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Rise of the

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F oryears,urban planners have scared us with dystopic visions of a world dominated by megacities. But many of the world's fastest- growingcilies are DOtifs

'

biggest. NEWSWEEK looks at the rise of the second city, and other surprising aspects of the sweeping urban- ization that's changing our world. Page 50

SHINING EXAMPLE: Toulouse typifies the hot small city

~

~ ffi

!

AFGHANISTAN: Zarqawi's Echo by Ron Moreau and SamiYousafzai

.u.uw.wuuuuwww20

U.S.AFFAIRS:The War's Left Front byJonathanDarman

uuuuuwuw.24

How to Beat 'Cut and Run'

byJonathan Alter

.uuu.uu.u.:,uu.u27

RUSSIA: The

Politics of Pipelines

by Owen Matthewsu.uuuu.uuuu.u28 EGYPT: Mter the Pharaoh byChristopher

DickeYuuuwuuuu30

MALAYSIA:Signs of Stress by Joe Cochrane and

Lorien Holland uu..uuuuuuuuuuw,.35 PAKISTAN: Portraits

ofDespair

.uuuu.uuwuuuuu..uuu38

BUSINESS:A Sucking Sound byWilliamUnderhill"uw..uu...w..44 High Convenience

by Christian Caryl

andAkiko KashiwagLuuww"w".47 GLOBAL INVESTOR: Don't Blarne the Hedge Funds by Barton Biggsuuuuuuuuuu""".u49 SPECIAL REPORT:

Unlikely Boorntowns

by Rana Foroohar uuuuuuuuuuuu.50 10 High Rollersuuuuuuu.uu.uu54 China's Golden Cities by David Dollar..u..."""u..u"..""..u63 The New Megalopolis

by Richard Florida uuuuuuuu.."uu64 The Gilded Cities Club by Karen Lowry Milleruuuu.""uu.66 How Population Lies bySaskiaSassen

..uuuuuuU"""uu

70 Living Little in Paris byTracyMcNicoliu..."".""""""...72 Urban Jungles

byStefanTheil

w,u..uu """"".74

Il

f

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OPERA._IN AMERICA?Singing the praises of the United States

Coasting to Success

by Eric Pape .wuu""u..u.uww"..uu79 Building Up the Burbs

by Joel Kotkin .."uuwuuuuuuuuuu.80 MUSIC: The Rise of American Arias by Andrew Moravcsikuu.82

DEPARTMENTS

PERISCOPEuuuuuuuuuuuu""""u",,4 PERSPECTIVES "" uuu." " 6 WORLD VIEW:

Fareed Zakaria uuuu.u""""""w".,,19 THE LAST WaRD:

Elie Wiesel.uuu..wuu"uuuu.uu."u.u92 GOOD LI FE

STYLE:The Stuff ofSurnrner."

".uuuu..".uu""u89

COVER: Photograph by Carsten Snejbjerg-WPN

Vol.CXLVIII, No. l/No. 2. July 3/July 10, 2006 @2006 by NEWSWEEK, Inc., 251 West 57th Street, New York, NY 10019. Printed by Roto Smeets, Weert, Netherlands. Ali rights reserved. Registered

at the Post Office as a newspaper. Copyright under the International Copyright Convention. Copyright reserved under the Pan American Convention. Registered in the Philippines Patent Office. ln the U.S.A.: Postmaster: send address changes to NEWSWEEKINTERNATIONAL,251West 57th Street, New York, NY10019; periodical postage paidal New York, N.Y., and at additional mailing offices.

NEWSWEEKINTERNATIONALis written and edited for a worldwide audience and is published weekly, except occasionally Iwo issues are combined into one expanded issue which counts as Iwo subscriplion copies, jn the U.K. by NEWSWEEK,Inc. (lSSN 0163-7053). To order rêprints (minimum order required: 500 copies) or request permission to republish a NEWSWEEKarticle please cali 1-212-445- 4870 orfax 1-212-445-5764. Dir. Resp.llalia Marco Provasi; rappr.IMD sri, via G. da Velate 11-20162 Milano; auto Trib. MI N. 453 dei 12/06/87 sped. Abb. Post. 45% art. 2 comma 20/b Legge 23/12/96 n. 662 Milano; Repr. pour la France: E.M.D. France S. A., B.P.1029-590ll Lille Cedex-Tel 03.20.30.03.02. Le Directeur de la Publication: Alan F. Bone-C.P.P.A.P. No. 0708 C 83393.

Ce numéro comprend un encart de deux pages (abonnement) situé entre les folios 2 et 55. Editeur responsable pour la Belgique: Freddy Degroux, Youth & MediaLink, De Wittestraat 2, B- 2600

NEWSWEEK JULY 3/JULY 10. 2006 3

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