                              23rd Bill Ackman of Pershing Square Capi
     and interest rates are intimately linked.                                                                        50    tal announced that his fund was no longer
     When people's incomes rise over time,                                                                                  betting that rates would keep rising, push
     they have less need to save. Companies, ex                                                                      25    ing down the value of Treasuries. "There is
     pecting higher sales, become keener to in                                                            F'CAST           too much risk in the world to remain short
                                                                                                                       O
     vest. Central banks have to keep rates high                                                                           bonds at current long-term rates," he
                                                         1 800        50        1 900        50        2000 28
     er to stop economies from overheating.                                                                                 wrote. "The economy is slowing faster than
                                                         *Si mple average, 22 coun tries tweighted average, 41 co untries
         I t might seem farfetched to say that op       Sou rces: Reinhart a n d Rogoff, 2009 and u pd ates; I M F
                                                                                                                            recent data suggests." If he is right, higher
     timism about A I is pushing up bond yields.                                                                            may not be for that much longer. ■
Cut chemists
                                                                                                    gressive, and potentially the most perma
                                                                                                    nent, moves have been cuts to income tax
                                                                                                    es, and Iowa has been at the forefront of
                                                                                                    these efforts. "You have to continually be
                                                                                                    looking for opportunities to be competi
                                                                                                    tive, and our constituents are the winners
D E S M O I N ES
                                                                                                    in that competitive environment," says
States are cutting taxes more than at any time in a generation. What
                                                                                                    Mrs Reynolds.
happens next?
                                                                                                        The key factor enabling the tax-cutting
 ►       This has set up states for what, on the      mining the services that they provide, no       of the reductions in income taxes have
     surface, looks like the fiscal equivalent of a   tably education and health care (states are      been fairly modest: the median top rate for
     free lunch. They are using their surpluses       big funders of Medicaid, medical insur          states has gone from 5 . 4 % in 2020 to 5%
     to pay for their tax cuts and are still bring   ance for low-income families) . Grover Nor      this year, according to the Tax Founda
     ing in more than enough revenues to meet         quist, long America's most outspoken anti       tion. Iowa, on the other hand, has been
     their budgetary commitments. "Every sin         tax activist, thinks state treasuries should     more radical. Not only has its top rate gone
     gle time since we've cut taxes, revenues         cap expenditure growth at the rate of popu      from 9% to 3 . 9 % , it is shifting to a flat levy
     have still come in higher than estimates,"       lation growth plus inflation, which would        that represents a dramatic simplification
     says Jack Whitver, the Republican Senate         effectively peg per-person spending at cur      of the tax code. Iowa previously had nine
     majority leader in Iowa. Were the economy        rent levels in real terms. That sounds like a    separate income-tax brackets, plus a thick
     to fall into a recession, treasurers would be    reasonable formula. The trouble, however,        et of exemptions, all of which are now be
     able to dip into their rainy-day funds to        is that education, health care and transport     ing scrunched into one single tax rate for
     plug any shortfalls. "These are not states       tend to experience higher inflation than         all. The knock against flat taxes is that they
     that are having difficulty in making ends        other parts of the economy. Capping gov         aggravate inequality, doing away with the
     meet," says Katherine Loughead of the Tax        ernment spending at the general inflation        redistribution of income that is baked into
     Foundation, a think-tank .                       pace would almost certainly necessitate          a graduated tax system. Mr Owen estimates
                                                      real cuts to schools, medical insurance and      that about half of the direct savings from
     The first cut                                    road works.                                      Iowa's shift to a flat tax will flow to the rich
     Where things get more contentious is ac             Even without making outright cuts,           est 5% in the state. Mrs Reynolds is unapol
     counting for why state budgets are so            states may be forgoing opportunities to ex      ogetic: "We've got to stop punishing suc
     strong, and whether this strength can last       pand their current offerings, says Wesley        cess, we should reward it."
     after they slash taxes. Politicians naturally    Tharpe of the Centre on Budget and Policy
     love to take credit for their surpluses as ev   Priorities. In Nebraska, for instance, the re   Is the steepest
     idence of their sound fiscal management.         sulting revenue loss from its income-tax         Another group may benefit from Iowa's re
     In fact they were beneficiaries of the covid     cuts of the past three years is about the        forms: economists. Those wanting to
     economy in two ways. First, federal trans       same as its annual spending on Medicaid,         study the effects of tax cuts have a natural
     fers soared to help states cope with the dis    he notes. Iowa's shift to a flat tax will be     experiment because Iowa happens to share
     ruption. In 2022 federal grants to state and     phased in over the next few years, so its im    a border with Minnesota, one of the few
     local governments reached $1. 2trn, about        pact will only be truly felt in 2028, when       states moving sharply in the opposite di
     70% more than in 2019 . Technically, states      the state's nonpartisan legislative agency       rection. Democrats in power there have
     were barred from using any emergency co         estimates that the various cuts will cause       pursued one of America's most left-wing
     vid relief to fund tax cuts. In practice mon    an estimated $1. gbn decline in fiscal rev      policy agendas seen in recent years. Rather
     ey is fungible and state treasurers are mas     enues, putting them roughly 20% below            than converting their fiscal surpluses into
     ters of creative accounting.                     their prior trend. "Som ething has got to        across-the-board tax cuts, they have rapid
         Second, inflation has flattered their        give, whether it's education or health care      ly increased spending levels. In Minneso
     books, and continues to do so. Rising pric      or something else. A crash is coming," says      ta's latest biennial budget, expenditures
     es augment governments' nominal tax re          Mike Owen of Common Good Iowa, a non            are 38% higher than in its previous one, a
     ceipts and higher wages push people into         profit group opposed to the tax cuts. Mr         record increase. The state has showered
     higher income-tax brackets, says Lucy Da        Whitver is more sanguine: "I don't think it      money on schools, roads, housing and
     dayan of the Tax Policy Centre, a think         has to be one or the other. We can continue      more. It has also tried to make its tax sys
     tank. At the same time, states' nominal ex      to make investments where investments            tem more progressive: a new "millionaire
     penditures are limited by their annual           are needed, and continue to cut taxes."          tax" raises rates for the wealthiest Minne
     budgets. This year, for example, states have         In the meantime, with so many states         sotans, while lower-income residents will
     budgeted for a roughly 2 . 5 % increase in       cutting taxes, there is also a question about    benefit from a range of tax rebates.
     spending. Factoring in the prevailing infla     how best to structure the reductions. Most           Beyond differences in their fiscal and
     tion rate, that will amount to a small cut in                                                     economic trajectories, much attention will
     real spending.                                                                                    focus on whether Iowa or Minnesota does
         Critics are quick to point to Kansas's                                                        better at attracting new residents and new
     bruising experience with deep income-tax                                                          investment. Over the past decade, Ameri
     cuts in 2012 and 2013 . Described by the go                                                      ca's low-tax states, notably Texas and Flori
     vernor at the time as a "shot of adrenalin"                                                       da, have generally been its fastest grow
     for the economy, the state instead ended                                                          ers-in terms of both population and eco
     up with slower growth and weaker fiscal                                                           nomic size. That has been about much
     revenues, leading it to reduce funding for                                                        more than taxes, with warm weather and
     schools. In 2017 it reversed its tax cuts. Ad                                                    relatively low housing costs also crucial
     vocates for tax cuts counter that Kansas is                                                       parts of the equation.
     an unfair example, given that many other                                                              Iowa will be a tougher test case for the
     states have reduced taxes over the years                                                          benefits of lower taxes. For years it has had
     without such dire outcomes. In any case,                                                          relatively little population growth. Mrs
     most of the tax cutters this time around are                                                      Reynolds thinks the state can now turn its
     proceeding carefully. "I am not going to be                                                       luck around. "We're building the right kind
     the governor that has to turn around and                                                          of environment for people and business
     raise taxes, so I use very conservative pro                                                      es," she says. I f a landlocked state known
     jections," says Mrs Reynolds. Iowa's                                                              primarily for corn and presidential races
     planned expenditures are about 15% less                                                           can manage to do that, all while keeping its
     this year than its expected revenues.                                                             schools, hospitals and roads in good shape,
         But it will be hard for states to deliver                                                     it will be a tax-cutting triumph. I f not, it
     such restrained budgets without under-                                                            may instead end up a cautionary tale. ■
L E X I N G TO N                                                                                    G RE E NWOOD
Why a Democrat has short odds to                                                                    Elvis's cousin, health and tax cuts are
remain governor in a conservative state                                                             on the ballot in America's poorest state
A tucky,
  S K E D TO DESCRI B E the pol itics of Ken
           many would default to calling i t                                                        D  OWNTOWN JAC KSO N, Mississippi's cap
                                                                                                       ital , is a ghost town with storefronts
Trum p country. A n d they wou ld have many                                                         boarded up si nce the civil-rights e ra and a
poi nts in their favour. But others obj ect.                                                        crime rate that scares locals into staying i n
"It's Beshear country ! " yells Steve Beshear,                                                      after su nset. More people i n Mississippi
the state's Democratic governor between                                                             are out of a j ob and more chi ld ren live in fa
2007 and 2015 , unzipping his bomber jack                                                          therless homes than anywhere else in the
et to show a T-shi rt emblazon ed with the                                                          country. Well over half the black residents
slogan for d ramatic effect. He, too, has a                                                         of the D elta live below the poverty line.
point. On a wet Satu rday morn ing in Lex                                                          Some of those in the state's richer parts are
i ngton he was the warm-up act for h is son,                                                        glum. "When you're the poorest, s ickest,
Andy Beshear, the sitting Democratic go                                                            fattest state i n America, who wants to
vernor of the state, who is ru nning for re      Ba rrel -aged Besh ea r                           bring their family here?" says a reti ree in
election on November 7th . I ncred ibly for a                                                       Oxford, a pretty college town .
state that went for M r Tru mp by 26 pe rcent    most to link the relatively popular Demo              It is perplexing then that Tate Reeves ,
age poi nts in 2020, cu rrent polls make          cratic governor to the deeply un popular          the Republ i can governor, is ru nning for re
Beshear the Younger the favou rite.               Democratic p res ident. He argues that the        election on November 7th on a message of
     As in Appalachia and the American            economy is hard ly as Mr Beshear presents         prosperity. He is campaign i ng on what he
South , Democrats once swept Kentucky. In         i t. "The med i an household i ncome has          calls "Mississippi momentum", touting the
recent elections, Democrats have managed          dropped 12% ... and we have the lowest            state's schools and economy. His best sell
to convince themselves that one of their          workforce parti cipation that's been record      ing-point is a statistic released earl ier this
nu mber has a chan ce of wi n n i ng a p romi    ed in Kentucky's history," says Mr Cameron        year: in the decade to 2022 Mississippi rose
nent statewide race, and then rai se fabu        after an event in Fort Mitchell, near the         from ranking second-worst on 4th-grade
lous s u ms of money, only to face a d rub       bord er with Ohi o. "That's all because of the    readi ng-test scores to 21s t-best national ly,
bing at the ballot box. Thu s in 2020 Amy         Eiden administration and the enabler that         a feat that the governor d es erves some
McG rath, a serially u nsuccessful Demo          he has here in Andy Beshear."                     cred it for. He re minds voters that he re
c ratic candidate, raised $9o m i n her race to        Mr Cameron has also sought to nation        opened the state after covid-19 , pu mped
u nseat the Republ ican senator M itch            ali se the race in another way. I n his stump     money into coastal i nd ustries and cut tax
McConnell-only to lose by 20 points. Yet          speech, he pledges to p rotect law enforce       es. (Less is said about the biggest corrup
the state has spent more years this century       ment from apologists for crime, the u n          tion scandal i n state history that took place
bei ng governed by a Democrat than by a           born from abortionists and women's                while he was lieutenant governor.)
Republican. And it may now be i n for an         sports from biolog ical males . Some might             That could be enough to get his base to
other four years of the same.                     poi nt out that Kentucky seems an i nhospi       the polls. After all, Republicans usually
     That should be i nstructive for Demo        table place for the various three-letter          wi n here. But his opponent, B randon Pres
c rats. Both Beshear pere and fils have man      strai ns of feared p rogress ive indoctri na     ley (a second cousin of The Ki ng) is a p ro
aged to keep an arm's-length relationship         tion-C RT, DEi and ESG . "Some of these           life, pro-gu n Democrat and is trailing by
with p res idents of their own party. They        things haven 't made it to ru ral areas, but      j u st one poi nt in the latest poll. He out
have done so by touting the economic              we're read ing about them in the newspa          raised the governor four to one in the last
benefits of federal spendi ng. Despite the        pers , and we know they're coming," says          quarter (largely thanks to money from out
u npopu larity of Obamacare, the elder            Thomas Massie, a Republican congress             of state) . ''As you r side m irror says i n you r
Beshear pushed through an expansion to            man who carries a homemade and self              car, thi ngs are closer than they appea r," he
Med icaid , the health-insurance p ro            p rogrammed national-debt clock in his            told a crowd two weeks from election day.
gramme for the poor, and a state-ru n i nsu r    suit pocket, while at a wel ding training              One of the key issues is health care-or
ance exchange (which Republicans a re no          centre i n Flemings burg.                         lack thereof. One in six people i n the state
longer campaigning to u ndo) . The you nger            Yet Mr Beshea r has managed to parry         do not have i nsurance and nearly half the
Beshear touts private-sector i nvestments         some of these attacks. Abortion is all but il    rural hospitals are at risk of closi ng. For
spu rred on by the I nflation Reduction Act,      legal i n the state of the Kentucky, the result   every 4 , 000 children in the Delta there is
a big subsidy bill, even as he murmu rs ob       of a "trigger law" that went into effect after    j u st one paediatrician. Five years ago the
j ections to some federal environ mental          the Supreme Court overturned Roe v Wade           inpatient ward in Greenwood, a rural town
rules. "The things that a re going on from        in 2022, with no exceptions for rape and i n     tucked between cotton fields, had 160 beds ;
i n frastructu re to public educati on to         cest. As stau nchly anti-abortion as Ken         today it can finance only 12. Most of i ts pa
health care in Kentu cky to new j obs are a       tucky is, Mr Beshear has spent the later part     tients can't pay and skilled nurses have
lot more important to a Kentuckian than           of the campaign hammering his opponent            been sacked to save money. "The bleeding
whatever they're arguing about in Wash           for the stance. "My opponent lacks the ba         is profuse," says Harold Wheeler, a docto r
i ngton, DC," says the governor.                  sic empathy to say a nine-year-ol d , raped       who left the hospital after working shift
     That is why Daniel Cameron, the cur         and impregnated by a fam ily member,              after shift without backu p.
rent state attorney-general and Republican        should have an option," says the governor.             For every patient who shows up there
challenger to Mr Beshear, i s trying his ut-      "That's too extreme for all of Kentu cky." ■      are many more who stay home. Jahcoby ►►
     ► Edwards, a 27-year-old mechanic who lives                                                                           played a part in creating. It takes longer to
       in the projects and sends child-support            What's u p, Doc?                                                 train a doctor in America than in most rich
       checks to seven women, craves a check-up                                                                            countries, and many give up along the way.
       but makes too much to qualify for Medic           Doctors per 1 ,000 people                                        Future physicians must first graduate from
       aid and too little to pay his way. He has high     2022 or latest avai lable                                        university, which typically takes four
       blood pressure and last year his father died                                                                        years. Then they must attend medical
       of a stroke. He fears he is destined for the                        0              2      3      4       5      6   school for another four years. (In most
                                                          Austria
       same, but hopes he can live to see his tod                                                                         other rich countries, doctors need around
                                                          Germ a ny
       dlers become teens. The oldest person he                                                                            six years of schooling.) After post-second
                                                          Spain
       knows is 65.                                                                                                        ary education, American doctors must
                                                          I ta ly
           Mr Reeves takes pride in Mississippi be                                                                        complete a residency programme, which
                                                          Fran ce
       ing one of ten states that still refuses to ex    Brita i n
                                                                                                                           can last from three to seven years. Further
       pand Medicaid, passing up $1bn a year in           Ca nada
                                                                                                                           specialist training may follow. In all, it
       federal funds so as not to partake in Barad<       United States                                                    takes 10-15 years after arriving at university
       Obama's signature project. But polling             Japan                                                            to become a doctor in America.
       shows that 70% of Republicans in the state         Mexico                                                               If the expense and length of the training
       disagree with him on it. So does Cary                                                                               were not off-putting enough, the number
       Stockett, the governor's pastor. "He and I                                                                          of places in the profession has also been ar
                                                          U n ited States, medical school, '000
       don't see eye-to-eye on that," he says from                                                                    60
                                                                                                                           tificially held down. In September 1980 the
       his office overlooking the state capitol.                                                                           Department of Health and Human Services
       "We have the highest infant-mortality rate                                                                     50   released a report warning of a troubling
       in the country, I just kind of believe the                                                                          surplus of 70,000 physicians by 1990 in
                                                                                                                      40
       Lord would like to see that addressed."                                                                             most specialties. It recommended reduc
           At the end of September the governor                                                                       30   ing the numbers entering medical school
       announced a plan to ask the feds for a high                                                                        and suggested that foreign medical-school
       er Medicaid-reimbursement rate. If grant                                                                      20   graduates be restricted from entering the
       ed, it would keep hospitals afloat but                                                 Accepta n ces                country. Despite the shortage, doctors
                                                                                                                      10
       would do little to help people like Mr Ed                                                                          trained abroad must still sit exams and
       wards afford care. Democrats mocked the                                                                        0    complete a residency in most states re
       scheme, calling it "too little, too Tate".         1 980 85 90 95 2000 05 1 0 1 5                         22
                                                                                                                           gardless of their years of experience.
           Mr Presley wants all the cash the state        Sources: O ECD; Assoc iation of American Medical Colleges
                                                                                                                               Medical colleges listened, and matricu
       can get. The New Deal sped up electrifica                                                                          lation flatlined for 25 years, despite appli
       tion in Mississippi by decades, he says. He                                                                         cations rising and the population growing
       is touring every county, arguing that feder      ed. And yet there is a shortage of doctors.                       by 70m over the same period (see chart) . In
       al money could be just as transformative          What is going on?                                                 1997 federal funding for residencies was
       for health. His unlikely path to victory runs         For many Americans, the doctor short                         capped, forcing hospitals to either limit
       through black voters, who make up 35% of          age has already arrived. More than 100m                           programmes or shoulder some of the fi
       the electorate and most of the state's            people today live in an area without                              nancial burden of training their doctors.
       Democrats. At a historically black college        enough primary-care doctors (the problem                          Some spots have been added back, but not
       inJackson, Mr Presley's words were echoed         is particularly bad in rural areas). For men                     nearly enough. Many potential doctors are
       by so many "that's right"s and "amen"s that       tal health things are even worse: half of                         being shut out of the profession. "Not
       it sounded like a Baptist church on a Sun        Americans live in an area with a shortage                         everyone who would be willing to go
       day morning. "Let's go Brandon," one stu         of mental-health professionals. With less                         through that training and could do it suc
       dent said with a smirk. ■                         than three physicians for every 1,000 peo                        cessfully is being allowed to," says Profes
                                                         ple, America is behind most other wealthy                         sor Gottlieb, the economist.
                                                         countries, despite spending vastly more on                            In reaction to this artificial doctor
      Medicine                                           health care (see chart).                                          shortage, a new type of medical degree
                                                             The usual suspects have been blamed.                          gained popularity: Dos (doctors of osteo
      The gilded age                                     As the baby-boomers age the need for med                         pathic medicine). In 1981, there were only
                                                         ical care rises and the doctors among them                        14 osteopathic medical schools. Today
                                                         retire. According to the AAM C, more than                         there are 41. In most countries, an osteo
                                                         two out of five practising doctors will be 65                     path is someone who manipulates middle
      WAS H I N G TO N , D C
                                                         or older within the next decade, leaving                          aged spines. In America DOS are fully-li
                                                         even more vacancies. Covid-19 drove doc                          censed doctors. They represent about 11%
      Medical schools have artificially
                                                         tors away: an analysis by Peterson-K F F, a                       of the physician workforce and 25% of
      depressed the supply of doctors
                                                         non-profit group, shows that health-care                          medical-school students. "The American
      A   CCO R D I NG TO TH E Association of
          American Medical Colleges (AAMC), in
      a decade America will have a shortage of up
                                                         workers are quitting their jobs at a rate 30%
                                                         higher than before covid (and about double
                                                         the rate of all workers today). "A majority of
                                                                                                                           DO looks almost nothing like their interna
                                                                                                                           tional counterparts," says Robert Orr, a
                                                                                                                           policy wonk. "They basically main
      to 124,000 doctors. This makes no sense.           physicians would not encourage our off                           streamed themselves in response."
      The profession is lavishly paid: $350,000 is       spring to go into health care," saysJesse Eh                         Nurse practitioners and physician as
      the average salary according to a recent pa       renfeld, a physician and president of the                         sistants have been given responsibilities
      per byJoshua Gottlieb, an economist at the         American Medical Association. "People                             typically reserved for doctors, such as writ
      University of Chicago, and colleagues. Lots        have lost the joy in the profession."                             ing prescriptions. Foreign-trained doctors
      of people want to train as doctors: over               Yet there is another explanation for the                      have filled some of the gap too. Yet the
      85,000 people take the medical-college ad         doctor shortage, which has to do with the                         shortage persists. This looks a lot like a la
      mission test each year, and more than half         pipeline into the profession, and which                           bour market that has been rigged in favour
      of all medical-school applicants are reject-       the American Medical Association has                              of the insiders. ■
     Ca mpus pro testers fo r Palestine are lowering the bar for "hate speech "
                                                                                  Rather than try to punish or silence students, a wiser choice
                                                                              would be to pocket the permissive standard they are setting, for
                                                                              when the bias response team next comes knocking. A recent Har
                                                                              vard/Harris poll showed 51% of Americans between 18 and 24 be
                                                                              lieved Hamas's rampage could be "justified" by Palestinians' griev
                                                                              ances. Still, some may not realise, when they chant for a Palestine
                                                                              "from the river to the sea", that they are advocating ethnic cleans
                                                                              ing. But that is the message received by many Jews and others, and
                                                                              an argument of leftists uneasy with debate has been that the im
                                                                              pact on the listener, rather than the intent of the speaker, should
                                                                              guide judgment of offensiveness. By that measure alone, it should
                                                                              be harder now for those sympathetic to pro-Palestine students to
                                                                              argue that any "hate speech" is off limits. University presidents
                                                                              are in effect embracing this standard by defending the right of
                                                                              these protesters to speak up. (They seem unlikely to advance the
                                                                              foul position that Jews are "white" and thus un-offendable.)
                                                                                  Some presidents are in trouble over their own speech. Donors
                                                                              to Harvard and the University of Pennsylvania have closed their
                                                                              chequebooks because they thought the presidents temporised on
                                                                              antisemitism. Again, this could prove constructive: after years of
                                                                              taking positions on matters of moment-positions that happily
                                                                              aligned with those of staff and students-leaders may acquire an
     Ithepling
       T's A LWAYS  seemed a bit self-sabotaging: The leftist ideology rip
               out from American college campuses this century has on
           one hand favoured restricting speech, yet on the other posited
                                                                              appreciation for promoting debate rather than prej udging it.
                                                                                  "My hope is that the rediscovery of freedom of speech, and the
                                                                              discovery of political neutrality or political restraint-not com
     that the implacable forces of capitalism and white privilege en         menting on every event of t h e day-will b e something schools
     trench right-wing power. Whose speech did these ideologues               adopt, and they'll stick with it," says Greg Lukianoff, co-author of a
     imagine would wind up getting suppressed?                                new book, ''The Cancelling of the American Mind". "My fear is that
         This tension has not surfaced often on college campuses, at          this will be just like 9/11 ." Mr Lukianoff, who is president of the
     least not at the most exclusive schools. There, the forces of capital   Foundation for Individual Rights and Expression, a non-profit or
     ism and white privilege-if not of tolerance and curiosity-were           ganisation, says that after the attacks by al-Qaeda universities ral
     mostly routed. A dwindling minority of faculty members, as few           lied around professors vilified for criticising America. "When the
     as a tenth, identify as conservative. Administrators, whose ranks        threat is perceived as coming from off campus, they always redis
     have ballooned and who oversee the "bias-response teams" that            cover freedom of speech and circle the wagons," he says. "The test
     police speech, are even more likely to identify with the left.           is going to be if they still feel that way when the threat comes from
         Yet off campus, the forces of reaction began responding with         on campus, when it's students demanding a professor be fired."
     strikingly symmetrical concerns about speech: conservative go
     vernors and legislatures across America have embraced the theory         What Dartmouth can teach
     that certain ideas are too dangerous for all minds and certain           Amid the uproar-because of the uproar-there are signs of hope.
     views are too hurtful for particular ears. Bills proposed in states      Despite some vile acts, protests have generally been peaceful, even
     such as Texas seek to protect children from material that might          when students with opposed positions have gathered near one an
     cause "discomfort, guilt, anguish, or any other form of psycholog       other. Faculty views have not been homogeneous. Not all speech
     ical distress on account of his or her race or sex". But rather than     has taken the form of shouting, and there have even been instanc
     aiming to safeguard the feelings of people from historically mar        es reported of listening. Within hours of the Hamas massacre, pro
     ginalised groups, such bills are meant to protect white children         fessors at Dartmouth from Israel, Lebanon and Egypt decided to
     from the very ideas the left wants to promulgate.                        jointly host two public forums on the crisis, according to the Fo r
         Now a hard yet potentially constructive moment in America's          ward, a Jewish publication. They expected a dozen or so but drew
     battle over speech has arrived. On prestigious campuses, the war         hundreds; searching questions were asked.
     in Gaza has shaken the prevailing power relationships, for the mo           At the second session, Susannah Heschel, a professor of Jewish
     ment. Students attacking Israel for its response to the terrorism of     Studies, observed that scholars learn "never to be satisfied with a
     Hamas have come under withering criticism, and worse: some               simple narrative". A fellow panellist, Ezzedine Fishere, an Egyp
     have seen job offers rescinded or had their names and photos             tian novelist and former diplomat, then suggested the members of
     flashed on billboards paraded by trucks around their campuses.           the audience ask themselves, ''Are you trying to understand what
         Some right-leaning advocates of free speech are relishing the        is happening, or are you trying to find someone to blame?" People
     spectacle. For years, leading lights of the left insisted there was no   had a right to be indignant, he continued, but students also had a
     such thing as a glibly censorious "cancel culture". They liked to        chance "to understand the complexity, which is often unpleasant
     speak instead of an "accountability culture", or a "culture of conse    because we come across things that we don't like".
     quence" that justly punished offensive speakers. Now, as the can            "You don't have to go to an Ivy League university in order to be
     cellers wring their hands about being cancelled, Schadenfreude           indignant," he continued in the same kindly yet firm tone. "The
     hangs heavy in the air.                                                  opportunity you have here is to learn." ■
Gang violence is spreading across Latin America afield, to Europe and Australia. Partly as a
     ► some 330 prisoners were murdered in Ec                                                                                    What does this new narco network
       uador, the highest number in the world.           A gri m regional trend                                               mean for the countries that were once
       That same year coke ranked as Ecuador's           H om icides per 1 00,000 peop le                                     among Latin America's success stories?
       sixth-biggest export, worth nearly $1bn, or                                                                  30        Many citizens will vote with their feet. Last
       0.9% of G D P, according to Insight Crime,                                                                             year, Ecuadoreans were the second-biggest
       an investigative outlet.                                                                                     25        nationality to cross Panama's treacherous
           Similarly, this year in Costa Rica homi                                                                 20        Darien Gap on their way north.
       cides are predicted to hit a record of 17 per                                                                              Those who stay at home may turn to
       100,000 people, compared with 11 per                                                                         15        more extreme solutions. According to Lat
       100,000 people three years ago. Cocaine is                                                                   10        inobar6metro, a regional survey, fully 48%
       a big part of the problem there, too. Rising                                                                           of Ecuadoreans, 31 % of Chileans and 22 %
       production in Colombia, where record                                                                          5        of Costa Ricans rank security as their coun
       amounts of coca leaf have been harvested                                                     Chi le*         0         try's biggest problem, well above the re
       in recent years, translates into larger ship                                                                          gional average of 13 °/o . Plenty of Latin
                                                         201 5    16     17      18     19     20      21     22
       ments arriving in Costa Rica, says Alvaro                                                                              Americans admire El Salvador's authori
                                                         *No data before 2018 becau se of a change in methodology
       Ramos, a former security minister.                Sou rces: FBI; Gobierno de Ch ile; lga ra pe I nstitute
                                                                                                                              tarian president Nayib Bukele, who over
           However, coke is not the only reason for                                                                           the past year has locked up 1.6% of the pop
       rising violence. In recent years many mur                                                                             ulation in a sweeping gang crackdown and
       ders have been about the domestic mari          detained in police raids this year.                                   whose approval rating is 88%, the highest
       juana market. Illegal cannabis is big busi          As a result, the share of Chileans who                            in the region.
       ness in Costa Rica: 3% of residents say they     say immigration is bad has surged from                                    Politicians across Latin America are
       use it monthly, one of the highest con          31% in December 2018 to 77% in April 2023,                            taking note. On October 15th Daniel Noboa,
       sumption rates in Central America. Many          according to Cadem, a pollster. Another                               a 35-year-old right-winger, won the presi
       gangs prefer weed to coke. Moving the            survey found that most blame illegal im                              dential elections in Ecuador. He has prom
       white stuff is hard : it requires connections    migration for the rise in crime. Facing re                           ised to ape Mr Bukele's approach, and build
       and corrupt officials (of whom there are         gional elections next year, the government                            floating prisons in the Pacific. Some are
       relatively few in Costa Rica). By contrast       has focused more on security. After three                             sceptical that will curb the gang problem
       weed has few barriers to entry and it can be     police officers were killed in March, Mr                              there. But such outlandish solutions are
       sold anywhere.                                   Boric pledged a 40% annual increase in the                            increasingly popular. Faced with ever more
           The state is ill-equipped to stop these      security budget and passed stricter penal                            powerful gangs, many Latin Americans ap
       new gangs from thriving. Costa Rica abol        ties for crimes against police. Even so,                              pear to think sacrificing civil rights is a
       ished its military in 1949. Rodrigo Chaves,      many consider him too soft on crime.                                  price worth paying for security. ■
       the president, blames past admi nistra
       tions and the judiciary for the situation. He
       says the country does not have enough po
       lice, the laws are outdated and the judicial
       system is too soft on criminals.
                                                                                                     Pa rad ise l ost?
           The third place in this new narco net
                                                                                                                         SAN JOSE
       work, Chile, is not a murder hotspot. Last
                                                                                             Costa Rica's state services a re crumbling
       year its homicide rate reached a record 6.7
       per 100,000 people. That is far below its
       neighbours, and close to the rate in the Un
                                                         0 ofN OCTO B E R 25TH SanJose, the capital
                                                               Costa Rica, was filled with music
                                                                                                                              tion" of the country for the past four
                                                                                                                              decades. Mr Chaves says he "loves" that
       ited States, of 6.3. But as its narcofunerals     and placards as several thousand                                     people march to the presidential palace
       attest, crime is getting much worse. More         marched to the presidential palace to call                           to defend their rights, but his govern
       cocaine and potent cannabis are being in         on President Rodrigo Chaves to provide                               ment does not have the headroom to
       terdicted than ever before, with cannabis         more funding for the country's public                                spend more on health or education. "You
       seizures tripling between 2018 and 2021. Its      services. Many shouted in favour of more                             have people defending...interests that
       ports have become targets for gun-run            money for education, which does not                                  don't necessarily coincide with the gen
       ners. Timber-trafficking is also a problem.       receive the 8% of GDP annually that the                              eral well-being," he argues.
       The copper industry, which accounts for           constitution mandates. Others called for                                 Costa Rica has long struggled with
       nearly 11% of the country's G D P, is blighted    supporting the Caja, the institution that                            how to pay for its welfare state. The
       by armed hijackings.                              provides health care and pensions to                                 pandemic worsened matters, causing
                                                         Ticas, as citizens are known.                                        debt-to-GD P to rise to 68% in 2021. Mr
      Cocaine blues                                          The country has long stood out                                   Chaves has reduced that to 60%.
      Chile is one of the region's richest coun         among its neighbours in Latin America                                    But many fret that Mr Chaves's parsi
      tries. It also hosts half a million Venezue       for its universal health care and educa                             mony is an excuse for a full-scale over
      lan migrants fleeing Nicolas Maduro's re          tion, along with its democratic institu                             haul of the welfare state. He has raised
      gime. That combination has attracted ma           tions. Worries that they are worsening                               tensions with the Caja by calling it
      fias such as Tren de Aragua, Venezuela's           have been accelerated by the president's                             "bankrupt". That is not true, says Alvaro
      largest gang. It is battling to control Chile's    current focus on cost-cutting. It also                               Ramos Chaves, a former head of the
      underworld, having built a human-traf             comes at a time when the country faces a                             institution (no relation to the president).
      ficking empire across South America.               surge in violent crime, and youngsters                                   Similarly, the president has also
      Shoot-outs occur regularly in the port city        need opportunities so as to not get in                              worried some by criticising other liberal
      of Iquique, as local gangs fend off incur         volved with gangs (see previous story).                              institutions, such as public universities
      sions by the Venezuelans. Tren de Aragua's             Mr Chaves says that he agrees that                               and the independent media. Yet with an
      cells run prostitution rings in several cit       public services have deteriorated. But he                            approval rating of over 60%, he is un
      ies. Some 40 alleged members were jailed           pins the blame on the "bad administra-                               likely to change course.
      in one province last year. Dozens have been
Asia's orga n ised crime wave corm ption crackdown launched by China's
W                 showed up at Su Haijin's
       H E N PO L I C E
      lavish apartment in Singapore one
early morning in August, he leapt from his
                                                    In October, Australian police arrested
                                                seven people on suspicion of laundering
                                                the proceeds of cyber-scams, smuggling
                                                                                               kets, cash-rich Chinese (including corrupt
                                                                                               officials looking to squirrel away stolen
                                                                                               loot) could move money into international
second-floor balcony. The ethnic-Chinese        and violent crime, and seized over $3om in     bank accounts. Mr Xi's crackdown put an
businessman was found hiding in a drain         assets. It was the third China-related mon    end to that. By 2015, Macau's gaming rev
with broken legs. The police meanwhile ar      ey-laundering case they had made public        enues had slumped by 34 % . This left Chi
rested nine other suspects in what Singa       this year. In June police in the Philippines   nese gamblers and capital-control cheats
pore has described as one of the world's        raided a giant online gambling firm, rescu    looking for an alternative arrangement.
biggest money-laundering cases. It has          ing 2,700 people who claimed to have been      They found it in online gambling.
since seized or frozen more than $2bn in        tricked into working in cybercrime. Chi           It is also illegal in China, but permitted
luxury properties, cars, gold bars and cash.    na's summer blockbuster this year was not      in several South-East Asian countries,
   The case is part of a broader campaign       "Barbie" or "Oppenheimer" but "No More         whose online casinos tend to be accessible
by Asian governments to counter a huge          Bets", a propaganda film warning of the        through Chinese social-media platforms.
surge in money-laundering linked to or         risks of being trafficked to South-East Asia   By 2017, some of the j unkets that Mr Xi had
ganised crime. This criminal tsunami has        to work in cyber-scamming.                     driven from Macau had relocated to the
roots in illicit online gambling by Chinese         The crime surge can be traced back to a    Philippines, where they were licensed as
punters, much of it organised in South                                                        Philippines offshore gaming operators
East Asia by ethnic-Chinese gangs. In re                                                      (PoGos) to run online gambling firms serv
                                                  ➔ Also in this section
cent years the gangsters have also moved                                                       ing clients located abroad, mostly in Chi
into other illegal activities, especially on    30   Halloween in Tokyo                       na. Around half a million mainland Chi
line scams. Police in Australia, HongKong,                                                     nese are now estimated to work in the Phil
                                                  31 South Asia's deadly turmeric
Malaysia, the Philippines and Thailand, as                                                     ippines' online gambling industry. That is
well as Singapore, have recently raided ca       31 India's smog politics                     in part because popular online games such
sinos and scam-shops to arrest and grab                                                        as blackjack and pai gow poker require the
                                                 32 Banyan: India loves Israel
the assets of those responsible.                                                               dealer to speak the same language as the ►►
     ► player. The size of China's online gambling        Hongli International, a company impli                 of dollars in profits. One of Mr Wang's rela
       market was $9. 9bn in 2022, according to       cated in the Singapore bust, illustrates how               tives was arrested in Singapore's dawn
       I MARC, a market research firm.                transnational gambling firms operate. Ac                  raid. According to the Strai ts Times, a Sin
           Under Rodrigo Duterte, president of the    cording to Chinese court documents and                     gapore daily, Mr Wang is listed as a "person
       Philippines from 2016 to 2022, the coun       Chinese-language news reports, it was                      of interest" in the case.
       try's online casinos were encouraged. The      founded as an online gambling firm by a                        Governments have woken up to this
       industry generated some $35om in taxes         Chinese-born individual, Wang Bingang,                     nightmare of gambling, scams and money
       between 2017 and 2019, says Alvin Camba        in 2012. Within a few years, it had become a               laundering. In September the U N , China
       of the University of Denver, who studies       lucrative gambling syndicate based in the                  and the Association of South-East Asian
       Chinese capital flows in South-East Asia.      Philippines, then Cambodia, targeting Chi                 Nations teamed up to counter it. Italy and
       At its peak it comprised an estimated 250-     nese punters. In 2015 Mr Wang was arrested                 Spain recently announced crackdowns on
       300 online gaming firms, mostly linked to      and repatriated to China, where he spent                   Chinese money-laundering networks.
       the Chinese online gambling industry and       three years in prison for operating illegal                They will all struggle. Only 2-5% of money
       in many cases also conduits for money          gambling websites. After his release he                    laundering flows are intercepted, says
       laundering, according to Dr Camba. Yet         moved to Singapore, where he continued                     John Langdale of Macquarie University in
       even many legal P0Gos, providing tax rev      to run Hongli, says Jason Tower of the Un                 Australia. However hard governments try
       enues to the Duterte government, were be      ited States Institute of Peace, a think-tank               to raise that figure, the crime gangs, incen
       ing used as a cover for other crimes, espe    in Washington, who studies how Chinese                     tivised by their enormous profits, are likely
       cially online scams.                           gambling firms operate in South-East Asia.                 to find new means in the depths of the in
           This is because some legal online gam     He estimates Hongli has generated billions                 ternet to stay a step ahead. ■
       bling firms that target Chinese gamblers
       are run by criminal gangs. And as these
       gangs have developed their online opera
       tions they have often discovered new ave
       nues for criminality. It is not uncommon,
                                                                              Dog days fo r H a l l owee n
       in Manila or Phnom Penh, to find a li
                                                                                                           TO K Y O
       censed online gambling firm on one floor
                                                         A Tokyo d istrict synonymo us with fa ncy d ress and youthfu l fu n bans H a l loween
       of an office tower, and a sister operation
       running online scams on the floor below.
       In recent months authorities in the Philip
       pines have raided several P0G os accused of
                                                       SfindforH strange
                                                                 I B UYA, A D I ST R I CT in Tokyo known
                                                                    its zesty pop culture, is a place to
                                                                           clothes and youthful frolics
                                                                                                                 "No events for Halloween on Shibuya
                                                                                                                 streets". Outside the district's metro
                                                                                                                 station, a famous meeting-place, security
       using "casino infrastructure as a cover to      most days. Yet on Halloween the capital's                 guards blew whistles and hustled away
       launder, move and generate proceeds of          top tourist attraction traditionally takes                anyone tempted to linger. Most mon
       crime," says Jeremy Douglas, head of the        it up a gear. For years crowds of party                  strous to Shibuya devotees, police sealed
       United Nations Office on Drugs and Crime        goers in fancy dress have filled Shibuya's                off the spot's iconic statue of Hachiko, a
       in South-East Asia. Such recent cases have      neon-lit streets and celebrated Scramble                  legendary Japanese dog known for its
       suggested the region's illegal online gam      Crossing. In 2019 around 40,000 flocked                   loyalty. "We came here to see Hachiko.
       bling industry is now much bigger than the      to the district on Halloween. But this                    How could they do this?" complained
       licensed industry in terms of both plat        October 31st the mood was much less                       Olga, 31, a Russian tourist, looking dis
       form numbers and revenues.                      joyous. The killjoys of Shibuya's local                   consolately at the boarded-up dog.
           In the Philippines, the surge in illegal    government had banned Halloween                               The crackdown was in response to a
       activity in and around licensed casinos         festivities in the ward.                                  Halloween tragedy last year in Seoul, in
       turned opposition politicians and public            Unwelcoming signs were plastered all                  which over 150 people were crushed to
       sentiment against them. The number of           over it, including a billboard reading:                   death. Officials feared Shibuya's narrow
       P0G0s in the Philippines began declining                                                                  alleys could see another disaster. Accord
       in 2020, says Dr Camba. Some crime gangs                                                                  ing to Fukuda Mitsuru, a crisis-manage
       shifted to Cambodia and Myanmar, where                                                                    ment expert, the fact that Halloween
       they faced fewer strictures. Between 2014                                                                 festivities are a fairly recent foreign
       and 2019, the number of casinos in Cambo                                                                 import exacerbated such concerns.
       dia rose by nearly 160%, according to the                                                                     Yet the curbs are part of a broader
       Office of the United Nations High Commis                                                                 crackdown on fun-seeking in Shibuya.
       sioner for Human Rights (oH C H R) in                                                                     Complaining of excessive noise and
       South-East Asia. The gangs are alleged to                                                                 litter, the ward banned public alcohol
       have trafficked thousands of people to                                                                    consumption at certain times. Such
       work in their casinos and "scam com                                                                      measures seem unobjectionable in isola
       pounds" in those countries.                                                                               tion. Drunken salarymen lying prostrate
           As in the Chinese blockbuster "No More                                                                on pavements is a less edifying Tokyo
       Bets", these victims are often lured by the                                                               spectacle. But combined with the Hal
       promise of a lucrative job, only to find                                                                  loween ban they look to many like an
       themselves trapped and forced to engage                                                                   overreaction against youthful spirits by
       in cybercrimes such as investment and ro                                                                 heavy-handed and often aged officials.
       mance fraud. The scam centres they work                                                                       That was certainly the view of those
       in generate billions of dollars in annual                                                                 carousers who did bravely make it to
       revenues, according to the 0 H C H R in                                                                   Shibuya this week. "I come to Shibuya
       South-East Asia. The gangs launder their                                                                  every year for Halloween, so I feel be
       profits through their legal or illicit casi                                                              trayed," said Takeuchi Tetsuya, wearing a
       nos-then typically invest the proceeds in       Sti cking it to the man                                   Mickey Mouse costume.
       property in cities such as Singapore.
Lead poisoning in South Asia                         In a region where rapid policy respons     Bangladesh, where a handful of wholesal
                                                 es, let alone effective ones, are rare, Ban    ers serve the entire turmeric market.
Death by turmeric                                gladesh's success is all the more impres
                                                 sive. It was founded on recruiting support
                                                                                                      The broader lessons from Bangladesh
                                                                                                 are applicable to all sorts of policy pro
                                                 from policymakers by explaining the pro        blems, suggests Mahbubur Rahman of
                                                 blem to them in a credible way, says Jenna      I C D DR , B. First, identify and cultivate the
                                                 Forsyth of Stanford University. Between         most influential champions for change, he
                                                 2014 and 2018, she and her colleagues col      says. The impetus they generate can then
D E LH I
                                                 lected data to demonstrate the link be         be sustained by launching broad-based co
Bangladesh leads; can India follow?
                                                 tween turmeric consumption and high             alitions. In Bangladesh this meant rallying
T ask any South Asian.
                   key to a good curry
       U RM E R I C I S T H E
                       The spice supplies
                                                 lead exposure levels among pregnant
                                                 women in rural Bangladesh. Armed with
                                                                                                 researchers, government, media outlets
                                                                                                 and private firms to collaborate against
a distinctive flavour, aroma and bright yel     these findings, the researchers were able to    poisonous spices. It was hardly a secret
low colour. Many believe that consuming          convince not just Bangladesh's food-safety      recipe for success; but, as when making
turmeric, or even bathing in it, also has        officials to take urgent action, but also the   curry, the challenge lay in putting the in
multiple heal th benefits. But in much of        prime minister's office.                        gredients together judiciously. ■
South Asia, and perhaps far beyond, the              The mass-media campaign that fol
spice also exacts a terrible cost.               lowed included graphic warnings about
    That is because turmeric sold in these       lead-tainted turmeric. Sheikh Hasina com       India's air pol l ution
places is routinely adulterated with lead        mented on the problem on national televi
chromate in order to brighten i ts golden        sion. Around 50,000 publi c notices about       Filthy politics
hue. And exposure to lead, a neurotoxin,         it were plastered in markets and public ar
increases the risk of heart and brain diseas    eas. At a big turmeric processor, research
es. Children are especial ly vulnerable, be     ers tested workers' blood samples to show
cause lead poisoning stunts cognitive de        how lead was poisoning those responsible        D E LH I
velopment. According to a study by the           for pulverising, colouring and packaging
                                                                                                 A power struggle threatens efforts to
Centre for Global Development, a think          the tubers from which the spice is pro
                                                                                                 clean up Delhi's air
tank in Washington, lead poisoning               duced; then publicised the results.
among children in poor countries explains
20% of the learning gap between them and
their peers in rich countries.
                                                     Turmeric adulteration was declared a
                                                 crime-and this change was also broad
                                                 cast. A bust on a major turmeric producer
                                                                                                 D                last week of October, Del
                                                                                                        U R I N G TH E
                                                                                                    hi's air quality began its seasonal shift
                                                                                                 from unpleasantly foul to sickeningly
    People in South Asia have the highest        was aired on TV. Two wholesalers were           filthy. As temperatures dropped and clouds
levels of lead in their blood, according to a    prosecuted in a mobile court for sel ling       heavy with brown particulate matter drift
new study published in the Lancet Pla ne        contaminated turmeric, a trial the media        ed in from neighbouring states, the official
ta ry Health . Pinpointing the main cause        was again encouraged to cover. The whole       rating of air quality in India's capital went
had long seemed daunting, because lead is        salers were convicted, fined and had much       from "poor" to "very poor" and then "se
everywhere in the region. Traces of the          of their stock confiscated.                     vere" in places. This means that Delhi's air,
metal can be found in cooking utensils,              The Stanford team hopes to help launch      the most polluted of any big city, is now
cosmetics and other everyday products.           similar campaigns in India and Pakistan,        hazardous to breathe even for healthy peo
But in 2019 a team of researchers from           where they believe turmeric adulteration        ple. It is likely to remain so for much of the
Stanford University and the International        may be even more prevalent and deep            next three months.
Centre for Diarrhoeal Disease Research,          rooted. Much of the poisonous pigment               Air pollution in South Asia is estimated
Bangladesh (I C D D R, B ) , a health-research   used in Bangladesh was imported from In        to claim over 2m lives a year. Partly caused
institute, began focusing on turmeric            dia. The spice supply chain is also longer      by agricultural practices, including stubble
adulteration. Working with the country's         and more complicated in India than in           burning, it is most severe in northern In
food-safety authority, and politicians right                                                     dia, especially in winter, when cold air
up to Sheikh Hasina, Bangladesh's power                                                         traps pollutants in the mostly windless In
ful prime minister, they then launched a                                                         do-Gangetic Plain bordered by the Himala
nationwide campaign to root out the use of                                                       yas. A recent study suggests that the aver
lead-chromate pigment in turmeric. It                                                            age resident of Delhi loses up to 12 years of
turns out to have been hugely successful,                                                        life to air pollution. According to official
according to a new study published in the                                                        figures, in 2022 Delhi's air was considered
journal Enviro n mental Resea rch.                                                               "good" or "satisfactory" on only 68 days.
    In less than two years, the share of tur                                                    The average concentration of particularly
meric samples in Bangladeshi markets that                                                        harmful PM 2.5 particles-which can enter
contained detectable lead fell from 47% to                                                       the bloodstream and cause heart disease
0% . This elimination of lead adulteration                                                       and respiratory problems-was 98 micro
had a near-immediate public-health im                                                           grams per cubic metre. That is nearly 20
pact. Among workers at turmeric mills,                                                           times the level considered safe by the
blood lead levels dropped by 30% on aver                                                        World Health Organisation.
age. Across Bangladesh the reduction in                                                              As sources of air pollution are often far
lead exposure probably saved thousands of                                                        from the worst-affected places, it can only
lives for little cost. A preliminary analysis                                                    be significantly mitigated by different au
by Pure Earth, a New York-based environ                                                         thorities acting in concert. Yet partisan ri
mental N G O, suggests the programme deli                                                       valry often gets in the way-as is illustrated
vered an additional year of healthy life for                                                     by the latest row between Delhi's govern
$1. (Generating the same effect through                                                          ment, which is run by the Aam Aadmi Party
cash transfers is estimated to cost $836.)       Choose a me l lower yel low                     (AA P) , and the central government of Na- ►►
Switching horses
Under Narendra Modi, India has swung from the Pa lestinians to Israel
     ► rendra Modi's BharatiyaJanata Party (BJ P).     city administration, in turn, claimed the        the AAP government is pending.
           The argument pits Delhi's environment       scuppering of the study was part of a pat          The row is threatening a rare hopeful
       ministry against the city's pollution con      tern of government officials loyal to the BJ P   anti-pollution effort. A regional anti-pol
       trol committee, which is headed by a bu        deliberately undermining the AA P's work.        lution body, encompassing Delhi, its
       reaucrat on secondment from the national        Whoever is right, the study is unlikely to be    neighbouring states and several central
       home ministry. In late October the capital's    resumed-a serious setback for pollution          government ministries, was recently
       environment minister claimed this official      mitigation in the world's filthiest city.        launched to co-ordinate smog mitigation
       had unjustifiably withheld funding from a          The row is part of a broader fight be        policies. The fact that the AAP also governs
       years-long study to measure the source of       tween the AAP and centre over control of         Punjab, where much of the stubble-burn
       pollutants in Delhi's air. The pollution con   Delhi's entire bureaucracy. In August the        ing happens, made that seem all the more
       trol committee claimed to have identified       central government passed a law in effect        promising. Yet the body will not achieve
       methodological flaws in the study which,        awarding control to itself. This superseded      much so long as the central and Delhi gov
       it said, were designed to absolve the AAP       a Supreme Court verdict on the issue in the      ernments prize partisan advantage over
       government of blame for the problem. The        AAP's favour. A constitutional challenge by      making Delhi's air safe to breathe. ■
                     CHI NA           □
                                                                                  Where's my food ?
                                                                                                 B E IJ I N G
                                                           How Ch i na's del ivery drivers q u ietly fight to i m p rove worki ng cond itions
      Sil iguri _}
                                                     C                            drivers have a
                                                         H I NAS FOO D- D E L I VE RY
                                                        lot to complain about. Many work
                                                     long days, earning as little as s yuan
                                                                                                          forcing the company to reject orders.
                                                                                                              Even the threat of such action causes
                                                                                                          some supervisors to bend rules on when
                                  INDIA
      corridor                                       ($0.68) per delivery. Heavy rain and                 drivers get fined, says the study. Another
                                                     heatwaves do not stop them-in fact,                  piece of research, from 2021, found that
                                                     demand is highest during such weather.               small-scale strikes were sometimes
       200 km
                                                     Delivery apps promise fast turnarounds,              effective in convincing contractors to
                                                     so drivers, most of whom work for con               increase (slightly) how much they pay.
                                                     tractors, are sometimes fined for arriving               It helps when the public gets in
►       But it is most significant for India. Un    late (not to mention scolded by custom              volved. In 2021 a company called Ele.me
    der a treaty signed in 1949, India gained a      ers). The only way to keep up, they say, is          said it could pay only 2,000 yuan ($273)
    formal right to guide Bhutan's foreign poli     by running red lights and speeding.                  in compensation to the family of a deliv
    cy in exchange for free trade and security       Accidents are common.                                ery worker who died on the job. After a
    guarantees. The foreign-policy provision             Drivers and couriers have pressed for            backlash on social media, the company
    was scrapped in 2007, but India has re          improvements, holding around 400                     agreed to cough up 600,000 yuan. Later
    mained Bhutan's most important dip              protests in the past five years, says China          that year, the government demanded
    lomatic and economic partner.                    Labour Bulletin, an N GO in Hong Kong.               that delivery companies improve work
        Indian officials' chief concern is Dok      Perceived troublemakers can face conse              ing conditions for drivers and couriers.
    lam because it is near the Siliguri corridor     quences, such as being cut out of deliv             But little has actually changed, says
    (also known as "the chicken's neck" ) which      eries. Nevertheless, a new study suggests            China Labour Bulletin.
    connects India's north-eastern states to         that labour activism among drivers may                   More organised and ambitious labour
    the rest of the country. Indian authorities      actually be more widespread than previ              activism would probably lead to more
    have long feared that China, which won a         ously thought. Some are using quieter                gains for workers. But the Chinese gov
    brief border war with India over a nearby        tactics to get their way.                            ernment is unlikely to tolerate it. For
    part of the disputed frontier in 1962, might         The research was carried out by Bo               years Chen Guojiang, a food-delivery
    try to sever the Siliguri corridor.              Zhao of Fudan University in Shanghai                 driver in Beijing, posted videos online
        India may now have accepted that dip        and Siqi Luo of Sun Yat-sen University in            trying to drum up support. At one point
    lomatic ties between China and Bhutan are        Guangzhou. One of the authors spent 18               he said he was talking to 14,000 drivers
    inevitable, given the lure of Chinese trade      months working as a delivery driver in               via groups on WeChat, a messaging
    and investment. But it wants a role in the       southern China. During this time they                service. He encouraged them to work
    border talks and is sceptical about a land       witnessed five small-scale strikes, none             together and fight for better conditions.
    swap. Progress might still be possible, giv     of which was known to the public. Rather             That was too much for the authorities. In
    en that China and India both seem keen to        than taking to the streets, upset drivers            2021 he was arrested for "picking quarrels
    stabilise their border dispute. Since the        simply logged out of the app that assigns            and provoking trouble", a vague charge
    deadly clash in 2020, they have pulled back      deliveries during a period when demand               commonly used to punish activists.
    troops from several flashpoints, creating        was high, such as at lunchtime. That was             Small, quiet victories may be the best
    buffer zones where neither side patrols.         enough to cause delays to snowball,                  drivers can hope for.
        But Indian officials also have concerns
    about China's renewed efforts to enhance
    its clout in a region that India considers its
    backyard. Several South Asian states are in
    debted to China. The Maldives, where In
    dia had recently reasserted its influence,
    elected a new pro-China president, Mo
    hamed Muizzu, in September. He has since
    asked India to remove the roughly 70 Indi
    an troops stationed there to maintain radar
    stations and other military assets.
        In Sri Lanka, too, India has pushed back
    against China's influence in recent years,
    but the island nation has lately indicated
    that it seeks strong relations with both of
    Asia's giants. On October 25th Sri Lanka's
    government allowed a Chinese scientific
    research vessel to dock in Colombo, its big
    gest city, despite American and Indian se
    curity concerns. Sri Lanka's president, Ra
    nil Wickremesinghe, also attended the Belt
    and Road Forum in Beijing in October. The
    geopolitical jockeying is sure to continue.      D rivers of the world, un ite!
    But China is still very much in the game. ■
     Some a re m issing the Commu nist Pa rty that sought leg itimacy through technocratic perfo rma nce
                                                                             rule of law by Lord Denning, a British judge) . They are undaunted
                                                                             by Li's actual record as prime minister from 2013 to 2023 . True, they
                                                                             concede, that decade saw the party systematically dismantle
                                                                             checks and balances on its power, and spurn the rule of law in fa
                                                                             vour of an iron-fisted alternative that Mr Xi calls "law-based go
                                                                             vernance". But in their telling, Li's humiliations make him an icon
                                                                             for others whose hopes have been crushed in Xi-era China.
                                                                                 Chaguan is not about to tell Chinese exiles they are mistaken
                                                                             about their own country. Indeed, despite the censors' best efforts,
                                                                             social-media users have circulated images of floral tributes and
                                                                             graffiti that do look like anti-Xi complaints. Many of these quote
                                                                             celebrated Li sayings, in particular his pledge that China's opening
                                                                             to the world is as irreversible as the flow of the Yangzi and Yellow
                                                                             rivers. It is safe to assume the intention is to grumble about the in
                                                                             ward-looking nationalism of the Xi era.
                                                                                 For all that, it would be unfair to claim that every mourner for
                                                                             Li is a protester. When this columnist visited Jiuzi, the crowds
                                                                             were on their best behaviour, not defiant or fearful, as would be ex
                                                                             pected at an actual demonstration in China. Local farmers sold
                                                                             cut-up sugar cane to visitors, as police directed traffic. When
                                                                             asked why they had come, several mourners offered apolitical an
                                                                             swers about a local man who reached the top.
► 11th. One-third of Gaza's hospitals and two ther into Israeli territory. On October 29th a U rban wa rfa re
                                                                                                                    Bloodier than
   thirds of its clinics are closed, either be     rocket hit a house in Kiryat Shmona, the
   cause they have no fuel left or because they     largest city on its northern border; another
                                                                                                                    in Iraq
   were damaged by Israeli bombardment.             barrage was aimed at Rosh Pina, 14km from
       After weeks of delay, people with for       the Lebanese border. Israel's retaliatory
   eign citizenships were allowed to leave Ga      strikes have also moved deeper into Leba
   za via Rafah on November 1st. Egypt also al     non. Still, the view in both Israel and Leba
   lowed ambulances with injured Palestin          non is that Hizbullah does not wish to ex
                                                                                                                    The battle against IS in Mosul offers
   ians into its territory for treatment. But it    pand the fighting much further. Hassan
                                                                                                                    lessons-and warnings-to Israel
   refuses to open its border for refugees.         Nasrallah, the group's leader, was due to
       As the fighting expands, so has the dys
   function in Binyamin Netanyahu's govern
   ment. Many Israelis hold the prime minis
                                                    make a speech on November 3rd, his first
                                                    public appearance since the war began. His
                                                    silence is unusual. But he is under intense
                                                                                                                    W      A R I N B U I LT-U P areas is always bloo
                                                                                                                           dy, as the mounting death toll in Ga
                                                                                                                    za shows-and as Americans generals
   ter responsible for the failures leading up      domestic pressure to keep Lebanon out of                        know from their experience in Iraq earlier
   to Hamas's attack. Though the army and           the war. A survey published in al-Akhbar, a                     in this century. Their first assault on the ci
   intelligence chiefs were also culpable, they     Lebanese daily sympathetic to Hizbullah,                        ty of Fallujah in 2004 killed as many as 600
   are much more popular than he is. Half of        found that 68% of Lebanese opposed open                        civilians, or 0.2% of the population, com
   Israelis told pollsters they trust I D F com    ing a full-fledged war with Israel.                             pared with 0.4 % in today's war in Gaza. A
   manders to lead the country in war. Just a           On October 31st the Houthis, a Shia mil                    second assault later that year killed around
   tiny minority trusts Mr Netanyahu more.          itant group that controls large parts of Ye                    800 more and left most of the city's build
       This has enraged the prime minister,         men, launched drones and ballistic mis                         ings damaged.
   which compounds the divisions within Is         siles at Israel. One was shot down by Israeli                       An even larger urban battle in recent
   rael's war cabinet. Officials present at its     missile-defences. The Houthis are keen to                       years was for the Iraqi city of Mosul, which
   meetings have described a "traumatic" at        show their support for Hamas, but their                         had been seized by the jihadists of Islamic
   mosphere. The day after ground forces en        drones are slow and their missiles inaccu                      State (Is) and was eventually reconquered
   tered Gaza, Mr Netanyahu took to X (for         rate. One explosive drone aimed at Israel                       by an American-led coalition that included
   merly Twitter) and blamed intelligence           hit Taba, an Egyptian resort town, and in                      Iraqi and Kurdish ground forces. At least
   and security chiefs for their assessment,        jured six people; another landed in Jordan.                     9,000 civilians were killed in Mosul be
   before the October 7th attacks, that "Ha            Though Iran continues to issue near                        tween 2016 and 2017, according to Airwars,
   mas was deterred and sought accommoda           daily threats, it seems reluctant to unleash                    a non-profit organisation that tracks harm
   tion." He deleted the post after public criti   its proxies. Raz Zimmt, an Iran-watcher at                      to civilians. That amounted to o.6% of the
   cism from members of the war cabinet.            the Institute for National Security Studies,                    population. More than 80% of the build
       The divisions are affecting military de     an Israeli think-tank, notes that some Ira                     ings damaged were residential.
   cision-making. They explain why I D F sol       nian media outlets have tried to portray Is                        Those cases might suggest that the war
   diers sat in staging areas near the Gaza         rael's ground offensive as a failure. This                      in Gaza, though destructive, is not unusu
   strip for two weeks until the order to go in     may make it appear as if Hamas can con                         ally so by historical standards-at least not
   was given. "The army took a terrible hit but     tinue the fight without Iranian help. "[It]                     yet. Yet there are key differences. The first
   is now standing on its two feet," says one       provides Iran with justification to avoid ex                   and biggest is the status of civilians. In Mo
   senior official. "The same can't be said for     panding the conflict," says Mr Zimmt.                           sul I S attempted to prevent civilians from
   the rest of the government."                         In Gaza, though, that conflict will ex                     fleeing, firing at them and land-mining
       The public i s also furious with Mr Net     pand. A day after the first strike on Jabalia,                  corridors out of the city. Many left none
                                                    -
   anyahu for his handling of the hostage cri      Israeli jets bombed the camp again. There                       theless. Between October 2016 and June
   sis. At least 240 people were abducted dur      will be many more scenes of devastation in                      2017 nearly 900,000 departed-almost half
   ing the Hamas raid and brought back to Ga       what will be a long war. ■                                      of the pre-war population.
   za. Four have been released, and on Octo                                                                            Gaza's geography is less permissive
   ber 30th Israel said its forces had freed a                                                                      than any of these cases. Israel has told
   soldier, Ori Megidish, captured during the                                                                       around 1.1m civilians to evacuate the north
   Hamas assault. There are ongoing talks via                             Mediterranean Sea                         of Gaza, but around a third of them have
   Qatar, which has close ties with Hamas,                                                                          stayed put. Many residents fear that if they
   about a deal to free more hostages.                                                                              leave they might never be allowed to re
       As the ground offensive grinds on, Isra                                               Jabalia •             turn. Those who do want to escape cannot
   el will have to decide whether to release                                                  refugee Hanoun        go south to Egypt, which does not want to
                                                                                              camp
   more of the 360,000 reservists called up                                                                         take responsibility for refugees and has re
   after Oct 7th. Their mobilisation is a grow                                                                     fused to allow most over its border.
   ing burden on the Israeli economy. Some                                                Evacu ation zone
                                                                                                                        Israel is still bombing parts of southern
   in the war cabinet, however, would like to                                             boundary                  Gaza, albeit in more limited fashion than
   take advantage of the country's war footing                                                                      the north. "Locals can't really get away, nor
   and attack Hizbullah, the Shia militant                           Khan ,                                         can fighting really occur in open areas
   group in Lebanon that has been firing rock                      Yo unis                                         away from urban centres", says Amos Fox,
   ets and anti-tank missiles at Israel.                                                                            an expert on urban warfare who has writ
                                                                      )
       Those attacks have reached steadily fur-             Rafah                          ISRAEL                   ten extensively about Mosul. "The urban
                                                                                                                    fight [in Gaza] is self-contained and likely
                                                            ♦
                                                        Rafah                                                       far more costly than anything we've seen
     f)   More online                                crossing                                                       in the past few years." Those civilians who
                                                                                                                    have moved south face a growing humani
     For all of our coverage of the war between         EGYPT                  Gaza Stri p, Nov 1st 2023            tarian crisis.
     Israel and Hamas please go to:                                            ■ Israel i mil itary operations          In Mosul the World Health Organisa
                                                                               Sources: Liveuama p; OpenStreetMap
     economist.com/israel-hamas                                                                                     tion was able to establish trauma stabilisa- ►►
► tion points to p rovide urgent medical at A final d ifference is the nature of battle The two-state sol ution
     ► West Bank where it has built large settle          actors would have to agree to do so as well.        that only 32% of lsraeli Jews would support
       ments . Jerusalem would be d ivided, with               Other thi ngs could be easier. A two           one, down from 47% five years earlier. Is
       some sort of joint control over the old city.       state solution would be costly. Even before         raeli Arabs, who make u p one-fifth of the
       A small number of Palestinian refugees              the war, the Palestinians would have ex            population, still endorsed the idea, al
       could return to Israel, while the rest would        pected help to rehabilitate Gaza; the bil l         though their support has also d ropped ,
       settle in either Palesti ne or their present        will be much higher now. At the failed              from 87% i n 2017 to 71% in 2022. A plurality
       homes els ewhere. Israel would expect a             Camp David su mmit in 2000 negotiators              of Israel i Jews preferred the status quo.
       Palestinian state to be demilitarised .             discussed a $3obn fund to compensate Pal                Support has plummeted even further
          After two decades of serious talks              estinian refugees for lost property. Gulf           among Palestinians. A survey in June 2023
       from the hopeful era of the Oslo accords in         states such as Saudi Arabia and the United          by the Palestinian Centre for Policy and
       the early 1990s, through a desultory at            Arab Emirates (UA E) , which have boosted           Survey Research found that just 28% still
       tempt under Barad( Obama-the peace                  ties with Israel in recent years , might be         support a two-state solution. Some 53% of
       process ground to a halt in 2014 . There have       more willing to stump up the cash to show           them backed the idea ten years ago, though
       been no serious negotiations since.                 they have not abandoned the Palestinians.           just 39% thought it feasible.
           Negotiato rs cannot quite pick up where             The biggest problem, however, re mai ns              Optimists hope that these results are
       they left off. At the end of 2021 there were        not the details of a solution but the politi       squishy: people are unlikely to su pport
       465,400 Israeli settlers living in the West         cal wi ll to negotiate and implement one.           somethi ng they think impossible. A mean
       Bank, up from 116, 300 when the Oslo ac            There will be no serious peace process with         ingful peace process could push the poll
       cords were signed in 1993. They are a grow         Binyamin Netanyahu's coalition of far              numbers back up. " I don't think our people
       ing obstacle to peace. Most are concentrat         right and religi ous politicians . That co         would reject a chance to end the occupa
       ed in areas that would probably be ceded to         alition is unl ikely to su rvive long after the     tion," says one former Palestinian minis
       Israel in an agreement, bu t their political        Gaza war, and Mr Netanyahu's opponents              ter. But the events of recent weeks could
       clout (they wou ld oppose su rrend eri ng           hope that the next government will be               just as well harden both sid es agai nst the
       even land that they do not live on) has in         more amenable to tal ks with the Palestin          idea of com p rom ise.
       creased along with th ei r popul ation.             ians. "We learned a lesson that we need to               As ever in Israel , some o f the strongest
                                                           separate fro m them in a good way," says            supporters of ending the occupation are
      Context is everything                                one centrist Israeli lawmaker. "It's ti me to       the men tasked with ru nning it. In the
      The regional pictu re is also more compli           start that discussion." But I s raeli politi       wake of the Hamas attack, few Israelis are
      cated. I n 2002 the Arab Leag ue endorsed a          cians fro m the centre and left have avoided        talking publicly about the two-state sol
      Saud i proposal that promised Israel nor            the issue in public for more than a decade.         ution-or any other sol ution for the con
      mal relations with Arab cou ntries after a               On the Palestinian side, Hamas has al          flict. But defence officials are discussing it
      two-state solu ti on: by ending its conflict         ways been eager to play spoi ler. Its fi rst sui   in closed rooms . That is partly because the
      with the Palestinians, Israel could end all          cide-bombings in the 1990s hel ped to scut         desired end state of the war wi l l shape the
      i ts regional con fl i cts . The Arab Peace I n i   tle the Oslo process, and the carnage i t           war itself and because the Netanyahu gov
      ti ative was meant to be a powe rful ind uce        wrought du ring the second in tifada                ernment is incapable of holding a serious
      ment. I s rael might be more will ing to take        (" upris ing") from 2000 to 2005 tu rned a          debate on Israel 's long-term strategy.
      its boot off the Palesti nians if it felt that       generation of Israelis agai nst the idea of              Then there is the question of who wi ll
      other threats would then di ssipate .                compromise. Perhaps Hamas will fade                 play mediator. Though Russia and China
           But the region has changed since 2002.          away after the war in Gaza-but another              both aspire to a role in Middle East peace
      Some militias, from Hizbullah in Lebanon             group cou ld take its place.                        maki ng, neither has much leverage or
      to the Hou this in Yemen, are now more po               Ordinary people on both sides have lost         credibility to assume it. The European Un
      werful than the states they call home. It            faith in the two-state solution. A poll in          ion could pos ition itself as an honest bro
      wou ld not suffice for Arab governments to           September 2022 by the Israel Democracy              ker but it is not taken seriously.
      end their conflicts with Israel: non-state           Institute, a non-partisan think-tank, found              That leaves America. Mr E iden spent
                                                                                                               the fi rst th ree years of his presidency try
                                                                                                               ing to ignore the conflict. He will have
                                                                                                               other things on his mi nd in 2024-and nei
                                                                                                               ther Israelis nor Palestinians are l ikely to
                                                                                                               embark on a peace process with a president
                                                                                                               who could soon be turfed out. If Mr Bi den
                                                                                                               wins in 2024 , he could try to lead efforts .
                                                                                                                     Donald Tru mp would be another story.
                                                                                                               In January 2020, after years of trail ing a
                                                                                                               supposedly serious peace plan devised by
                                                                                                               Jared Kush ner, his son-in-law, he finally
                                                                                                               unveiled it. The plan, almost laughably bi
                                                                                                               ased in favour of Israel, was dead on arriv
                                                                                                               al . It would have given the Palestinians just
                                                                                                               75% of the occu pied West Bank, i n three
                                                                                                               cantons linked by h ighways . Israel would
                                                                                                               have kept the Jordan valley, the breadbas
                                                                                                               ket of the territory, and compensated the
                                                                                                               Palesti nians for thei r loss by ceding a few
                                                                                                               patches of barren desert i n the Negev. Pal
                                                                                                               estine's capital would have been li mited to
                                                                                                               a few d estitute suburbs of east Jerusalem .
                                                                                                               The Palesti nians, unsurprisingly, refused
      The city that d reams of peace                                                                           even to discuss the proposal. ■
Trade and dip lomacy                             Some investors have packed up and left.           institutions that our values align with,"
                                                 "Once bitten, twice shy: when will people         says Joy Basu, an American deputy assis
Preferential trade                               come back to those zones?" asks another,
                                                 who is weighing up how long to stay.
                                                                                                   tant secretary of state for African affairs,
                                                                                                   adding that human rights and democratic
                                                     Even South Africa, the biggest exporter       principles in turn create "the right envi
                                                 under AGOA , cannot take its trade access for     ronment to deepen trade and investment".
                                                 granted. America is alarmed by its close              All that will be moot if Congress does
                                                 military ties to Russia. Senior congress         not extend AGOA beyond its current expiry
America views trade with Africa as a
                                                 men have questioned whether the country           date of 2025. The uncertainty has caused
lever of diplomacy
                                                 should remain eligible for AG OA and              45% of American clothing firms to reduce
Iisrican
  N T H E EYESof American officials, the Af
         Growth and Opportunity Act    (AGOA)
    about "more than just trade". The flag
                                                 pushed for this year's forum to be moved
                                                 elsewhere. That did not happen, but only
                                                 after a South African delegation flew to
                                                                                                   their sourcing from Africa, according to an
                                                                                                   industry survey. Some senators have called
                                                                                                   for a swift renewal to "counter the malign
ship policy grants duty-free access to           Washington to patch up things.                    influence of China, Russia, and other for
America for almost 7,000 products from              As AGOA is an act of Congress, not a two      eign actors". In Washington, trade with Af
sub-Saharan Africa. To qualify, countries        way trade deal, countries have little re         rica has long been viewed as both a boost to
must respect human rights, uphold labour         course when they are booted off. Some Af         development and a spur to good gover
standards, promote a market-based econ          ricans accuse America of bullying. "We            nance. It is increasingly seen as a contest
omy and eliminate barriers to American           want to be supporting governments and             between great powers, too. ■
investment, among other criteria.
    But can a system of trade preferences
also be a tool of foreign policy, without sti
fling trade's potential for development?
That question will rumble beneath the sur
                                                                                          Fi rebra nd i ng
face as American and African officials
gather in Johannesburg between Novem
                                                                      How the red be ret became Africa's most political hat
ber 2nd and 4 th for the annual AGOA forum.
Out of 45 countries that could benefit from
the scheme, ten are already ineligible. On
October 30th President Joe Biden said four
                                                  Fdonbon net robaseball
                                                       MAGA
                                                                                    wore the
                                                     R E N C H R EVO LU T I O N AR I ES
                                                                 uge. Fans of Donald Trump
                                                                         caps. For young activ
                                                                                                   Marxist president of Burkina Faso who
                                                                                                   was assassinated in 1987. A man of perso
                                                                                                   nal modesty and striking looks, he re
more would be kicked out next year, while         ists in Africa, the red beret is de rig ueu r.   fused to let his portrait be hung in public
Mauritania would be reinstated after mak         Julius Malema, a South African firebrand,        buildings. But in death his image is
ing progress on workers' rights.                  says the hat is "a revolutionary symbol of       everywhere on the pan-African left. He
    None of the new suspensions are sur          defiance and resistance".                        fi rst wore the red beret because he was a
prising. Niger and Gabon have recently had            It is sported by supporters of Mr            soldier (who staged a coup). He said he
coups. The Central African Republic (CA R)        Malema and his Economic Freedom                  later took inspiration from Che Guevara,
has become a second home for trigger             Fighters, a populist party. It is also worn      to whom he is often compared.
happy Russian mercenaries. Uganda has a           by followers of Bobi Wine, a singer and               Ibrahim Traore, an army captain who
long record of human-rights violations            opposition leader who is trying to unseat        led a coup in Burkina Faso last year,
and this year passed a law that imposes           an autocratic president in Uganda. Activ        mimics Sankara's rhetoric and headgear.
strict punishments for homosexuality, in         ists from Ghana to Zimbabwe pull on              But it is generally civilian activists who
cluding the death penalty in some cases.          berets of various hues.                          wear berets to project radical vibes.
Ugandan human-rights groups says that                 The head that launched a thousand                 The beret can be worn in ironic re
LG BT people have been tortured, arrested         hats belonged to Thomas Sankara, a               buke of soldiers and the police. Omoyele
and sacked, among other abuses.                                                                    Sowore, a Nigerian activist, has contrast
    For many governments the conse                                                                ed his orange beret with the black ones
quences are more reputational than eco                                                            worn by police officers, who have a rep
nomic. America buys just 6% of sub-Saha                                                           utation for brutality. Yet the cap can also
ran Africa's goods exports; China and the                                                          make one a target of the state. In Uganda,
E U each purchase three times as much.                                                             beret-topped followers of Mr Wine have
Even though the Ugandan government is                                                              been convicted by army courts for wear
irked by America's warnings to firms about                                                         ing military uniforms, an offence that
the risks of doing business in the country,                                                        can lead to life imprisonment.
it can probably live without AGOA, which                                                                "The beret evokes and carries a sense
applied to just $12m of its exports last year.                                                     of liberation fighting," says Oliver Barker
Niger and the CAR export next to nothing                                                           Vormawor, a convener of a Ghanaian
under the scheme.                                                                                  youth movement that hopes to launch its
    In a handful of countries AG OA really                                                         own version. For many young Africans
does make a difference, especially in cloth                                                       who look across the continent and see
ing. There, a suspension can put a brake on                                                        that promises of democracy, equality and
economic development. Ethiopia has been                                                            dignity are unfulfilled, the beret is surely
ineligible for almost two years over abuses                                                        a symbol of a revolution that is not yet
by soldiers and rebels during a civil war.                                                         corn plete. For many others, though, it
But that was hardly the fault of the young                                                         may simply be that it is, as Mr Wine has
women who stitch shirts in industrial                                                              said, "more fashionable" than dowdy sun
zones, and who were laid off in their thou                                                        hats worn by Yoweri Museveni, his age
sands when the loss of duty-free access           Stylish Sankara                                  ing adversary-and by their parents.
made Ethiopian exports uncompetitive.
                                                                                                                □
     homes. And Ethiopia itself faces simmer                                                                             also floated the possibility of negotiating
                                                                                      SAU D I ARABIA
     ing rebellions in Oromia, its largest and                               Red                                          for a strip of land around the ancient port
     most populous region, and Amhara.                                          Sea                    @                  of Zeila in the breakaway Somali region of
         Abiy says that Ethiopia's demands can            S U DAN
                                                                     ERITREA
                                                                             • Massawa      YEMEN
                                                                                                                          Somaliland. In exchange, Ethiopia might
     be met through peaceful negotiations with                                                                            offer to recognise Somaliland statehood.
                                                                                        • Assab
                                                                      ifigray
     its neighbours. Better to discuss the matter                                                                         ''Abiy has no interest in being part of an
     now, he argues, than to risk an armed con                                                      Gulf ofAden          other conflict for the moment," says an an
                                                                                        DJ I BOUTI
     flict in the future. But Abiy has reportedly                                                                         alyst in Addis Ababa.
                                                                                            • zeila
     said in private that he is ready to use force                                                                            But the Ethiopian prime minister is no
                                                                                               Somali land
     if talks fail. "If it is not achieved by other                                                                       toriously unpredictable. "Nobody except
     means, war is the way," says an Ethiopian                                                                            himself can be certain if he is serious or
     official. A few days after the broadcast Abiy                                                                        not," says a T P L F official. Little more than
     flexed his muscles with a military parade                                                                            three years ago Abiy insisted he would not
     in the capital, Addis Ababa, in which the                                                                 I N DIAN   go to war in Tigray. Many diplomats and re
     army displayed its new weapons including                                            SOMALIA               OCEAN      gional leaders took him at his word, which
     a Russian-made electronic-warfare sys             UGANDA      KE NYA                                   500 km       he soon broke. They would be wise not to
     tem. Troop movements have been detected                                                                              make the same mistake again. ■
F17 Ukraine
   IVE  MONTHS into its counter-offensive,
            has managed to advance by just
    kilometres. Russia fought for ten
                                                  lost at least 150,000 dead. In any other
                                                  country such casualties would have
                                                  stopped the war." But not in Russia, where
                                                                                                 soldiers are not fit for purpose, so I moved
                                                                                                 soldiers in some brigades," says General
                                                                                                 Zaluzhny. When those changes failed to
months around Bakhmut in the east "to             life is cheap and where Mr Putin's refer      make a difference, the general told his staff
take a town six by six kilometres". Sharing       ence points are the first and second world     to dig out a book he once saw as a student.
his first comprehensive assessment of the         wars, in which Russia lost tens of millions.   Its title was "Breaching Fortified Defence
campaign with The Economist in an inter              An army of Ukraine's standard ought to     Lines". It was published in 1941 by a Soviet
view this week, Ukraine's commander-in           have been able to move at a speed of 30km a    major-general, P.S. Smirnov, who analysed
chief, General Valery Zaluzhny, says the          day as it breached Russian lines. "If you      the battles of the first world war. ''And be
battlefield reminds him of the great con         look at NATO's text books and at the maths     fore I got even halfway through it, I realised
flict of a century ago. "Just like in the first   which we did, four months should have          that is exactly where we are because just
world war we have reached the level of            been enough time for us to have reached        like then, the level of our technological de
technology that puts us into a stalemate,"        Crimea, to have fought in Crimea, to return    velopment today has put both us and our
he says. The general concludes that it            from Crimea and to have gone back in and       enemies in a stupor."
would take a massive technological leap to        out again," General Zaluzhny says sardoni         That thesis, he says, was borne out as he
break the deadlock. "There will most likely       cally. Instead he watched his troops get       went to the front line in Avdiivka, also in
be no deep and beautiful breakthrough."                                                          the east, where Russia has recently ad
    The course of the counter-offensive has                                                      vanced by a few hundred metres over sev
                                                    ➔ Also in this section
undermined Western hopes that Ukraine                                                            eral weeks by throwing in two of its armies.
could use it to demonstrate that the war is        44 U kraine's drone wa rs                     "On our monitor screens the day I was
unwinnable, forcing Russia's president,                                                          there we saw 140 Russian machines
                                                   45 The woes of the French left
Vladimir Putin, to negotiate. It has also un                                                    ablaze-destroyed within four hours of
dercut General Zaluzhny's assumption that          46 Poland's milita ry ambitions               coming within firing range of our artillery."
he could stop Russia by bleeding its                                                             Those fleeing were chased by "first-per
                                                    - Cha rlemagne is away
troops. "That was my mistake. Russia has                                                         son-view" drones, remote-controlled and ►►
 ► carrying explosive charges that their oper          drones, and of electronic warfare which                               has a population three times and an econ
   ators simply c rash into the enemy. The              can prevent them from flying.                                         omy ten times the size of Ukraine. " Let's be
   same picture unfold s when U krainian                     General Zaluzhny's assessment is so                             honest, it's a feudal state where the cheap
   troops try to advance. General Zaluzhny              bering: there is no sign that a technological                         est resou rce is human life. And for us ... the
   describes a battlefield in which modern              b reakthrough, whether in drones or i n                               most expensive thi ng we have is our peo
   sensors can identi fy a ny concentration of          electronic warfare, i s arou nd the corner.                           ple," he says. For now he has enough sol
   forces , and modern precision weapons can            And technology has its limits . Even in the                           diers . But the longer the war goes on, the
   destroy it. "The simple fact is that we see          fi rst world war, the arrival of tanks in 1917                        harder it will be to sustain. "We need to
   everything the enemy is doing and they see           was not sufficient to break the dead lock on                          look for this solution , we need to fi nd thi s
   everything we are doing. I n ord er for us to        the battlefield . It took a suite of technol                         gunpowder, quickly master it a n d u s e i t for
   break this deadlock we need s omething               ogies, and more than a d ecade of tactical                            a speedy victory. Because sooner or later
   new, like the gunpowder which the Chi               i nnovation, to produce the German blitz                             we are going to fi nd that we simply don't
   nese invented and wh ich we are still using          krieg in May 1940. The implication is that                            have enough people to fight." ■
   to kill each other," he says .                       U kra i ne is stuck in a long war-one in
       This time, however, the decisive factor          which he acknowledges Russia has the ad
   will be not a single new i nven tion , but will      vantage. Nevertheless, he insists that Uk                            The wa r i n the a i r
   come from combi ning all the technical sol          raine has no choice but to keep the i n itia
   utions that al ready exist, he says . I n a By       tive by remain i ng on the offens ive, even if                        Don't look up
   Invitation article written for The Economist         it only moves by a few metres a day.
   b y General Zal uzhny (available a t                      Cri mea, the general bel ieves, remains
   www. economist.com/ZaluzhnyBI) , as well             Mr Pu ti n's greatest vulnerability. H is legiti
   as in an essay shared with the newspaper,            macy rests on having brought it back to
   he urges innovation in drones, electronic            Russia in 2014. Over the past few months ,
                                                                                                                              Drone pilots have become valuable
   warfare, anti-arti ll ery capabilities and de       U kra i n e has taken the war i nto the pen i n
                                                                                                                              targets for both sides
   mining equi pment, as well as in the use of          sula, which remai n s critical to the logistics
   robotics.
       Western all ies have been overly cau 
   tious in supplyi ng U kraine with their latest
                                                        of the conflict. "It must know that it is part
                                                        of Ukra ine and that this war is happen ing
                                                        there." On October 30th Ukraine struck Cri
                                                                                                                              T    H E D RO N E might not spot you , but if it
                                                                                                                                   does, the re is only one thi ng to do: hide
                                                                                                                              well, and hide quickly. "Major", a 25-year
   tech nology and m o re powerful weapon s .           mea with American-suppl ied long-range                                old drone pilot operating near the hottest
   Joe B i d en, America's pres ident, s e t obj ec    ATAC MS m issiles fo r the first time.                                fron t li nes of the south, in Zaporizhia prov
   tives at the start of Ru ssia's invas ion : to en        General Zaluzhny i s desperately tryi ng                         ince, says your chances are not good if an
   sure that U kraine was n ot defeated and             to prevent the wa r fro m settl i ng i nto the                        enemy p ilot has you in his sights. The
   that America was not dragged into con               trenches . "The biggest risk of an attritional                        drone can come from behi nd you r own po
   frontation with Russia. This m eans that             tre nch war is that it can d rag o n for yea rs                       s ition s , and m asquerade as your ow n . The
   arms supplied by the West have been suffi           and wear down the Ukra i n ian state," he                             cameras are not great. But ru nning at
   cient i n sustai n ing Ukraine in the war, bu t      says . In the fi rst world war, pol itics inter                      speeds of 150-160 kph , it will always out
   not enough to allow it to win. General Za           fered before techn ology could make a d if                           pace you. "I f your cover is poor, then you
   luzhny is not complai n i ng: "They are not          ference. Four emp ires collapsed and a rev                           are l ikely a dead man," he says. Major has
   obliged to give us anything, and we are              olution broke out in Russia.                                          survived a pu rsu it four ti mes, the last ti me
   grateful for what we have got, but I am sim              Mr Putin is cou nti ng on a collapse in                          in mid-October. Two of his closest com
                                                        -
   ply stating the facts ."                             Ukrainian morale and Western su pport.                                rades have been less fortu nate. "God, not
       Yet by holding back the su pply of long         There is no question i n General Zaluzhny's                           phys ics, decides if you survive," he says.
   range miss i le systems and tanks, the West          mind that a long war favou rs Russia, which                                The hunters are rapidly becoming the
   allowed Russia to regroup and build u p its                                                                                hu nted. The controllers for most drones
   defences i n the aftermath of a sudden                                                                                     leave their own electronic trace, and if a pi
   breakthrough in Kharkiv region in the                                                                                      lot isn't careful, the enemy can home in on
   north and i n Kherson in the south late in                U KRAI N E                                                       them . "Hummer," a commander in the
   2022. "These systems were most relevant                                                                                    47th brigade, i n the south , says the Rus
   to us last year, but they only arrived this                      Dnieper                                                   sians fi re everythi ng they have once they
   year," he says. Similarly, F-16 j ets, due next                        D n i p ro •                                        identify a target. They can use their own
   year, are now less helpful , suggests the                                                                                  strike drones , but they also apply high-pre
   general, in part because Rus s ia has im                                                                                  cision artillery, mines, glide bombs and
   proved its air defences : an experimental                                                                                  even, on occasion, saboteur groups . Major
   version of the s-400 missile system can                                                                                    says he has lost 15% of his colleagues over
   reach beyond the city of Dnipro, he warns.                                                                                 the last few months. Hummer says his fig
       The delay in arms deliveries, though                                                                                   ures a re lower, but refuses to elaborate.
   frustrating, is not the mai n cause of                                                                                          U krai ne is the pioneer of the first-per
   U krai ne's predicament, according to Gen                           Cri mea · ·. . _ ·                                    son-view (F PV) drones: craft that are flown,
   eral Zaluz h ny. "It is important to u nder
                                                                                     >-,,                 RUSSIA              video-game-l ike, by goggle-wearing p ilots
                                                          Black
   stand that this war cannot be won with the              Sea                 Ukrainian ·.erritory                1 00 km    with real-time manoeuvrability. The
   weapons of the past generation and out                                     an nexed by Russia in 2014                     drones can cost j ust a few hundred dollars
   dated methods," he insists . "They will i n          November 1 st 2023                                                   to build, but can deliver explosives capable
   evitably lead to delay and , as a conse               Russi an-              Russian          ■ Clai med as               of destroying or i ncapacitating equipment
                                                          cont rolled            operations*         Russia n-controlled
   quence, defeat." It is, i nstead , tech nology                                                                             with a val ue of millions. I n a day, a si ngle
   that will be decisive, he argues. The general
                                                        ■ Ukrain i a n advancest          • Russia n fortifi cations built*
                                                                                                                              operator can take out a dozen high-value
                                                        *Russia operated in or attacked, but doesn't co ntrol
   is enthu sed by recent conversations with            tsince May 1 st 2023 *or expa nded Feb 24th 2022-Oct 1 st 2023        assets, with corresponding human losses .
   Eric Schmidt, the former chief executive of          Sou rces: Institute for the Study of War; AE l's Critica l Threats    That has made the drone pilot an even
   Google, and stresses the decisive role of            Project; Brady Africk
                                                                                                                              more prized kill tha n a s niper, one front- ►►
► line commander suggests. "A lot of people                                                       the alliance is tearing itself apart.
  want to become drone pilots because they                                                             Mr Melenchon's failure to describe the
  think the work is further back and safer.                                                       murderous Hamas attacks on Israel on Oc
  The reality is that it's extremely dangerous                                                    tober 7th as acts of terrorism prompted the
  to be flying battlefield drones."                                                               first fracture. He denounced the violence
      The first F PV drones appeared in east                                                     and called for a ceasefire, with no reference
  ern Ukraine in the spring. They were a re                                                      to terrorism or Hamas. As the ambiguity
  sponse to limited supplies of Western am                                                       persisted, Olivier Faure, the Socialist par
  munition and the challenge of a much bet                                                       ty's leader, ordered a "moratorium" on
  ter-equipped adversary. Drones have since                                                       working with N U P E S .
  played a leading role in degrading Russian                                                           Since then, things have only worsened.
  firepower as part of Ukraine's southern                                                         On October 31st Mr Faure declared that
  counter-offensive in the Zaporizhia re                                                         there was no reason to return to the alli
  gion. Although Ukraine initially enjoyed                                                        ance, although he stopped short of quit
  total dominance in this new class of                                                            ting. He favoured a union of the left, he
  drones, the Russians are catching up. The                                                       said, "but not at any price". The "constant
  first Russian FPV drones appeared by July,                                                      conflictualisation" of all subjects, Mr Faure
  and are now harassing Ukrainian units                                                           argued, was "demonising" the left-pre
  along the front. Ukraine is also hampered                                                       cisely at a time when, on the far right, Ma
  by the fact that its drones are still largely                                                   rine Le Pen was busy "de-demonising" her
  assembled and paid for by volunteers.                                                           own party. The left, in effect, was helping
  Command structures are similarly anar                                                          to make her look respectable.
  chic, with freelance drone operators, bri                                                           The logic that turned the alliance into
  gade drones, secret services and others op     Death from a bove                               the biggest opposition grouping to Em
  erating in the same areas. Meanwhile Rus                                                       manuel Macron's minority centrist gov
  sia has clear superiority when it comes to      tyne, the centrepoint of the Ukrainian          ernment always had more to do with im
  more expensive classes of drones, such as       counter-offensive effort, says he operates      provised electoral tactics than conviction
  high-powered reconnaissance machines.           without any electronic protection. "Intu       or style. The constituent parties-Mr Me
      But the small FPV battlefield drones        ition is the only thing that counts in this     lenchon's Unsubmissive France, the Com
  have challenged many accepted rules of          wild fight," he insists. It is a fight that     munists, Greens and Socialists-disagree
  war. "The future is already with us," says      shows no sign of letting up-even as             about NATO, Europe, nuclear power and
  "Genius", a deputy battalion commander          Ukraine's progress south has slowed to a        more. N U P ES delights in theatrical antics,
  in the 47th brigade. In mid-October a Uk       snail's pace. "Left Handed", an infantryman     designed to go viral on social media. One of
  rainian pilot set a 22km record for the dis    also fighting at the front, says Ukrainian      Mr Melenchon's deputies brandished a vial
  tance at which he incapacitated a Russian       losses have increased to alarming levels, in    of bedbugs in parliament. Another posed
  tank, 18km behind the front line. His com      part due to the drones. The plains of Zapo     outside a government ministry with his
  mander says the Russians have imposed a         rizhia have turned their back on life, he       foot atop an effigy of the minister's head.
  10km no-tank zone behind the front, dra        says. "It's hellish. Corpses, the smell of           Moderate Socialists have watched in
  matically decreasing the value of such          corpses, death, blood and fear. Not a whiff     dismay as the left's credibility has been
  weapons. Hummer says that his own forc         of life, just the stench of death." Those in    shredded. Divisions over the crisis in the
  es have a 58% success rate in hitting tar      units such as his own have more chance of       Middle East have brought those strains to
  gets. But the traffic is not one-way, and the   dying than surviving. "Seventy-thirty.          breaking point. In a recent poll 63% of So
  Ukrainians have suffered many losses too.       Some don't even see their first battle." ■      cialist voters judged Hamas's attacks to be
  Russian F PV drones have destroyed several                                                      terrorist acts; among supporters of Unsub
  Bradley Fighting Vehicles (each worth                                                           missive France, the figure was a mere 38%.
  some $2m) and even a Leopard tank.              The French left                                      The troubling reality for the Socialists,
      The Russians are learning "from their                                                       however, is that they lack the weight to go
  mistakes...and from ours," says Hummer.         Irreconcilable                                  it alone. Their candidate at each of the two
  Earlier in the summer, some units began to                                                      most recent presidential elections secured
  equip higher-value assets like tanks and        differences                                     a dismal single-digit score in first-round
  artillery with jamming boxes, which create                                                      voting. Some Socialists who had misgiv
  high-energy fields around an object so that                                                     ings about the N U P E S adventure hope that
                                                  PARIS
  signals around it stop working. Attacking                                                       the fracture might be a clarifying moment.
                                                  Divisions over Israel and Hamas are
  such equipment, without video feedback,                                                         It could be, says one ex-minister, a "chance
                                                  pulling the left-wing alliance apart
  is a difficult if not impossible task. Ukrai                                                   for a realignment" of left-wing politics,
  nian units by and large don't yet have the
  same technology. " F PV drones have com
  pletely changed the tactics of armoured in
                                                  A                  France's Socialist Party
                                                          D ECA D E AGO
                                                      controlled the presidency, both houses
                                                  of parliament, and a majority of regions
                                                                                                  which also draws disappointed left-wing
                                                                                                  ers from Mr Macron's centrist alliance. Ber
                                                                                                  nard Cazeneuve, a Socialist ex-prime min
  fantry battle and we have to adapt better,"     and big cities. Today the once-mighty party     ister who quit the party when it joined N U 
  says Yuriy Momot, the deputy general di        has been reduced to an inaudible minority       P E S , has called on the party to break defin
  rector of a company developing technolo        partner in a left-wing parliamentary alli      itively with the alliance.
  gy-jamming countermeasures for Ukraine.         ance controlled by Jean-Luc Melenchon, a             Even if it does, the damage will be hard
  "Before, only brigades thought about elec      former Trotskyist firebrand. When this          to repair. "Moderates in the party have
  tronic warfare. Now company-level units         four-party grouping, known as N U P E S , was   been trapped", says a Socialist figure. A new
  need equipment that can detect and de          first launched last year ahead of legislative   poll on first-round voting for the presiden
  fend themselves against F PV drones."           elections, Socialist moderates accepted its     tial election in 2027 gives the Socialist can
      Major, who pilots from positions start     logic through gritted teeth. Now, as differ    didate just 4-6%. The candidate who
  ing just a few hundred yards from Robo-         ences over the Israel-Gaza conflict surface,    comes top, with 31-33% : Ms Le Pen. ■
     PEurope
         O LA N D'S I NCOM I N G coalition govern
         ment will want to be seen by the rest of
               as marking a fresh start. But in one
                                                      bership, some might question why Poland
                                                      feels the need to be such an outlier in mil
                                                      itary spending. The answer is that history
                                                                                                          Panther tanks, 180 of them to be delivered
                                                                                                          rapidly from the Korean army's own inven
                                                                                                          tory and 820 to be made under licence in
     respect it is unlikely to diverge far from the   and geography make Poland hedge against             Poland from 2026. The rest of the package
     policies of its populist predecessor, Pis (the   the possibility of Ukraine being forced into        includes 672 Thunder howitzers, two
     Law and Justice party). In the immediate         an unsatisfactory ceasefire and Russia              thirds of them locally produced, and 288
     aftermath of Russia's invasion of its neigh     quickly regenerating its combat power. Be          Chunmoo multiple-rocket launchers to be
     bour Ukraine in February last year, the then     sides, Poles fear the prospect of an isola         mounted on Polish infantry-fighting vehi
     government embarked on a mission that            tionist Trump administration that might             cles. Poland intends to field more tanks
     the defence minister, Mariusz Blaszczak,         weaken NATO and balk at coming to Po               than are operated by the armies of Germa
     described as providing Poland with 'the          land's rescue, should the worst happen.             ny, France, Britain and Italy put together.
     most powerful land forces in Europe" by              Poland's first priority last year was to fill
     acquiring massive firepower and more             the gaps left by transferring 240 mainly So        K-Pop's ARMY marches on
     than doubling the size of its armed forces.      viet-era tanks, infantry-fighting vehicles,         To replace the MiG-29s and su-22s sent to
         There is a strong Polish consensus on        fighter jets and artillery (including 54 new        Ukraine, Poland is also buying from South
     the need for such a plan. According to           Polish Krab howitzers) to Ukraine. America          Korea 48 Golden Eagle FA-50 fighter jets, in
     opinion research by NATO , 80% of Poles fa      agreed to deliver n6 Ml Abrams tanks from           preference to adding to its fleet of more ex
     vour maintaining or increasing defence           Pentagon stocks to add to the 250 ordered           pensive American F-16s, for which it would
     spending. In March 2022 parliament voted         in 2021. But the list soon expanded: most of        have to wait years. Speed of delivery, qual
     almost unanimously for the Homeland De          the contracts went not just to America but,         ity, price and standardisation with NATO
     fence Act that raised the annual military        more surprisingly, South Korea. This was            equipment were all reasons for doing busi
     budget to 3% of G D P (well above NATO's call    partly to snub Europeans critical of the Pis        ness with the Koreans. A further strategic
     for 2 % ) and set up an extra "off budget"       government's creeping authoritarianism.             goal has been to tum this buying spree into
     fund for military modernisation worth                Though not all the contracts have been          an engine for building Poland's own arms
     about $9.5bn this year and next.                 finalised, the total planned spending may           industry as an exporter to the rest of
         Few demurred when the prime minis           be between $3obn-4obn but could rise to             Europe-again, with Korean help.
     ter, Mateusz Morawiecki, declared in Janu       $135bn over the next decade. Aside from an              What could possibly go wrong? While
     ary that the course of the war in Ukraine        agreement in 2020 to buy 32 F-35 fighter            generally endorsing the defence build-up,
     meant that "we must arm ourselves even           jets for $4.6bn, other big-ticket items or         the new government will want to review
     faster" and pushed the target up to 4% of        dered from America include 486 H I MA RS            some contracts that may have been unduly
     G D P amid hints that it might even have to      rocket-launchers for about $10bn, to add to         rushed through. The affordability of the
     rise to 5% over the next decade.                 the 20 it has already; 96 Apache attack-he         weapons binge also depends on optimistic
         Given that Poland's security, unlike         licopters for up to $15bn (in addition to an        assumptions about economic growth. Ben
     Ukraine's, is undergirded by its NATO mem-       order worth $1.7bn for 32 AW149 helicopters         Barry, a land-warfare expert at the Interna
                                                                                                          tional Institute for Strategic Studies in
                                                                                                          London, queries whether Poland can han
                                                                                                          dle the scale of infrastructure investments
                                                                                                          and institutional change needed to meet
                                                                                                          the "massive challenge" of training a much
                                                                                                          larger army to use the new kit.
                                                                                                              Poland's demography-its population
                                                                                                          is falling fast-could make it hard to meet
                                                                                                          the goal of a 300,000-strong armed forces,
                                                                                                          of whom 250,000 are to be regulars and
                                                                                                          50,000 part-timers. A former head of the
                                                                                                          national defence ministry, Tomasz Siemo
                                                                                                          niak, recently poured cold water on the
                                                                                                          plan: a professional army of 150,000, he
                                                                                                          reckoned, was the manageable limit.
                                                                                                              If as expected the new government
                                                                                                          seeks to repair relations with the E U, it will
                                                                                                          face pressure to comply with E U budget
                                                                                                          deficit rules, which will bring greater scru
                                                                                                          tiny of Poland's vaulting military ambi
                                                                                                          tion. Nonetheless, Poland seems bent on
                                                                                                          becoming NATO's beefiest military land
                                                                                                          power in the years ahead. Fear of Russia is a
     Don't mess with the Poles                                                                            great motivator. ■
J
  U D I T H F E L I N E loved being a prison go   lowing year to rehire many of those it had     show they are worthy of an early release,"
  vernor. The former boss of H M P Maid           paid off. In his most recent annual report     says Ms Feline. "It's disheartening".
stone in Kent relished the challenge of            Charlie Taylor, the chief inspector of pri        This perfect storm of failures has been
helping prisoners "become better people".          sons, said every inspected institution suf    gathering since the mid-199os, when a
Small, everyday interactions were a crucial        fered from staff shortages.                    more punitive sentencing policy was in
part of that, she reckoned. But twin chal             For prisoners, this has been calamitous.   troduced. Since then most types of crime
lenges-a rising prison population and a            It may seem a simple thing, says Ms Feline,    have seen "sentence inflation", says Mr
shortage of staff-meant this was becom            to put another bunk in a cell that already     Neilson. The average sentence for murder
ing increasingly unachievable. "I didn't           sleeps one, or even t\vo. (Most of Britain's   was 20 years in 2020, up from 12. 5 years in
want to stop loving my job," she says. So          prisons were built in the 19th century when    2003. No government has tried to reverse
last year she took early retirement.               cells were intended for one.) But in           this trend, which is why the prison popula
    Ms Feline's experiences mirror those of        j ammed, understaffed j ails, people are       tion of England and Wales is now nearly
innumerable prison workers. In October             locked up for far longer: 22 hours of con     double what it was three decades ago.
data from the Ministry of Justice (MoJ) re        finement is not uncommon.                          But the situation has now become so
vealed the prison population of England                "It's awful to hear people describe        bad that the government cannot ignore it.
and Wales had hit an all-time high-only a          spending endless hours doing nothing           In October Alex Chalk, the j ustice secre
few hundred short of official capacity.                                                           tary, announced a series of emergency
Most British prisons have long been over                                                         measures to tackle overcrowding. Some
crowded. A dramatic escape from Wands               ➔ Also in this section                       are better than others.
worth prison in London this summer                                                                    One, limiting short prison sentences (of
                                                    48 The covid-19 inquiry
showed it was holding more than 1, 600                                                            less than 12 months) for low-level offend
men, though it was built for 1, 000.                49 Bagehot: Labour in power                   ers, should have been introduced long ago.
   The situation has been dreadfully exac                                                        Research shows that for such petty crimi
                                                     ➔ Read more at: Economist.corn/Britain
erbated by a shortage of prison guards. In                                                        nals, many of whom are drug addicts, short
2013 the M OJ introduced a voluntary redun             The promise of virtual hospital wards     prison sentences result in higher levels of
dancy scheme for prison officers, the ef                                                         reoffending than community sentences.
                                                        The genius of J i lly Cooper
fects of which were so dire it tried the fol-                                                     Community options are cheaper, too. And ►►
     ► because chaotic, low-level criminals (who                                                                          questioned u ntil at least 2026. Lawyers will
       are the main conduit for drugs into j ails)            C el I, the facts                                           pore over a vast trove of documents and try
       make prisons more difficult to run, reduc             Prisoners per 1 0 0,000 popul ation                         somehow to p in down a narrative.
       i ng their nu mber may also make it easier to          Septem ber 2023 or latest                                        In retrospect, Britain's handli ng of the
       recruit prison staff.                                                0           50          1 00   1 50    200    pandemic does not appear as bad as it once
           Another i nitiative, releasing some pris                                                                      did. On a crude measure of excess deaths ,
       oners who are serving sentences of less                Pola nd                                                     the cou ntry ranks close to the middle o f the
       than four years 18 days early, is also sensi          England                                                     pack, hel ped greatly by an i mpressively
       ble "and not alarming for the public," ob             & Wales                                                     fast vaccine roll-out. But the i nquiry will
       serves Pia Sinha, chief executive of the Pri          Spain                                                       look at why Britain d id so badly before the
       son Reform Trust and a former prison go                                                                           j abs arrived, probing government deci
       vernor. She notes, however, that it is un             France                                                      sions over lockdowns, care homes and
       clear how much difference it would make                Italy
                                                                                                                          public-health guidance. This autumn's
       given that it seems likely to be limited to                                                                        hearings, focused on 10 Downing Street
       certain prisons and prisoner-types.                                                                                and the Cabinet Office, wi ll be among the
           These measures, like most that would               Sou rces: Wo rld Prison Brief; Eurostat             *2021
                                                                                                                          juiciest sessions. Hoveri ng over them is
       reduce overcrowding, have a maj or flaw:                                                                           one question: was the British state bad ly
       they wou ld put more pressure on the pro                                                                          prepared or were individ uals in power
       bation service, which manages communi             may help. But making prisons less crowd                        spectacularly unsuited to the j ob?
       ty sentences and oversees some prisoners           ed and dysfunctio nal would mean fewer                               It is already known, for example, that
       after they have been released. The p roba         staff left for less stressful j obs .                           the country's national risk assess ment
       tion service is itself in shockingly bad               Perhaps most importantly, the MOJ                           failed to antici pate and plan for a novel
       shape, and badly needs reforms of its own.         must push for a red uction in the length of                     pathogen, and that the state was slow to
           Another initiative announced by Mr             sentences . There is little point givi ng crim                 adapt the plans it d id have fo r a fl u pan
       Chalk, of sending prisoners overseas , has         inals more time if they spend it in their                       demic. The Cabinet Office lacked basic data
       been tried elsewhere; both Belgium and             cells, becom ing more violent, hopeless                         to track what was happening. In 2021 Mr
       Norway have in the past rented cells in the        and , in many cases, mentally unwel l. Th is ,                  Cummings told a parliamentary commit
       Netherlan ds. Mr Neilson says that ensu r         however, would be a major und ertaki ng,                        tee that departmental responsibi lities for
       i ng domestic laws-on family vi sits, say, o r     not least because politi cs plays such an u n                  the crisis were horribly muddled. This
       prisoners' rights to speak t o a lawyer-are        helpful part in cri minal-justice poli cy. The                  week he reiterated that the core part of the
       followed on foreign soil can be fraught. No        Labour Party, assum ing it forms Britain 's                     state supposed to prepare for emergencies
       more than a few hundred prisoners are              next government, wi ll not want to be seen                      was glacially slow to respond.
       likely to be dealt with th is way, he reckons .    si ngle-handedly to undo the tough-on                              Yet the big-name witnesses now ap
           The gove rnment is also considering            crime pol icies of the To ries . A c ross-party                 pearing on the stand heigh ten the sense
       two fu rther measures. The prison popula          parliamentary inquiry or even a royal com                      that the chaos was driven by individuals.
       tion has increased sharply si nce the pan         mission might be one way to defu se this                        The portrait of Mr Johnson as a prime min 
       demic because court backlogs have in              problem. "A c risis of this scale calls for sys                ister who was u nserious , indecisive and
       creased the nu mbe rs on remand (ie, s us         tematic change," says Ms Si nha. "It's ti me                    unable to grasp detail is hardly new. Mem
       pected criminals who are locked up before          to get experts round a table, look at what                      orable colour is being added, though . I n
       they get to court) . Their number has risen        works, take politics out of it." ■                              o n e message Mr Johnson ponders whether
       from 9 , 000 in 2019 to over 15 , 000 in 2023.                                                                     older people should accept thei r fate
       The M OJ is considering givi ng them longer                                                                        (while demonstrating a sketchy grasp of
       to plead guilty before they get to trial ; since   The covid-19 i n q u i ry                                       the concepts of "med ian age" and "life ex
       guilty pleas result i n reduced sentences ,
                                                          I swear, your
                                                                                                                          pectancy") . As a former media advise r put
       that would hel p. It should also stop imp ris                                                                     it on the witness stand th is week, covid did
                                                          honour. A lot
       oning so many offenders who infringe the                                                                           " not suit his skill set". (Mr Johnson himself
       terms of their licence on release. Most of                                                                         is expected to appear next month .)
       those infractions, such as going abroad                                                                                As for Mr Cummings, he styles hi mself
       without permission, are not crimes in the                                                                          as a truth-telling maverick i nterested in
       normal sense of the word .                                                                                         systems. Yet he appears to have been inca
                                                          The chaos in government during the
           Yet none of these will be enough to ease                                                                       pable of run n i ng a functioning office. At
                                                          pandemic is laid bare
       the crisis in prisons. Partly because it is re                                                                    one point he moans that meetings in Num
       cruiting more police officers, the MOJ ex
       pects the p rison popu lation to reach
       98,700 by 202 6, up from arou nd 88 , ooo
                                                          I  T WAS EASY to get distracted by the foul
                                                             language. Did Dominic Cummi ngs regret
                                                          calling ministers "useless fuckpigs", "mo
                                                                                                                          ber 10 d id not function o n a basic level ,
                                                                                                                          whe n h e had been the p rime minister's
                                                                                                                          chief of staff for seven months . On Novem
       now. Its prison-building programme is not          rons" and "cu nts" i n WhatsApp messages ,                      ber 1st Helen MacNamara, the then deputy
       keepi ng pace, so what is to be done?              or describing the Cabinet Office as "terrify                   cabinet secretary, described an envi ron
           For one thing, the MoJ must recruit            i ngly shit"? G iving evidence to the covid-19                  ment that was toxic, macho and sexist.
       more prison officers and find ways to re          inquiry on October 31st, the one-time chief                         All of which raises difficult questions
       tai n them . "It's n ot j u st about nu mbers,"    aide to Boris Johnson was characteristical                     for Simon Case, the cabinet secretary, who
       says M s Fel ine, the former governor.             ly caustic. If anythi ng he had "understat                     is yet to give evidence. It also bodes ill for
       "There's nothing l ike working on the land        ed" the scale of the dysfu nction within the                    Rishi Sunak, who will also appear before
       i ng. You can be trained , but the real train     government as it grappled with covid .                          the i nquiry next month. It is not just that
       i ng is experience." She says her old p rison           Many countries have completed short,                       the p rime minister will face tough qu es
       i n Kent has lost a lot o f workers to the bor    sharp exercises to draw lessons fro m the                       tions about his time as chancellor. It is that
       der force. The i nspector of prisons says          pandemic. B ritain's sprawling i nquest will                    Mr Sunak has spent the past year trying to
       elsewhere i n south-east E ngland prison           try to dissect the functioning of almost                        banish memories of his chaotic p redeces
       staff are leavi ng for the police. Better pay      every part of the state. Witnesses wil l be                     sors. I nstead, the circus is back. ■
A succession of Labour screw- ups reveals how the pa rty will govern
                                                                                Party unity is a fragile thing. Sir Keir has tight control of the
                                                                            party, but it has been achieved with sticks rather than carrots. Dis
                                                                            sent has not been tolerated; fringe elements within Labour have
                                                                            been cowed. People within the party have put up with this due to
                                                                            the prospect of power. Painful decisions have passed with little
                                                                            protest as a result. This summer, Labour confirmed that it will not
                                                                            remove a two-child limit on child benefit. Doing so would lift
                                                                            250,000 children, which is the population of Stoke-on-Trent, out
                                                                            of poverty at a cost of about flbn ($1. 2bn; 0.05% of G D P), but fiscal
                                                                            credibility came first. Gaza has shown the limits to discipline.
                                                                                Control was one part of the Labour leadership's pitch. The other
                                                                            was competence. Ms Reeves's literary endeavours have damaged
                                                                            that bit of the pitch. The shadow chancellor mentions her brief
                                                                            stint as a Bank of England economist in her 20s with the swagger
                                                                            of a former West Ham youth player turning up to play five-a-side
                                                                            football on a Monday night. Being caught lifting an explanation of
                                                                            rent-seeking from Wikipedia straight into a book is not career
                                                                            ending. But it is mortifying.
                                                                                Labour's reputation for economic competence is relative: it re
                                                                            lies on Tory ineptitude. Labour has failed to explain how it would
                                                                            differ in government from a Conservative one on fiscal matters.
                                                                            Ms Reeves has ruled out any tax rises beyond tinkering with things
F feet. The Labour leader
   OR A BARRISTER,  Sir Keir Starmer is surprisingly slow on his
                          had an illustrious career at the Bar but
                                                                            like VAT on private school fees, while also keeping roughly to Tory
                                                                            spending plans. But Conservative polling is only four points above
can struggle under light interrogation. When Israel launched its            where it was at the nadir of the Liz Truss era, when her chancellor
assault on Gaza in response to Hamas's attack on October 7th, Sir           was appearing on television with a graphic of sterling plunging
Keir was asked a seemingly simple question during a radio inter            next to his head. Voters would choose anyone else; Labour are any
view: "A siege is appropriate? Cutting off power, cutting off water,        one else.
SirKeir?" SirKeir replied: "I think Israel does have that right."               Sheer luck is the most overlooked part of Labour's rise. Sir
    The trap was sprung. Clips of the former human-rights lawyer            Keir's tenure as leader could easily have ended in 2021 after a lm 
appearing to endorse what many regard as war crimes went viral              miliating by-election defeat in north-east England and a narrow
in Labourland, where Israel and Palestine is a poisonous issue.             victory in another. The Conservatives rode to his rescue in 2022,
Panicky aides clarified that SirKeir had said that Israel had to stay       switching prime ministers twice in two months and triggering a
within international law, but the damage was done. Dozens of                financial crisis. Even the row about Gaza could be worse. Few
councillors resigned; M Ps were inundated with emails from pro             voters are paying attention to it. Helpful distractions have
Palestinian members and voters. Threats of shadow-minister res             emerged, such as an inquiry into Boris Johnson's inept handling
ignations unless SirKeir endorsed a ceasefire followed; the Labour          of the pandemic (complete with foul-mouthed WhatsApp tran
leader refused, largely to stop Britain becoming an outlier among           scripts) . Luck, however, cannot be relied on. It was bad luck that a
its allies. He was stuck, kippered by a breakfast-show radio DJ .           reviewer spotted borrowing in Ms Reeves's tome. I t was bad prac
    Sir Keir has triggered a month-long internal row. Slapdash be          tice that put it there.
haviour from Rachel Reeves, the shadow chancellor, caused a
more amusing episode. Ms Reeves had found time in her schedule              Step by step
to bash out a book titled "The Women Who Made Economics". A re             Labour have reached the edge of power by making few mistakes.
viewer at the Fina n cial Times noticed that phrases had been lifted        This is fortunate, since error correction happens slowly. A quicker
from Wikipedia, the G u a rdian and even one of Ms Reeves's own             leader would not have made his error on Gaza in the first place; a
colleagues. In one case, four paragraphs from Wikipedia on the              more flexible one would have corrected it faster. The response to
concept of rent-seeking were copied in almost word-for-word.                Ms Reeves's borrowed paragraphs was a delicious cocktail of deni
    Both of these errors tell a story. One is serious, one is silly. Nei   al and confession, noted one wag. Labour's slow-and-steady ap
ther will determine whether Labour ends up in power. But each               proach can be an asset in opposition but will be a liability in office.
demonstrates how Labour will govern when it does.                               Now that a Labour government is seen as an inevitability,
    A bitter row over Gaza is a reminder that with Labour in power,         Westminster j ournalists have begun inflating the feats and skills
its neuroses will replace Conservatives ones. Britain has spent a           of SirKeir and Ms Reeves to fit their poll lead. Boot-licking season
decade wrestling with its position in Europe not because voters             has begun. Yet what is now considered masterful inactivity can as
demanded it, but because Conservative MPs were obsessed by it.              easily be labelled timidity. Under Sir Keir, Labour has let others
With Labour in office, topics such as Israel and Palestine will be         make major policies on his behalf. When it comes to foreign poli
come matters of internal political psychodrama rather than cold             cy, Labour has been happy to follow allies. When it comes to fiscal
debate about policy. Backbench Tory bores waving copies of the              policy, the party has moved in lockstep with the Conservatives,
Treaty of Rome will be replaced by Labour counterparts quoting              creating a new economic consensus. In government, however, La
the Balfour Declaration. I t was, after all, a row over Israel that led     bour will occasionally have to stride out alone. SirKeir will have to
Tony Blair to realise his time was almost up in 2006.                       learn to be quick on his feet. ■
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