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...Indus River, a potential source of hydropower, runs through two provinces whose governments cannot agree on water-sharing rights. Development in Baluchistan, which has rich reserves of coal, has been held hostage to a local insurgency rooted in long-simmering resentments over what it considers to be the central government's exploitative approach to the province. "Baluchistan is central to Pakistan's economy," says the Crisis Group's Ahmed. "It is incredibly rich in not just the resources that are being exploited, but in the resources that are yet to be exploited. Bringing the alienated Baluch back into the fold...

Author: /time Magazine | Title: Dangerous Ground | 7/10/2008 | See Source »

...With prices soaring over the past several months, however, doing nothing was not a realistic option. Policymakers must fight inflation now in hopes that they can get it under control quickly and promote growth again in the near future. Most central banks in Asia have started raising interest rates. The Reserve Bank of India increased its benchmark rate twice last month to a six-year high of 8.5%. Indonesia's central bank raised its rate for three consecutive months. Governments "have to keep expectations [about inflation] anchored," says Andrew Freris, senior investment strategist for Asia at BNP Paribas Private Banking...

Author: /time Magazine | Title: Tiger Trap | 7/10/2008 | See Source »

...Policymakers and central bankers are scrambling to raise interest rates and tighten credit to get inflation under control. But these same measures suppress the investment and consumption that generates growth, threatening to put the brakes on Asia's unusually fast and relatively untroubled expansion. Glenn Maguire, chief Asia-Pacific economist for Société Générale in Hong Kong, estimates that GDP growth in East Asia (excluding China and Japan) could sink from about 6.5% this year to 5% in 2009, the slowest rate since 2001. Inflation, Maguire says, "is the largest risk to Asian growth...

Author: /time Magazine | Title: Tiger Trap | 7/10/2008 | See Source »

...central goal of Libertarianism is hard to disagree with: freedom. Defining it is another matter. Party members I've met often speak of freedom as if it were a phantom limb: you're born with it, but it gets taken from you by the bureaucratic violence of the EPA, the ATF, the DOE, the DEA, the U.N., NCLB, NAFTA and--above all--the IRS. Freedom's restoration is the magic moment when the nanny state melts away and you can see the life you were supposed to live before the tax auditors and environmental regulators and drug warriors all came...

Author: /time Magazine | Title: Libertarians: A (Not So) Lunatic Fringe | 7/10/2008 | See Source »

That potential scenario infuriates many members of Thailand's elite, who believe that Thaksin, far from being a populist democrat, is actually a corrupt politician who distorted democratic institutions to cement his power. Since late May, thousands of protesters have camped out in central Bangkok calling for Samak to resign because they believe he is little more than a Thaksin puppet. Samak begs to differ, telling TIME recently that he doesn't consult with his predecessor on political issues. "I can do [it] on my own," he says...

Author: /time Magazine | Title: Legal Blows Imperil Thai Government | 7/10/2008 | See Source »

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