A lOOK INSIDEEUROPE'SNEWUNDERWORlD:H

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COVER STO\Y~ .~ c..~~' EUR~J=:~ ide the battle for ~.S.AFFAIR~:T?estorybehind

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~/ natIOns to less-poor natIons ".21 Obrador, round two """""""..."..40

. .. JAPAN:Foreigners are quietly BUSINESS: End of the line for making their mark

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hedge funds ...""."."."."""".".".""".42

IRAN:Ahmadinejad slips ...""..,,30 SCIENCE:Cosmetics that work

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like drugs """.""."".""."""."."""."",,50

FALL ARTSPREVIEW: What's cool and comingyourway...",,52

T housands of African and Arab immigrants continue to brave a deadly sea crossing to make it to Europe. But there they are running into tierce new competition tram East Europeans, bath legal and illegal. NEWSWEEK looks at the new clash of civilizations. Plus:The traffic between poor countries is now as big as that

trom poor to rich. Page 16

COVER: lorena Ros-PANOS. Inset: Mark Mainz-GETTY IMAGES.

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DEPARTMENTS

PERISCOPE.".""""""".""."""""."""".,,4 PERSPECTIVES ."" ""."."..."".".".5 WORLD VIEW ...""""."."" """.,,15 THE GOOD LlFE "...""""..".." "".63 THE LAST WaRD "."."""..."" " ".66

Vol.

CXLVIII,No. 11.September11,2006@2006byNEWSWEEK,lnc.,251West57thStreet, New York, NY 10019. Printed by Roto Smeets, Weert, Netherlands. Ali rights reserved. Registered at the Post Office as a newspaper. Copyright underthe International Copyright Convention. Copyright reserved underthe Pan Amerlcan Convention. Regisiered ln the Philippines Patent Office. ln the U.S.A.: Postmaster: send address

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A lOOK INSIDEEUROPE'SNEWUNDERWORlD:H