The World

10 ESSENTIAL STORIES

By Harriet Barovick, Ishaan Tharoor, Alexandra Silver, Claire Suddath, Frances Romero, Kayla Webley and Josh Sanburn Monday, Jan. 24, 2011

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    Two-thirds of the state of Queensland was declared a disaster zone as the region faced a third week of flooding. Brisbane, Queens-land's capital, was inundated after flash floods that killed 10 in a nearby town reached the city, Australia's third largest. The government estimates that the floods could cause a $12.8 billion hit to the country's $1.3 trillion GDP.

    7 | Mexico

    MURDERS IN PARADISE

    During four bloody days of turf warfare between drug cartels, more than 30 bodies, 15 of them headless, were found in Acapulco. The violence has led to a sharp decline in visits by foreigners to the resort city, where three cartels are fighting for control of its port. More than 30,000 people nationwide have died as a result of drug violence since the Mexican government launched a crackdown on cartels in December 2006.

    8 | China

    Gates Visit Looks to Mend Military Ties

    U.S. Secretary of Defense Robert Gates visited China on a four-day trip aimed at patching up military relations with Beijing, which have frayed in recent years. Tensions between the two powers spiked over proposed U.S. arms sales to Taiwan, the island nation China still considers part of its territory, as well as China's tacit support of North Korea. Observers see a hardening of battle lines in the Pacific Ocean as a revitalized Chinese navy prepares to challenge decades of U.S. dominance. Ahead of President Hu Jintao's upcoming trip to Washington, Gates left Beijing amid speculation of a split between Beijing's civilian leadership and its more hawkish military counterparts.

    A look at two powers

    [The following text appears within a chart. Please see hardcopy or PDF for actual chart.]

    U.S.

    CHINA

    2010 MILITARY EXPENDITURES

    $729 billion

    $78 billion

    ACTIVE PERSONNEL

    1.6 million

    2.3 million

    MATÉRIEL

    SUBMARINES

    71 65

    AIRCRAFT CARRIERS

    11 0

    NUCLEAR WARHEADS

    9,400 240

    SOURCE: BBC

    9 | Spain

    ETA Calls a Cease-Fire

    Madrid reacted cautiously after the Basque separatist group ETA declared a previously announced cease-fire to be permanent. ETA, however, has broken several cease-fires in the past, and Spanish Prime Minister José Luis Rodríguez Zapatero said a peace process could not begin until the group agreed to disarm and dissolve. The militant group is blamed for more than 850 deaths in the course of its 50-year campaign to carve out an independent ethnic-Basque homeland from parts of Spain and France.

    10 | Illinois

    Tax Hikes and Budget Cuts

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