An explanation is given for the charge order, orbital order, and insulating
state observed in half- doped manganese oxides, such as Nd1/2Sr1/2MnO3 The
competition between the kinetic energy of the electrons and the magnetic e
xchange energy drives the formation of effectively one-dimensional ferromag
netic zigzag chains. Because of a topological phase factor in the hopping,
the chains are intrinsically insulating and orbital ordered. Most surprisin
gly, the strong Coulomb interaction between electrons on the same Mn ion le
ads to the experimentally observed charge ordering. For doping less than 1/
2 the system is unstable towards phase separation into a ferromagnetic meta
llic and charge-ordered insulating phase.