• England retain the Ashes

    Triumphant England, but for how long?

    Dec 29th 2010, 17:14 by J.A.

    THE Cassandra of myth was an accurate prophetess—her curse was not to be believed. The Cassandra of this blog has no illusions of infallibility (all too many of his predictions may turn out to be false, though with luck too late to be embarrassing…). However, today I do feel a sense of smug triumph: Cassandra’s prediction of November 24th that the English cricket team would retain the Ashes (the prize in England’s contest with Australia) has indeed been proven correct. With one test match to go in the five-test series, England have just humiliated Australia’s best and so hold a 2-1 lead, with one match drawn. Even if the shell-shocked Aussies bounce back (mixed metaphors come easily in sports reporting) in the final test, beginning in Sydney on January 3rd, the Ashes will stay with England.

    So will the English cricketers (two of whose stars actually began their careers in South Africa) now be able to relax, savouring the prospect of a boozy reception back in London hosted by the prime minister, David Cameron? Sadly no. Such is the commercial merry-go-round of the cricketing world that a week after the final test they will play two matches against Australia limited to a mere 20 overs for each side, followed by seven one-day internationals featuring 50 overs an innings (an over, for those unfortunates yet to be captured by the glory of the sport consists of six balls bowled at the batsman). Cassandra is a bit of a cricket snob, believing that players should be judged by the long form of the sport—a test match can last five days. Still, it would be good if the English could win the short-form series, too. Unhappily, Cassandra reckons the Aussies will get their revenge…

  • The Khodorkovsky trial underlines Putin's power in 2011

    "A thief should sit in jail..."

    Dec 28th 2010, 16:42 by J.A.

    THE conviction yesterday of Mikhail Khodorkovsky, a former Russian oil tycoon, is a sobering reminder that the Russia of Vladimir Putin is surely a throwback to the bad old days of the totalitarian state. Mr Khodorkovsky has already spent the past seven years in prison for tax evasion and money-laundering; after the new trial (a travesty of justice that has led to public criticism from Hillary Clinton and the EU) more years in prison seem inevitable—enough to keep him in custody well after Russia’s next presidential election, due in 2012.

    To Mr Khodorkovsky’s supporters, all of this looks very much like a personal vendetta on the part of Mr Putin, who only a few days ago, when asked about the trial, quoted a well-known film line that “a thief should sit in jail.”

    Sadly, Mr Khodorkovsky’s plight is far from the only example of corrupt and politically malleable justice in Russia—witness the death last year in pre-trial custody of Sergei Magnitsky, the employee of an American investor who had dared to accuse the Russian police of massive corruption.

    What does this imply for Russia’s politics in 2011? One certainty is that the United Russia party, devoted to the political status quo, will win the parliamentary elections in December. The second certainty is that President Dmitry Medvedev will continue to be overshadowed by his prime minister (and predecessor as president), Vladimir Putin. After all, Mr Medvedev promised at his inauguration in 2008 to end “legal nihilism”—and that pledge now looks either hopelessly naïve or horribly cynical. In either case, it is Mr Putin, with his immense popular support, who calls the shots—and who will decide in 2011 whether to allow Mr Medvedev another presidential term in 2012 or simply move into the presidential office himself.

  • 2011 welcomes at least one new country, South Sudan

    Define the nation...

    Dec 27th 2010, 14:22 by J.A.

    IN A few days' time—January 9th, if all goes to expectations—the people of the autonomous southern part of Sudan will vote for independence, so ending half-a-century of conflict and bitterness between the mostly Arab and Islamic north and the mostly non-Arab and often Christian south.

    Assuming the southern secession goes ahead (and many fingers still have to be crossed for a peaceful process), the world can look forward to a new country—and the United Nations to a new member state, its 193rd.

    But is the UN list the criterion for what constitutes a country? Pedants might add the tiny Vatican City (after all, the Pope pays “state” visits abroad). Political scientists might add, too, the Republic of Kosovo, which declared its independence from Serbia in 2008 and is recognised by some 72 countries, including the United States but not Russia (and certainly not Serbia). Realists would surely add Taiwan (or the Republic of China, as it calls itself, in contrast to the People’s Republic of China).

    The Montevideo Convention of 1933 declared that a state should possess a permanent population, a defined territory, a government, and the ability to enter into relations with other states. That might seem conclusive enough at first glance, but at second glance it leaves plenty of scope for dispute. Taiwan would certainly qualify, despite its cold-shoulder from the UN. Arab idealists (or dreamers, given the frustrations of Middle East peacemaking) might add Palestine, which has observer status at the UN, a government of sorts, and relations with plenty of states. On the other hand, its territory is hostage to a peace settlement with Israel and remains stubbornly undefined. Moreover, the dreamers have to accept that the Palestine Authority has yet to declare statehood—and such a declaration is surely the first requirement of all.

    But a declaration goes only so far. Abkhazia, for instance, is recognised only by a handful of countries (admittedly including Russia). The Turkish Republic of Northern Cyprus is recognised only by Turkey. Transnistria is recognised only by Abkhazia and South Ossetia (whose own independence again has only a handful of supporters). The Sahrawi Arab Democratic Republic, in what used to be the Spanish-run Western Sahara, is accepted by 81 states—but not by Morocco, which claims all of its territory and which can point out that the SADR government has to meet in exile in Algeria. Cassandra reckons a good case could be made for Somaliland, which is not recognised by anyone but seems to run its own affairs well enough. By contrast, the Somali Republic, which is recognised by everyone, is the very definition of a “failed state”.

    Meanwhile, spare a thought for Scotland and Wales. They have their own flags, their own governments (well, an “Assembly” in the case of Wales), and their own independence movements. Yet virtually the only time they exist on the world stage as separate countries is when they play football…

  • KAL's predictions for 2011

    KAL the seer

    Dec 24th 2010, 15:04 by J.A.

    DOUBTLESS very few Economist readers—even the most loyal—read every page, but Cassandra is prepared to bet that most take a look at KAL’s weekly cartoon. KAL, better known to wife, family and the IRS as Kevin Kallaugher, is a perpetual delight, so as a Christmas present to its followers this blog is delighted to link to the video presentation that Kevin gave at The World in 2011 festival in New York earlier this month. Happily, there will be much more to come from KAL in 2011. Happy Christmas!

  • Food for thought from José Andrés

    Food for thought

    Dec 23rd 2010, 15:23 by J.A.

    WITH the festive season upon us, thoughts naturally turn to food—but a moment’s sober reflection shows that in the West, at least, we are collectively getting too fat for our own good. Britain’s Jamie Oliver is a chef constantly campaigning for good, healthy food, and in The World in 2011 he bravely looks at the challenge of feeding the planet in 25 years’ time. But Mr Oliver is not the only noted chef and restaurateur to take up the cause of good and sensible eating. At The World in 2011 festival in New York earlier this month we invited José Andrés to share his thoughts on the subject. The Spanish-born Mr Andrés (who incidentally trained at El Bulli, the famous Catalan restaurant which will be closed in 2011 to allow its chef, Ferran Adrià, a 30-month globe-trotting sabbatical) is the man who has introduced both avant-garde and traditional Spanish cuisine to Americans. Now he has real influence in America as the boss of Think/Food Group—and this is what he had to say in New York:

    Even today with the public's growing interest in food and diet issues, politicians rarely include food as part of their political platforms. I hope to change their minds and have them give food the attention it deserves. First because they must. Second because the public has begun to demand it. The time has come to recognize that food, how we produce it, process it, package it,sell it, cook it and eat it, is as important as any other issue. I predict that politicians will be asked “What’s your food agenda?”

    One thing that makes me very happy is to see the growing activism among chefs in America. Chefs like Tom Colicchio, Bill Telepan, and Rachel Ray and food writers like Michael Pollan have gone to Congress, indeed sometimes even have testified before Congress, have lent this support to Mrs. Obama's effort to combat childhood obesity. My point is that chefs have found their voices as advocates on food issues. We have a unique perspective on these matters and an ability to influence how the public eats. I hope one day we will unite to form a lobby, a powerful voice in the national debate about how we can better feed America and the world. I predict that in 2011, if we are not invited to the table, we will bang on the door until we are let in!

    This year, the issue was school lunch and childhood obesity. Next year, Congress will deal with the Farm Bill again. This is the moment that Congress indirectly decides how this country is going to be fed. When this country was founded, Thomas Jefferson dreamed of a nation of small farmers. Today, Jefferson would not recognize the kind of big agribusiness benefits from the Farm Bill. Why does just one class of farmer benefit so much from this system? I predict in 2011 that we will need to level the playing field.  This country has been built on the shoulders of the small-business people, family business, and entrepreneurs. Give the small farmers the chance to compete with big agribusiness.

    Today we have created a world where food seems to be the cause of many of our problems, both in America and abroad. Food and the way we grow it and produce it are a major cause of environmental degradation. Food and the way we cook it are the cause of many health problems. In America, we are talking about calorie-dense but low-nutrition foods and overeating.  In the developing world, we are dealing with problems of malnutrition, respiratory diseases from cooking fumes, deforestation, and failing farms.  Food policy demands are all around us.

    But we need to start seeing food as the solution. Food used the right way can end hunger. Food used the right way can help fight obesity and malnutrition. Food and the right farming practices will create employment in the developing world where it is needed most. Food when prepared the right way can help improve the environment. Food can be the answer.

    But more importantly, today in Washington there is a fierce discussion about the deficit, tax cuts, about the military, social security, and Medicare.  I guarantee you that unless we start making good, really good, sound good food and we make the right decision then Americans won’t be healthy and our food suppliers won’t provide us with the food that we need.  But people, we will in time, it’s as easy as going today to your home and planting a seed. People of America, readers of The Economist, food is the solution.  Let’s endorse it every day of our lives.

  • The Baltic states will show their differences in 2011

    The best Balt will be Nordic

    Dec 22nd 2010, 16:25 by K.S.

    MOST people think of the Baltic States as one region, with no big differences between Latvia, Estonia and Lithuania. That seemed reasonable enough when all three were occupied by the Soviet Union; when they won their independence in 1991; and when they entered NATO and the EU in 2004. Moreover they constituted an investment heaven of relatively low taxes, a cheap labour force and consumers hungry for everything “western”, from telecommunications to shoes.

    But that was then. Now the trio are going in opposing directions. In 2011 Estonia, Latvia and Lithuania will no longer count as a single economic and political region. 

    Estonia, one of the most disciplined countries in the EU, will be labelled as “Eastern Europe” only geographically. The country had been hit by a global crisis as much as its neighbours but has recovered rapidly. That may be why officials and inhabitants
    prefer their country to be described as “Nordic”
    , distancing it from the less successful Balts. To rub in the difference, Estonia has joined a group of countries bailing out deeply troubled Latvia.

    Meanwhile, Latvia is shaping a course towards the Kremlin. On December 19th, for the first time since 1994, a Latvian president paid an official visit to Moscow. Valdis Zatlers met both President Dmitry Medvedev (the meeting lasted for 40 minutes longer than was planned) and Prime Minister Vladimir Putin. (For its part, Estonia still does not have an invitation to visit Moscow.)

    Lithuania, which unlike Latvia has refused IMF and EU loans, has masochistically preferred to struggle alone through its financial pain. Its foreign policy is rather odd, too: back in April President Dalia Grybauskaite refused to show up to dinner with Barack Obama, having said that there would be “no decision-making”. Instead, she is drifting towards the autocratic president of Belarus, Alyaksandr Lukashenka.

    Put all this together, and in January, when Estonia adopts the euro, the differences between three, once equal countries will be impossible to ignore. If a Baltic Tiger is still alive in 2011, it will definitely be Estonia. Perhaps not a tiger, but certainly a Nordic kitten.





  • A palindromic 2011

    Palindromes and more in 2011

    Dec 21st 2010, 13:25 by J.A.

    THOSE who are mathematically, or at least numerically, inclined will doubtless have noticed that New Year’s day will be a palindrome—and will be so regardless of whether you prefer the British way of putting the day before the month or the American habit of month first and then day. The World in 2011 has devoted a full article to the numerical niceties of the coming year, and even calculated how saying the year in a particular way will save you energy. But we clearly have not gone far enough, as David Winberg points out in this wonderful letter, printed in the Christmas edition of The Economist

    SIR – Your fetish with the number 11 (“A year of palindromes”, The World in 2011) reminded me of Mad magazine’s obsession with upside-down years. There was one in 1881, and 1961 was the last upside-down year until 6009, so Mad devoted its January cover to it that year. It was viewable from right side up or upside down. I expect The Economist to do no less on 1.1.11.

    David Winberg

    New York

  • Mercenaries on the hunt for Somalia's pirates

    A mercenary solution to Somali piracy

    Dec 20th 2010, 18:12 by A.J.

    COULD 2011 see the return of the days when seaborne piracy was a very risky profession? The failure of various navies to restrict the flourishing business of Somali buccaneers is forcing the maritime community to try a new approach. Mercenaries—or as they prefer to be called, “private security organisations”—may finally play a helping role.

    The hottest initiative comes from an alliance of insurance companies, led by Jardine Lloyd Thompson Group (JLT), who are apparently proposing the creation of a “private navy” under a scheme called the Convoy Escort Programme (CEP). A heavily armed, 150-strong security team on patrol boats would escort merchant vessels through the dangerous waters off Somalia and far out into the Indian Ocean.

    The idea itself is not fresh. However, previous attempts to market private maritime security have not been successful. Shipping companies were reluctant to pay mercenary fees on top of already expensive insurance expenses. For that reason, the notorious private military contractor Blackwater Worldwide had to drop a similar project back in 2008. The legal issues that could follow pirate deaths were the second reason why shipping companies were not attracted to the idea. Although there are still a few private maritime security firms that employ Blackwater’s techniques, none of those operate on a large scale.

    Why may CEP succeed where others have failed? One reason is that the insurance powerhouses like JLT, Ascot Underwriting and Chartis behind CEP have enough clout and expertise to pull it off. CEP offers shipowners something long desired—armed protection as a free perk to seven days’ war-risks cover. This would be an attractive alternative to steep insurance premiums on transiting pirate-infested waters. In addition, since the main role of CEP security personnel will not be to hunt down pirates, but to deter them from attacking the protected vessels, the potential for legal issues will be smaller. On the other hand, armed mercenaries are not scarecrows and will use force if necessary, so providing a good chance for “unfortunate accidents” in high seas.

    If so, the pirates had it coming. In 2010 alone Somali pirates have attacked 208 vessels, hijacking 44 of them. It is easy to understand the rage of ship owners as each successful seizure of a vessel costs an average of $9m in ransom payments and lost earnings.
    An even higher price is paid by the the crews of hijacked ships in terms of their physical and emotional stress. Currently, 567 people are still held hostage by the pirates. 
     
    Of course, it is doubtful that a “private navy” will instantly change everything. Piracy will only end once Somalia itself becomes a stable nation—and that goal lies far beyond 2011.

  • Send a message to the future

    Send a message to the future

    Dec 19th 2010, 17:45 by J.A.

    AS ATTENTIVE readers will be aware, The World in 2011 is the 25th time that The Economist and invited guests have predicted the future (not always with total accuracy…). But an American website is offering an intriguing twist on forecasting the next 25 years: why not, it asks, send a message from the present to be revealed in 25 years’ time? The present already being part of the digital age, the idea is that you should make your message on video and it will then be stored in a time capsule. As the site puts it:

    Our new goal is to get ANYONE and EVERYONE interested in joining our time capsule to submit a video. We're collecting the videos and will store them in a time capsule for 25 years. Then, in 2035, we're going to track folks down and host a huge installation / viewing party, starring our participants.

    Assuming that the formats will still be readable a quarter of a century from now, it could be a party worth going to…You have until December 31st to submit your message to the future.

  • China overtakes America, first of all in manufacturing

    America surrenders to China

    Dec 18th 2010, 16:44 by J.A.

    CASSANDRA’s computer was made in China, and ditto an awful lot more of Cassandra’s belongings and those of hundreds of millions of other people in the world. So we should not perhaps be surprised that at some point in 2011 China will become the world’s biggest manufacturer, ending the 110-year supremacy of the United States. 

    But what about in 25 years’ time (to continue our theme of marking the 25th anniversary of The World In…)? The likelihood, according to Jim O’Neill, chairman of Goldman Sachs Asset Management, is that China’s overall economy (not just its manufacturing sector) will have overtaken America’s. Indeed, Mr O’Neill reckons that magic date might happen by 2027. That is a judgment to be respected, not least because it was Mr O’Neill who in 2001 came up with the emerging-market acronym of the BRICs. Interestingly, while America’s economic supremacy has spawned plenty of imitation of its methods and culture, Mr O’Neill does not assume the same will be true of China’s. Nor, for that matter, does he speculate on how America will react to being in second place. Cassandra’s expectation is that there will be much gnashing of metaphorical teeth, especially among the American punditocracy.

  • Predictions of Messrs Mayo, Ford et al.

    Messrs Mayo, Ford et al...looking forward 80 years

    Dec 16th 2010, 19:37 by J.A.

    PREDICTIONS are a chancy business (we regularly admit our failings in each edition of The World In…), and we are really lengthening the odds by asking several experts—of which more in subsequent posts—to celebrate the 25th edition of The World In…by looking forward 25 years to 2036.

    But a colleague in New York has pointed out to Cassandra that we are wimps compared with the New York Times in September 1931. The “gray lady” asked various luminaries—from Dr Mayo of Mayo Clinic fame to Henry Ford (of Ford cars fame…)—to look not 25 years ahead but 80 years. The mathematically-minded reader will immediately recognise that the year of their prophecies was 2011. See what they predicted back in 1931—and then look at ours. Cassandra hopes we will not be too embarrassed.

  • India's inadequate infrastructure

    Wake up, India

    Dec 15th 2010, 16:28 by D.F. | Mumbai

    If India is to live up to its economic potential, and start to grow faster than China's on a regular basis, it needs massive investment in its roads, electricity and other infrastructure. That is exactly what it is planning for 2011 and beyond. But a day in Mumbai - for a Gala Dinner on The World in 2011 - quickly reveals the scale of the challenge.

    The drive from the airport to the hotels around India Gate is now much faster thanks to a spanking-new bridge on the highway. But as your correspondent's car approached the toll booth for the bridge at 5.30 last Thursday morning, there was a problem. There seemed to be no one to take the toll. The driver sounded his horn; still no one. Then a second, more insistent toot revealed the toll man, who sat up, blearily, from his deep sleep, and the journey continued. Hard to imagine such a scene in China. 

At the Gala Dinner all was going well until the discussion turned to the problems of India's infrastructure. Suddenly the lights went out. Two more power cuts followed. But the show went on - as indeed will India's rapid if bumpy development in 2011.

  • Zuckerberg, Buffet, Soros et al -- and the Giving Pledge

    Giving it all away...

    Dec 14th 2010, 18:08 by J.A.

    SCROLLING through Facebook today (always a useful distraction from life’s chores…), Cassandra remembered that only a few days ago the Facebook boss, Mark Zuckerberg, signed “the Giving Pledge”—that wonderful idea by Warren Buffett that billionaires should promise to give away the greater part of their wealth within their lifetime to worthy causes.

    So far the Giving Pledge lists 57 signatories, most of whom, like the Los Angeles tycoon Eli Broad, are far from the full flush of youth. That, of course, makes sense: it normally takes quite a bit of time to amass your first billion dollars. What makes Mr Zuckerberg’s pledge so newsworthy is that he is so young: a mere 26. The same is true of a fellow Facebook pledger, Dustin Moscovitz, also 26 but worth “only” $1.4 billion compared with Mr Zuckerberg’s $6.9 billion.

    Cassandra wonders how long the list will grow in 2011. There are new billionaires in China, but attempts to woo them to the list have so far been ignored (some super-rich Chinese apparently skipped a dinner with Warren Buffet and Bill Gates in case they were asked to stump up). The same reluctance is true of Indian billionaires, too. Perhaps they could be inspired by Mr Zuckerberg’s youthful example:

    People wait until late in their career to give back. But why wait when there is so much to be done? With a generation of younger folks who have thrived on the success of their companies, there is a big opportunity for many of us to give back earlier in our lifetime and see the impact of our philanthropic efforts.

    Quite so, but what exactly constitutes a philanthropic effort? One of the predictions in the World in 2011 is that many of the super-rich will prefer to promote their ideas. America’s Koch brothers, for example, give massive support to right-wing and libertarian causes. Going towards the other end of the political spectrum, George Soros supports liberal and progressive causes, especially in former communist countries. Mr Soros’s support for democracy is such that it surely does not matter that he has not signed the Giving Pledge—he has already done good things with his money.





  • Christmas and a new god

    A new god?

    Dec 13th 2010, 16:39 by J.A.

    CASSANDRA has come to the computer keyboard fresh from the fraught experience of Christmas shopping—this time in London, but previous bouts have been endured in America, Asia, the European continent and the Middle East. Each time the occasion prompts the obvious question: has the religious significance of Christmas been submerged, indeed drowned, by rampant commercialism?

    Cassandra’s suspicion is that the answer varies from country to country. Americans, for example, may love material things and the consumer society but they are much more religiously observant than almost all Europeans. A fascinating recent chart in The Economist revealed that 60% of Czechs and more than 50% of the French and the British never attend a religious service. By contrast, the World Values Survey reckons that 44% of Americans attend a church service at least once a week (the figure for Britain was 27% and for Sweden 4%).

    But what of the future? Will Europe’s mix of scepticism, agnosticism and atheism eventually spread to dull the religious fervour—be it Christian, Muslim, Jewish or whatever—of America, Africa, the Middle East and much of Asia? Cassandra hesitates to make a judgment, but for an intriguing prediction read the thoughts of Paul Saffo, a leading forecaster based in Silicon Valley. To celebrate the 25th anniversary of the publication, The World in 2011 asked Mr Saffo to cast his mind forward to the world in 2036. His conclusion? Thanks to “a potent cultural Petri dish”, we are “overdue for a new god”. 

  • Simon Cowell's X Factor - and American Idol

    Simon Cowell's X Factor

    Dec 12th 2010, 15:42 by J.A.

    LIKE many millions of other TV-viewing Brits (possibly 20m, if predictions prove correct), Cassandra was hooked last night by the first part of "The X Factor” final. For those who have managed to remain immune to The X Factor, it is a talent contest for singers in which contestants—some horribly out of tune—are culled over the months in a process that depends, ultimately, on a vote by the viewing public, influenced by the opinions of a panel of judges.

    The American equivalent is “American Idol”, and what the two shows have in common is not just the huge amounts of moolah they bring to the Fox network in America and ITV in Britain but also the presence of the Atlantic-hopping Simon Cowell as the lead judge. The only real difference is that The X Factor judges “mentor” the acts that get through to the final rounds.

    Mr Cowell, wonderfully caustic in many of his comments, is surely the best known Briton in America (certainly better known than Britain’s present prime minister). He outrages contestants and viewers with the directness of his criticism (normally prefaced by “If I’m being honest…”).  But without Mr Cowell’s penchant for stirring controversy would either show draw in the millions?

    We will soon find out. In 2011 American Idol, celebrating its tenth series, will for the first time be without Mr Cowell. Instead, Mr Cowell, whose Syco company co-produces the programme, will launch The X Factor in America in September. American Idol has been consistently the most popular show on American TV—but Cassandra’s bet is that it will soon start losing viewers to The X Factor: after all, Mr Cowell tends to give better entertainment value than many of the contestants. For what it’s worth, Cassandra thinks the viewers were wrong last night to eliminate Cher Lloyd...

  • Greece and the euro

    Greek dreams and euro realities

    Dec 10th 2010, 12:44 by J.A. | Athens

    CASSANDRA has just been taking part in an Economist conference in Greece on the euro—perfect timing, given the strains afflicting the eurozone in general and Greece in particular. As with all Economist Conferences there were plenty of important and influential people (Greece’s finance minister, George Papaconstantinou, was particularly impressive, and it was intriguing to find that Olli Rehn, the EU commissioner for economic and monetary affairs, once played semi-professional football in Finland).

    But what was the overall message for 2011? Speaker after speaker paid tribute to Greece’s heroic performance in cutting its fiscal deficit by six percentage points of GDP this year (down to a still awful 9.5%). Poul Thomsen, the IMF’s mission chief in Greece, waxed enthusiastic about Greece’s pension reforms and predicted that its recession would be over by the end of 2011. And local business tycoons declared that, whatever the impact of the crisis, the euro had been good for Greece. In other words, Greece is on the right track—particularly since it looks as though the 2013 deadline for Greece to start to pay back its loans from the EU and IMF will be extended to match the deadline given to Ireland.

    But, to paraphrase Mandy Rice-Davies, they would say that, wouldn’t they? And there was precious little reference to the role that Germany, the eurozone's powerhouse, might have to play. Cassandra couldn’t help but notice how badly Greece scores in the international rankings for ease of doing business, competitiveness and corruption. And there is the small matter not just of the large informal economy but also of straightforward tax evasion (just a couple of days earlier Dominique Strauss-Kahn, the managing director of the IMF, had been in Athens and urged rich Greeks to pay their taxes).

    Perhaps the last, Cassandra-like word, should be left to Megan Greene, who spoke at the conference on behalf of the Economist Intelligence Unit. She predicted no economic growth for Greece in 2011 and no escape from the need to restructure its sovereign debt (a polite way of saying “default”). The only question was when…




  • The Rolling Stones and important anniversaries...

    Waiting on the Stones...

    Dec 8th 2010, 10:22 by J.A.

    THE anniversaries that 2011 will mark are events to celebrate (save, of course, for the dreadful tenth anniversary of the 9/11 terrorist attacks on America). For example, we will have the 250th anniversary of the world's first school for veterinarians (in Lyon, which is perhaps why the French cosset their dogs even more than the British theirs); the 150th anniversary of Italy as a united country (though many Italians think there remains a deep divide between the north and the Mezzogiorno); and the 50th birthday of a certain Barack Obama (with the greying hair to prove it).

    But are there important anniversaries that we have overlooked? At least one appreciative and musically sensitive reader in Camarillo, California, thinks so:

    I have just enjoyed your 25th Anniversary Special Edition of The World In 2011. One story mentions IBM's upcoming 100th Anniversary, and another laments the success rate of your 2010 predictions. 

As a London-based publication, I thought surely that you would guarantee yourself a better success rate by predicting that The Rolling Stones will tour in 2011 for their 50th anniversary.

    Best regards, 
Tom Friel

    As a Stones’ fan, Cassandra at first felt suitably admonished—but then checked the dates. Surely, the first time the Rolling Stones (billed as the Rollin’ Stones) played a formal gig was in 1962 at the Marquee Club in London’s Oxford Street…Mind you, a 49th anniversary tour would be pretty impressive. Meanwhile, we will guard Mr Friel’s prediction for The World in 2012.

     

  • Luxury travel and the ascent of China

    Travel in style

    Dec 7th 2010, 9:04 by J.A. | Cannes

    CASSANDRA has been attending the International Luxury Travel Market in a rain-swept south of France (there is a touch of irony here in that The Economist’s hard-hearted policy is for its journalists to travel in economy unless their flight is more than a jet-lagging 11 hours).

    Among all the worthy words about “content”, “value” and “unique experience”, there were some striking figures as the high-end travel industry assessed its market. For example, each day of 2011 there will be 10,000 baby-boomers (those born between 1946 and 1964) turning 60. Luxury hotels and travel planners must be licking their lips at the prospect that a significant portion of those new sexagenarians will want the trip of a lifetime (and hang the kids’ inheritance…).

    But what happens beyond 2011? The answer, as almost always these days, lies in the east. Within the decade there will be 100m Chinese travelling abroad. How many will be rich enough to travel in style is difficult to know—but already 30% of the guests at the very expensive Mandarin Oriental in Hong Kong are from mainland China. Reception staff around the world had better start brushing up their Mandarin language skills.

  • Where to go for biennial culture

    Biennial bliss

    Dec 5th 2010, 17:24 by D.F. | NEW YORK

    ON THE cultural front, 2011 will be a year of big biennials. Where might a grand global tour of these events take you in the year ahead? Speaking at The World in 2011 Festival in New York on Friday, Glenn Lowry, director of New York's Museum of Modern Art, singled out four of them.

    First, in March, is the tenth edition of the Sharjah Biennial, in the UAE (http://www.sharjahart.org/biennial/sharjah-biennial-10/welcome.) The region will orchestrate a crescendo of culture in the coming years, as ambitious new museums open in Abu Dhabi.

    The Venice Biennale (http://www.labiennale.org/en/Home.html) runs between June and November. This is the grandest and most global of the bunch. This year, for the first time in since its beginning in 1895, it will be curated by a woman, Bice Curiger.

    The 12th Istanbul Biennial  (http://www.iksv.org/bienal/english/bienal.asp?cid=105) kicks off in September. With Turkey placed strategically between east and west, and on the front line between Islamic and Western cultures, this may well be the most politically edgy of the four. According to Mr Lowry, the country's cultural scene is fizzing.

    Lastly, also in September-November, there's the 8th Mercosul Biennial (http://universes-in-universe.org/eng/bien/mercosul_biennial/2011), in Porto Alegre, Brazil. Its speciality is a focus on Latin America.

    Where to go if you had to pick one of the four? To experience the vibrant crossroads of culture, head to Istanbul.

  • China for the World Cup?

    China 2030

    Dec 4th 2010, 15:19 by D.F. | NEW YORK

    THERE was much talk about the World Cup at The World in 2011 Gala Dinner in New York on Thursday night. Bill Clinton, (remarkably) fresh from his flight back from Zurich, where he had been supporting America's unsuccessful bid to host the competition in 2022, gave his reflections on FIFA's decision to award the 2018 World Cup to Russia and 2022 to Qatar.  K'Naan, a brilliant Somali-born rapper, offered soothing thoughts on the outcome and performed his "Wavin' Flag", the anthem for the 2010 tournament in South Africa.

    But the drama in Zurich prompts a prediction, albeit a long-range one. By choosing Russia and Qatar, FIFA has shown its preference for bringing the World Cup to places that haven't hosted it before. China, it seems, is the country that some FIFA folk would love to see as host one day. But there's a snag. FIFA's rules say that the same region cannot have the competition twice in a row: the global game has to alternate between regions. So by plumping for a 2022 World Cup in Qatar (which like China is part of the Asian Football Confederation), a Chinese bid for 2026 is in effect ruled out, barring a change in the rules.

That surely makes China a prime contender for the first World Cup it will be able to host. Pencil in China for 2030.

  • England loses the 2018 football World Cup to Russia, and to Mr Putin

    England's loss and Putin's gain

    Dec 3rd 2010, 10:46 by J.A.

    THE British press is seething that England’s bid to host soccer’s FIFA World Cup in 2018 garnered a pathetic two votes out of 22 from the FIFA executive committee. Was it a fix? Was it revenge for the recent allegations in the British media of FIFA corruption (there was a particularly devastating BBC TV programme just three days before the vote)? Was it a deliberate attempt to humiliate the distinguished trio—Prince William, David Beckham and, not least, David Cameron, the prime minister—who had travelled to Zurich to present a bid described by even non-Englishmen as excellent? Magnanimous English congratulations by the trio to the victor, Russia, cannot hide their mix of shock and disappointment.

    The fuss will doubtless die down soon enough, but in the meantime the man who will really relish Russia’s triumph is its prime minister, Vladimir Putin. Unlike Mr Cameron, Mr Putin did not go to Zurich to support his country’s bid, apparently angered at allegations of FIFA vote-rigging (he did, however, fly to Zurich to thank FIFA after the vote). Now he can look forward to 2011, basking in the reflected glory of a sporting choice made only a couple of days after revelations, thanks to WikiLeaks, that American diplomats consider his country a “virtual mafia state” and reckon that he has illicitly squirreled away a personal fortune.

    The interesting dilemma for Mr Putin is whether to stay as prime minister or become president again, replacing Dmitry Medvedev. The presidential election is not actually due until 2012, but in practice its result will be known by the end of 2011 (when parliamentary elections will also take place, inevitably to be won by the United Russia party, whose purpose is essentially to keep the ruling bureaucracy in power). Some analysts have speculated that Mr Medvedev might object to leaving office, and oppose any Putin bid. Maybe, but whether Mr Putin remains as prime minister or retakes the presidency, it is clear that it is he, and not Mr Medvedev, who wields real power in Russia. As the American diplomatic cables pointed out, Mr Medvedev is Robin to Mr Putin’s Batman.


  • The frustration and anger of America's middle class

    America's frustrated middle class

    Dec 2nd 2010, 9:30 by J.A.

    Cassandra and The World In…are not the only brave seers into 2011. Marian Salzman, president of Euro RSCG Worldwide PR, has for years been an avid trendspotter. Here is one of her predictions for next year. Interestingly what she foresees coincides with the opinions of Arianna Huffington, who reckons the United States risks becoming “a third-world nation”.

    Temperatures are rising, and it’s going to keep getting hotter—and this has nothing to do with climate change. Remember hyperpolarization? That was just a start. There’s a successful (for now) coalition mindset in the U.K., and Australians are still confident despite debt-related problems, but in the U.S. expect 2011 to be even angrier, with men at home angry at their wives and the economy, women at work angry that they are the sole breadwinners, and everyone angry about taxes, reforms, individual freedoms and more. The tone of public debate in the United States is now on a one-way track to very passionate discourse, if not anger. Americans are mad, seething, outraged, furious.


    There’s plenty of fuel for anger, depending on personal preference. Headlines show banks are again making billions (and well-connected bankers aren’t doing so poorly, either) while ordinary Americans are losing money, work, homes, health care and hope. Jobs are disappearing, and immigrants keep arriving, many of them apparently illegally. Frustrated middle-class Americans trying to do the right thing are facing poorer prospects and more uncertainty despite their best efforts. The mightiest nation on earth still fears terrorist attacks despite years of bankrolling anti-terrorist wars abroad and shipping home caskets and maimed heroes. Washington talks about solutions, but for many Americans government itself looks like the problem.


    Yes, for anyone feeling frustrated, trapped and threatened, there’s plenty to feel angry about.


    There have always been plenty of reasons for people to be angry; what’s different now is that the echo chambers of 24/7 news and the always-on blogosphere pick up the hottest angry news and amplify it, giving anger more fuel. The angriest people stand out most and encourage others to get angry. So many Americans are so angry that voters are rejecting ordinary politicians in favor of grassroots newcomers who share their anger and express it. As Seth Godin noted, right now, angry people grab attention because they’re interesting, and grabbing attention means being able to drive agendas and get elected.


    Anger is the color of the zeitgeist, and anyone who isn’t tapping it risks appearing out of touch. Barack Obama’s cool, calming rhetoric hit the spot for many Americans in panic-stricken 2008. In retrospect, his no-drama style appealed just long enough to get him voted in amid the turmoil of the financial meltdown and two wars, but now it’s way out of style.

  • The IMF's Dominique Strauss-Kahn and the presidency of France

    Will Dominique Strauss-Kahn bid farewell to the IMF?

    Dec 1st 2010, 10:16 by J.A.

    IN THE world of global finance and economics it’s tempting to nominate Dominique Strauss-Khan, the 61-year-old managing director of the International Monetary Fund and former French finance minister, as the man of the moment. Actually, rather a long moment: DSK (as his compatriots invariably call him) has been in the limelight ever since the global financial crisis began. Whether boosting the IMF’s reserves or coordinating rescue packages for Greece and Ireland, DSK has impressed with his intellect and energy—and, of course, his multilingual charm (he is fluent in French, German and English and once told Cassandra that in his youth he could speak Bahasa Indonesia).

    But a big decision awaits DSK in 2011: should he stay at the IMF, gathering the plaudits and indulging his passion as a professional economist, or should he resign in order to make a bid for the French presidency as the candidate of the Socialist Party? The presidential election is not until 2012, but the Socialist Party will select its nominee from a primary contest in the autumn of 2011—and the candidates must enter the race by June.

    The opinion polls regularly show that DSK would defeat President Nicolas Sarkozy in 2012. Indeed, Mr Sarkozy no doubt recognised this threat way back in 2007, when in one of his early acts as president he nominated DSK for the IMF in faraway Washington, DC.

    The problem, however, is that DSK’s popularity with ordinary French voters is not matched by his popularity with Socialist Party stalwarts. For them, he is simply too “liberal”, ie too fond of the free market. He made a bid for the party’s nomination for the 2007 presidential election, and came second. Will he want to fall short again?

    For what it’s worth, Cassandra’s bet is that he will take the risk. After all, being boss of the IMF may be important, but being president of the French Republic is more important still. And if he fails, there will surely be other jobs in the offing.

  • Happiness and GDP

    Money can't buy happiness - or can it?

    Nov 30th 2010, 10:45 by J.A.

    THE British prime minister, David Cameron, wants to measure his nation’s happiness.

    It's time we admitted that there's more to life than money, and it's time we focused not just on GDP, but on GWB - general well-being. Well-being can't be measured by money or traded in markets. It's about the beauty of our surroundings, the quality of our culture and, above all, the strength of our relationships. Improving our society's sense of well-being is, I believe, the central political challenge of our times.

    The British being what they are, Mr Cameron’s notion has been greeted with a certain degree of derisive cynicism. Some learned critics have referred to Bhutan, whose King Jigme Singye Wangchuck coined the measure “Gross National Happiness” back in 1972.  Cassandra has no idea whether the Bhutanese are happier than the Brits but thinks the idea of pursuing happiness is a rather good one.

    One underlying question is whether money brings happiness. If it does, then the happiest countries in 2011 are likely to be rich countries like Denmark and Switzerland. If economic growth is the determining factor, then the Qataris will be the happiest people in the world, with the economy of their gas-exporting nation set to grow by 15.9% next year.

    But commonsense says that money can only be one factor. Family ties, good health, a pleasant natural environment, freedom from conflict: all these count in the equation. Certainly, poor Filipinos seem to smile a great deal more readily than morose Finns.

    On the other hand, perhaps commonsense is a tad misleading. The Economist recently devised a fascinating chart that seems to suggest that the link between per capita GDP and happiness is actually quite robust. Many surveys that attempt to rank nations by happiness put Denmark at the top (though The World In 2011 reckons the Danish economy will grow only by an unimpressive 1.6% next year, GDP per head will still be over $52,000).

    But, you may say, Denmark is a country with high taxes—so are people happy to be taxed? Cassandra will not dare to answer, but will merely wish readers greater happiness in 2011—and invite alternative choices for the world’s happiest nations.

  • WikiLeaks and the future of the newspaper

    From WikiLeaks to paywalls...

    Nov 29th 2010, 11:17 by J.A.

    WHAT does the extraordinary release over the last few weeks by WikiLeaks of reams and reams of confidential information—the latest is a batch released today of around 250,000 United States diplomatic cables—mean for the media? Embarrassed governments will no doubt level accusations of irresponsible, even dangerous, headline-grabbing. Ordinary citizens will probably react with a mix of cynicism and amazement.

    But the commercial question is whether the forest of newsprint devoted to the WikiLeaks’ revelations will actually lead to a sustained increase in circulation for the five newspapers given privileged access to the material: the New York Times in America, the Guardian in Britain, Le Monde in France, El Pais in Spain and Der Spiegel in Germany.

    Sadly for print journalism, Cassandra suspects any boost in sales will be temporary. The trend, especially among the young, is for news increasingly to be delivered by the computer and smart-phone screen rather than by the printed page. Already Americans use the internet more than newspapers to get their news. So how will the newspapers stay in business? The answer in 2011 is not just that they will smarten up their websites but also that more and more will put those sites—or part of them—behind a paywall. By January or February, even the “gray lady” herself, the New York Times, will be behind a paywall. The question then will be how many will continue, like the Guardian, to resist this “user pays” trend.

About The World in 2011: Cassandra

This blog accompanies The World in 2011, our almanac of predictions for the year ahead. The blog is named after the mythological Cassandra, who was cursed by Apollo to make prophecies that were accurate, but disbelieved

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