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The World 2011

Inside this issue

• Responses to rising prices are bringing their own problems for economic policies

• Structural economic ills and political polarisation pose growing challenges in the US - -

Content

East and west dance to new tunes

The economic and political landscape has shifted. Gideon Rachman weighs up how much of that change is permanent

World trade: Frothy rhetoric of currency ‘war’ unmatched by reality

Protectionism has been muted during the global crisis, writes Alan Beattie

Economic policy: Dilemma on when to start monetary tightening

The hangover appears to be both bad and long-lasting, writes Chris Giles

A world divided by a common economy

Even without China and India, emerging and developing country economies grew by 5.2% in 2010, writes Martin Wolf

US: This time the threats are from within

Structural economic ills and political polarisation pose ever-larger challenges, writes Gillian Tett

Municipal bonds: Spotlight falls on US cities’ fundraising

A $3,000bn market is showing signs of strain, reports Nicole Bullock

Capital markets: Taxpayers vs bondholders set to dominate the agenda

Attempts to force debt investors to take losses may not succeed, writes Richard Milne

Russia: Moscow ideology battle rekindles old debates

Divisions in the leadership have been finessed for now, says Charles Clover

Latin America: Region has to learn how to manage success

Manufacturing is shrinking amid the boom, says John Paul Rathbone

Europe: Debt crises finally force a rethink of rescue remedies

Continent-wide political backing is the next hurdle, says Peter Spiegel

Germany: Fit man of Europe faces tough tests

UK and France: Defence accords give tantalising hint of an EU undivided

India: Roads and teachers crucial for rising star

Middle East: Tunisia sets the tone for the year

China: Beijing puts its huge piles of cash to work

Africa: Transforming continent offers riches in growth and hope

Science: Shuttle’s finale makes space a finite frontier

Sport: Developing nations go on offensive for games

Cybersecurity: Response to real risks is likely to erode freedoms

Climate change: Companies are key to an agreement