The World in 2012

Cassandra

  • Chinese New Year

    Hail to the dragon!

    Jan 23rd 2012, 15:54 by J.A.

    KUNG HEI FAT CHOI…Cassandra is pleased to wish everyone a happy new Chinese year of the dragon. Supposedly, those born in a dragon year (they occur every 12 years) will enjoy health and wealth—which explains the eagerness of Chinese couples to time their pregnancies accordingly. But will this year be a truly good one for the People’s Republic? The World in 2012 in its special section on China worries about rising debt and the property bubble, and it gives a soberly balanced view of the months ahead:

    The government will be relieved that one potential trigger of unrest, inflation, will be less of a threat in the coming months as food prices stabilise. GDP growth will ease, but not dramatically (to perhaps 8.3%, down from an estimated 9% in 2011).

    Even so, the authorities will remain edgy. A huge middle-class-led demonstration in the north-eastern city of Dalian in August 2011 over an environmental issue, which resulted in a rapid government climbdown, will encourage others to try.

    But surely the underlying point is that, in comparison with the West, China will remain in good shape. Moreover, at its 18th congress (probably in October) the Chinese Communist Party will organise a smooth leadership transition for the following spring: President Hu Jintao will be succeeded by Xi Jinping and Prime Minister Wen Jiabao will give way to Li Keqiang. Whether the leadership changes will mean much to ordinary Chinese is perhaps doubtful. What is certain is that they will be overjoyed if later this year Chinese “taikonauts”—including the country’s first female astronaut—travel to the Tiangong-1 space module, practising the techniques which eventually will establish a permanent Chinese outpost in Earth orbit. 

     

     

  • South Carolina's primary

    "Romney or suicide"?

    Jan 20th 2012, 18:56 by J.A.

    WILL the voters of South Carolina in tomorrow’s Republican primary add momentum to Mitt Romney’s quest to be the GOP presidential candidate? Or will they spoil that measured progress by giving a boost to Newt Gingrich (the conventional wisdom being that neither Rick Santorum nor Ron Paul will be in the top two)? Cassandra’s hunch is that, whatever tomorrow’s result, Mr Romney will eventually be the nominee—but in the meantime there will be lots of entertaining exchanges between the candidates that verge on the insulting or the scandalous. This is partly because Mr Romney, a member of a religion considered by many Americans to be a heretical cult, is a wooden-mannered multi-millionaire paying lower taxes than ordinary voters. And it is partly because the intellectually brilliant Mr Gingrich is a much-married hypocrite (he was calling for Bill Clinton’s impeachment while simultaneously indulging in an extramarital affair) who has become rich through activities more-or-less identical to the lobbying that he affects to despise. But most of all, of course, it is because American politics is a hardball game. At which point, Cassandra recommends that you watch this video of Mark Penn, formerly an adviser to both Bill and Hilary Clinton and now CEO of Burson-Marsteller, giving his thoughts in December at the World in 2012 festival in New York. Doubtless, he may be biased, but he’s surely right when he talks of the importance of the independents. And I rather like his notion that for the Republicans it must be “Romney or suicide”.

  • A top ten of business ideas

    First the coffee, then the bill

    Jan 19th 2012, 16:53 by J.A.

    CASSANDRA is always on the look out for other people’s predictions for 2012 (some, of course, would call it plagiarism; I prefer to think of it as a service to our readers…). Plenty of predictions are simply wacky; others are obvious (for example, that London will put on a big show for the Queen’s jubilee celebrations). But some are both intriguing and useful. In this category, I recommend looking at the top ten business ideas for 2012 selected by Springwise.com, which bills itself as “your essential fix of entrepreneurial ideas”. I was particularly intrigued by number one—perhaps proof that I drink too much coffee—and by number 10, a terribly smart way of paying for your coffee. But just as interesting is number 4, which could be a boon for teachers trying to teach dyslexic pupils to read. Ironically, of course, there are so many dyslexic but triumphant entrepreneurs (Sir Richard Branson is one; Ingvar Kamprad, founder of Ikea, another) that some might argue that dyslexia has been a spur to their success.

     

  • France's presidential election

    A nervous countdown, and not just for "Sarko"

    Jan 18th 2012, 17:38 by J.A.

    THE countdown to the French presidential election—just 94 days to the first round on April 22 if Cassandra has his maths right—is getting interesting. Poor Nicolas Sarkozy is finding that becoming a father (in October) and toppling a tyrant in Libya (one day later) are no guarantee of popularity. The latest opinion polls predict that his Socialist opponent, François Hollande (on the left in our picture), will be ahead of the president in the multi-candidate first round and, assuming a run-off between the two on May 6, will win decisively. Meanwhile, France has just lost its cherished AAA rating from Standard & Poor’s, which, of course, reminds voters that Sarko once said:

    If France loses its AAA, I’m dead.

    But is the president’s demise inevitable? In a rather obvious attempt to boost his fortunes, Mr Sarkozy today unveiled a €430m ($550m) back-to-jobs-and-growth package (the unemployment rate is now almost 10% of the workforce). He will emphasise that only he—and certainly not Monsieur Hollande, who has never held ministerial office—has the experience to guide France through the crisis of the euro zone. Most of all, he will campaign with an unmatched energy and instinct for his opponent’s weaknesses (in 2007 he ran rings around the Socialists’ Ségolène Royal, who at the time was Mr Hollande’s partner).

    Perhaps all that explains why, according to Le Nouvel Observateur, Mr Hollande, who looks more like a provincial bank manager than a world leader, is refusing to count his chickens. Throw Marine Le Pen, of the far right Front National, into the electoral mix and anything could happen: she could damage both Sarko and Mr Hollande in the first round. For an interesting reflection on how both men are plotting their campaigns, I recommend this article in today’s Guardian by Christine Ockrent, a very distinguished French journalist whose partner, Bernard Kouchner, served as health minister in a Socialist-led government and then as foreign minister in Mr Sarkozy’s government. As Mme Ockrent points out, Messrs Sarkozy and Hollande are both looking to the late François Mitterrand for strategic and tactical inspiration. After all, the wily Mitterrand served for 14 years as president of the French Republic.

    PS: The Economist’s marketing people, who love to bombard Facebook and Twitter, would love to know what you think of The World In…and so have devised a special survey. Apparently, the survey comes with the chance to win a “luxury Ettinger Cotswold weekend bag valued at £450”. Bonne chance…and just click here.

  • Muhammad Ali at 70

    Simply the greatest

    Jan 17th 2012, 15:08 by J.A.

     

    TODAY Muhammad Ali—born Cassius Marcellus Clay in Louisville, Kentucky—turns 70 with a birthday that will be celebrated by millions of his admirers around the world. Quite simply Ali remains “the Greatest”, a nickname that he gave himself early in his boxing career but which soon seemed eminently deserved. One reason, of course, was his supremacy as a boxer (three times world heavyweight champion). But the bigger reason, in Cassandra’s view, is that Ali transcended his sport: he defied his government over the Vietnam war, saying he would refuse to be drafted ("I ain't got no quarrel with them Viet Cong ... They never called me nigger."); and he converted to the Nation of Islam, which advocated black separatism (Ali later became a conventional Sunni Muslim). Yet he subsquently won almost everyone to his side: he has lived for more than two decades, without complaint, with Parkinson’s disease; he has established the Muhammad Ali Center “to inspire adults and children everywhere to be as great as they can be”; and he has been awarded the President Medal of Freedom. 

    So will there ever be another sportsman to match him? I doubt it. Today’s sportsmen may be “the greatest”, or even the greatest ever, in their own field—for example, Lionel Messi in soccer, or Roger Federer in tennis, or Sachin Tendulkar (still, maddeningly, without his 100th international hundred) in cricket—but they are confined to sport. True, Sebastian Coe has moved seamlessly from being the greatest 800 and 1500 metre runner of perhaps any age to being an effective politician and now the supremo of the London Olympics—but, unlike Ali, Coe’s face is not (and will never be) recognised everywhere from Detroit to Dhaka or Vancouver to Vientiane. Let us therefore recognise Ali’s greatness as unique. I, for one, will drink a toast tonight to his health.

     

     

  • Films, stars and prizes

    First the Globes, next the Oscars

    Jan 16th 2012, 18:55 by J.A.

    HAIL to the Golden Globes—the awards just handed out by the Hollywood Foreign Press Association (interested, it seems, only in the movie business despite the title) at their annual jamboree in Beverly Hills. It is hard to criticise their choices: for example, “The Descendants” as best drama; “The Artist” as best comedy or musical; George Clooney as best actor (drama), for “The Descendants”; Meryl Streep, playing Margaret Thatcher, as best actress (drama) in “The Iron Lady”; and so on.

    Ricky Gervais, the British comedian hosting the event for the third time and always happy to provoke his audience, described the awards as like the Oscars but without the esteem:

    The Golden Globes are to the Oscars like Kim Kardashian is to Kate Middleton—a bit louder, bit drunker, bit trashier, and more easily bought…Allegedly.

    But the film business is, of course, perfectly happy to play along with all the razzmatazz: stars on the red carpet, glamorous dresses, live television coverage, etc. The whole point, after all, is to garner as much publicity as possible.

    So the intriguing question is whether the Golden Globes are a good indicator of the Oscars that the grandly named Academy of Motion Picture Arts and Sciences will award next month (nominations will be announced on January 24th). Only once in the past seven years have the Golden Globes and the Academy agreed on the best picture (for “Slumdog Millionaire”), even though the Golden Globes, with its separate categories for drama and for comedy or musical, has two shots at the choice. Last year, the Golden Globes chose “The Social Network”, while the Oscar went to “The King’s Speech”. Will there be a mismatch again this year? Frankly, Cassandra is unconcerned. But Steven Spielberg may think differently: his “War Horse” was nominated at the Golden Globes, but failed to win. Still, if the statistics amassed by The Hollywood Reporter are accurate, he may well have better luck next month.

     

  • Musicians for the ages—including the Brit Awards

    Keep on rockin'

    Jan 13th 2012, 18:26 by J.A.

    WHAT a surprise—and what a pleasure: the front page of today’s Guardian newspaper in Britain is dominated by a photo of Kate Bush. The reason? Ms Bush has been nominated in the best British female solo artists category of next month’s Brit Awards (the UK’s version of America’s Grammys). That puts her in competition with the wonderful Adele, who has been wowing audiences on both sides of the Atlantic (before, that is, she had to stop for a throat operation). Oddly, the Guardian chooses on its website to picture Adele rather than Ms Bush, so let us link to the Daily Telegraph instead

    But what pleases Cassandra is that Ms Bush has been nominated precisely a quarter of a century after she last won the award. A triumph, in other words, for the music and musicians of a generation ago. We should not, in truth, be surprised. As a marvellous article in The World in 2012 notes, old rockers (and their more low-key peers) just keep on rocking. Paul McCartney will be 70 in June; Mick Jagger (Sir Mick…) and plain Mr Keith Richards will both be 69. But they all keep playing concerts to huge crowds (and Sir Mick has enough energy to start a new group: SuperHeavy). Dave Gilmour of the Pink Floyd is a stripling of just 65 but keeps wowing audiences with his limpid guitar solos. He must now be feeling particularly chuffed by Ms Bush’s nomination, since it was he who discovered her in the mid-1970s.

    Since Cassandra is of a certain age (I remember hobnobbing with Mr Gilmour as a teenager…), this raises an obvious question. The musicians of the Beatles generation have managed to make music that lasts for generations. Will the same be true of hip-hop and rap? I find it difficult to imagine that in 2050 middle-aged couples will look lovingly into each other’s eyes and chant the lyrics of Snoop Dogg or Jay-Z.   

  • The search for new digital territory

    Google adds to Google+

    Jan 12th 2012, 18:15 by J.A.

    CASSANDRA is a great admirer of Google. Indeed, his wife constantly berates him for not taking advantage of its IPO in 2004 (I claim it would have compromised my journalistic integrity). And, as The World in 2012 points out, this year is going to be a fascinating battlefield as Google and the other giants of the internet fight each other both for new territory and for each other’s territory. But I wonder whether Google, in seeking to invade the land of Facebook, is making some tactical errors. 

    Frankly, I find Google+ irrelevant—and so do many hundreds of millions of others still committing far too much of their time to Facebook. But my real beef is with Google’s sudden integration with “personal results” of social media such as Facebook and LinkedIn into its search engine. When I put a name into Google’s search engine, I don’t necessarily want a top result to be their Facebook page, and I certainly don’t want it to be their Google+ page. Yet it is clearly Google+ that the geniuses of Mountain View are trying to boost…Still, enough of my displeasure (with its possible Luddite overtones). For a much better critique of the Google battle plan, I recommend that you read this diatribe from Slate’s excellent Farhad Manjoo (and don’t forget to Google him…).

     

  • Bad luck for London...

    The curse of the ZILs

    Jan 11th 2012, 12:24 by L.M.

    CASSANDRA isn’t the only Cassandra in town. The first few days of the new year traditionally see a glut of predictions from think tanks, consultancies and PR firms eager to milk a dull news week. The best ones make precise, opinionated and sometimes unexpected predictions. The annual forecast from the Centre for Economics and Business Research, an economics consultancy, is one of them.

    Their list of ten predictions for this year includes the usual suspects: the euro (wobbly), Asian economies (almost ditto), European banks (bailouts galore!). What caught my eye was the verdict on how the year will turn out for London. CEBR predict that the Queen’s diamond jubilee, to be celebrated with a flotilla down the Thames on the first weekend of June, will be a rousing success. Britain will erupt in monarchical fervour and “the nation will take her to their hearts”. As the royal wedding showed last year, the British (and indeed the many non-Brits who live on this fair isle) have a remarkable appetite for pomp and pageantry. Barring a sudden outbreak of republicanism, this forecast seems spot on.

    But it is the other big London event of 2012 where CEBR are more controversial. The Olympics, they say (contradicting prime minister David Cameron and others with a vested interest in optimism), “will almost certainly reduce London’s GDP”. Tourists uninterested in sports – or indeed in packed tube carriages, interminable traffic delays and overpriced hotels – will avoid the city. (I can vouch for a few cancelled trips myself.) It’s worth adding that the thousands of days off that Londoners will collectively take off, to say nothing of the troubles getting into work for those that stay, will hardly help British businesses. But Douglas McWilliams, CEBR’s boss, is particularly annoyed with special traffic lanes that will be reserved for Olympic officials. His minor rant makes for an entertaining read:

    The ‘ZIL lanes’ for transporting the IOC officials (many of them people who in a civilised country would be in jail) around in limos, which are required because they wanted the Olympics to be in East London for the ‘legacy’ effects and made the athletes stay there but who themselves insisted on being put up in the Dorchester, will make London’s traffic lanes hell. Obviously I don’t approve of throwing stones at the cars in the ZIL lane but I hope that the contempt of sensible people for the IOC’s behaviour will be registered in some way. 

    Worse, Britons are unlikely to be rewarded for all this effort. Unlike China, which won the most gold medals for the first time when it hosted the Games in 2008, Britain will slip down the table, predict CEBR. “Other people have learned our trick of investing money in obscure sports to buy relatively easily earned Olympic gold medals,” writes Mr McWilliams. If it’s any consolation, CEBR does foresee a win for the English cricket team over the West Indies andSouth Africa. Perhaps its time to lobby for cricket as an Olympic sport.

     

     

  • China's growing bubble

    Counting on China's credit

    Jan 10th 2012, 16:00 by J.A.

    IN THESE dire economic times for the Western world, it is comforting to see Asia—in particular, China—as our saviour, with its economy forever growing (8.2% for 2012, we predict) and now in the process of becoming less mercantilist. But let’s not get too relaxed…For a sobering look at what is happening in the credit-profligate People’s Republic, Cassandra advises you to read an excellent article in the China section of The World in 2012 and then to listen to Carl Walter, an investment banker in Beijing, who shared his thoughts on China’s future at The World in 2012 festival in New York.

     

     

  • Scotland breaks free?

    Disunity in the UK

    Jan 9th 2012, 13:35 by J.A.

    IS THE United Kingdom of Great Britain and Northern Ireland doomed to lose the beautiful mountainous bit at its north? In other words, will 5m Scots (or rather those adults entitled to vote) choose independence for Scotland in a referendum that looks increasingly likely?

    Cassandra thinks such a result is unlikely: Scottish animosity towards “the auld enemy” (ie, the English) tends to be confined to the rugby pitch, and the English often point out that an awful lot of the politicians who govern them have been Scottish (eg, Messrs Tony Blair and Gordon Brown). 

    On the other hand, following the UK’s devolution of political power in the 1990s, there is now a Scottish government, led by the Scottish National Party, with the SNP leader Alex Salmond as “first minister”. Mr Salmond, as his article in The World in 2012 demonstrates, is a persuasive politician committed to independence for his country—and I can’t help thinking that this is the reason why the UK’s prime minister, David Cameron (a rather Scottish-sounding name, incidentally), is now bringing up the idea of giving Mr Salmond’s government’s the power to hold a legally binding referendum (referendums, I seem to remember, have normally been consultative in the UK). Moreover, rumour has it that Mr Cameron wants the referendum to take place within the next 18 months. The cynical suspicion, therefore, is that Mr Cameron’s Conservatives, whose very identity—the formal name is the Conservative and Unionist Party—involves the unity of the UK, reckon that the sooner the Scots are asked, the less likely they are to vote to leave the union. Mr Salmond doubtless fears the same thing, hence his apparent preference for a referendum in 2014.

    Whatever happens, there is sure to be plenty of preachifying this year on what it means to be British, Scottish, English, Welsh, Irish and so on…Meanwhile, the historically minded will point out that Scotland and England have been together for a very long time: King James VI of Scotland became James I of England in 1603, and the Acts of Union, formally joining the two countries, date from 1707. And Cassandra’s own preference? As the Americans might say, “If it ain’t broke, why fix it?”

     

  • The human brain

    Is uniqueness all in the mind?

    Jan 6th 2012, 16:44 by J.A.

     

    THERE is a fascinating article in The World in 2012 on how scientists will this year begin mapping the human brain. The author, Alun Anderson (one of Britain's most distinguished science writers) asserts that the brain is the most complex object in the universe—and who is Cassandra, whose knowledge of science is abysmal, to disagree? However, one of our readers does disagree, hence this very well argued letter.

    Sirs -

    In your "The World in 2012" issue, the statement is made (in "Brain work," Alun Anderson, p. 153) that "[h]uman brains are the most complex objects in the known universe."

    With due respect, this statement is silly - for two reasons. First, we lack any rigorous definition of "complexity," rendering comparisons by that measure meaningless. Second (even if we ignore the lack of quantitative measures) there are countless examples of systems which surpass the putative "complexity" of the human mind. From the quantum interactions of the constituents of even a small protein molecule - which are sufficiently computationally intractable to be essentially incomputable by any known human technologies - to the deeply enchained interactions amongst living amongst the vast numbers of living beings in, say, a 10-liter bucket of living seawater - and through the fluid dynamical behavior of superheated gases at the surface of our Sun, the "visible universe" is in fact replete with exquisitely "complex" systems at all scales and groupings.


    Instead, what the assumption that our primate brains are the apex of complexity in the known universe tells us, perhaps, is something much less proud (though perhaps all the more important): the one thing at which humanity unquestionably excels is a solipsistic worship of its own, self-declared primacy in the universe (and on our living planet). In other words, we're exquisitely good at coming up with metrics by which we can claim ourselves to be the most, greatest, or biggest inhabitant of our perceived surroundings. That's a far cry from being, in fact, any of these things; self-delusion is not equivalent to genuine primacy.

    Respectfully,
    D.B. LeConte-Spink

    (Douglas Bryan LeConte-Spink
    founder, Deep Symbiosis Institute) 

     

    And here is Alun's elegant riposte:

    From: Alun Anderson
    To: World InEditor <WorldInEditor@economist.com>

    Subject: Re: Letter (on behalf of Douglas Spink)


    Thanks for this letter from the Deep Symbiosis Institute.

    I understand the purpose of his argument, which is to get away from human "exceptionalism" by arguing that on some measure, a bucket of sea water is as complex as a human brain (maybe you would measure the number of viruses it contains or something). This kind of argument leads you to respect all things as somehow equal, which is a nice enough sentiment, and perhaps even to believe that everything is conscious.

    I think the bucket of sea water is not an "object" in the same way a brain is, nor is it as complex in terms of "interconnectedness" as used as the measure in the article. So although I don't t think his argument is correct I don't mind at all to see it aired in Cassandra, as there are lots of people aruging for oness with everything in the Universe!

    (NB The  Deep Symbiosis Institute works towards expanded awareness and appreciation of truly bidirectional, reciprocal, respectful relationships between Homo sapiens and other sentient, self-aware species)

    Best, 

     

    Alun

     

     

     

  • Wealth beyond most people's measure

    The super-rich will always be with us (and so will the repo man)

    Jan 5th 2012, 19:05 by J.A.

     

    THE times may be dire in 2012, but you can be sure that there will still be plenty of rich people around to make the poor feel jealous (or even, at times, violent…). But will there also be the really rich, the super-rich? You bet there will, especially in China, India, Brazil and Russia. And who better to ask about the super-rich than Robert Frank, who writes the Wealth Report for the Wall Street Journal (Cassandra remembers delighting in his book "Richistan" some years ago)? I particularly liked his prediction about the good fortune that awaits "the repo man", the man with the delightful task of repossessing assets from those who can no longer afford them. Incidentally, the journalist asking the questions, at the recent World in 2012 festival in New York, is my colleague Matthew Bishop, whose own literary speciality is writing about philanthropy...

     

     

  • The presidential race after Iowa

    First Bachmann; others to follow...

    Jan 4th 2012, 17:15 by J.A.

    SO MICHELE BACHMANN is the first casualty of the primary season, withdrawing today from the Republican race after a dismal showing yesterday in the Iowa caucus (Cassandra leaves aside Herman Cain, who has technically only “suspended” his campaign). Doubtless there will be more soon enough (my bet is that the hapless Rick Perry will not last much longer, and Jon Huntsman must surely give up if he fails in New Hampshire next week. Meanwhile, America’s TV screens will be filled ad nauseam with all the expensive cacophony of election year: shrieking pundits, disingenuous politicians and misleading commercials.

    But what does it mean for the rest of the world? I sense an attitude of bemused European bafflement. Why do so many Americans feel alienated from President Obama, apparently feeling ill at ease with his obvious intelligence? And why do the Republicans insist on putting up so many flawed candidates, some of whom make a point of denying science (Jon Huntsman, you may remember, was pilloried for saying that he believed in science…and now is belatedly trying to backtrack)

    Cassandra, who does not have a vote in America (though he has twice been a resident), will not venture an opinion—save to say that while America is the world’s pre-eminent power, the man (there will be no woman nominee) it elects in November will matter to everyone in the world. Perhaps what we really want is the fantasy president nominated by The World in 2012—a mix of Franklin Roosevelt, Reagan, Washington and Lincoln. Sadly, he’s not available.

  • Greece and the Euro

    Exodus for the Hellenes?

    Jan 3rd 2012, 18:30 by J.A.

    YOU may recall that yesterday Cassandra confessed his love of the euro, but was far from convinced that the euro zone would survive 2012 with all its 17 members. The obvious candidate for departure is Greece, but then the question is whether the Greeks themselves should want to leave. For her part, Arianna Huffington, the Athens-born eponymous creator of the Huffington Post, is in no doubt—the austerity programme is simply not worth its consequences, as she explained at the recent World in 2012 festival in New York...

     

     

  • The Euro, aged ten years and a day

    What a difference a decade makes...

    Jan 2nd 2012, 18:56 by J.A.

    CASSANDRA has fond memories of the occasion, ten years and one day ago, when he first took possession of euro notes (I was living in beautiful Paris at the time…). Fond, because Europhiles such as I foresaw a glorious future in which the EU’s single market would be more-or-less completed with the free flow of capital, goods, services and people. It has not, of course, worked out quite as we had hoped—there is still plenty of subtle protectionism, especially in services—but until Greece woke us up to the sovereign-debt crisis it seemed as though the euro was as solid as, well, the dollar.

    Now, of course, we know better, with Chancellor Merkel of Germany and President Sarkozy of France struggling—against plenty of people’s odds—to save the euro zone from a split, if not a collapse (hence the miserable new year’s messages from the two of them). The thing is, of course, that we should have known better long ago. I remember when I was based in Brussels being slightly amused that a vengeful European Commission had sacked one of its senior civil servants, Bernard Connolly, for rubbishing the euro project as long ago as 1995 in a well-argued book, “The Rotten Heart of Europe”. Poor Mr Connolly was pilloried by the Brussels elite for noting that perhaps the emperor would end up with no clothes. In contrast, some other Britons were praised rather than pilloried in what the French call the "Anglo-Saxon" press because they were journalists working for some rabidly Eurosceptic British newspapers (notably, though not invariably, those owned by non-Britons…).

    Frankly, I have no idea whether the euro zone will survive 2012 with all its current 17 members, but I do hope that the euro itself survives. Obviously, as the critics delight in pointing out, there are inherent flaws in the euro project (how can you have a single currency without some single body to determine fiscal and monetary affairs, etc?…), but in terms of what eases travel for ordinary European citizens and eliminates exchange risks for European businesses the euro has clearly proved its worth. Long may it live!

     

  • Business, economics and sport in 2012

    From struggling euros to the triumphant Olympics?

    Jan 1st 2012, 16:08 by J.A.

    WELCOME to the new year (at least according to the Gregorian calendar—Cassandra notes that the Chinese New Year, the auspicious year of the dragon, will begin on January 23rd). Two of our distinguished editors, Daniel Franklin and Tom Standage, have already given us their predictions for the politics of 2012, but what do they foresee for business, economics and sport? Well, in some aspects they are (predictably) a little gloomy. How else could they be when talking of euro-zone economics? But Cassandra was rather impressed by Tom’s talk of the imperial ambitions of GAFA. If you want to know what that acronym stands for, just click here…and begin 2012 with some instructive viewing!

     

  • The top economies of 2012

    From Macau to Laos, with China in between

    Dec 30th 2011, 19:22 by J.A.

    “LIES, damn lies and statistics”, as Britain’s Benjamin Disraeli supposedly said—and Mark Twain definitely said. The phrase came to Cassandra’s mind when ruminating on the “world in figures” section of The World in 2012, in particular when looking at the predicted rankings for economic growth in the year ahead.

    I have no quarrel with the figures themselves, all drawn from the acknowledged number-crunchers at the Economist Intelligence Unit. But as Bobby Kennedy famously said in his 1968 speech at the University of Kansas: 

    Too much and too long, we seem to have surrendered community excellence and community values in the mere accumulation of material things. Our gross national product ... if we should judge America by that - counts air pollution and cigarette advertising, and ambulances to clear our highways of carnage. It counts special locks for our doors and the jails for those who break them. It counts the destruction of our redwoods and the loss of our natural wonder in chaotic sprawl. It counts napalm and the cost of a nuclear warhead, and armored cars for police who fight riots in our streets. It counts Whitman's rifle and Speck's knife, and the television programs which glorify violence in order to sell toys to our children. 


    "Yet the gross national product does not allow for the health of our children, the quality of their education, or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages; the intelligence of our public debate or the integrity of our public officials. It measures neither our wit nor our courage; neither our wisdom nor our learning; neither our compassion nor our devotion to our country; it measures everything, in short, except that which makes life worthwhile. And it tells us everything about America except why we are proud that we are Americans.

    With Kennedy’s words in mind a 15% growth rate for Macau—a tiny gambling haven for punters from Hong Kong and China—is meaningless. And should we really be impressed by the figures for Libya and Iraq, since they so clearly reflect a virtually automatic bounce-back from war? Much more significant in Cassandra’s view is the healthy 8.2% prediction for China. That may, of course, reflect a boom that eventually must burst (The World in 2012 worries about China’s growing debt), but with the  economies of the western world in the doldrums we had better keep our fingers crossed that the prediction proves right.

     

  • Disappointment for cricket's best batsman

    Pray patience for Tendulkar's missing ton

    Dec 29th 2011, 20:15 by J.A.

     

    BAD news from Melbourne for India’s fanatical cricket fans this morning: Australia had just beaten India in the first of their four-match test series by a commanding 122 runs. Cassandra admires the way that Australia are now showing signs of recovering their previous greatness (definitively lost last year when they lost the test series to England), but nonetheless I feel rather saddened by the Melbourne result. The reason is that I, and I suspect every lover of cricket, would love to have seen India’s Sachin Tendulkar hit a record 100th international century (just to confuse Americans and others who have no understanding of the world’s finest sport, a century is a hundred runs…). Instead, despite being the top scorer in both Indian innings, he remains stuck on 99.

    Will the elusive 100th occur in 2012, perhaps as early as the second test, beginning in Sydney on January 3rd? I sincerely hope so, since the suspense risks becoming unbearable (Mr Tendulkar was widely expected to pass his milestone in England last summer—but he failed, despite some valiant efforts as part of an underperforming team). 

    There are several reasons we cricket-lovers all wish ”the little master” well. He is polite and well-behaved (in contrast to many other sporting stars); he has been a top player since making a century on his first-class debut 23 years ago at the age of 15; and he is quite simply a joy to watch. In short, he is undoubtedly the best batsman the world has seen since Australia’s Don Bradman (who once said that Tendulkar reminded him of himself). 

    There is also one other impulse to praise Mr Tendulkar: in an age where giants tend to dominate most sports, the little master stands a mere 5ft 5in (1.65m). Interestingly, Bradman was a small man, as were India’s Sunil Gavaskar and the great West Indian batsman Brian Lara. Perhaps their small stature has been an advantage: when a fast bowler hurls a ball, aimed to hurt, at over 90 miles an hour, a tall batsman is likely to be hit in the face. Geniuses such as Messrs Tendulkar and Gavaskar simply hook the ball to the boundary. 

     

  • Daniel Barenboim's new way for Israelis and Palestinians

    Let public intellectuals take the stage

    Dec 28th 2011, 15:46 by J.A.

    WILL 2012 be the year in which Israelis and Palestinians reach a final settlement, with a state for each? Though the outlines of such a settlement have long looked clear enough—the “Clinton parameters” are surely the most feasible solution—Cassandra is pessimistic. The politicians of both sides seem unableto rise to the challenge.

    But should politicians be the only directors of this tragic drama? In The World in 2012 the conductor Daniel Barenboim suggests a very different approach. Mr Barenboim (who holds not just Argentine, Israeli and Spanish citizenship but also, thanks to his efforts to promote cultural exchanges between the young of Israel and the Arab world, Palestinian citizenship too) calls for “public intellectuals” to take a leading role.

    The conductor (pictured) writes: 

    We need a complete rethinking of our approach. Rather than leaving the fate of the region to politicians and diplomats who’ll only become further entangled in a web of false political correctness, we need to empower the individual citizen to take a stand. The Egyptian people have shown us how they were prepared to take their fate into their own hands, and even though the outcome of their uprising is still uncertain, we must salute and encourage them. Positive civic action can arise only from enlightened citizens. To foster this, a new generation of public intellectuals must develop.

    Whether this is at all realistic is something about which, frankly, I have my doubts, but I salute the wish—as does one of our readers in this letter from the Netherlands: 

    I refer to Mr Daniel Barenboim's essay on "A way ahead for the Middle East".

    I do not have any stake in the relation between the Palestinians and the Israelis, except as a citizen of this world, I would like peace in this world.

    I understand very well Mr. Barenboim's considerations of the failures of "political correctness", and how it prevents solutions for the future, if all it does is to protect mistakes from the past. Being over 65 years of age, I wonder if I have sufficient time left to see historians addressing the issue of Zionism in an independent way. I understand the desire of Israel for 'safe borders', but I do not think safe borders can be achieved by concrete blocks, barbed wire and guns. Also societies that have been relying on constructed and controlled "vassal states" have all but disappeared. Safe borders can only be achieved by creating friendly states around. Israel has long been looking to South Africa as an "example" of how to do things, and maybe now they should take a lesson from what eventually had to happen over there.

    I have read Mr. Barenboim's essay with interest, and I could add a great number of details, But they are just that: additional arguments and details. Condensing my view, it just comes to exactly what the essay is all about. So in short my view is that mr. Barenboim's "way ahead" is the "way to go". 

    Johannes Mutsaers
    Amstelveen, The Netherlands

     

  • Africa's reputation—deserved or not

    Continental bias?

    Dec 27th 2011, 17:59 by J.A.

    THE admirable Sudanese telecoms billionaire, Mo Ibrahim, was the guest-editor of the BBC Radio 4 Today programme this morning. Cassandra did not catch all of the programme (which, for non-Beeb listeners, concentrates on the politics and current affairs of the moment), but what caught my attention was Mr Ibrahim’s assertion that the western media—he included the supposedly impartial BBC and CNN—are biased in their reporting of Africa. Too often, he argued, the western media fail to report the good stories that abound in the continent; instead, they concentrate on the “four or five” places that give Africa such a bad name to the outside world. 

    Perhaps he has a point. After all, more and more African countries, both north and south of the Sahara, these days hold democratic elections that are at least reasonably fair and the continent looks set to enjoy good economic growth in the year ahead.

    Nonetheless, I couldn’t help but make a mental riposte or two: two days ago Christmas Day in Nigeria was marred by deadly church bombings carried out by the extremist Muslim Boko Haram group; there has been horrible violence in recent years in Zimbabwe and Kenya, both of which are due to hold elections in 2012; Côte d’Ivoire, once the epitome of stable (albeit undemocratic) prosperity, is only just emerging from its civil war of 2011; Somalia is the tragic definition of a failed state; and far too many countries are ruled by what The World in 2012 calls “resource-peddling strongmen”. Add to that the continent’s terrible reputation for corruption, and perhaps Mr Ibrahim is being a touch too critical.

    But perhaps the best riposte lies with Mr Ibrahim’s very own Mo Ibrahim Foundation, which produces an annual index of African governance and awards a huge prize—$5m, plus $200,000 a year for life—to a democratically elected African leader who has governed well and who has voluntarily stepped down in favour of his or her democratically elected successor. The prize was first awarded in 2007 to Mozambique’s Joaquim Chissano, and the following year it went to Festus Mogae of Botswana. The 2011 prize, announced in October, was given to Pedro Pires, who had stepped down in September after a decade as president of Cape Verde. But, sad to say (though good for the credibility of the prize), no recipient was felt worthy in 2009 and 2010. Let us hope that Mr Ibrahim—and the western media—will be able to salute a worthy winner in 2012.

     

  • The crowded politics of 2012

    Countdown to the new year...

    Dec 26th 2011, 12:30 by J.A.

     

    THE ECONOMIST is famously anonymous—not for us the egotistical search for the limelight (or so we tell ourselves…). However, let Cassandra draw back the curtain of secrecy just a touch. Simply click on this link and you will see two of our stars discussing the political prospects for 2012, a year that is almost upon us, from elections around the world to the ramifications of the Rio+20 Earth Summit. Fascinating stuff, and you will note that they sensibly—such is the uncertainty—refrain from naming the Republican nominee in the US election. Less sensibly, Cassandra still thinks that, in the end, GOP voters will choose Mitt Romney…

     

  • IBM peers into the future

    Big Blue's big five predictions

    Dec 23rd 2011, 15:34 by J.A.

    ONE of Cassandra’s first computers was an IBM, and—even though I have since been converted to the gospel of Jobs—I retain a certain reverence for a company that in 2011 celebrated its 100th birthday and yet still manages to be innovative. In that spirit, Cassandra bows before the rival seers of Big Blue, who have just announced their annual “5 in 5”: predictions of the five technology innovations that will change our lives (do please click the link) within the next five years (or, as the Big Blue experts put it, when “science fiction becomes reality”). Whether they turn out to be pie in the sky (Cassandra is rather doubtful about number 3), we will presumably know by 2017. Let's not be impatient...

     

  • The fragility of violent Iraq

    Baghdad's bombs underline an ominous future

    Dec 22nd 2011, 17:05 by J.A.

    TODAY’S news of coordinated—and very deadly—bomb attacks in Baghdad clearly augurs ill for Iraq in the coming year. As The World in 2012 presciently observed, with a fair degree of understatement:

    Iraq will disappoint, as the once-ruling Sunni minority and the Shia majority now in charge fail to accommodate each other’s demands. The prime minister, Nuri al-Maliki, will tighten an authoritarian grip, albeit that he was democratically elected in 2010. 

    But who is to blame, and what will be the consequences? Suspicion automatically falls on Sunnis, since most of the bombs were planted in Shia areas, and some will argue that the attacks are in retaliation to the recent charges of terrorism laid by the Shia prime minister, Nuri al-Maliki, against Iraq’s Sunni vice-president, Tariq al-Hashemi. The vice-president has sensibly fled north to the virtual autonomy and security of the Kurdish area of Iraq. 

    On the other hand, suspicion must also fall on al-Qaida: it has a history in Iraq of attacks on Shia communities; it has no interest in a stable Iraq (not least because Shi’ite Iran now wields great influence on Mr al-Maliki’s government); and, with American troops having finally left Iraq last weekend, it would love to underline the failure of American ambitions for the country.  

    But what of the consequences? In Cassandra’s view, the American neo-con dream of a post-Saddam Iraq spreading democracy throughout the Middle East was always a delusional fantasy. The risk, now that there is no American presence to hold the ring, is that Iraq will fall into sectarian chaos (just as neighbouring Syria may). That in turn will strengthen the argument that in the absence of a Saddam-like strongman Iraq, with its Sunni and Shia Arabs and Sunni Kurds, can never be a coherent state and must, at best, become a loose federation. That, however, is much easier said than done, not least because some of Iraq’s richest oil fields are in the Kurdish area…One respected Washington analyst, Anthony Cordesman, says it is too early to predict the break-up of Iraq, but then adds:

    A nation that does not have a functioning government, or one that favors a single faction, whose people are divided and cannot in practice think of themselves as Iraqis - as distinguished from their ethnic and sectarian identity - is a very serious problem and that problem is worse because of what has been happening over the last week.

     

     

  • Britain's educational angst

    Top marks and failing grades...

    Dec 21st 2011, 18:40 by J.A.

    DOES Britain possess an educational system to be admired—or simply deplored? The answer is a bit of both: Oxford and Cambridge regularly figure in the top ten of the world’s universities and parents, British and foreign alike, are ready to pay through the nose to send their precious offspring to Britain’s independent schools (often confusingly called “public schools”, as opposed to “state schools”). On the other hand, the popularity of the independent schools is surely proof that too many state schools are doing a poor job. Add in the view that secondary-school exams are being dumbed down (what else can convincingly explain the annual increase in students getting top grades?), and it becomes easy to criticise.

    All this is condemning British education to a kind of permanent revolution. School curriculums get changed by ministerial fiat (usually with a “back to basics” approach); universities in England and Wales are permitted to charge their students something like a market price; and Oxford and Cambridge are harangued, not least by the prime minister, for not admitting enough students from disadvantaged ethnic minorities.

    Cassandra (who, thanks to his advancing years, benefitted from an excellent free education and boasts Cambridge as his alma mater) hesitates to take the ideologically pure position of some critics—ban the independent schools, introduce affirmative action, and so on. Instead, I feel rather encouraged by the news that 2012 will see the opening of the New College of the Humanities, the brainchild of A.C. Grayling, a philosopher long associated with Oxford who outlines his plan in The World in 2012. I have no idea how well the New College will fare in those all-important rankings, but—as Mao Zedong once declared in a rather different context—“let a thousand flowers bloom.” Sceptics, of course, will note that the actual quotation was “let a hundred flowers blossom”, and when they did, they were ruthlessly cut down.

     

About Cassandra

This blog accompanies The World in 2012, 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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