The people’s panopticon -Open-source intelligence comes of age.ppt
What if bitcoin fell to zero?Inside Xinjiangs economyHow to solve the chip shortagePredicting pathogensAUGUST 7TH13TH 2021T he peoples pa nopt iconOpen-source intelligence comes of age012TOWARDS A DREAMOpen tonew waysof learningAt London Business School,we believe inkeeping an open mind.In being open tochange,to innovation,to thinking that knowsno bounds,to different experiences anddiverse perspectives so you can keep onlearning and so can we.Discover where anopen mind can take you and your organisationwith our Executive Education programmes.www.london.edu/execed012ContentsThe Economist August 7th 20215The world this weekBritain7 A summary of politicaland business news21 Britains boat people22 Going for Olympic glory23 Crops and robbers23 After furloughLeaders9 Open-source intelligenceThe peoples panopticon24 Scottish industry25 Bagehot Meritocracy10 ChipmakingA self-solving problemEurope10 Democracy in AfricaZambias crucial election26 Spanish unemployment27 Malevolent Belarus28 Firefighting in Turkey28 Chechen martial arts11 CryptocurrenciesUnstablecoins12 New vaccinesVaxelerandoOn the cover29 Charlemagne CulinaryintegrationOpen-source intelligence is awelcome threat to malefactorsand governments withLetters15 On life sentences,Syria,germs,eggcornsUnited Statessomething to hide:leader,Academics,activists30 Homelessnesspage 9.and passionate amateurs nowhave intelligence capabilitiesonce the reserve ofBriefing31 The party of Biden32 Andrew Cuomo in trouble33 Ghost guns16 Open-source intelligenceTrainspotting,with nukessuperpowers:briefing,page 1634 Lexington State fairsWhat if bitcoin fell to zero?Ouranalysis,page 56.Whyregulatorsshouldtreatsomecryptocurrencieslikebanks:leader,page 11.Thesec setsitssightsonthecrypto“WildWest”,page 58The Americas35 Bolivias woes36 Russians in UruguayInside Xinjiangs economyChinaseffortstolifttheeconomyofthefarwesternprovincemaysmotherit,page 45Middle East&Africa37 Lebanons endless crisis38 Is Iran attacking ships?39 Zambias crucial election40 Refugees are going hungryHow to solve the chip shortageMarkets,notnationalismandsubsidies,arethecure:leader,page 10.Carmakersarerethinkingsupplychainsfortheelectricera,page 53.Nvidiahasconqueredthemarketforartificialintelligencechips.Canitholdontoitscrown?Page 51Schumpeter Indias otherA-lister.The many sidesto Gautam Adani,page55Predicting pathogensByanticipatinghowtheywillevolve,vaccinesandtherapiescanbepreparedinadvance:leader,page 12,andanalysis,page 63 Activatingthedigitalelementofyoursubscriptionmeansthatyoucansearchourarchive,readallofourdailyjournalismandlistentoaudioversionsofourstories.J continues overleaf6ContentsThe Economist August 7th 2021AsiaFinance&economics56 A bitcoinstresstest58 Policingcrypto41 Pacificislandsandclimatechange42 Mumbaisurbanjungle43 Tokyopullsitoff58 EmoneyinHongKong59 BonddefaultsinChina43 Covid19inMyanmar44 Banyan Malaysianpolitics60 Free exchange RecoveryinAmericaChinaBiology brief45 Xinjiangseconomy61 CellsandhowtopowerthemInternationalScience&technology63 Presagingviralevolution65 Anoldnonbinaryburial65 AnticipatingPythagoras66 Robotstounloadlorries47 RefugeeswithoutrefugeBusinessBooks&arts51 Nvidiasbigbetonai53 Chiplesscarmakers53 eu carbontariffs54 Bartleby Monarchceos67 Sportinggreatness68 EscapingEastBerlin69 Horologicalhistory69 ElifShafaksnewnovel55 Schumpeter TheAdaniparadox70 Johnson“Cultish”languageEconomic&financial indicators72 Statisticson42economiesGraphic detail73 CountriesrealclimatechangetargetsObituary74 FrenchyCannoli,masterofhashishVolume 440 Number 9257Published since September to take part in“a severe contest betweenintelligence,which presses forward,and an unworthy,timid ignoranceobstructing our progress.”Subscription serviceFor our full range of subscription offers,includingdigital only or print and digital bundled,visit:E best way to contact our Customer Serviceteam is via phone or live chat.You can contact uson or ;please checkour website for up to date 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Limited.Printed by Walstead Peterborough LimitedThe world this week PoliticsThe Economist August 7th 2021 7InHong Kong theauthoitieschaeAnthonyWon,apopsta,withcouptionfosinfotheShininPathebelsanhasbeenciticisefomakinhomophobicansexistsocialmeiaposts.PeoFancke,aleftisteconomist,wasappointefinanceministe.Coronavirus briefsTo 6am GMT Aug 5th 202Weekly confirmed cases by area,m3IndiaOther210becauseofthepoliticalthemes Brazils hihestelectoalcoutWestern Europeofitssons.HewaschaealonwithacaniatetotheLeislativeCouncilfopoviinentetainmentwiththeintenttoswaypeoplesvotes.openeaninquiyintoJaiBolsonaosstatementsaboutelectionsin2022.Thepesienthasepeatelyclaime,withoutanyevience,thattheewillbefauintheelectonicvotinsystem.US20202021TheTalibanintensifietheiassaultonAfghanistanscities,withfihtinaininHeat,thecountysthilaest,LashkaGah,thecapitalofHelmanpovince,anKanaha.TheTalibanalsoclaimeesponsibilityfoabombattackatthehomeoftheefenceministe inKabul.ThejihaistshavebeenVaccination doses%of over-11s with1st dose ndLauelHubbabecamethefistopenlytransgenderathlete tocompeteinasoloOlympicspot.TheNewZealanewaseliminatefomheweihtliftineventaftefailintheelifts.Total 000Malta74799 9993 889 819 889 7787 88 784 8 88 9Mexico launchealawsuitaainstAmeicanunmakesfotheialleecomplicityinallowinweaponstocosstheboeilleally.Thesuit,loeinacoutinBoston,claimsthecompaniesolittletostoptheiunsfallinintothehansofucatels.IcelandUAE1,8844,1734,811,178,897,4947,7749,7MongoliaUruguayIsraelChileDenmarkSingaporeCanadaAndrew Cuomo cameunepessuetoesinasovenoembolenebytheimminentwithawalofAmeicanfoces ofNewYokaftethestatesSources:Johns Hopkins University CSSE;Our World in Data;United Nationsfomthecounty.attoneyenealeleaseaepotintoalleationsofsexualmisconuct,anconABelausianspinteattheMuhyiinYassin,MalaysiasOlympicssouhthelpfomthe Thewho maeapleatoichJapanesepoliceaftehe countiestoelayivinoutwomen.MCuomoeniesthat coachestietosenhehome booster shots ofvaccinespimeministe,losthismajo cluethathehahaasse11ityinPaliamentwhen11lawmakesfomacoalitionpatnewithewtheisuppot.MMuhyiinhasclunontopoweespiteaslimmajoitybyfoestallinavoteofconfience.HehaspomisetoeconvenePaliamentinSeptembeanfaceahisactionsweeinappopiate.JoeBienwasamonthemanyDemocatswhocalleonhimtostepown.whensheciticisethem.PolanoeeKystinaTimanovskayaasylum.InUkaine,VitalyShishov,aBelausianuntiltheenofSeptembesothatsuppliescanbeivetetopooecounties,wheethevastmajoityofpeoplehaveactivistwhohelpepeopleflee notbeeninoculate.theepessiveeimeinhishomelan,wasfounhane New York becamethefistinapak.InBelarus twooppo cityinAmeicatoequiesitionactivistswentontialin poofofvaccinationfocusEbahimRaisi,ahalinecleic,wasinauuateaspesientofIran.Hetookofficeamialleationsthatnoconfiencemotionthen.Ianwasbehintwoattackson aclosecoutoom.intenationalshippin.Atomesenteinestauants,ymsanotheinoovenues.EnfocementwillbeinonSeptembe13th.Covi19continuetoaeacossSouth-East Asia.onelaenwithexplosiveshitanoiltankemanaebyanIsaeliownefimothecoastofOman,killintwopeople.Dayslate,unmenboaeabitumentankeownebyafiminDubai,FiefihtesbattletotackleInonesiacosse100,000ecoetotaleathsfomthevius.DailyinfectionsinThailananMalaysiaaehittinnewhihsancasesinthePhilippinesaeonceaainshaplyontheise.thewostwilfiesinTurkeyfoecaes,whichhavekilleatleasteihtpeople.Thebiestblazesweeineionspackewithseasieesots.MoecitiesinAmeica,incluinAtlanta,LosAnelesanWashinton,dc,eintouceuleseitheequiinoecommeninthatpeopleweamasks inpublicinoospaces.Louisianasaithateveyoneovefive,ealessofvaccinationstatus,shoulweaoneinpublic.Floridasoveno,RonDeSantis,ejecteamaskmanate.Hospitalisationsfomtheiseaseannewcasesaeattheihihestinthestatesincethestatofthepanemic.alleelyeiectinittowas PosecutosinGemanysaiIanbefoeleavinthevessel.thatthetialofa100yeaolfomeuaatSachsenhausenNazi concentrationcamp wouloaheainOctobe.Theunnamemanisaccuseoftakinpatinthemueofmoethan3,500OfficialsinChina saithecountysecentinceaseincovi19infectionscoulbeZambias ovenmenteployetheamyaheaofatacetoaRussianailinethat enealelection.TheulinlaneinNanjin.TaveltoanfomBeijinhasbeencutaile.All11mesientsofpatyhasattemptetobuyoobullyvotesinabitoefeatHakaineHichilema,an peopleatthecamp.Wuhan,thecitywheecovi19 oppositioncaniatewhowasfistientifie,aetobetesteaain.coulpossiblywiniftheelectionweefai.Itwillnotbe.Moethan200,000potestesmacheinParis anotheFenchcitiesaainstaovenmenteictcompellinpeopletoshowacovipassbefoeTheecentflooding inChinascentalHenanpovincekilleatleast302peoplewithanothPeoCastillo,thenewleftwinpesientofPeru,apFor our latest coverage of thepointeGuioBellio,apoliti boaintainsanplanesan virus please visit or download thee50missin,accointothe calnovice,aspimeministe.mayoofZhenzhou,wheemostoftheeathsoccue.MBellio isuneinvestiationfoanallee“apoloy”Itwasthebiestemonstationaainstthenewlawsofa.Economist app.8The world this week BusinessThe Economist August 7th 2021Gary Gensler,the chairman ofAmericas Securities and Exchange Commission,called for inBritain,byNvidia,AmerTheproposed$40bntakeoverofArm,achipdesignerbasedcash on rejigging its variousdigital platforms.Like othersin the Chinese tech industryAlibaba is also adapting to thegovernments new edicts.Itwill“respond positively withactions”,said Daniel Zhang,the chief executive.Taming the dragonChinese tech stocksNasdaq Golden Dragon China index*January 1st 22=1more protections for investorsin the cryptocurrency mar-kets,which he described as aWild West rife with fraud andswindlers.Mr Gensler wantsfederal securities laws to applyto digital currencies and morepowers for the sec to overseethe market.If not,he worriesthat“a lot of people will behurt”by bad investments.icasmostvaluablesemiconductormanufacturer,wasreportedtobeintrouble.TheBritishgovernmentissaidtobeworriedaboutthenationalsecurityimplications,thoughnodecisiononscrappingthedealhasbeentaken.00500050More companies in Americaannounced that they willrequire staff to be vaccinatedagainst covid19,a policy thatwas first adopted by big banksbut is spreading across allindustries.FollowingsimilarmovesrecentlyfromGoogleandFacebook,Microsoftwillnowaskallemployeesandgueststoshowproofofajab,(andwillnotreopenitsofficesfullyuntilOctober),aswillWalmart,DisneyandTysonFoods,ameatsupplier.Netflixwantstheactorsandcrewonitsfilmsetstobeinoculated.000*Big US-listedChinese firmsTheeuro zones gdp grewby2%inthesecondquartercomparedwiththepreviousSource:BloombergTencent was forced to bring innewrestrictionsontheAnother challenge to tradition threemonths,abettershowal banking is emerging from“buy now,pay later”(bnpl),which enables shoppers tospread their payments forgoods,sometimes with nointerest or credit check but afee for late instalments.ingthanAmericaandChina,whichgrewby1.6%and1.3%onthatmeasure.Germanyseconomyexpandedby1.5%andFrancesby0.9%.amountoftimethatchildrencanplayitsvideogamesfollowingabacklashfromChinesestatemedia.TheChineseinternetconglomeratesaidthattheauthoritieshadtoldgamingcompaniestoliveuptotheirsocialresponsibilities,addingmorepressureontechfirmsinChinaasthegovernmentconfrontstheindustrysgrowingclout.TencentsshareBigenergy companies reportSquare,a payments firm run by edbumperquarterlyprofits,Jack Dorsey,has offered to buyAfterpay,based in Melbourneand a global pioneer in bnpl,for$29bn,Australias biggestever takeover.Regulators haveexpressed concern aboutbnpls lax lending rules.Theindustry has ballooned duringthe pandemic.Apple is said towant to enter the market.boostedbythehigherpriceofoil,stilltheirmainsourceofincomedespitetheindustrysmovetocleanerfuels.ExxonMobil,whichrecordedalossineveryquarterlastyear,madeanetprofitof$4.7bn.Zoom reportedlyagreedtopaypricefellsharply.Ameasureof$85mtosettleaclassactionChinesetechstockslistedinNewYork,theGoldenDragonlawsuitthataccusesitofsharingcustomersdatawiththirdindex,hashaditsworstmonth parties,includingFacebookPepsiCo agreedtosellamajor sincetheglobalfinancialcrisis andGoogle.PartofthesettleitystakeinitsTropicanaandNakedfruitjuicebrandstoaprivateequityfirmfor$3.3bn.Althoughpackedwithvitamins,fruitjuicesalsohaveaof200709.mentrequiresthevideoconferencingcompanytotakeextrastepstopreventZoombombing,wherehackerscrashAnearlytargetofChinasregulatorycrackdown,The meme machineRobinhoods stockhadaAlibaba,reporteda34%risein ameetingtodisplaypornrevenueforthesecondquarter,ography,racistimageryandrollercoasterrideafterthefirm highsugarcontent;Pepsifloatedonthestockmarket.Thesharetradingapphadaterribleipo,with itssharewantstofocusonzerocalorieandhealthierenergydrinks.yearonyear.Profitwasdown,however,asthegroupspentotheritemsthataredefinitelynotontheagenda.priceclosing8%down.Afewdayslaterthemultitudeofsmallinvestorswhofavourtheapp,especiallytobuyandsell“meme”equities,rushedtobuyshareoptions.Thefrenziedtradingpushedthestockupby85%overtheofferprice.General Motors reportednetincomeof$2.8bnforthesecondquarterandraiseditsprofitforecastfortheyear.Thecarmakerwasboostedbyitslendingbusiness.gm Financialbenefitedfromaccelerateddemandforusedcarsasoutputofnewvehiclesstalledamidaglobaldearthofsemiconductors.gm keptupproductionofitsbestsellingmodelsbydivertingchipsuppliesfromitslesspopularones,butwarnedtheshortagecouldaffectfutureprofits.Leaders 9The peoples panopticonOpen-source intelligence is a welcome threat to malefactors and governments with something to hideTBrand,apioneerofonlinecommunities,putit:“Informationw heouglr de ba e t ah f o o p r e c eo ff ot rh o e p 1 9 e 9 n 0 n s e s a s n a d n 2 d 0 f 0 r 0 e s e d w o a m s .thAast S t t h e e w i a n r t t e r n e t gulag,it exposes the flimsiness of their lies.Eliot Higgins,Bellingcatsfounder,isrightwhenhedescribeshisorganisationas“anintelligenceagencyforthepeople”.NowonderthatRussiaswantstobefree,becausethecostofgettingitoutisgettinglower spychiefrailedagainstit,mostrecentlyjustthismonth.andlowerallthetime.”Itwasnottobe.Badinformationoften Liberaldemocracieswillalsobekeptmorehonest.Citizensdroveoutgood.Authoritarianstatescooptedthetechnologies willnolongerhavetotaketheirgovernmentsontrust.Newsthatweresupposedtoloosentheirgrip.Informationwaswield outletswillhavenewwaysofholdingthemtoaccount.Todaysedasaweaponofwar.Amidt
