Poll finds people want an ‘iPhone 5S’ with new color options






The latest rumor surrounding Apple’s (AAPL) next-generation “iPhone 5S” is that it will launch in May or June with two different screen sizes and five different color options. So said Topeka Capital Markets analyst Brian White in a research note earlier this week. White has made some good early calls before — he was one of the first to report that Apple was working on the iPad mini — but nothing is official until Apple announces it on stage at a press conference. One thing we can say with some amount of certainty, though, is that a sizable portion of Apple fans would be interested in a next-generation iPhone made available with new color choices.


[More from BGR: Samsung confirms plan to begin inching away from Android]






In a poll published by BGR on Wednesday, 35% of respondents reported that they would purchase the next iPhone in either blue, pink or yellow if Apple were to launch the device in those colors, as suggested by White. Another 28.4% said they would be interested in the new color options, but they would want to see how they look before making a purchasing decision.


[More from BGR: Microsoft called a failing giant that only survives by charging prices that ‘bleed customers dry’]


More than 2,000 people voted in the poll and roughly 85% of respondents live in the United States.


The results are not scientific, however they do suggest that there would be significant demand for an iPhone with new color options in key markets like the U.S. And where the iPhone 4S had Siri and the iPhone 5 had a fresh new design with a larger display, Apple will certainly look to launch its next-generation smartphone with some key points of differentiation.


As they were with the iPod touch, new color options may be among the next iPhone’s key new features when it launches later this year — and if that is indeed the case, it looks like the new colors will be met with significant interest from consumers.


This article was originally published by BGR


Gadgets News Headlines – Yahoo! News





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Jessica Simpson: Motherhood Is the Best - and the Most Challenging

Jessica Simpson: Motherhood Is the Best - and the Most Challenging
Jamie McCarthy/Getty


Being a working mom has its ups and downs for Jessica Simpson.


The Fashion Star mentor, 32, who announced on Christmas Day that she is expecting her second child, recently told PEOPLE, “Motherhood is the best thing I’ve ever experienced – and the most challenging.”


Balancing her career with her personal life is one of Simpson’s struggles.


“On some of the days of Fashion Star, I’m awake before [my daughter Maxwell] is awake, and I’m not home until she’s already back to sleep,” she explains.


“That’s only happened about four times, but it makes the day awful. I definitely need to see my baby.”

“I get really sad if I don’t get to see her,” she continues. “And then when Maxwell sees me, she just stares at me and touches my face. I can tell she missed me. That breaks my heart.”


But at the end of the day, Simpson and her fiancé Eric Johnson “feel like we’ve done such a good job” parenting thus far.


Calling Johnson “a great father,” the starlet goes on to say, “It is the sexiest thing in the world to watch how he handles [Maxwell]. We’re both learning together, but it’s fun because we both get to grow in our relationship together.”


As a mom to her eight-month-old, Simpson says, “There are little things that you kind of obsess over. I never knew how protective I was until I had my own child. I’m already thinking about intruders coming into the house and what our escape route would be.”


Simpson’s personal style has also changed since becoming a parent.


“I find myself going for more sophisticated looks, butI do think that’s kind of trendy right now – just a classier looking woman,” she says. “I love to show off my curves, but being a mom, I guess I do it in a little bit more classy way, even though for Halloween I was a milkmaid – but there are moments.”


– Dahvi Shira


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Indian court to rule on generic drug industry


NEW DELHI (AP) — From Africa's crowded AIDS clinics to the malarial jungles of Southeast Asia, the lives of millions of ill people in the developing world are hanging in the balance ahead of a legal ruling that will determine whether India's drug companies can continue to provide cheap versions of many life-saving medicines.


The case — involving Swiss drug maker Novartis AG's cancer drug Glivec — pits aid groups that argue India plays a vital role as the pharmacy to the poor against drug companies that insist they need strong patents to make drug development profitable. A ruling by India's Supreme Court is expected in early 2013.


"The implications of this case reach far beyond India, and far beyond this particular cancer drug," said Leena Menghaney, from the aid group Doctors Without Borders. "Across the world, there is a heavy dependence on India to supply affordable versions of expensive patented medicines."


With no costs for developing new drugs or conducting expensive trials, India's $26 billion generics industry is able to sell medicine for as little as one-tenth the price of the companies that developed them, making India the second-largest source of medicines distributed by UNICEF in its global programs.


Indian pharmaceutical companies such as Cipla, Cadila Laboratories and Lupin have emerged over the past decade as major sources of generic cancer, malaria, tuberculosis and AIDS drugs for poor countries that can't afford to pay Western prices.


The 6-year-old case that just wrapped up in the Supreme Court revolves around a legal provision in India's 2005 patent law that is aimed at preventing companies from getting fresh patents for making only minor changes to existing medicines — a practice known as "evergreening."


Novartis' argued that a new version of Glivec — marketed in the U.S. as Gleevec — was a significant change from the earlier version because it was more easily absorbed by the body.


India's Patent Controller turned down the application, saying the change was an obvious development, and the new medicine was not sufficiently distinct from the earlier version to warrant a patent extension.


Patient advocacy groups hailed the decision as a blow to "evergreening."


But Western companies argued that India's generic manufacturers were cutting the incentive for major drug makers to invest in research and innovation if they were not going to be able to reap the exclusive profits that patents bring.


"This case is about safeguarding incentives for better medicines so that patients' needs will be met in the future," says Eric Althoff, a Novartis spokesman.


International drug companies have accused India of disregarding intellectual property rights, and have pushed for stronger patent protection that would weaken India's generics industry.


Earlier this year, an Indian manufacturer was allowed to produce a far cheaper version of the kidney and liver cancer treatment sorefinib, manufactured by Bayer Corp.


Bayer was selling the drug for about $5,600 a month. Natco, the Indian company, said its generic version would cost $175 a month, less than 1/30th as much. Natco was ordered to pay 6 percent in royalties to Bayer.


Novartis says the outcome of the new case will not affect the availability of generic versions of Glivec because it is covered by a grandfather clause in India's patent law. Only the more easily absorbed drug would be affected, Althoff said, adding that its own generic business, Sandoz, produces cheap versions of its drugs for millions across the globe.


Public health activists say the question goes beyond Glivec to whether drug companies should get special protection for minor tweaks to medicines that others could easily have uncovered.


"We're looking to the Supreme Court to tell Novartis it won't open the floodgates and allow abusive patenting practices," said Eldred Tellis, of the Sankalp Rehabilitation Centre, a private group working with HIV patients.


The court's decision is expected to be a landmark that will influence future drug accessibility and price across the developing world.


"We're already paying very high prices for some of the new drugs that are patented in India," said Petros Isaakidis, an epidemiologist with Doctors Without Borders. "If Novartis' wins, even older medicines could be subject to patenting again, and it will become much more difficult for us in future to provide medicines to our patients being treated for HIV, hepatitis and drug resistant TB."


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Legislators want Army Corps to explain habitat removal decision









Two state senators on Thursday called on the U.S. Army Corps of Engineers to explain its decision to plow under 43 acres of lush wildlife habitat at the Sepulveda Basin without prior notice or coordination with community leaders and environmentalists.


Sens. Kevin de Leon (D-Los Angeles) and Fran Pavley (D-Agoura Hills) asked for details about what led to the agency's declaration in August that its "vegetation management plan" for the area did not require an environmental impact report because it would not significantly disturb wildlife and habitat.


On Dec. 10, Army Corps bulldozers, mowers and mulching machines stripped nearly all the greenery from the swath of Los Angeles River flood plain just west of Interstate 405 and north of Burbank Boulevard, wiping out habitat for mammals, reptiles and hundreds of species of birds.





"When a clunky federal bureaucracy doesn't collaborate with state and local officials and community leaders, you create a real mess, which is what we have right now at the Sepulveda Basin," De Leon said in an interview.


He noted that although the corps is not subject to state environmental laws, protections from the federal National Environmental Policy Act may apply.


"If the Army Corps doesn't cooperate, the next step is to engage members of Congress to exercise their powers, or have the state attorney general notify the U.S. district attorney's office," De Leon said.


Pavley, whose district includes the Sepulveda Basin, said she wants to know the extent of damage caused to trails, markers and signs funded with "state and local park monies" and installed and maintained "by thousands of hours of volunteer work."


Army Corps of Engineers District Cmdr. Col. Mark Toy was unavailable for comment. But corps spokesman Jay Field said the agency will cooperate fully with the senators.


The area existed as a wildlife preserve adjacent to the Sepulveda Dam for more than three decades. In 2010, it was reclassified as a corps "vegetation management area" with a new five-year mission of replacing trees and shrubs with native grasses as part of an effort to improve access for corps staffers, increase public safety and discourage crime, lewd activity, drug abuse and homeless camps.


Environmental groups led by the San Fernando Valley Audubon Society interpreted the plan to suggest the agency would avoid removal of native willow and cotton groves, elderberries, coyote brush and mule fat. Much of that vegetation was planted decades ago under a corps program to create the wildlife preserve.


Kris Ohlenkamp, conservation chairman of the San Fernando Valley Audubon Society, said the corps' management plan was vague. "But this much is clear: What the corps actually did to that land is not represented anywhere in the plan."


Army Corps Deputy District Cmdr. Alexander Deraney has said his agency's actions were "more or less in line with the plan." He said the corps wanted to preserve the native vegetation but discovered that "the native brush was so grown into non-native brush that it would be impossible to separate them."


The corps has ceased operations on the property pending consultations and meetings with environmental and community groups.


louis.sahagun@latimes.com





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Murder Charges Expected Against 5 Men in New Delhi Gang Rape





NEW DELHI – Rape, murder and other charges were filed on Thursday against five men suspected of carrying out the brutal gang rape and murder of a 23-year-old physiotherapy student in a case that has sparked outrage and protests across India.







Sajjad Hussain/Agence France-Presse — Getty Images

Indian lawyers protested on Thursday outside a court in New Delhi where charges were filed in a gang rape case.







The police submitted the accusations against the five men to a magistrate in the South Delhi neighborhood where the crime took place on Dec. 16. In addition to rape and murder, the charges were expected to include kidnapping, robbery and assault, a list of crimes that could result in the rare imposition of the death penalty. The official submission of the charges was expected to be kept secret because of confidential details, the police said. A sixth person accused in the case is a juvenile, and his case will be handled in a separate proceeding. The magistrate was expected to refer the case to a fast-track court set up in recent days to handle cases involving crimes against women. That court is expected to hold a trial soon in stark contrast to the apathy and years of delay that Indian rape victims often face when seeking justice.


The five are accused of luring the 23-year-old and her boyfriend onto a bus in South Delhi, beating them and abusing her so brutally with a metal rod during the rape that she sustained fatal internal injuries. The woman clung to life for two weeks but died on Saturday in a Singapore hospital, where she had been transferred for special care.


Gang rapes have become almost routine in India, a country that some surveys suggest has one of the highest rates of sexual violence in the world. Rape complaints increased 25 percent between 2006 and 2011, although it is impossible to know whether this represents a real increase in crime or simply an increased willingness by victims to file charges and by the police to accept them.


But something about the recent crime caught the public’s attention. Among the reasons could be the randomness of the crime (most rape victims know their abusers), its brutality and the sympathetic profile of the victim.


The outpouring of anger at the crime caught the government by surprise and there has been widespread criticism of its aggressive response to protesters which included tear gas, water cannons and beatings by truncheon-wielding riot police officers. The government invoked a terrorism law that prohibits even small gatherings and it closed a huge portion of the capital to vehicular and pedestrian traffic, which represented a punishing loss to businesses in the area.


The government’s reaction fed longtime criticism that India’s police are too often used to guard the powerful from the people rather than to protect the people from predators. India’s police are generally poorly trained, deeply corrupt and often viewed by women as predators rather than protectors – one reason that laws forbid officers from arresting a woman or even bringing her to a police station for questioning during nighttime hours.


The case has also led to an ongoing discussion about the conflict between the aspirations of India’s rising middle class and a deeply conservative and patriarchal culture that views the recent educational and economic successes of Indian women with unease and even alarm. An estimated 25,000 women are murdered each year by families who view their choice of mate as inappropriate, and Indian newspapers and television news programs now feature almost daily stories about new rape cases.


Kishwar Desai, an author, wrote an opinion article in The Indian Express on Thursday that said the gang rape illustrated to some that “a certain class of men is deeply uncomfortable with women displaying their independence, receiving education and joining the work force. The gang rape becomes a form of subduing the women, collectively, and establishing their male superiority.”


Because of the intense interest sparked by the case, a vast scrum of television cameras and reporters jostled outside of the courthouse for much of the day. And with officials refusing to provide routine information about whether the suspects in the case would arrive at the courthouse, rumors about the day’s events ricocheted around the media like a drop of water on a hot frying pan.


Niharika Mandhana contributed reporting.



This article has been revised to reflect the following correction:

Correction: January 3, 2013

Because of an editing error, an earlier version of this article erroneously reported that the charges had been filed earlier on Thursday.



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Microsoft acquires start-up id8: source






SAN FRANCISCO (Reuters) – Microsoft Corp bought start-up id8 Group R2 Studios Inc as it looks to expand further in technology focused on the home and entertainment, a person familiar with the situation said on Wednesday.


id8 Group R2 Studios was started in 2011 by Silicon Valley entrepreneur and investor Blake Krikorian. It recently launched a Google Android application to allow users to control home heating and lighting systems from smartphones.






Krikorian’s Sling Media – which was sold to EchoStar Communications in 2007 – made the “Slingbox” for watching TV on computers.


Krikorian will join Microsoft with a small team, according to the Wall Street Journal, which reported the acquisition earlier on Wednesday. Microsoft also purchased some patents owned by the start-up related to controlling electronic devices, the newspaper added.


Krikorian and a Microsoft spokesman declined to comment.


Krikorian resigned from Amazon.com Inc’s board in late December after about a year and a half as a director at the company, the Internet’s largest retailer.


(Reporting By Alistair Barr; Editing by Steve Orlofsky)


Wireless News Headlines – Yahoo! News





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Brandy: My Proposal Was a 'Spontaneous Thing'















01/03/2013 at 07:30 AM EST







Ryan Press and Brandy


Al Powers/Powers Imagery/Invision/AP


Brandy had no idea that her fiancé Ryan Press had plans to ask for her hand in marriage last week.

Then again, she doesn't think her beau knew he was going to, either.

"It was a spontaneous thing for my fiancé," she said before ringing in the New Year at LAVO Las Vegas "He just felt it."

The R&B singer and former Dancing with the Stars contestant first went public with her romance with music executive Ryan Press on New Year's Eve 2011, cuddling at a Las Vegas party. On Monday, they were back in Vegas, but this time she was sporting a glimmering ring.

Although Brandy, 33, told PEOPLE in March that she let Press know she'd "marry him with a bubble gum ring," the sparkler she did receive has impressed her.

"He worked really hard on the ring. I'm not a big diamond girl, but I really love this diamond he did," she said. "It just represents how he feels about me, and I'm really blessed to have someone like him in my life. He's truly a gift." 

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Flu? Malaria? Disease forecasters look to the sky


NEW YORK (AP) — Only a 10 percent chance of showers today, but a 70 percent chance of flu next month.


That's the kind of forecasting health scientists are trying to move toward, as they increasingly include weather data in their attempts to predict disease outbreaks.


In one recent study, two scientists reported they could predict — more than seven weeks in advance — when flu season was going to peak in New York City. Theirs was just the latest in a growing wave of computer models that factor in rainfall, temperature or other weather conditions to forecast disease.


Health officials are excited by this kind of work and the idea that it could be used to fine-tune vaccination campaigns or other disease prevention efforts.


At the same time, experts note that outbreaks are influenced as much, or more, by human behavior and other factors as by the weather. Some argue weather-based outbreak predictions still have a long way to go. And when government health officials warned in early December that flu season seemed to be off to an early start, they said there was no evidence it was driven by the weather.


This disease-forecasting concept is not new: Scientists have been working on mathematical models to predict outbreaks for decades and have long factored in the weather. They have known, for example, that temperature and rainfall affect the breeding of mosquitoes that carry malaria, West Nile virus and other dangerous diseases.


Recent improvements in weather-tracking have helped, including satellite technology and more sophisticated computer data processing.


As a result, "in the last five years or so, there's been quite an improvement and acceleration" in weather-focused disease modeling, said Ira Longini, a University of Florida biostatistician who's worked on outbreak prediction projects.


Some models have been labeled successes.


In the United States, researchers at Johns Hopkins University and the University of New Mexico tried to predict outbreaks of hantavirus in the late 1990s. They used rain and snow data and other information to study patterns of plant growth that attract rodents. People catch the disease from the droppings of infected rodents.


"We predicted what would happen later that year," said Gregory Glass, a Johns Hopkins researcher who worked on the project.


More recently, in east Africa, satellites have been used to predict rainfall by measuring sea-surface temperatures and cloud density. That's been used to generate "risk maps" for Rift Valley fever — a virus that spreads from animals to people and in severe cases can cause blindness or death. Researchers have said the system in some cases has given two to six weeks advance warning.


Last year, other researchers using satellite data in east Africa said they found that a small change in average temperature was a warning sign cholera cases would double within four months.


"We are getting very close to developing a viable forecasting system" against cholera that can help health officials in African countries ramp up emergency vaccinations and other efforts, said a statement by one of the authors, Rita Reyburn of the International Vaccine Institute in Seoul, South Korea.


Some diseases are hard to forecast, such as West Nile virus. Last year, the U.S. suffered one of its worst years since the virus arrived in 1999. There were more than 2,600 serious illnesses and nearly 240 deaths.


Officials said the mild winter, early spring and very hot summer helped spur mosquito breeding and the spread of the virus. But the danger wasn't spread uniformly. In Texas, the Dallas area was particularly hard-hit, while other places, including some with similar weather patterns and the same type of mosquitoes, were not as affected.


"Why Dallas, and not areas with similar ecological conditions? We don't really know," said Roger Nasci of the Centers for Disease Control and Prevention. He is chief of the CDC branch that tracks insect-borne viruses.


Some think flu lends itself to outbreak forecasting — there's already a predictability to the annual winter flu season. But that's been tricky, too.


Seasonal flu reports come from doctors' offices, but those show the disease when it's already spreading. Some researchers have studied tweets on Twitter and searches on Google, but their work has offered a jump of only a week or two on traditional methods.


In the study of New York City flu cases published last month in the Proceedings of the National Academy of Sciences, the authors said they could forecast, by up to seven weeks, the peak of flu season.


They designed a model based on weather and flu data from past years, 2003-09. In part, their design was based on earlier studies that found flu virus spreads better when the air is dry and turns colder. They made calculations based on humidity readings and on Google Flu Trends, which tracks how many people are searching each day for information on flu-related topics (often because they're beginning to feel ill).


Using that model, they hope to try real-time predictions as early as next year, said Jeffrey Shaman of Columbia University, who led the work.


"It's certainly exciting," said Lyn Finelli, the CDC's flu surveillance chief. She said the CDC supports Shaman's work, but agency officials are eager to see follow-up studies showing the model can predict flu trends in places different from New York, like Miami.


Despite the optimism by some, Dr. Edward Ryan, a Harvard University professor of immunology and infectious diseases, is cautious about weather-based prediction models. "I'm not sure any of them are ready for prime time," he said.


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Greuel faults DWP for bypassing bids on lobbying contracts









The Los Angeles Department of Water and Power repeatedly bypassed its competitive bidding process when it awarded $480,000 in contracts to lobby Sacramento decision-makers, according to a report issued by City Controller Wendy Greuel.


DWP executives issued four no-bid contracts for state lobbying over the last two years, two of them to Mercury Public Affairs, a firm that includes former state Assembly Speaker Fabian Nuñez as one of its partners. No public debate or vote by the utility's five-member Board of Commissioners was required under DWP contracting rules because each agreement was $150,000 or less.


Greuel, who is running for mayor in the March 5 election, said the city utility had "lax controls" over the lobbying contracts and failed to require that two of the firms prepare reports showing what they had accomplished. Mercury also was paid $50,000 for a month of work to help secure passage of legislation on power plant upgrades that had been withdrawn on the first day of the firm's contract, the report found.





"DWP should have terminated" the contract, Greuel wrote.


The inquiry, which was conducted with help from the city Ethics Commission, was launched last year after Greuel's office received a tip alleging that the lobbying work was awarded in exchange for favors. But no evidence of "a 'pay to play' arrangement" was found, her report said.


Mercury received DWP lobbying contracts worth $50,000 in 2010 and $150,000 in 2011, both focused on state government. The firm also received a no-bid, nine-month contract worth $141,000 in 2010 for lobbying at the federal level, which was not examined in the controller's report.


The DWP said the no-bid contracts were reviewed and approved by the city's lawyers. The three lobbying firms helped shape costly state regulations dealing with greenhouse gas emissions and pollution of ocean plant life caused by coastal power plants, utility officials said.


"Their effective advocacy contributed to favorable outcomes that will save LADWP's customers in excess of a billion dollars," the DWP said in a statement.


Mercury Managing Director Roger Salazar said his firm provided strategy for dealing with water quality regulators, as well as state lawmakers. "The legislative process doesn't always end with the pulling of a bill," he added.


The DWP's hiring practices for outside lobbyists attracted scrutiny in 2009 after high-level officials proposed a contract worth up to $2.4 million with Conservation Strategy Group — a Sacramento-based firm that planned to use Mercury and a second company as subcontractors.


The deal would have included the involvement of Nuñez, author of the state's landmark 2006 climate change law. But it was scuttled after DWP commissioners raised questions about the cost. The agency already was paying $15,000 to its in-house lobbyist Cindy Montañez, a former Assembly member who is now a City Council candidate.


DWP officials subsequently began using simple purchase orders instead of competitive bidding procedures to hire lobbying firms. The utility awarded a one-year, $130,000 agreement to Weideman Group in 2010 and a one-year, $150,000 agreement with Conservation Strategy Group in 2011.


Mercury received its $150,000 contract in April 2011, during the same week that Nuñez contributed $3,000 to three of the mayor's legal defense funds and $1,000 to a separate officeholder account belonging to Mayor Antonio Villaraigosa. The defense funds were set up to pay nearly $42,000 in ethics fines levied against Villaraigosa for accepting free tickets to sports and cultural events.


Salazar said there was no link between the contracts and the donations from Nuñez. "Any insinuation that they are connected is absurd and irresponsible," he said.


Last month, the DWP's five-member board awarded a Sacramento lobbying contract worth $1 million annually to KP Public Affairs. That vote was taken after a competitive search process.


david.zahniser@latimes.com





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Used to Hardship, Latvia Accepts Austerity, and Its Pain Eases





RIGA, Latvia — When a credit-fueled economic boom turned to bust in this tiny Baltic nation in 2008, Didzis Krumins, who ran a small architectural company, fired his staff one by one and then shut down the business. He watched in dismay as Latvia’s misery deepened under a harsh austerity drive that scythed wages, jobs and state financing for schools and hospitals.




But instead of taking to the streets to protest the cuts, Mr. Krumins, whose newborn child, in the meantime, needed major surgery, bought a tractor and began hauling wood to heating plants that needed fuel. Then, as Latvia’s economy began to pull out of its nose-dive, he returned to architecture and today employs 15 people — five more than he had before. “We have a different mentality here,” he said.


Latvia, feted by fans of austerity as the country-that-can and an example for countries like Greece that can’t, has provided a rare boost to champions of the proposition that pain pays.


Hardship has long been common here — and still is. But in just four years, the country has gone from the European Union’s worst economic disaster zone to a model of what the International Monetary Fund hails as the healing properties of deep budget cuts. Latvia’s economy, after shriveling by more than 20 percent from its peak, grew by about 5 percent last year, making it the best performer in the 27-nation European Union. Its budget deficit is down sharply and exports are soaring.


“We are here to celebrate your achievements,” Christine Lagarde, the chief of the International Monetary Fund, told a conference in Riga, the capital, this past summer. The fund, which along with the European Union financed a bailout of 7.5 billion euros for the country at the end of 2008, is “proud to have been part of Latvia’s success story,” she said.


When Latvia’s economy first crumbled, it wrestled with many of the same problems faced since by other troubled European nations: a growing hole in government finances, a banking crisis, falling competitiveness and big debts — though most of these were private rather than public as in Greece.


Now its abrupt turn for the better has put a spotlight on a ticklish question for those who look to orthodox economics for a solution to Europe’s wider economic woes: Instead of obeying any universal laws of economic gravity, do different people respond differently to the same forces?


Latvian businessmen applaud the government’s approach but doubt it would work elsewhere.


“Economics is not a science. Most of it is in people’s heads,” said Normunds Bergs, chief executive of SAF Tehnika, a manufacturer that cut management salaries by 30 percent. “Science says that water starts to boil at 100 degrees Celsius; there is no such predictability in economics.”


In Greece and Spain, cuts in salaries, jobs and state services have pushed tempers beyond the boiling point, with angry citizens staging frequent protests and strikes. Britain, Portugal, Italy and also Latvia’s neighbor Lithuania, meanwhile, have bubbled with discontent over austerity.


But in Latvia, where the government laid off a third of its civil servants, slashed wages for the rest and sharply reduced support for hospitals, people mostly accepted the bitter medicine. Prime Minister Valdis Dombrovskis, who presided over the austerity, was re-elected, not thrown out of office, as many of his counterparts elsewhere have been.


The cuts calmed fears on financial markets that the country was about to go bankrupt, and this meant that the government and private companies could again get the loans they needed to stay afloat. At the same time, private businesses followed the government in slashing wages, which made the country’s labor force more competitive by reducing the prices of its goods. As exports grew, companies began to rehire workers.


Economic gains have still left 30.9 percent of Latvia’s population “severely materially deprived,” according to 2011 data released in December by Eurostat, the European Union’s statistics agency, second only to Bulgaria. Unemployment has fallen from more than 20 percent in early 2010, but was still 14.2 percent in the third quarter of 2012, according to Eurostat, and closer to 17 percent if “discouraged workers” are included. This is far below the more than 25 percent jobless rate in Greece and Spain but a serious problem nonetheless.


This article has been revised to reflect the following correction:

Correction: January 2, 2013

An earlier version of this article misstated the amount of a bailout given to Latvia in 2008. It was 7.5 billion euros, not $7.5 billion.



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