Dragon's blood, miracle cure

TheEconornist

Trump's war on red tape

Cleaning up India's banks

The ins and outs of deportation

MARCH 4TH-10TH 2017

The next Frenchrevolution

OnthecoverWhy France's election willhave consequences farbeyond its borders: leaderpage 7. Resurgent French 'populism reflects a newsocìal faultline, pages 15-17

The Econom;st onlineDailyanalysis and opinion tosupplementthe print edition, plusaudio and video, and a dailychartEconomist.com

E-mail: newsletters andmobile editionEconomist.comj email

Print edition: available online by7pm Londontime each ThursdayEconomist.comjprintAudioedition: available onlineto downloadeach FridayEconomist.comjaudioedition

••Volume 422 Number 9030

Published since September1843to take partin "a severe con test betweenintelligence, which presses jorward, andan unworthy, timid ignorance obstructingDur progresso "

Editorial offices in London and also:A~lanta, B~ijin~, Berlin, Brussels, Cairo, Chicago,Lima. Mexlco City, Moscow, Mumbai, Nairobi,New Delhi, NewYork, Paris, San Francisco,Sào Paulo, SeouL,Shanghai, Singapore, Tokyo,Washington DC

5 The world this week

Leaders7 The French presidency. France's next revolution

8 Nigeria's sick presidentGet well scon. MrBuhari

8 Red tape in AmericaDoing deregulation right

9 Indian banksFram worse to bad

10 DeportationOiling the machine

Letters12 On companies, bubbles,

Scotland, banking,Alabama, the green belt,time

Briefing15 French politics

Fractured

Europe18 Italy's Five Star Movement

Atale oftwo mayors19 German defence

Eine deutscheAtombombe?

19 Russian riddlesWhispers fram the Kremlin

20 Populism and sodalmediaTwitter harvest

21 CharlemagneThe Eurapean Court ofJustice

Britain22 The NHSand socìal care

Paying for grandpa23 The Tories and their

opponentsMonarch of all she surveys

24 BagehotBrexit and Gibraltar

Middle East and Africa25 Nigeria

A nation holds its breath26 Waterin Africa

Pay as you drink26 South Africa

Hail to the chiefs27 Rwanda

Ifyou build it, they maynot come

27 Saudi ArabiaThe destruction of Mecca

28 Syria's rebel police~uncheonsatagunfight

United States29 Regulation

Grudges and kludges31 The budget

Ten-penny plan32 Nuclear weapons

Assured destruction32 Anti-Semitism

Past and present33 Los Angeles

Dense as in smart34 Lexington

Leading v cheerleading

The Americas35 Canada's Conservatives

Choosing a leader36 Peru's disappeared

Unearthing the past36 Corruption in Mexico

Thebackhanderbus37 Bello

Howto pay for elections

Asia39 Philippine politics

Death and taxes40 North Korean

assassinationVXmarks the spot

40 Donald Trump andAfghanistanA bitter stalemate

41 The politics of languagein Sri LankaCrossed in translation

42 An ultranationalistkindergartenSchoolofshock

3

Trump' s war on red tapeAmerica needs regulatoryreform, not a crude cull ofenvironmental rules: leader,page 8. Too much federalregulation has piled up inAmerica. Fixing the problemrequires betterinstitutions,page 29

Nigeria' s sick presidentMuhammadu Buhari has beenill for six weeks. Nigeriansdeserve to know more aboutwhat ails him and when he willreturn: leader, page 8. Thecountry still needs governing,page 25

Deportation Germany'sefforts to deport moreunauthorised immigrants aresensible. Not so America's:leader, page 10. Removingthose who fall foul ofimmigration rules is difficultand expensive. But richcountries aretrying everharder, pages 46-48

~~Contents continues overleaf

4 Contents The Economist March 4th 2017

.1----India's banks The troubledfinancialsystem needscleaning up. Abad bank wouldbe a start-butonlythat:leader, page 9. Can Indiacontinue to grow if both itsbanks and companies areailing? Page 57

•;•

Britain' s puny companiesThe world's most open marketfor takeovers is having secondthoughts: Schumpeter, page 55

Data, apps and health careDigitising the health-careindustryis one ofthe greatbusiness opportunities ofrecent times, page 49

China43 Hong Kong's leadership

raceThe Communist Party's pick

44 Anti-smog activismChoking with fury

45 BanyanXi:the constrained dictator

International46 Deportation

Exit strategies

Business49 Health care

The wonder drug51 Mobile phones

The new old thing51 The woes of Uber's boss

Road rage52 Samsung

Group sacrifice52 Cargo shipping

Still at sea53 Business in Rwanda

Party of business54 A Nigerian oil dea l

Eni questions55 Schumpeter

The British experiment

Finance and economics57 India's economy

Offbalance58 Buttonwood

Money illusion59 The LSEand Deutsche

BorseNo deal?

59 American trade policyAction plan

60 Currency manipulationNot who you think

61 Moral hazardTaken for a ride

61 Private-equity dealsPoised to pounce

62 Free exchangeKenneth Arrow

Science and technology63 Palaeontology

The living was easy64 Lunar spaceflight

Flywho to the Moon?64 Artificial intelligence

Neighbourhood watch65 Finding new antibiotics

The uses of dragon's blood66 Electronies

One chip to rule them all

Books and arts67 Violence and inequality

The greater leveller68 Wall Street

Stevie wonder68 Norse mythology

Ofgods and heroes69 Johnson

Whywords die70 New fiction

Lutz Seiler's "Kruso"70 The Academy Awards

The gleam of"Moonlight"

72 Economie and financialindicatorsStatistics on 42 economies,plus a closer look atpurchasing managers'indexes

Obituary74 Stanley Bard

Up in the old hotel

The origins of life Anewfossil, if confirmed. suggestslife got started quickly on theancient Earth, page 63

Subscription serviceFar our fuU range ofsubscription offers,including digital only or print and digitalcombined, visitEconomist.com/offersor cali the telephone number provided below:Telephone: +44 (O) 845120 0983 or+44 (O) 2075768448Subscription for 1 year (51 issues)Print onlyEuro~zonecountriesDenrnarkHungaryNorwayPolandSwedenSwitzerlandTurkeyOther Europe (ex UK)

Middle East - GCCSouth AfricaMiddle East and Africa

(229OKr1,709

HUF78,042NKr1,839PLN1,011SKr 2,089

SFr 296TL814

(229

US$352ZAR4,670, US$285

US$285

Prindpal commerdal offices:25 StJames's Street, London SW1A1HGTel: +44 20 7830 7000

Rue de l'Athénée 321206 Geneva, SwitzerlandTel: +41225662470

750 3rd Avenue, 5th Floor, NewYork, NY10017Tel: +1212 5410500

1301 Cityplaza Four,12 Taikoo Wan Road, Iaikoo Shing, Hong KongTel: +852 2585 3888

Other commerciai offices:Chicago, Dubai, Frankfurt, Las Angeles,Paris, San Franeisco and Singapore

~~EFC-PEFC/04-31-1267

PEfe certified

This copy of The Economist1Sprinted on paper sourcedfrom sustainably managedforests certified by PEFCwww.pefc.org

~recycle«> 2017The Economist Newspaper t.irnited. A.Hrights reserved. Neither this publication nor any part ofit may be reproduced, stored in a retnevat system, or transmitted in any form or by any means. etectrcnic. mechanical, photocopying. recording or cther-wise. withcut the prior permission ofThe Economist Newspaper limited. Published everyweek. except for a year-end doubleissue, byThe Economist Newspaper Limited. Ihe Economistis a registered trademarkofThe Economist Newspaper limited. Printed byVogel Druck und Medienservice GmbH, leibnizstraf!.e 5, 97204 Hochberq. Deutschtand. trance. Numero Commission Paritaire: 68832 GB. Encartd'abonnementde deux pages situé entre les foltos 10et 130. Rapp. Italia: IMOsTIVia Guido da Velate 1120162Milano Aut. Trib. Ml272 del 13/04/88 Poste Italiane $pA- Sped Abb Post DL353/2003 (conv. L.27/2/2004 n.46) art 1comma 1 DCBMilano, Dir. Resp. Domenico tassinati