China The most significant purge in a generation claims Zhou Yongkang, a former security chief, and tightens XiJinping's grip, page 33. The economic impact of the anti-corruption campaign, page 34 On the cover For allits military might, Israel faces a grim future unless it can secure peace: leader, page 7. The pummelling of Gaza has cost Israel sympathyin Europe, and even among Americans. Israelis are debating how to respond, pages 16-18 The Economist online Daily analysis and opinion from our 19 blogs, plus audio and video content, debates and a daily chart Economist.com/blogs E-mail: newsletters and mobile edition Economist.com/email Print edition: available online by 7pm London time each Thursday Economist.com/print Audio edition: available online to download each Friday Economist.com/audioedition The Economist Volume 412 Number 8898 Published since September 1843 to toke part in "a severo contest between Intelligente, which presses forward, and an unworthy, timid ignorante obstructing our progress." Editorialoffices in London and aso: Atlanta, Beijing, Berlin, Brussels, Cairo. Chicago. Hong Kong, Johannesburg, lima. Los Angeles, Mexico City, Moscow, New Delhi, NewYork, Paris, San Francisco, Sáo Paulo, Singapore, Tokyo, Washington DC 5 The world this week Leaders 7 Israel Winning the battle, losing the war 8 Mukesh Ambani India's unloved bil[ionaire 9 Argentina defaults Eighth time unlucky 9 Crime and punishment Stuffed 10 Fund managers Fundamental fears Letters 12 On Hong Kong, cyber-security, Scotland Briefing 16 Israel and the world Us and thern United States 19 America and Africa The next great disruption 21 Skilled labour Behind the scenes 21 Primary reform A modest proposal 22 Tattoos in the workplace In k blots 22 Religious freedom Rabbi to the rescue 24 The Florida governor's race Close and caustic 25 Lexington America and the space race The Americas 26 Argentina's default No movement 27 Bello Terri] limits 28 Canadian licence plates Plategate 28 Politics in Venezuela Whose hand on the tiller? Asia 29 Race and religion in South-East Asia The plural society 30 The Philippines DAP dancing 31 Sport in India The kabaddi craze 31 India and Nepal Neighbourhood watch 32 Nuclear power in Japan Flicking the switch China 33 Corruption The fall of Zhou Yongkang 34 Corruption and the economy Is a nti-g raft anti-growth? 34 Aviation The sky is a limit Middle East and Africa 35 South Africa Up the creek 36 Ebola in west Africa Death and disbelievers 37 The Syrian war A pincer move 37 Libya Out of control 38 Islam in Egypt Manipulating the minarets Europe 39 Sanctions on Russia This is going to hurt 40 The war in Ukraine Closing in 41 Spain's economy Iberian dawn 41 Turkey's foreign policy Nasty neighbourhood 42 German politics For curvy cannons and extra sleep 1 1 O 7 ata. 2014 New sanctions on Russia The cost ofVladimir Putin's Ukraine gamble is going up, but he shows no sign of cha nging course, page 39. How far wi ll he go to stave off a Ukrainian victory? Page 40. Western sanctions willthwart Rosneft's ambitions tojoin the ranks of oil's superpowers, page 50 How America fell out of love with space A revealing new history of the Apolto moon landings holds lessons for today: Lexington, page 25 ► Contents continues overleaf
Transcript
China The most significantpurge in a generation claimsZhou Yongkang, a formersecurity chief, and tightensXiJinping's grip, page 33.The economic impact of theanti-corruption campaign,page 34
On the coverFor allits military might,Israel faces a grim futureunless it can secure peace:leader, page 7. Thepummelling of Gaza has costIsrael sympathyin Europe,and even among Americans.Israelis are debating how torespond, pages 16-18
The Economist online
Daily analysis and opinion fromour 19 blogs, plus audio and videocontent, debates and a daily chartEconomist.com/blogs
Print edition: available online by7pm London time each ThursdayEconomist.com/printAudio edition: available onlineto download each FridayEconomist.com/audioedition
TheEconomist
Volume 412 Number 8898
Published since September 1843to toke part in "a severo contest betweenIntelligente, which presses forward, andan unworthy, timid ignorante obstructingour progress."
Editorialoffices in London and aso:Atlanta, Beijing, Berlin, Brussels, Cairo.Chicago. Hong Kong, Johannesburg, lima.Los Angeles, Mexico City, Moscow, New Delhi,NewYork, Paris, San Francisco, Sáo Paulo,Singapore, Tokyo, Washington DC
5 The world this week
Leaders
7 IsraelWinning the battle, losingthe war
8 Mukesh AmbaniIndia's unloved bil[ionaire
9 Argentina defaultsEighth time unlucky
9 Crime and punishmentStuffed
10 Fund managersFundamental fears
Letters
12 On Hong Kong,cyber-security, Scotland
Briefing
16 Israel and the worldUs and thern
United States
19 America and AfricaThe next great disruption
21 Skilled labourBehind the scenes
21 Primary reformA modest proposal
22 Tattoos in the workplaceIn k blots
22 Religious freedomRabbi to the rescue
24 The Florida governor'sraceClose and caustic
25 LexingtonAmerica and the spacerace
The Americas
26 Argentina's defaultNo movement
27 BelloTerri] limits
28 Canadian licence platesPlategate
28 Politics in VenezuelaWhose hand on the tiller?
Asia
29 Race and religion inSouth-East AsiaThe plural society
30 The PhilippinesDAP dancing
31 Sport in IndiaThe kabaddi craze
31 India and NepalNeighbourhood watch
32 Nuclear power in JapanFlicking the switch
China
33 CorruptionThe fall of Zhou Yongkang
34 Corruption and theeconomyIs a nti-g raft anti-growth?
34 AviationThe sky is a limit
Middle East and Africa
35 South AfricaUp the creek
36 Ebola in west AfricaDeath and disbelievers
37 The Syrian warA pincer move
37 LibyaOut of control
38 Islam in EgyptManipulating the minarets
Europe
39 Sanctions on RussiaThis is going to hurt
40 The war in UkraineClosing in
41 Spain's economyIberian dawn
41 Turkey's foreign policyNasty neighbourhood
42 German politicsFor curvy cannons andextra sleep
1 1O 7 ata. 2014
New sanctions on RussiaThe cost ofVladimir Putin'sUkraine gamble is going up,but he shows no sign ofcha nging course, page 39.How far wi ll he go to stave off aUkrainian victory? Page 40.Western sanctions willthwartRosneft's ambitions tojointhe ranks of oil's superpowers,page 50
How America fell out of lovewith space A revealing newhistory of the Apolto moonlandings holds lessons fortoday: Lexington, page 25
► Contents continues overleaf
Obituary70 Robert Panara
Educator of the deaf
Principal commercial offices:25 St James's Street, London Sw1A 1HG
Tel.: 020 7830 7000
Rue de l'Athenée 321206 Geneva, SwitzerlandTel: 41 22 566 2470
India's unloved billionaireWhy Mukesh Ambani, India'srichest man, needs to reformhis empire: leader, page 8. litHe coutd make his country abetter place, But he wouldhave to cha nqe hil.company'sways, page 47
Bonds and risk Regulatorsshould nottighten the ruleson the fund-managementindustry: leader, page 10. tThere are worries that asset -management may spawn thenext financial crisis, page 54
Nixon and ReaganThe rise of Ronald Reaganmeant far more than victoryfor the Republicans, page 62
4 Contents
The Economist August 2nd 2014
ri
O
Britain
43 PrisonsRough justice
44 The economyResized and reshaped
International
45 Commemorating the firstworld warIn foreign fields
46 How the first world warreshaped EuropeRedrawing the Illd p
Business
47 Reliance IndustriesReimagining Ambani
50 RosneftArctic chill
51 Arbitration awardsNow try collecting
51 Commercial propertyThe warehouse boom
52 Whole Foods MarketVictim of success
53 SchumpeterDecluttering the company
Finance and economice
54 Fund managersAssets or liabilities?
55 ButtonwoodWhither interest rates?
56 Deleveraging in AmericaDebt calm
56 Forgiving defaultBorrow, renege, borrowagain
57 Latin AmericaneconomiesAndean idols
58 Free exchangeWhy the ECB shouldadopt QE
Science and technology59 Sex differences
The Mars and Venusquestion
60 Solar energyPicking up steam
60 Renewable energyPee power
61 EntomologyIt's gotta bee me
Books and arts62 Nixon and Reagan
Invisible bridge
63 Governing BritainA difficult truth
64 European historyRise of the Reformation
64 Cricket in PakistanBatting for survival
65 King TutankhamunBoy-king in Oxford
68 Economic and financiali ndicatorsStatistics on 42economies, plus a closerlook at import cover
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