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DECEMBER 10, 2007

TOp of THE WEEK

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THE ISSUE

U.S. Affàirs 22 Gates lowers the

threat of US. force byDan Ephron and Evan Thomas

34 The North American Union hoax by GretelC.Kovach 35 Transition: Evel Knievel

1938-2007 bySteve Tuttle

World Ai 36 Thewari

by Owen

andAnnaN'émtsova 40 Italy's geezer Parliament

by William Underhill 41 Small-tO"wnwar-crime

trials byDaniel Pepper 42 How ]apan lost its

high-tech mojo by Christian Caryl

Business

52 How Samsungwill hit Korea by GeorgeWehifritz 56 Brazil is feeling real rich

byMac Margolis Society & The Arts 62 The last fashion revolution

that mattered byAmber Haq 64 1sphotography dead?

by Peter Plagens

Behindthe Closed 00-

Vladimir Putin tas brought enormous stabi .Hsstàd%f1:

series of Kremlin fights are now ragin

"

Wifhone ~~~~~n~~d:

WISHFUL THINKING:

VVhy

Japan is losing

the teck race

DEPARTMENTS 4 Periscope 5 Perspectives 21 World View 69 The Good Life 12 The Last Ward

GOVER:PHOTOGRAPH

BY DONALD WEBER-ATLAS PRESS FOR NEWSWEEK

Vol. CL,No.24. December10;2007 @2007 by NEWSWEEK,Inc., 251West 57th Street, New York, NY10019.Printed by Roto Smeets,Weert, Netherlands. Ali rights reserved. Registered at the Post Office as a newspaper. Copyright un- der the International Copyright Convention. Copyright reserved under the Pan American Convention. Reglstered in the Philippines Patent Office. ln the U.S.A.:

Postmaster:

send address changes to NEWSWEEKINTERNATIONAL,251 West 57th Street, NewYork, NY10019;perlodical postage paid at New York, N.Y.,and at addltlonal mailing offices. NEWSWEEKINTERNATIONALis written and edlled for a worldwide audience and Is published weekly, except occasionally two issues are combined into one expanded Issue which counts as two subscription copies, ln the U.K.by NEWSWEEK,Inc. (ISSN 0163-7053). Toorder reprints (minimum order requlred: 500 copies) or request permission to re- publish a NEWSWEEKarticle pleasecali 1-212-445-4870 or fax 1-212-445-5764.Dir. Resp.Italia Marco Provasi; rappr. IMOsri, via G. da Velate11-20162Milano;aut. Trib. MI N.453 dei 12/06/87 sped. Abb. Post. 45% art. 2 comma 20/b Legge23/12/96 n. 662 Milano; Repr.pour la franGe: E.M.O.france S. A.. B.P.1029-59011 Lille Cedex-Tel 03.20.30.03.02.le Directeur de la Publication: Alan f. Bone-C.P.P.A.P. No.070BC 83393. Ce numéro comprend un encart de deux pages (abonnement) situé entre lesfolios

2 et 55.

Editeur responsable pour la Belgique:André Verwilghen, AvenueLouise176.1050Bruxelles

NEWSWEEK 1 DECEMBER 10, 2007 3

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