The World

10 ESSENTIAL STORIES

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    As drug-related violence in Mexico rages, eight people were killed in a bar in Cancún on Aug. 31 when a group of men apparently threw gasoline bombs into the building. The attack came one day after Mexican authorities announced that 3,200 federal police officers, amounting to nearly 10% of the force, had been dismissed. More firings are likely; widespread corruption is a key obstacle in the government's fight against violent drug cartels. There was a small victory on Aug. 30, when authorities captured alleged drug kingpin Edgar Valdez Villarreal, called La Barbie because of his light eyes. The Texas-born Valdez Villarreal (below), who is also wanted in the U.S. for distributing thousands of kilograms of cocaine, had been battling for control of the powerful Beltrán Leyva cartel.

    6 | Indonesia

    BLOWING ITS TOP Mount Sinabung, a volcano that sits along the Sumatra fault, ended 400 years of dormancy on Aug. 29, when it unexpectedly erupted, sending smoke and ash into the sky and causing thousands of people to flee the area. A second eruption the next day killed two people and brought the total number of displaced to 30,000. Indonesia lies above the Ring of Fire, a horseshoe-shaped zone that rims the Pacific Ocean and is known for its high level of volatility. Since 2000, 357 eruptions have occurred there, accounting for 84% of the world's volcanic activity.

    7 | Afghanistan

    Private-Bank Takeover

    In what some called President Hamid Karzai's first move to fight corruption, Afghanistan's central bank took control of Kabul Bank, the country's largest private bank. Two top executives resigned ahead of a likely investigation into the bank's alleged misuse of funds through real estate speculation in Dubai and wayward lending practices. Kabul Bank began as a capitalist pioneer in the country but is widely seen as enabling political cronyism.

    8 | South Africa

    Paralyzed by Labor Strikes

    The South African government's attempt to quell a three-week strike by most of the country's 1.3 million state employees was thwarted Sept. 1, when unions rejected a proposed 7.5% pay hike. President Jacob Zuma, who rose to power with union support, is caught in a bind: his government can't afford to meet the strikers' pay demands, but the lavish lifestyles of his ministers don't help sell that argument.

    9 | North Korea

    New Sanctions

    President Obama signed an Executive Order Aug. 30 expanding sanctions against North Korea by targeting those involved in illicit activities that bolster the regime, such as arms- and narcotics-trafficking, counterfeiting and importing luxury goods. The Obama Administration also froze the assets of several North Korean groups and individuals who had been singled out for supporting North Korea's nuclear program.

    10 | Washington

    Health-Insurance Costs Rise

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