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INSIDE THIS WEEI(: TECHNOLOGV QUARTERLVHugoChávezA rotten legacyIIN 8826
3OnthecoverHugo Chávez's appealofpopulist autocracy has beenweakened but notextinguished by his death:leader, page 9. After 14 oilfuelledyears, his successorsin Venezuela will struggle tokeep the Bolivarianrevolution on the road, pages23-26. Atimely book onChávez, page 83The Economist onlineDailyanalysisand opinion fromour 19 blogs, plus audio and videocontent, debates and a daily chartEconomist.com/blogsE-mail:newsletters andmobileeditionEconomist.com/emailPrintedition: available online byrpm Londontime each ThursdayEconomist.com/printAudioedition: available onlineto download each FridayEconomist.comjaudioedition••Volume 406 Number 8826First published in September1843to take part in "asevere contest betweenintelligence, which presses fotword, andan unworthy, timid ignorance obstructingour progress. "Editorial offices in t.endon and also:Atlanta, Beijing, Berlin, Brussels, Cairo,Chicago. Hong Kong. Johannesburg, Los Angeles,Mexico City, Moscow, New Delhi, NewYork, París.San Francisco, Sáo Pauta, Singapore, Tokyo,Washington DC6 The world this weekLeaders9 Latin AmericaHugo Chávez' S rottenlegacy10 Peer-to-peer rentalThe rise ofthe sharingeconomy12 The Dow's new highRally drivers12 Shareholder rightsPower to the owners14 Sergei MagnitskyThe enemy within15 A growth manifestoA little faster, George?Letlers16 On Italy, Syria, corporatetaxes, teaching finance,TexasBriefing23 Venezuela after ChávezNowfor the reckoningUnited States27 The sequesterOn to the next crisis28 Marijuana legalisationTax, and tax again29 Health policyLet's Move Slowly!29 Energy policyGreen steps30 South Carolina'scongressional electionSame again, please30 Urban coyotesDogged persistence32 The Harlem ShakeWhat's in a meme?34 LexingtonThe parallel with EuropeThe Americas37 CentralAmericaOut of control38 El Salvador' s gangsThe year of living lessdangerouslyMiddle East and Africa40 The Muslim BrotherhoodIt's hard being in charge41 The Gaza StripHamas on the defensive42 The Tigris and EuphratesLess fertile crescent42 Kenya's electionsAnd the winner is ...44 South Africa's policeBad cap, bad cop routineEurope45 German politicsOfscissors and biting46 Spain's economyNotyetthe new Germany46 The Czech presidentThe new man in the hrad ...47 Italian politicsAfter the party47 Hungary's central bankOrban's soldiers48 CharlemagneBritish influence in the EUTechnology QuarterlyAfter page 48Asia49 Unrest in BangladeshA nation divided50 Korean tensionsKimblows up again51 The Philippines andMalaysiaIntrusion confusion51 Forestryin lapanTrees and sneezes52 BanyanIndia's unhappynorth-eastChina53 The future ofTibetLimits of despai r55 Other minoritiesNever say Dai55 China's legislatureBones and shoalsBritish economy It needsradical fiscaland strueturalreform and looser money:leader, page 15. Britain'ssqueezed households explainits flatlining ecanomy, page56. WhyBritain does not build,page57. Howto lose businessand alienate potential tradepartners, page 58The Catholic church Asaconclave gathers to eleet anew pope, manyin the churchwant change, pages 60-61.Managementtips for theVatican: Schumpeter, page 69The sharing economy Ontheinternet, everything is forhire. Howfarcan it go? Leader,page 10. Howto quantify thegains that theinternet hasbrought to consumers: Freeexchange,page76.Thesharing economy, and muchmore, in TechnologyQuarterly, after page 48~~Contents continues overleaf
4 Contents The Economist March sth 2013MarketsThere's froth in theequity markets, but not abubble: leader, page 12. TheDowreaches a record high,page 70. The striking appeal ofcorporate bonds: Buttonwood,paqe ri~ i JPay, politidans andshareholders Activistshareholders are right tomountthe barricades, butpolitidans are wrong to capbonuses: leader, page 12.America's proxy season will pitmanagers against owners asnever before, page 63.Europe's bonus cap, page 72Mars comet Next October, acomet coUides with the redplanet. Well, maybe, page 80Britain56 Consumer spendingStopping shopping57 Northern IrelandThe melting pot57 InfrastructureBunged up58 Visas for BraziliansNo entry59 BagehotThe politics of wind farmsInternational60 Roman CatholidsmFlocks and shepherdsBusiness63 Corporate governanceShareholders atthe gates64 Executive payFixing the fat cats64 GoogleDon't be ugly65 Railways in CanadaPacific turnaround66 Microsoft's antitrust fineSin of omission66 Business and gay rightsFrom Stonewall to payroll66 China's car marketStill racing ahead67 African fashionKenya on the catwalk67 Spanish businessForeign gain, domesticpain69 SchumpeterPope,CEOFinance and economics70 America's stockmarketThe Dow's record high71 ButtonwoodCorporate bonds72 Credit in the euro areaStill crunching72 Bankers' bonusesTilting the playing field73 American banksDe-stressing74 China's economyProperty taxes andmarriage vows74 Ending deflation in JapanWaging a new war76 Free exchangeThe internet's consumersurplusSdence and technology79 The Brain Activity MapHard cell80 NavigationCrystal gazing80 Cometary billiardsMars attacked?81 AIDS researchCured of HIV?Books and arts83 Hugo ChávezGoodbye, Presidente84 The life of Sylvia PlathThe blood jet of poetry85 Behind the New DealShady trading85 Women' s Institutes inthe warBuilding Jerusalem85 After Japan' s tsunamiTriple horror86 Royal treasures on showA golden age92 Economic and finandalindicatorsStatistics on 42economies, plus a closerlook at our poll offorecastersObituary94 Van CliburnThe piano manNextweekWe publish a spedal report onAmerican competitiveness.Political gridlock is bad forAmerica' s economy, saysEdward McBride, buttheunderlying growth prospectsare much brighterthantheyseemPrincipal commercial offices:25 StJames's Street, London SW1AlHGTel: 020 7830 7000Rue de l'Athénée 321206 Geneva, SwitzerlandTel: 4122 566 2470750 3rd Avenue, sth Floor, New York, NY10017Tel: 1212 541050060/F Central Plaza18 Harbour Road, Wanchai, Hong KongTel: 852 2585 3888Other commeráal offices:Chicago, Dubai, Frankfurt, Los Angeles,Paris, San Francisco and SingaporeSubscriptionserviceFor OUT latest subscription offers, vtsitEconomist.com/offersFor subscription service, please contact bytelephone, fax, web or mail at the detailsprovided below:Telephone: 1 8004566086 (from outsidethe USand Canada, 16364495702)facsímile: 18668568075 (from outsidethe USand Canada, 16364495703)Web: Economistsubs.comE-mail: email@example.comPost: The EconomistSubscriptionServíces, P.O. Box 46978,St, louís, MO63146-6978, USASubscription for 1 year (51 issues)United StatesCanadalatin AméricaUS$138CNS189US$270PEFC/29' 31-75PEFCcertifiedThis copy of The Economistis printed on paper sourcedfrom sustainabLy managedforests certified by PEFCwww.pefc.orgOrecycleC>20n The Economist Newspaper limited. AUrights reserved. Neíther this publication nor any partofitmay be reproduced, stored in a retnevalsystem, ortransmitted in anyform or byanymeans, etectrcntc. mechanicat. photocopying. recordinq orctherwíse. withoutthe prior permission ofThe Economist Newspaper limited. The Economist (lSSN 0013-0613) is published everyweek. exceptfora yeer-end dcubletssue, byThe EconomistNewspaper tirrrited, 750 jrd Avenue. 5th Ftoor, NewYork, NYI0017.TheEconomistis a reqistered trademark ofThe EconomistNewspaper Limited. Periodicats postage paid atNewYork. NYand additionalmailing ofñces. Postmaster: Send address chenqes to Ihe Economist. P.O.BOX46978.StoLouis , MO.63146-6978, USA.Canada Post pubticatíons mail (Canadian distribution) sales agreement no. 40012331. Return undeliverable Canadian addresses to Ihe Economist, POBox 7258 STNA.Toronto, ONM5WlX9. GSTR123236267. Printed by RROonnelley. Strasburg, VA.22657