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WEDNESDAY, JANUARY 25, 2012

THE GLOBAL EDITION OF THE NEW YORK TIMES

GLOBAL.NYTIMES.COM

Wealth gaps are growing globally, and so is unease

DAVOS, SWITZERLAND

Tax returns show extent of Romneys vast fortune

His tax rate paid in 2010 would fall by 40% under candidates own proposal
NEW YORK

Inequality, once accepted as the price of growth, is increasingly challenged

BY ERIC PFANNER

A year ago at the World Economic Forum here, Jamie Dimon, the chief executive of JPMorgan Chase, lashed out at what he saw as unfair criticism of the worlds financial wizards. I just think this constant refrain,
D AV O S 2 0 1 2

BY NICHOLAS CONFESSORE AND DAVID KOCIENIEWSKI

EDUARDO SORENSON/OCEANA

A school of jack mackerel in the southern Pacific. Stocks of the fish, rich in oily protein, have declined from 30 million metric tons to less than a tenth of that in two decades.

An epic plunder in the Pacific

TALCAHUANO, CHILE

Overfishing of mackerel tells tale of greed, graft and bureaucratic backlog

BY MORT ROSENBLUM AND MAR CABRA

Eric Pineda, a dock agent in this old port south of Santiago, peered deep into the Achernars hold at a measly 10 tons of jack mackerel the catch after four

days in waters once so rich they filled the 17-meter fishing boat in a few hours. Mr. Pineda, like everyone here, grew up with the bony, bronze-hued fish they call jurel, which roams in schools in the southern Pacific. Its going fast, he said as he looked at the 57-foot boat. Weve got to fish harder before its all gone. Asked what he would leave his son, he shrugged: Hell have to find something else. Jack mackerel, rich in oily protein, is manna to a hungry planet, a staple in Africa. Elsewhere, people eat it unaware; much of it is reduced to feed for

aquaculture and pigs. It can take more than five kilograms, more than 11 pounds, of jack mackerel to raise a single kilogram of farmed salmon. Stocks have dropped from an estimated 30 million metric tons to less than a tenth of that in two decades. The worlds largest trawlers, after depleting other oceans, now head south toward the edge of Antarctica to compete for what is left. An eight-country investigation of the fishing industry in the southern Pacific by the International Consortium of Investigative Journalists shows how the fate of the jack mackerel may foretell

FISH, PAGE 6

the progressive collapse of fish stocks in all oceans. In turn, the fate of this one fish reflects a bigger picture: decades of unchecked global fishing pushed by geopolitical rivalry, greed, corruption, mismanagement and public indifference. Daniel Pauly, an eminent University of British Columbia oceanographer, sees jack mackerel in the southern Pacific as an alarming indicator. This is the last of the buffaloes, he said. When theyre gone, everything will be gone.

Perilous new phase for Europe in debt struggle, I.M.F. warns

WASHINGTON

bankers, bankers, bankers its just a really unproductive and unfair way of treating people, he said. People should just stop doing that. After several years of financial crisis, during which the word banker had become a catchall epithet for the undeserving rich, the global economy appeared to be on the mend. Perhaps the bankers, and the other millionaires and billionaires, could again put on their pinstripes with pride, and get back to business as usual. Yet even as Mr. Dimon was speaking, a new wave of anger was welling up, one that, over the past year, would shake up old assumptions about the ultrarich, the middle class and the growing gulf that separates them. Today, the gap between the haves and the have-nots is no longer just a rallying cry to incite anti-capitalist activists. It has become a mainstream issue, debated openly in arenas where the primacy of laissez-faire capitalism used to be taken for granted and where talk of inequality used to be derided as class warfare. In the United States, the issue surfaced when protesters proclaimed that they were the 99 percent of the population who were paying for the sins of the wealthy 1 percent, taking their grievances directly to the epicenter of capitalism. The Occupy Wall Street protest, which began in New York, later spread to other cities around the United States and across the world. In Spain, thousands of indignados converged on Madrid and other cities to vent their frustration over mass unemployment and government austerity measures. In the Arab world, a wave of
DAVOS, PAGE 21 SPECIAL REPORT DAVOS 2012

ROMNEY, PAGE 7

Mitt Romneys campaign released hundreds of pages of tax documents on Tuesday providing an inside glimpse into Mr. Romneys sprawling investments, both in the United States and abroad in an effort to dampen the attacks on his wealth that have become a central focus of the Republican presidential nominating battle. Mr. Romney and his wife, Ann, had an effective federal income tax rate in 2010 of 13.9 percent, paying about $3 million in taxes on an adjusted gross income of $21.6 million. The vast majority of their income flowed from myriad stock holdings, mutual funds and other investments, including profits and investment income from Bain Capital, the private equity firm Mr. Romney retired from in 1999. That rate will rise to 15.4 percent for 2011, when the couple expects to report an adjusted gross income of about $20.9 million. Both rates are much lower than the rates paid by either President Barack Obama or Newt Gingrich, Mr. Romneys Republican rival, who released his tax returns last week. His tax burden was also substantially less than someone of his wealth and income would pay in Britain, France or many other European countries. Mr. Romneys own tax proposals would cut his federal income taxes by about 40 percent but Mr. Gingrichs proposal, which would abolish capital gains taxes, would almost entirely eliminate them. The documents were posted on Mr. Romneys Web site on Tuesday after days of escalating political pressure on

BY ANNIE LOWREY

Troubled legal waters

BUSINESS

ANDRES KUDACKI/THE ASSOCIATED PRESS

Baltazar Garzn, center, a Spanish judge who pursued high-profile international cases, leaving a Madrid court where he is on trial. PAGE 4
WORLD NEWS

The International Monetary Fund warned Tuesday that global growth prospects had dimmed as the sovereign debt crisis in the euro zone entered a perilous new phase. Releasing quarterly updates of three reports on the economic outlook, debt and global financial stability, the fund cut its estimate for global growth this year to 3.25 percent from the 4 percent it forecast in September, citing sharply escalated risks emanating from Europe. In light of that market uncertainty and

sluggish growth, the fund is seeking to raise up to $500 billion in additional lending capacity. It is also calling on the European Union to expand its bailout fund to at least $1 trillion from its current capacity of 440 billion, or about $570 billion. Jos Vials, director of the I.M.F.s monetary and capital markets department, said at a news conference that the fund sought to build a global firewall, both to help ease the euro crisis and to ensure that no bystanders to it find themselves locked out of the global financing markets. Christine Lagarde, the managing director of the fund, said in a speech MonI.M.F., PAGE 20

With the World Economic Forum set to begin Wednesday, a special report examines some high-profile economic issues, including the enduring battle over whether deficit spending or a hands-off approach offers the best solution to the financial crisis. PAGES 11-14 Bill Gates is highlighting the need for innovation in agriculture to improve nutrition in poor countries. PAGE 21
SUBSIDIZING THE MIX OF VIEWS MICROSOFT FOUNDER FOCUSES ON HUNGER

CHIP SOMODEVILLA/GETTY-AFP

Mitt Romney and his wife paid about $3 million in taxes on income of $21.6 million.
ONLINE: THE DOCUMENTS

Find 2010 and 2011 U.S. tax returns for Mitt Romney and his wife at his Web site
mittromney.com/learn/mitt/tax-return/main

Read an analysis of Romneys returns, with a graphic comparing those of other candidates at global.nytimes.com

Many invitees at the forum dont pay to mingle with the executive class, Andrew Ross Sorkin writes. PAGE 24

Another $5 million gift to back Newt Gingrich may offset cash being spent by Mitt Romney and his supporters. PAGE 7

NEW CASH BOOST FOR GINGRICH CAMPAIGN

SPORTS

European Union officials kept up the pressure Tuesday for a quick deal on refinancing Greek private debt amid suggestions that time was running out. At the same time, officials sought to refocus the attention of the blocs leaders on addressing a wider economic slowdown. PAGE 19

The government is requiring people in a wide range of professions to swear that they are not former collaborators. PAGE 5

They pledged to curb the use of Egypts so-called emergency law in an apparent attempt to mollify discontent. PAGE 6

Advertisers get jump on game

The U.S. Super Bowl has long been a showcase for innovative advertising, but now companies are acknowledging the power of the Internet and are slipping their ads out early for fans to see on sites like YouTube. PAGE 20
PAGE TWO

Roger Federer and Rafael Nadal will meet for the 27th time in their career as they gained semifinal slots at the Australian Open on Tuesday. For the women, Kim Clijsters playing on bad ankle also moved into the semifinals by defeating Caroline Wozniacki, who will now lose her controversial ranking as No.1 in the world. But she expects to get it back. PAGE 17
VIEWS

Temples modern blessings

If President Obama is serious about restoring U.S. economic dynamism, he needs a two-pronged approach: more economic freedom combined with more social structure. PAGE 9
CHRIS MOORE/KARL PROUSE

David Brooks

The ruins of Angkor Wat have brought a tourism boom to the Cambodian town of Siem Reap. Students have flocked there for jobs in the industry, and universities have followed, catering to thousands of them with degrees taught by night.

ONLINE

Blue-sky thinking Karl Lagerfeld built an airplane cabin inside the Grand Palais in Paris then sent the models down the aisle in his summer 2012 couture collection for Chanel on Tuesday, writes Suzy Menkes. global@nytimes.com/style
NEWSSTAND PRICES
Moscow Roubles 110 Reunion 3.50 The Netherlands 3.00 France 3.00 Nigeria NGN 390 Romania Lei 11.50 Tunisia Din 3.200 Turkey TL 4 Northern Ireland 1.50 Din 175 SR 13.00 Ivory Coast CFA 2.200 Saudi Arabia Algeria Norway Nkr 28 Ukraine US$ 5.00 Senegal CFA 2.200 Morocco Dh 22 AED 12.00 Oman OMRAndorra 3.00 220 1.250 Serbia Din United Arab Emirates Peru US$ 3.50 Slovakia 3.30/SKK 99.50 Venezuela US$ 2.75 Antilles Slovenia 2.50 3.00 Senegal CFA 2.200 Poland ZI 12.00 Portugal 3.00 Spain 3.00 United States $ 3.00 Cameroon CFA 2.200 Tunisia Din 3.200 Qatar QR 10.00 Sweden Skr 25 Other US$ 2.00 U.S. Military 3.50 Republic of Ireland 3.00 Switzerland SFr 4.00 Gabon CFA 2.200 Reunion (Europe) US$ 1.75

Only by strengthening the democratic rights of Muslim citizens can Europe give full meaning to the promise of religious liberty, writes Jonathan Laurence. PAGE 8
STOCK INDEXES
TuesdaY

Integrating Europes Muslims

NEWSSTAND PRICESINFORMATION, CALL: FOR SUBSCRIPTION

Algeria Din 175 Andorra 3.00 Antilles 3.00 Argentina US$ 5.00 Austria 3.00 Bahrain BD 1.20 Belgium 3.00 Bermuda US$ 3.50 Bolivia US$ 2.75 Bosnia & Herzegovina KM 5.00

00800 Brazil R$10.0048Czech RepDKr 23100 Germany1.35 44 Denmark CZK 27 3.00 78 Gibraltar Bulgaria 2.55 Cameroon CFA 2.200 Ecuador US$ 3.35 Hungary HUF 650 or e-mail us at subs@iht.com Canada 4.50 M 00132 C$125 Egypt LE 14.00 Israel NIS 12.10/Eilat NIS 10.40 F: 3,00 E
Cayman Is CI$ 2.00 Chile Ps$ 1,550 Colombia Cps 1,875 Costa Rica US$ 2.50 Croatia KN 20.00 Cyprus 2.90 Estonia 3.13 Finland 3.00 France 3.00 Gabon CFA 2.200 Great Britain 1.50 Greece 2.50 Italy 2.50 Ivory Coast CFA 2.200 Jordan. JD 1.350 Kazakhstan USD 3.50 Kenya K. SH. 200 Kosovo 2.50

3:HIKKLD=WUXUU\:?k@l@c@f@a;

Kuwait Fils 150 Latvia Ls 2.25 Lebanon LP 4,000 Lithuania LTL 15 Luxembourg 3.00 Macedonia Den 150.00 Malta 3.00 Montenegro 2.00 Morocco Dh 22 Mexico N$ 26.00

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www.dior.com

Time is short for debt deal

Macedonias political cleansing

Egyptian leaders to ease off

Roger-Rafa saga: Chapter 27