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It's not that I didn't believe James Tooley's books and articles asserting that an astonishing number of poor children in developing countries are being decently (and sometimes superbly) educated by a little-noticed army of low-budget private schools that receive no government support and, indeed, are paid for by those kids' own parents.

But it hadn't really sunk into my consciousness, perhaps because others scoffed at these claims. Big "foreign aid" and education funders generally ignored this entire education sector, journalists and analysts paid it scant heed and governments, perhaps embarrassed by their own failure to do right by these youngsters, acted as if it weren't really happening.

Now, however, I've seen examples of this phenomenon with my own eyes in the slums of Hyderabad, India, where Tooley (a British education scholar on leave from the University of Newcastle) is both learning even more about it and trying to strengthen it via the "Aristotle" project he leads with backing from a New Zealand-born, Singapore-based tycoon.

I confess: I was impressed--and slightly sheepish, too, considering I've lived and traveled in India and other "third world" countries over many years and worked in the education field forever. Yet, until now I had allowed my gaze to pass over signs of the presence of hundreds of these schools without really noticing them, much less seeking to understand how they work.

In America my efforts to widen education options and promote school choice for poor kids, like the efforts of most U.S. reformers, have always assumed that, at day's end, the government must pay for this. Perhaps that's true in the Western world, perhaps it's not. But elsewhere on the planet, I can now attest, poor families are paying for it themselves and education entrepreneurs are responding to their demand (and their governments' failure) by starting, managing and growing such schools.

Most of them occupy sketchy facilities, sans playgrounds, labs, libraries and fancy technology. Many teachers are themselves just high-school graduates. The kids bring their own lunches. Parents provide transportation and go to the bazaar for textbooks and uniforms. Sports and extracurricular activities are scarce to nonexistent. Neither schools nor families have any money to spare.

But teaching and learning are occurring in those cramped and sometimes ill-lit classrooms. Eager youngsters, prodded by determined parents, are drinking in whatever knowledge and skills their books and teachers can provide. And while besting nearby government schools on state tests is no high accolade in places like Andhra Pradesh, most of these private schools are doing that at astonishingly low costs.

Oil prices rose sharply toward $50 a barrel Monday as investors anticipated OPEC will announce a large production cut at its meeting this week.

Light, sweet crude for January delivery was up $3.24 to $49.52 a barrel in electronic trading on the New York Mercantile Exchange by mid-afternoon in Europe. The contract briefly reached $50.05 before falling back. On Friday, it fell $1.70 to settle at $46.28.

In London, January Brent crude gained $3.40 to $49.81 on the ICE Futures exchange.

The Organization of Petroleum Exporting Countries, which accounts for 40 percent of global supply, has signaled it plans to announce a substantial reduction of output quotas at its meeting Wednesday in Algeria.

"The extent of such cuts is still unclear and this uncertainty has been a source of continuing volatility in futures markets," said a report by analysts at KBC Market Services in Great Britain.

Kuwaiti oil minister Mohammed al-Eleim said Monday that OPEC was "undoubtedly inclined" to cut production. But he added that any decision would balance the need for a cut with its impact on the ailing world economy and producer nations' need for revenue to fund development projects.

Iranian Oil Minister Gholam Hossein Nozari was quoted Sunday on his ministry's Web site saying that Iran would push for a production cut of 1.5 to 2 million barrels per day.

Toyota Motor Corp. says it will delay opening its new plant in Blue Springs, Miss., indefinitely as it copes with the downturn in the auto industry.

The plant northwest of Tupelo was scheduled to begin production in 2010 and make the Prius hybrid.

Toyota (nyse: TM - news - people ) spokesman Mike Goss says the plant's construction is about 90 percent complete. He says the company will finish building the plant but will indefinitely delay the installation of equipment.

Goss says the roughly 100 people who have been hired to oversee construction and human resources at the plant will not lose their jobs.

The plant was initially to be up and running in late 2009 or early 2010, but earlier this year, Toyota pushed the date back to mid-2010 after seeing signs of a slowdown in the U.S. auto market.

Long-time subscribers to Forbes/Lehmann Income Securities Investor will recall our various moans and groans about the bond market and its lack of any reasonable returns when compared to similar products among the preferreds. Well, things have changed, and this time for the better.

In fact, yields reached their bottom in October when AAA yields were at 6.9% and BBB at 10.2%. These are the kinds of returns we were used to seeing in preferreds last year--and then for much lower quality issuers.

At the end of November, the returns for AAA stood at 5.96% and BBB at 9.99 but with one big difference. U.S. Treasuries have sunk to a yield of only 2.84%, a leap of faith for a 10-year instrument that faces a Federal Reserve Bank, which is still inflating its balance sheet from a recent $800 billion to now $3 trillion and counting.

Special Offer: Richard Lehmann's portfolio of safe, conservative, high-yield fixed-income securities has beaten the stock market for years. Given the market pullback, some of his recommendations are now providing yields as high as 30%. Click here for his current buy list.

It takes a really scared investor to think he is safer lending the Treasury money at 2.84% versus, say, General Electric (nyse: GE - news - people ) at 7%. Are investors so focused on a complete financial meltdown that they choose to ignore the greater threat of inflation over a 10-year period. Oh sure, you say, they can always sell the 10-year Treasuries when the crisis passes, but then who do you think will buy them at this yield? Certainly not Mr. Market.

In any case, this month's Forbes/Lehmann Income Securities Investor features the first of, we hope, many more months in which we can recommend a complete complement of bonds. Well, not exactly complete in the sense that we are still reticent to recommend single B and CCC-rated issues despite their mouth-watering yields.

Secure your retirement with income from bonds, preferreds and convertibles. Click here to learn how with Forbes Lehmann Income Securities Investor.

As the world recoiled at the size and simplicity of Bernard Madoff's fraud, banks in Europe were one by one admitting to potentially being on the hook for millions through their exposure to the Wall Street money manager's scheme.

HSBC (nyse: HBC - news - people ), Royal Bank of Scotland (nyse: RBS - news - people ) and Banco Santander are some of the most exposed lenders, in some cases having indirectly invested in Madoff's funds through hedge funds, or directly through a private banking arm. Since news of his fraud broke last Thursday, banks have been scrambling to calculate their exposure to his firm and are now waiting for receivers to provide further information on the total value of assets in Madoff's portfolio.

Unfortunately, there appears to be little hope that banks who invested in Bernard Madoff Investment Securities will see much or any of their money again. Madoff was arrested on Thursday after reportedly confessing to running a "giant Ponzi scheme" in which he lost $50.0 billion of his investors' money. His two sons contacted authorities on the evening of Dec.10 after their father admitted to the fraud. (See "Madoff's Money.")

RBS said Monday that it could lose as much as 400.0 million pounds ($599.4 million) because of "trading and collateralized lending to funds of hedge funds that invested with [Madoff's] firm," the bank said, without giving further details. British hedge fund Man Group said it had approximately $360.0 million invested in two funds that were "directly or indirectly sub-advised by Madoff Securities," representing about 0.5% of its funds under management. Reports say that HSBC could lose as much as $1.0 billion through its exposure.

Banco Santander (nyse: STD - news - people ), one of Europe's most well-regarded banks for having largely avoided investing in the American subprime mortgage market, said on Sunday that one of its investment funds had exposure of 2.3 billion euros ($3.1 billion) to Madoff Securities. Most of this was invested directly by the bank's investment fund, Optimal, on behalf of Santander's overseas institutional investors and private banking clients. Spain's Banco Bilbao Vizcaya Argentaria (nyse: BBV - news - people ) had approximately 500.0 million euros ($673.3 million) of exposure to funds run by Madoff.

Investment bank Natixis (other-otc: NTXFF - news - people ) appears to be one of the worst hit so far in France, after it said Monday that it had exposure of up to 450.0 million euros ($600.3 million), while BNP Paribas (other-otc: BNPQY - news - people ) said its clients could lose up to 350.0 million euros ($471.3 million). Societe Generale (other-otc: SCGLY - news - people ) said Monday that it had less than 10.0 million euros ($13.5 million) in exposure to Madoff. Credit Agricole (other-otc: CRARF - news - people ) was scheduled to release details of its exposure to the fraud later on Monday, but this was expected to be negligible.

The Madoff case is a clear setback for European banks that have been pining for the end of billions of dollars worth of write-downs and losses that followed the the subprime mortgage crisis. Some, like Bramdean Alternatives, run by London-based fund manager Nicola Horlick, have criticized American regulators for not catching Madoff's fraud sooner. Horlick, who had 10.0% of her holdings exposed to Madoff, reportedly said that the regulators had "fallen down on the job."

Wall Street was scuffling Monday afternoon, as cautious investors shied away from equity markets with the future of the U.S. auto industry in flux and the Federal Reserve's monetary policy committee gathering for a two-day meeting.

Investors are still waiting to hear if the Treasury will use Troubled Asset Relief Program funds to aid Detroit, after a $14.0 billion loan package for the car companies was shot down by the Senate. Judging by trading in the shares of publicly traded U.S. automakers General Motors (nyse: GM - news - people ) and Ford Motor (nyse: F - news - people ), investors don't expect the White House to allow them to fail. GM shares were up 19 cents, or 4.8%, to $4.13 Monday; Ford gained 9 cents, or 3.0%, to $3.13. Chrysler, which would have received $4.0 billion in loans under the rejected plan, is privately held.

The struggles facing the industry are not limited to the domestic automakers either. Japan's Toyota Motor (nyse: TM - news - people ) is said to be halting work on a Mississippi plant designed to build its hybrid Prius, once the current phase of production is completed, according to TradeTheNews.com. American depositary receipts of Toyota, which has already pumped $300.0 million at the Mississippi plant, were up $2.34, or 3.7%, to $65.54.

Aside from the positive automaker stocks, it was a red day on Wall Street. The Dow was down 83 points, or 1.0%, to 8,546; the S&P 500 lost 13 points, or 1.5%, to 866; and the Nasdaq fell 34 points, or 2.2%, to 1,507. Investors also had their eyes on the Fed, with expectations the central bank will take its benchmark interest rate down another half point, to 0.5%.

The move would be mostly symbolic, since the effective fed funds rate has been below the 0.5% threshold since October. Market watchers will be more interested in the statement accompanying the decision, which may hint at other methods of easing monetary policy beyond cutting rates, such as investments in Treasury bonds or expanded purchases of Fannie Mae (nyse: FNM - news - people ) and Freddie Mac (nyse: FRE - news - people ) debt.

Treasury yields inched lower Monday, as investors moved out of stocks and into the perceived safety of government debt. The two-year note returned 0.75%, down from 0.77% Friday, while the 10-year note offered 2.54%, from 2.57%. The iShares Lehman 10-20 Year Treasury Bond Fund (nyse: TLH - news - people ), which tracks a range of long-term bonds, was up 50 cents, or 0.4%, to $118.37.

Earnings will come back into focus this week, with reports from Wall Street survivors Goldman Sachs (nyse: GS - news - people ) and Morgan Stanley (nyse: MS - news - people ) on the agenda. Goldman, which is expected to report the first quarterly loss in its 10-year history as a public company Tuesday, was down $1.40, or 2.1%, to $66.34, in afternoon trading. Morgan Stanley lost 27 cents, or 2.0%, to $13.58, ahead of its report Wednesday.

Oil prices reversed course from early gains, as traders weigh the impact of an expected production cut from the Organization of Petroleum Exporting Countries. The cartel will gather in Algeria Wednesday, and is expected to slash output by at least 2.0 million barrels. Crude, up more than $3.00 earlier in the day, fell $1.33, to $44.95 a barrel.

Verizon is a standout cell-phone carrier for most people, based on our exclusive best cell phone service survey of readers in 23 cities. The company received high marks from survey respondents in overall satisfaction and customer service, and service is available in most of the country.

Overall, cell-phone service has become significantly better, judging by the annual survey conducted in September by the Consumer Reports National Research Center. Contract terms for cell-phone service are less onerous, and there were fewer problems with call quality in this year's survey. The best carriers even came through after a hurricane hit one of our survey cities.

Sixty percent of readers were completely or very satisfied with their service. That appears to be a substantial improvement over 2007, even though we made some changes to our survey this year, including expanding the number of cities we rate and the coverage areas within them.

The improvement means cellular satisfaction is now closer to the average among all services we rate; it had previously been among the worst.

What's behind this surge in satisfaction? There were fewer problems with connectivity, the ability to widely receive service that's free of static and dropped calls. Overall, 42 percent of readers reported that they had no major complaints about service, up from 29 percent in our previous survey. In particular, they were less likely to cite as a top complaint the automatic extension of their cell-phone contract as a result of changing their service.

Carriers have curbed such practices because of increasing competition and the threat of consumer-rights legislation in Congress. Added pressure came from more than 100 class-action and other lawsuits coast to coast, including one by the Minnesota attorney general, and several key court rulings favorable to consumers.

In apparent response to the legal and regulatory action, all the carriers have stopped automatically extending contracts when consumers make changes to their service plan. And now all but Alltel reduce early-termination fees of $175 to $200 as the contract term progresses.

One of the biggest concerns identified by our survey was the high cost of cell service, the top complaint for 14 percent of respondents. Since we surveyed readers in September, before the onset of the economic crisis, that might not reflect today's heightened concern for reining in costs.

Our analysis of the carriers' pricing uncovered a cost-cutter you might not be aware of: pay-by-the-minute, or prepaid, service. It's offered by all major carriers as well as providers such as Virgin and TracFone. Some prepaid plans could save you a lot, especially if you use your phone infrequently or want unlimited voice calling. (See How to buy a prepaid phone.)

Our Ratings (available to subscribers) show that Verizon ranks among the top carriers in every city we surveyed, along with Alltel where it was rated. (Verizon was awaiting approval to acquire Alltel as we went to press.) T-Mobile was statistically on par with the top carriers in almost two-thirds of the cities where we were able to rate it.

Copyright © 2004-2008 Consumers Union of U.S., Inc.

A man identified as an Iraqi journalist threw shoes at -- but missed -- President Bush during a news conference Sunday evening in Baghdad, where Bush was making a farewell visit.

Bush ducked, and the shoes, flung one at a time, sailed past his head during the news conference with Prime Minister Nuri al-Maliki in his palace in the heavily fortified Green Zone.

The shoe-thrower -- identified as Muntadhar al-Zaidi, an Iraqi journalist with Egypt-based al-Baghdadia television network -- could be heard yelling in Arabic: "This is a farewell ... you dog!"

While pinned on the ground by security personnel, he screamed: "You killed the Iraqis!"

Al-Zaidi was dragged away. While al-Zaidi was still screaming in another room, Bush said: "That was a size 10 shoe he threw at me, you may want to know." Watch Bush duck the shoes »

Hurling shoes at someone, or sitting so that the bottom of a shoe faces another person, is considered an insult among Muslims.

Al-Baghdadia issued a statement Sunday demanding al-Zaidi's release.

Al-Zaidi drew international attention in November 2007 when he was kidnapped while on his way to work in central Baghdad. He was released three days later.

Bush had been lauding the conclusion of a security pact with Iraq as journalists looked on.

"So what if the guy threw his shoe at me?" Bush told a reporter in response to a question about the incident.

"Let me talk about the guy throwing his shoe. It's one way to gain attention. It's like going to a political rally and having people yell at you. It's like driving down the street and having people not gesturing with all five fingers. ...

"These journalists here were very apologetic. They ... said this doesn't represent the Iraqi people, but that's what happens in free societies where people try to draw attention to themselves."

Bush then directed his comments to the security pact, which he and al-Maliki were preparing to sign, hailing it as "a major achievement" but cautioning that "there is more work to be done."

"All this basically says is we made good progress, and we will continue to work together to achieve peace," Bush said.

Bush's trip was to celebrate the conclusion of the security pact, called the Strategic Framework Agreement and the Status of Forces Agreement, the White House said.

The pact will replace a U.N. mandate for the U.S. presence in Iraq that expires at the end of this year. The agreement, reached after months of negotiations, sets June 30, 2009, as the deadline for U.S. combat troops to withdraw from all Iraqi cities and towns. The date for all U.S. troops to leave Iraq is December 31, 2011.

Bush called the passage of the pact "a way forward to help the Iraqi people realize the blessings of a free society."

Bush said the work "hasn't been easy, but it has been necessary for American security, Iraqi hope and world peace."

Bush landed at Baghdad International Airport on Sunday and traveled by helicopter to meet with President Jalal Talabani and his two vice presidents at Talabani's palace outside the Green Zone.

It marked the first time he has been outside the heavily fortified Green Zone in Baghdad without being on a military base.

The visit was Bush's fourth since the U.S.-led invasion of Iraq in March 2003.

Afterward, Talabani praised his U.S. counterpart as a "great friend for the Iraqi people" and the man "who helped us to liberate our country and to reach this day, which we have democracy, human rights, and prosperity gradually in our country."

Talabani said he and Bush, who is slated to leave office next month, had spoken "very frankly and friendly" and expressed the hope that the two would remain friends even "back in Texas."

For his part, Bush said he had come to admire Talabani and his vice presidents "for their courage and for their determination to succeed."

As the U.S. and Iraqi national anthems played and Iraqi troops looked on, he and the Iraqi president walked along a red carpet. Watch President Bush and Iraq's president walk the red carpet »

Bush left Iraq on Sunday night and arrived Monday morning in Afghanistan, where he will met with President Hamid Karzai and speak with U.S. troops.

In remarks to reporters, National Security Adviser Stephen Hadley, who traveled with Bush, described the situation in Iraq as "in a transition."

"For the first time in Iraq's history and really the first time in the region, you have Sunni, Shia and Kurds working together in a democratic framework to chart a way forward for their country," he said.

(CNN) -- Sen. John McCain said Sunday he would not necessarily support his former running mate if she chose to run for president.

Speaking to ABC's "This Week," McCain was asked whether Alaska Gov. Sarah Palin could count on his support.

"I can't say something like that. We've got some great other young governors. I think you're going to see the governors assume a greater leadership role in our Republican Party," he said.

He then mentioned governors Tim Pawlenty of Minnesota and Jon Huntsman of Utah.

McCain said he has "the greatest appreciation for Gov. Palin and her family, and it was a great joy to know them."

"She invigorated our campaign" against Barack Obama for the presidency, he said.

McCain was pressed on why he can't promise support for the woman who, just months ago, he named as the second best person to lead the nation.

"Have no doubt of my admiration and respect for her and my view of her viability, but at this stage, again ... my corpse is still warm, you know?" he replied.

In his first Sunday political TV appearance since November 4, McCain also promised to work to build consensus in tackling America's challenges, and criticized his own party for its latest attack on Obama.

McCain rejected complaints from the Republican National Committee that Obama has not been transparent about his contacts with Illinois Gov. Rod Blagojevich.

"I think that the Obama campaign should and will give all information necessary," McCain told ABC's "This Week."

"You know, in all due respect to the Republican National Committee and anybody -- right now, I think we should try to be working constructively together, not only on an issue such as this, but on the economy, stimulus package, reforms that are necessary."

McCain's answer came in response to a question about comments from RNC Chairman Mike Duncan. The RNC also released an Internet ad last week, titled "Questions Remain," suggesting Obama is failing to provide important information about potential links between his associates and Blagojevich.

Blagojevich was arrested Tuesday and charged with trying to trade Obama's Senate seat for campaign contributions and other favors.

"I don't know all the details of the relationship between President-elect Obama's campaign or his people and the governor of Illinois," McCain told ABC. "But I have some confidence that all the information will come out. It always does, it seems to me."

McCain said he, like Obama and many other lawmakers, believes Blagojevich should resign.

Despite the heated nature of the race and attacks both former candidates lobbed at each other, McCain emphasized that he plans to focus on pushing lawmakers past partisan politics.

"I think my job is, of course, to be a part of, and hopefully exert some leadership, in the loyal opposition. But I emphasize the word loyal," McCain said.

"We haven't seen economic times like this in my lifetime. We haven't seen challenges abroad at the level that we are experiencing, certainly since the end of the Cold War, and you could argue in some respects that they're certainly more complex, many of these challenges. So let's have our first priority where we can work together...

"Will there be areas of disagreement? Of course. We are different parties and different philosophy. But the nation wants us to unite and work together."

McCain said he wouldn't comment on whether he thought he had a good chance of winning the presidency, given the Bush administration and the GOP were perceived to be responsible for the economy's problems. McCain said he would "leave that question" for others "to make that kind of judgment."

He pointed out that his poll numbers dropped along with the Dow.

"That would sound like I am detracting from President-elect Obama's campaign. I don't want to do that... Nobody likes a sore loser."

The key to moving past the stinging defeat, he said, is to, "Get busy and move on. That's the best cure for it. I spent a period of time feeling sorry for myself. It's wonderful. It's one of the most enjoyable experiences that you can have.

"But the point is: You've got to move on... I'm still a senator from the state of Arizona. I still have the privilege and honor of serving this country, which I've done all my life, and it's a great honor to do so."

DUBAI, United Arab Emirates

The Saudi prince who owns a double-decker "flying palace" and recently raised his bet on Citigroup lost $4 billion in the past year, according to a published report Sunday, showing that even the ultra-rich are getting pinched by the global financial crisis.

The pain is relative, of course. Prince Alwaleed bin Talal remains the world's richest Arab with a net worth of about $17 billion as of Dec. 2, Dubai-based magazine Arabian Business reported in its annual ranking. That is nearly twice as much as the second-richest on the list, but a considerable drop from the $21 billion the magazine said the prince was worth a year ago.

Arabian Business said it based its figure on a direct review of the prince's holdings and a face-to-face meeting with the man who's been dubbed "the Arabian Warren Buffett."

An official at Kingdom Holding Co., Alwaleed's investment company, did not immediately respond to a request for comment.

Alwaleed last month announced he would raise his stake in ailing banking giant Citi to 5 percent from less than 4 percent. The move has failed to significantly boost the bank's share price.

The Saudi royal's controlling stake in Kingdom Holding, which invests in well-known companies such as computer maker Apple Inc. and Rupert Murdoch's News Corp., accounts for nearly $8 billion of his wealth, the magazine said.

Alwaleed also owns Middle East media company Rotana Holding, and controls more than $3 billion worth of real estate, including a 124 acre personal resort complete with a private zoo.

And then there's the Airbus A380 "superjumbo" jet Alwaleed bought and had outfitted for his personal use. It's valued at $330 million -- a little less than the price tag for his other two jetliners combined.

No. 2 on the list with $9.6 billion is Nasser al-Kharafi, a Kuwaiti businessman who holds the Middle East franchise for chains such as KFC, Hardee's and Pizza Hut. He's also the largest shareholder of Krispy Kreme Doughnuts Inc.

Another prominent name on the list: the Bin Laden family, which makes its money in the construction business. Arabian Business puts the net worth of the clan, which has tried to distance itself from its most notorious member, at $7.2 billion -- good for seventh place.

Altogether, the magazine said the world's 50 richest Arabs lost a combined $25 billion amid the global meltdown, much of it since the end of summer like investors elsewhere.

"The surprise is how much money everyone has lost," Anil Bhoyrul, editorial director of Arabian Business publisher ITP Executive Publishing Ltd., said in an interview. "The list we published is a lot different than the list we originally put together only a few months ago."