The Week May 15-21

• Share

(3 of 4)

Sweeping the world's oldest leader from office, Malawians elected former Cabinet minister Bakili Muluzi to replace Hastings Kamuzu Banda, who is believed to be in his 90s, in the country's first free multiparty elections. Muluzi promised that Banda, who had ruled the southern African nation as a dictator since its independence from Britain in 1963, would be offered a house, a car and a pension. Said Muluzi: "Let's face it, he's an old man. We don't like to kick around somebody that age."

New N. Korean Nuke Talks

The Clinton Administration has decided that North Korea has met key demands on the inspection of its nuclear program and so the U.S. will resume high-level talks with Pyongyang. North Korean officials have also agreed to meet with International Atomic Energy Agency officials to discuss future iaea monitoring of its spent reactor fuel that could be used for nuclear weapons.

Dominican Vote Fraud Alleged

Officials in the Dominican Republic said the ballots cast in the country's election would be recounted after the leading challenger to aging, blind President Joaquin Balaguer charged that the vote was tainted. Balaguer was only 1% ahead of former Santo Domingo mayor Jose Francisco Pena Gomez in the counting.

BUSINESS

Fed Raises Rates

In a move that was widely anticipated, the Federal Reserve raised two short- term interest rates by half a percentage point in the hope of warding off inflation while sustaining economic growth. In response, banks raised their prime rate half a percentage point to 7.25%. Economists also expect the increases to stabilize the very volatile stock and bond markets.

Lowering Risk

A General Accounting Office study issued on derivatives -- the faddish, hard- to-explain high-finance tools -- calls for more international supervision and regulation. The report argued that a derivatives collapse could cost taxpayers millions in bailouts for banks. Representative Edward J. Markey, chairman of the House Subcommittee on Telecommunications and Finance, is planning to introduce legislation that would enact tighter controls.

Social Security Independence

The House voted 413-0 to make the Social Security Administration, now a division of the Department of Health and Human Services, an independent agency. It is hoped that the new arrangement would make it easier to combat fraud and track misuse of disability benefits given to people suffering from drug and alcohol addiction.

SCIENCE

Coming to America: RU-486

The abortion pill RU-486 may be available to women in the U.S. in two years. After more than a year of negotiations, the French manufacturer, Roussel Uclaf, has agreed to give all patent rights for the pill to the non-profit research group the Population Council. The organization will begin clinical trials in the fall and will help find an American firm to produce the controversial pill, which can end pregnancy within seven weeks of conception. Fearing boycotts and protests by antiabortion groups, Roussel had backed away from trying to market RU-486 in the U.S.

THE ARTS & MEDIA

Tony, Tony, Tony