1 AP R I L 14 , 2 017 / v 0 L . 16 8 / N 0 . 15 ー N T E R N AT ー 0 N A L Afghanistan Bye-Bye, BIack Banners 20 EXECS EDU CEOs wait to t0 ま h 巨 media at-the N/hite Höuse after meeting お bout 鰤ザ で eo れ omy wi 市 p 引 detit BarachObama ーゞ Wa 恤 on 血 200 % ー , N E W W 〇 R L D 46 Skin TactiIe Advantage A New Leash on Life 50 Drugs Pick a Number, Any Number Space Meteors to Order 48 0 53 W E E K E N D 54 The PIace to Be CapiIIa San Bernardo, Argentina lnterview Karen Elson 58 The Taster Essenziale, Florence 59 The Buyer llse Cornelissens 60 Books Charlotte Perriand; lan Rickson; 」 ohn Waters Screening Room/Radar Neruda; Reneé FIeming 64 Parting Sh0t ・ Tallyof Failures' 56 D E P A R T M E N T S F E A T U R E S The BiIIionaires March 0 れ Washington Thefve been coaxed out oftheir mansions and 0 仕 their yachts by President Trump to make Amenca great again—for the very, very rich. ルか“お盟なん How Harvard FIunked Economics 引 G S H 〇 T S 24 Pohang, South Korea Pounding Sand Bentiu, South Sudan Hungryfor Help London Brexit Wounds 10 Mocoa, CoIombia Lethal Mud 4 6 34 8 62 lfyou want to know why the U. S. economy is a mess, look to the Harvard Business School and its army of craven MBAs. の〃 D07 -—¯P A G E¯O N E 12 China China Checkers Panama AII the President's Strongmen COVER CREDIT: ILLUSTRATION BY ALEX FINE Newsweek 0SSN2052-1081 ). is published weekly except one week in 」 anuary. 」 u ツ . August and October. Newsweek (EMEA) is published by Newsweek Ltd (part of the 旧 T Media Group Ltd), 25 Canada Square, Canary Wharf, London E14 5LQ, UK. Printed by Quad/Graphics Europe Sp z 0.0. , Wyszkow, poland FO 「 Article Reprints, Permissions and Licensing www.旧Treprints.com/Newsweek 16 FOR MORE HEADLINES, GO TO NEWSWEEK ℃ OM 1 N E W S W E E K A P R 比 14 , 2 017
しリ〇 NA E MARCH 'N WA$HINGTUN They've been coaxed out oftheir mansions and offtheir yachts by President Trump tO make America great again—for the very, very rich By Nina BurIeigh N E W S W E E K 24 A p R 比 14 , 2 017
N E W W 〇 R L D T E C H N 0 L 0 G Y A I 工 N N 0 V A T 1 0 N GOOD SCIENCE S K I N S P A C E D R U G S TACTILE ADVANTAGE An artificial skin could take your temperature and prompt you t0 say 'ouch ! ' BY JESSICA FIRGER 十 ORGAN GRINDER: Bao's faux Skin needs to be flex- ible, stretchable, self-repairing and, eventually, biodegradable. 当 @jessfirger IT'S A GOOD bet most humans will someday be at least part cyborg, and Zhenan Bao, a profes- sor Of chemical engineering at Stanford Univer- sity, wants tO have some skin in the game. Bao is working on an artificial epidermis that could improve the life 0f people with prosthetic limbs or skin grafts and make it SO people won't have tO take offtheir wearable fitness trackers. We are trying tO mimic the properties Of human skin," says Bao. That includes making the synthetic skin stretchable and self-repairing. Her biggest challenge: create a material that can feel. "when sensing touch, our skin will fire electrical pulses and send through the nerve system t0 our brain and allow our brain tounderstand whether it s pain or a hOt Obj e ct. Our mate rials and device s also need to be able to do that. ” The skin she's test- in expands when heated, which lowers its electri- cal conduction and allows the brain tO re a te mperature on the skin s surface. e She's tested out her skin on the brains Of mice modified SO the area 0f their brain that typically transmits the sense Of touch is ultra-sensitive tO light and saw that the brains responded when the electric skin was stimulated by bright light. Bao, recently named a L'Oréal-UNESCO for Women in science laureate, began work in flexi- ble electronics some 20 years ago. She set out tO make bendable smartphones and foldable televi- sions, but after arnving at Stanford 10 years ago, she realized her work had 0ther applications as well. She says companies like Fitbit could use her electric skin tO create more reliable personal devices. Once placed on the user's skin, the wear- able could measure vital signs, such as tracking he art 0 d sugar t0 monitor a person for heart attack or diabetes. Even though sensors and wearables exist' they are very large and bulky and uncomfortable t0 e electronicmaterials¯ wear, S e says. 0W1 we're developing, we hope t0 make them as thick as tattoos—but also have the same function. ”ロ N E W S W E E K 47 A P R 比 14 , 2 017
firms made an average of $ 2.7 million. By 2000 , it was up tO $ 14 million. StOCk options as a percentage ofcompensation rose from 19 percent in the 1980S tO nearly 50 percent in 2000. What alSO increased: short-termlsm and the tendency for executives tO manage earnings, aggressive accounting tO give Wall street analysts a smooth ” earnings tra- jectory on which tO base their forecasts. Jensen was right that CEO compensation would nse in the case ofoutperformance, but he was wrong about the fact that CEOs would suddenly be at risk of being fired for underperformance. The compe n- sation Of America S corporate execufives ShOt up in the 1990S , regardless of—and sometimes in spite Of— their performance. Jensen's finance-based theory Ofthe corporation lost significant credibility in the wake 0f the 200 た 2010 financial crisis. Specifically, observed Gerald Davis, the ideas that financial markets are "infor- mationally effcient" and that "it is appropriate for corporate governance mechanisms tO guide corpo- T H E 一霹朝一まま鶩弱朝ま罍 G 〇 L D E N N E W S W E E K HE flRM AUT H E N E Ⅳ Y 〇 R K TIM ES B E ST S E は 灯 E D 」 FMcDON)AA D ÅORAL FAILURE oftheMB ー = 2 一 M ほ S OF CA 円 TALISM HARVARD BUSINESS SCHOOL, PA S S P 〇 R T 42 rations toward share price as their North Star ” were revealed t0 be, well, extremely misguided. "The merits Of this view are debatable," wrote Davis; less SO are the hazards tO the economy when it is broadly accepted by executives, investors, and poli- cymakers. lndeed, some would go so far as t0 argue that the financial view of the corporation helped create the criSlS we are ln no 、 A.,T. There iS no doubt that finance and financial markets are central tO what public corporations dO. What is less clear is that an ownership society is a workable model for pro spe rity and se curity. Way back in 1951 , the chairman ofStandard Oil of New Jersey—the company founded by the ultimate robber baron, John D. Rockefeller—said: "The job of management iS tO maintain an equitable and work- ing balance among the claims Ofthe various directly affected interest groups... stockholder, employees, customers, and the public at large. ” During the Je n- sen era, many people forgot about that. But then we all sort ofremembered it again. Even shareholder-friendly Jack WeIch, the longtime CEO of GeneraI Electric, eventually came around. ln March 2009 , he told the F ⅲ 4 〃 Times, "On the face of it, shareholder value is the dumbest idea in the world. Shareholder value is a result, not a strat- egy … . Your malll constituencies are your employ- ees, your customers and your products. Managers and investors should not set share pnce increases as their overarching goal ・・ Short-term profits should be allied with an increase in the long-term value 0f a company ・ Maybe, just maybe, we re not all whores. Rendering Business History 「 e 厄 a れ t EVEN WHEN people started to get a little nervous about the effects of shareholder capitalism on the American economy, Jensen wasn t apologetic. lndeed, he went in the other direction, ripping intO fellow members of the HBS faculty if they strayed t00 far from his orthodoxy. William Lazonick got an HBS faculty post in 1984 at the invitation of AIfred Chandler, followed by a stint as president of the school's Business History Conference. He made the mistake 0f challenging the new king of finance when in 1992 he presented his paper "Controlling the Market for Corporate Control: The Historical Significance ofManagerial Capitalism' ln a semmar centered on the work ofJensen. 十 CLASSES DISMISSED:In his book, McDonald argues that the Harvard Business SchooIturned its back 0 「 de 「 tO draw ⅲ more WaII Street money. on the philosophy it had espoused fo 「 75 years in A P R 比 14. 2 017
P A N A M A SPYTALK C H I N A IRAQ A F G H A N I S T A N P 0 L 工 T I C S S Y R I A CHINA CHECKERS As BeiJing expands its efforts to moles have dug their way into Langley recruit CIA spies, some fear Chinese GLENN DUFFIE Shriver looked like an ideal CIA recruit. Gregarious and athletic, the 28 -ye ar- 01d from Michigan had been a good student with strong intere sts in world affairs and fore ign lan- guages since childhood. What made him even more attractlve as a prospective CIA employee, however, was that he had studied and worked in China and was fluent in Mandarin. But when CIA investigators began digging deeper intO his expenences in China, they began t0 suspect that he had been dispatched by BeiJing s spymasters. Under questioning during his pre-employment polygraph test in 2010 , he grew so nervous that he withdrew his appli- cation on the spot and virtually bolted from the r001 れ according tO subsequent accounts. Months later, as he was boarding a plane t0 leave the U. S. , he was arrested by the FBI and charged with trying t0 infiltrate the CIA as a Chinese mole. He was sentenced by a federal court in Virginia tO four years ln prison. T0day, the Shrive r case is still rattling the CIA, N E W S W E E K according t0 sources with deep familianty with the spy agency's China coverage. while Beijing s premier espionage service, the Ministry Of State Security, or MSS, had previously focused on pen- etrating U. S. security by seducing or blackmailing Chinese-Amencans, the Shriver case showed a new and daring attempt tO recruit students from Norman Rockwell's America. The arrest on March 28 Of a State Department employee, Candace Marie Claiborne, on charges 0f lying t0 the FBI about her contacts with Chi- nese intelligence agents will only add t0 what one former CIA offcial calls paranoia ” about Bei- jmg s espionage offensive. Ayear or two ag0' [the CIA] went through a very big mole scare because very high-level [Chinese] sources were getting wrapped up," a former senior U. S. intelligence analyst tells N どル asking not t0 be quoted by name on such a sensitlve subject. "Once that started t0 happen, they felt that there was some- thing internal, and that's whe n they started re ally clamping down on whom they were hiring ・ 12 A P R 比 14 , 2 017 BY JEFF STEIN 当 @SpyTalke r
Other key U. S. offcials resigned rather than participate in the war. General FrederickWoerner Jr. , based in panama as head 0fthe U. S. Southern Command,quitmfew months beforehand. Admi- ral WiIliam Crowe, chairman of J0int Chiefs of staff, also resigned. Some 0f the key players involved in the inva- sion went on tO play maJOr roles in the 2003 lraq War. Dick Cheney was the secretary of defense at the time, C01in Powell replaced crowe as the newly minte d chairm an 0f the J0int Chiefs, and Elliott Abrams was the State Department offcial leading the charge against Noriega. Ten days after the invasion, American troops seized Noriega at the Vatican Embassy, and U. S. marshals led him t0 Miami in chains. Only then did offlcials ⅲ Bush's Justice Department realize they needed some justification for the seizure and impnsonment 0f a foreign military leader. They dusted 0 代 a 1988 indictment that implied a criminal liaison between Nonega and Castro. They later dropped that charge and decided tO cobble together more specific claims about Noriega s connection t0 the Medellfn drug cartel. ln 1992 , Noriega was tried and convicted on eight drug traffcking and conspiracy counts in federal court in Miami. His 40-year sentence was reduced by 10 years after a former CIA sta- tion chief and a former し S. ambassador spoke on his behalf. By that time, I had already begun investigating the story. I found more than reasonable doubt about his guilt. The government prosecuted the case with the testimony Of 26 convicted drug traffckers who received plea bar- gains that allowed them to get out ofprison and, in some cases, keep their drug profits. One of them was Carlos Lehder, a neo- Nazi from Colombia, then the mo st important traffcker eve r captured by the United States. He had never met Noriega—and neither had the other dealers whO testified against him. し S. District Judge William Hoeveler, whO tried the case, invited 1 れ e tO hiS home after Noriega S conVICtion and sentencing for a series Of unusual talks in which heexpressed concern about how the trial and verdictwould be judged. ß'l hope, in the end, we'll be able t0 say that justice was served," he said. He and other し S. offcials took solace in the fact that even if the dru conviction was ues- tionable, Noriega was clearly a murderer. But the sources I interviewed raised serious questions about one charge against him. ln 1993 , NEWSWEEK 19 APR 比 14. 2017 Noriega was convicted in absentia in Panama Of conspiracy in the 1985 murder 0f Hugo Spada- fora, a political protégé turned opponent. A key piece Of evidence was that the National Secu- rity Agency had intercepted a remote telephone communication in which Noriega allegedly ordered the killing: "What d0 you do with a rabid dog 凛 . You cut offits head. MuItipIe U. S. sources told me the intercept did not exist. They said the NSA did not have the capability at that time tO capture commum- cafions between Nonega—who was in France when Spadafora was killed—and his minions in the Panamaman jungle. I determined that the charges had been made up part by a Panama- man newsp aper columnist and author, Guillermo Sånchez Borb6n. He admitted tO me he could cite no source for reporting the killing 0f Spadafora ⅲ a book, 加ど Time ビり ra 〃な , that he co-wrote with an Amencan expatnate, Richard KOSter. "lt is a political b00k, not a historical b00k," Sanchez Borb6n said. "lt has its inexactitudes. ” Noriega served more than 20 years behind bars in the United States, then in France and finally in Panama, which won his extradition ln A CHARRED HUMAN TOR O INA BURNED-OUT D A HEAP OF CORPSES FEST RING IN AN OPEN ROOM E CITY MORGUE. 2011. I cannot say that he did not commit crimes, including murders, although he told me any kill- mg on his watch tOOk place in the course Of mil- itary operations 、一 Nor can I sayhe never allowed drugs tO be dealt in panama, nor would I ever say that he was an enlightened leader. I can say that the charges against him in the United States were very thin. I also conc udedfthattowhatever degree Noriega was guiltY' this was a matter for Panama to determine, not the United States. ロ P A G E 0 N E / P A N A M A 3 AT T CAR I SA
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SPECIAL ADVERTISING SECTION Council fo 「 Science and Tech- ity between what we're d0ing nology (MCST), will continue and what the rest Of Eut ℃ pe is tO create innovative partner- dOing. ships with outside countries. MCST has been advising Gaming e g ove rn m e n ce e¯MaltÜG a m i n gA u t h 0 r- ity ・ s (MGA) portfolio includes and technology policy since 280 companies and around 1988 and helps manage aca- demic institutions that take 450 remote gaming licenses and, with innovative and part in multi-nationalresearch transparent policies, it has projects. 、、 We have been, even quicl<ly become an example in the conceptual stages, COI- for other jurisdictions. Ex- laborating with the Ministry for Education to ensure that ecutive chairman, Joseph what we are d0ing is still rel- Cuschieri says that opera- evant tO what the kids are tors, "come here tO oper- being taught at school," adds ate in Other jurisdictions SO stay" which is then intended tunities through an 、、 incubator" Dr. Jeffrey PuIIicino OrIand0, MaIta is basically their place for the 、、 Tourism Zone Foun- that supports entrepreneurial Executive Chairman of MCST of establishment. ” Malta is students on and 0 幵 campus. dation" that will be "managed The Malta College of the 、 'largestjurisdiction g10b- Prof. Alfred VelIa, the 81st Arts, Science and Technol- ally now" and is working t0 by the tax authorities, by the ogy (MCAST) SO offers hun- Rector 0f U M says that al- implement the "second gen- government, their procedures, though the university has 、、 not dreds Of vocational courses, eration 0f our legislation" t0 their systems, but the money formally been called t0 assist" designed tO help students at improve regulatory measures will not go into the govern- different ski 旧 evels. Malta has for the future. with the discussions Malta ment coffers. ″ The funds will no natural resources Other The gaming industry ac- be specifically fO 「 "sustainable will be leading with the EU presidency, there are 、、 in fact a than its people, which is why counts for 10-12 % of Malta's tourism projects," says Mr. number Of our academics ac- investing in education for the GDP and employs about 8,000 Bugeja, further securing the independent development 0f tually involved in discussions workforce iS tantamount tO people directly. The 15 % tax cap on salaries 0f highly quali- with relevant government the development 0f industry this sector. on the island. This concept has fied foreign professionals is agencies. " UM will be striv- ing tO maintain relationships helped with economic growth drawing more talent t0 the Education island as well as the corporate The University Of M ね (UM) With academic institutions in for Malta over the last several tax refu n d syste m th at m akes is the 0 y nationalinstitute in the U. l<. Aside from the conse- years and as Dr. SilviO de Bono, President 0f MCAST, says, the effective tax rate about the country and is dedicated quences 0f Brexit, Other edu- cational groups, like The Malta 、 There ・ s a complete permeabil- 5 % for companies. t0 developing business oppor- Joseph CllSChieri, Ex€2CLltive Chairtnan, MGA Paul Bugeja. CEO MaIta Tourism Authority ProudIy Sponso 「 ed By: mIP maltalndust 「 ial Parks Limited UNIVERSITY 0F MALTA WOSTESERV CREATING R 第 SO リ RC を S FROM WAS すを M CAST F1nanceMaIta Malta College Of Arts, Science & TechnoIogy E f f e c t i v e ー S e c u 「 e ー S k i Ⅱ e d MALTA GAMING Proudly C09 d as 0 wo 日 d - cla 0 課 0 日 ty in te r ms 0 f れ 0V0d6 ; ー 46 朝ト五 a 五 ~ d 。 di 9 e れ ce. T + 3562546 9000 E info.mga@mga.0「g.mt Wwww.mga.0「g.mt
IN THEIR WORDS Here Comes TroubIe How tO lve the o n THERE'S A NEW breed ofbook that's just right for today's political climate: inspirational, illustrate d agitprop , the kind ofbook you are given for your birthday. Or, if John Waters has his way, as a graduation present. Waters, the 70-year- old cult director ofcamp, transgressive and riotously funny American movles— notably 2 ⅲた Flamingos and 襯 4 T 川リわ in the early 1970S , and Ha ツ平 INTHE PINK: Waters, れ ow 70 , has sage advice for the younger generation. and C ヮ - Ba り in the late 1980s—has turned his attention tO the millennial generation. HiS new book, Ma 如 T リわ is the direct transcript of a rebellious, inspirational speech he gave to Rh0de lsland School of Design graduates in 2015. Despite years touring his stand-up show, F り World,Waters at first balked at this new form ofpublic speaking ・ Commencement speeches 0 aters w 乙 are a whole other whack, and I was anxlous," he says on the phone from his home in New York City. But I was really flattered. lt was the first ofthe things that have happened that gave me weird respectability. " Of the doctorate offine arts th at the de sign scho ol then honored him with, he says, lt's turned me intO a monster. I ' 1 れ demanding tenure. Ma Tro リわ is Waters s third book this decade, following Ro Mo なー a collection ofessays about his heroes, including Johnny Mathis and Tennessee Williams—111 2010 , and Ca た frOI れ 2014 , a travelog Of a journey he t00k hitchhiking around America. ThiS time, the man WhO once filmed a drag queen eating dog mess has turned his hand tO giving "advice tO young people ・ " Accented with witty line drawings by Eric Hanson, the b00k is essentially a code for living the J0hn Waters way: in other words, as creatively and subversively as possible. This includes instructlons to keep up with the arts—"Read, read, read! ” it says—and avoid 9- t0-5 J0bs. ()I work harder than the= people I know who do have a real j0b!' waters tells me. ) The book also argues that not being around Of every graduate. ” Waters assholes should be the goal N E W 5 W E E K 61 A P R ー L 14 , 2 017 says it's taken him 40 years tO achieve this particular end. How does he do it? "You have to be careful. You have tO negotiate. Assh01es don't wanna hang around with somebody that they think knows more than them. The main thrust ofthe book is the call to rise up and rebel. "But you can't try t00 hard," waters tells me. "You have tO get on the nerves ofthose people who are a little bit older than you and used t0 be C001. You have tO make them nervous. Waters has been animated by the politic al prote sts and S atire in America, and he thinks Ma T 励 can help. "The whole world is looking at us stupefied, ” he says. We need activism. We have tO use humor tO humiliate the enemy. He thinks the time for a book like this is now. "I hope," he says, "that this book is the one pebble that turns into a stone that ro Ⅱ s. ”—ANNA-MARIE CROWHURSTN JOHN WATERS MAKE MAKE TROUBLE BY 」 ohnWat 配 12 ( $ 15 ) Apr. 11 Algonquin BOOks,
BEDSIDETABLE lan Rickson, , looks inside director The Soul's Code lread The Soul's Code ( 1996 ) , by psychologist 」 ames HilIman, at a challenging time ⅲ my life.l had been in intensive care in New York after a serious head injury caused by a speeding cyclist- The recovery period was complex, as ー began a process Of questioning how ー was ⅵロ g and whatl was dOing creatively. 旧 tO that space came The So ' 5 Code, with its gentle provocations about who we are and the dominion Of WhO we can be. HiIIman, a Jungian analyst, posits the "acorn theory" of ou 「 existence,the idea that there is something within us—at times referred tO as ou 「 acorn, daimon 0 「 soul— separate f 「 0n1 genetics and ou 「 environment, and it propels ourlives forward. By examining the lives Of people as different as singer 日 Fitzgerald, actress 」 udy Garland and musician Kurt Cobain, HiIlman writes lucidly about hOW empowering it can be tO place ourselves at the center Of ou 「 own heroic 5t0 「 y - There is nature, he says, and Of course nurture t00 , but if we can devote ou 「 life to something else that is uniquely inside us, then perhaps that life will be more vivid and full. The SO ⅵ ' 5 Code accompanied me through my healing like a touchstone.lt has validated my life and helped me feel more balanced and n10 「 e optimistic about the way ahead. ---IAN RICKSON ロ lan Rickson directs The Goat, 〇「 Ⅳわ 0 ls Sylvia? at Theat 「 e Royal Haymarket, London, tO 」 une 24 : TRH.CO. UK COFFEE TABLE 十 A SPECIAL CASE: A late-'50s bookcase and storage unit by Perriand displays her sleek, practical style at its best. The lnterior Life THE FRENCH ARCHITECT and furniture designer CharIotte Perriand helped define the ok of midcentury France. This third part Of 」 acques Barsac's m 可 0 「 four-volume study of her work covers the middle Of Perriand's career, from 1956 to 1968 , and, thankfully, we find her on a high. ー say thankfully, because Barsac's approach is to cover Perriand's work in obsessive detail. No picture, sketch or research tidbit is deemed t00 irrelevant to include ⅲ his 500 pages. SO it's just as well that Perriand packed the late 1950S with interesting wo 「 k. We see her futuristic, W00dy 0ffice designs fO 「 Air France; her 14-year renovation Of the し N.'s PaIace Of Nations ⅲ Geneva; and her spectacularinterior design Of the Japanese ambassador's residence in PariS. There iS alSO furniture galore: sleek, storage solutions that were highly practical and beautiful. Barsac's eye fO 「 detail can feel dry and unnecessary, but overall this is a feast. Perriand is usually (and unfairly) mentioned in the same breath as Le Corbusier, with whom she worked during the interwar period. This book documents her working 「 ge ツ alone and at the height Of her powers, and it rightfully asserts her as one of the greatest minds in 20th-century design. —TOM MORRIS 0 CHARLOTTE PERRIAND COMPLETE WORKS: VOL.3 1956-68 By 」 acques Barsac Scheidegger & Spiess, out now も 120 ( $ 129 ) N E W S W E E K 6 0 A p R ー L 14 , 2 017