tv Real Money With Ali Velshi Al Jazeera January 26, 2015 7:00pm-8:01pm EST
to keep freedom of expression alive at sundance and that is all of our time for this newshour i'm tony harris in new york city. "real money" with ali velshi is next on al jazeera america. greece east new government is all done with austerity and gunning for a better bailout deal for its creditors. that could spell tour moil for america's top trading partners. and the two countries cement closer economic ties. plus money on the moon. it's a race to get there to explore and exploit its resources, maybe make billions one day. i'm ali velshi and this is "real money." ♪
a mega storm is brewing, and i'm not talking about the weather system hitting america's northeast, i'm talking about a storm brewing in europe's southeast that may be felt around the world. greece's prime minister sworn in today. repeated pledges to renegotiate a $269 billion bailout package. in that will put his country on a collision course with creditors from the european union and the international monetary fund. voters swept in his ultra left-wing party to a near absolute majority in parliament. in doing so the greeks gave a big thumbs down to their government's crushing austerity measures in place since then 2010 bailout. in that time the greek economy has shrunk by 25%.
other countries recovered later in the day. markets fear that little greece will send outsized shock waves throughout europe especially if greece is forced out of the euro to enzone. for more on greece east new prime minister and his road ahead, barnaby phillips has this report. >> reporter: he is leading a social revolution as well as a political one. he's just 40 years old. the youngest prime minister in modern times. he is also the fifth greek prime minister since 2009. economic chaos has made for turbulent politics. earlier he invited a small right-wing party the independent greeks to form a government with his party. they don't have much in common
except for a determination to reject austerity policies imposed on greece. it's a new political landscape. the old guard swept away. the time of expectation but also fear of what comes next. here in the greek parliament the new coalition government should now have a stable majority. at least for the time being. but the really difficult negotiations lie ahead, and they will be with other european governments, the european central central bank and the imf. a far-left victory could be construed as bad news but they say greece must reach an amicable agreement with europe. >> the greek people have suffered tremendously to become members of both and i don't think that they want to simply throw away all of the efforts, and the sacrifices that they have endured over the last 4.5
years, in order to be members of the european club. >> reporter: they believe it has reset the course of european politics and that greece will now lead the way in rolling back the austerity. it wants a large part of greece east debt which is 320 billion euros in total to be forgiven and yet the european countries that lent greece money says it must stand by its agreements. >> the moment they are taking die met tryly opposed positions. economic stimulus lowering of fiscal targets, and the euro zone is saying no it's all of these. so there will have to be real compromise. >> reporter: a compromise is in everyone's interests, but there's not much time to play
with. greece has the funds to survive until the summer. many experts believe greece will need to borrow more money before then. well the fear is that if greece east economy implodes it will take some of europe with it. the european union is just plain stagnating. forecasters expect just 1.8% economic growth in the e.u. this year compared to 3.6% for the united states. in response the european central bank is spending loads of cash $70 billion a month to try to stimulate the e.u. economies, and since the e.u. is america's largest trading partner. europe's economic woes could hurt the united states. the euro is falling against the dollar and here is why you should care about that. we live in a global economy where the plunge in the euro versus the dollar can hurt u.s. companies that sell abroad.
greece for better or worse we are all connected. last week i sat down with the world bank president, who was attending the world economic forum in switzerland. leaders get together to discuss the ups and downs of the u.s. economy. i asked for the forecast of 3% growth in 2015. this is what we told me. >> 2014 was lower than we expected. and we noticed there is a tremendous divergence. the u.s. seems to be on a very, very good path the u.k. has done well. and in the brics countries, part of the motion was more or less they were agreeing in the same way. but now we see tremendous diverse against. china and india -- china is over 7% india will soon get to 7% but the other countries, russia especially there's as much as a
5% contraction that we expect in the next year. so the countrys that are going to do well are the ones that have the courage and vision to tackle structural reforms. i was just in india with the prime minister and the things he has been able to do in a short period of time are very impressive. indy has acted like a number of different states. transport takes forever, because as you cross every state, you have to pay a different set of taxes. he has put in a goods and services tax that will make uniform the tax system in graduated steps but this is really important. so it's the countries -- it's the same for europe as japan as everyone else the countries that take the opportunity to make the reforms are the ones who will be better off. >> india is so belabored that if modi can do in all of india what
he did before it will be very beneficial. japan has other problems. >> well i think the growth was disappointing, and the sales tax had a bigger impact than anyone thought. there was a big spike in consumption before the sales tax, but the drop-off has lasted longer than i think most people expected. but i'm very impressed with the prime minister and the deputy prime minister's commitment to the reform process. it's a going to be hard. but look at the things they have already done. you know i can't imagine that another group of leaders would have been so bold in terms of monetary policy. so for prime minister modi i actually told him if the ranking, and our doing business ranking, was based on his
previous city instead of city's like new delhi, they would move there 160 in the world, to 50th in the world. so he set the target to be 50th in the world. that's the kind of boldness and courage that you need to survive in the current global economy. >> but when you look at russia that contraction is largely because of sanctions, issues over ukraine, and then oil. >> right. >> how has the price of oil affected your forecast for 2015. is that net negative or net positive. >> the average price of oil was $26 in 2014 so if there is a 30% drop we think the overall economic growth of the world will go up half of a percent. so if you are predicting 3% growth and it goes up half a percent, that's a one-sixth increase in growth.
so it's substantial. but there are winners and a losers. russia we're very wa -- worried about, and venezuela as well. they provided gasoline at a much lower price for cuba haiti, honduras and some relatively fragile areas. so it's not just venezuela, it's all of the countries they have been supporting. i just had a conversation over the internet with [ inaudible ]. she is a brilliant minister of finance, but boy, she has a tough situation, we're going to try to do everything we can to help her with social protection programs. but then you see other examples like india who are going to do very well and for the countries that are going to do well they are going to benefit from low oil prices. we're saying this is the time to get rid of your fuel subsidies.
fuel subsidies have a six times greater impact on the rich than the poor. so it's essentially a regressive program. so we're saying take this opportunity to focus your support to the poorest and take those subsidies off. india is moving in that direction, indonesia is moving in that direction, it's a great opportunity to do just that. >> oxfam came out with a report suggesting that the richest 1% wealth will control 99% of the growth in the world. that's really a fairly serious problem. no one wants to begrudge the wealthy getting wealthy, and we have probably done a pretty good job with the poorest in the world. but the middle class across the world is struggling. we talk about it a lot in the states, but it's a global issue.
>> it is ali, and the numbers suggest to people that there's something really out of kilter here. so what we have found is that it's extremely hard to know exactly the incomes of the wealthy. so what we have done is said yes, inequality is a big issue. first of all there's still a billion people living on less than $1.25 a day. we're really trying to lift them out of poverty. if you just focus on the mining industry in a particular country, that's not a job-rich development kind of path. so we're trying to find those job-rich development paths, and for the bottom 40%, our focus is what kind of economic growth that have an outsized impact on the poor. if you look at our best projections over the next 15 years, it's 4% growth.
now i don't know anybody who can see how we get to that average, but we're not going to get to less than 3% poverty, which is our goal. so we have to change the poverty elasticity of growth. every point of growth has to have a bigger impact on reducing poverty and helping the bottom 40%. when "real money," you're hear the annual meeting of the rich, and important, that some critics say produces little more than talk. i'll bring you another view in just two minutes. tell me what is on your wind by tweeting me or hitting me up on
there has been heated criticism over whether the world economic at davos can take on serious issues especially given the opulence of private jetses used just to get to the event. but davos has a unique roll in affecting crises in the world. i spoke to this expert about why davos still matters. >> first of all this is not the wealthy only. there are ceo's of big companies, but there are people from around the developing world. i just came from a healthcare governor's forum, and two out of the four ministers of health were from the developing world. what comes out of it?
gabby, for example. the global aids alliance for vaccines. >> right, we were just speaking to them. >> yes. that was born here 15 years ago. the ideas come out of here all the time. different kinds of ideas of dealing with the big challenges. in healthcare we talk about the developed world, and the developing world issues, and we're coming up with ideas all of the time and this place is making a difference. >> in health care you have noticed here and the discussions here follow the evolution of health care globally. tell me about this. >> ali historically we have thought of healthcare as sick care. you are sick we try to fix it. we then move to an environment of health care. trying to prevent you from getting sick. now the forum is talking about the word health.
it's not only about getting you better or having you live longer but quality life and extending your quality life so that's now on the leading edge here, and that's the first time i have heard about this. >> so there's a real benefit to somebody like you -- because the stuff you do touches everybody in every part of the population. >> i can go to a meeting where i will meet other business people i will meet people from government. this is the only place in the world where in four days you meet all of the stake holders and you can walk up to anyone and say anything you want and ask any questions. >> so the airport is jammed up, and business people are meeting business people. there's no question. >> let's get this private jet thing out of the way. if you want to get these top 20 ceo's in the world to come in
their time is very valuable. they need to get here otherwise you can't put them in the schedule and they come. >> and this interesting -- davos is an interesting equallizer for anybody who attends. anybody can walk up to anybody and say we need to have a conversation. >> so long as -- there's a code of conduct. but the big thing is it's who you meet when you pick up your coats. who do you meet at lunch? who are you sitting with at dinner? it's absolutely remarkable. >> there's some sense that the problems of the world can often best be solved by these two have resources and power, and they are all here. do you think there's enough of a commitment to solving the problems of the world, as opposed to just getting another deal. >> it's the public private partnerships that get things done. it's what happened around the meetings.
i'm exchanging cards all the time. somebody from the ngo world is looking for somebody from a health supply company. we work on that -- it all circles around the lunch counter or something like that. and it's all of the context that you have and that you make when you move a dime. >> i want to know if you buy that. so tweet me or hit me up on facebook about whether you think it's worth my time to keep going to the world economic forum in davos. hey, coming up what the slowdown means for american business. we'll look at how u.s. companies can keep growing if the rest of the world is slowing down. ♪
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new delhi. it is ripe with meaning. while the headlines focused on bilateral trade and a civil nuclear trade deal announced on sunday, the symbolism was what stood out the most. >> reporter: barack obama is the first american president to attend india's annual republic day parade. the leader of the world's largest arm exporter looked on as india showed off its weaponry. >> i think it's a message that the current government wants to give on what is -- what we want to do with the united states? what is likely to be the relationship. >> reporter: obama's second visit to india as president as been heavy on symbolism, from chief guest to a big embrace by
prime minister moody upon arrive. the idea when leaders talk more and often, the business environment becomes warmer. they both say they are committed to boosting bilateral trade. some analysts say the economic relationship between the two has the potential to grow five fold. they think modi's visit to the united states last year has inspired american companies. >> there have been a lot of exchange of delegations up and down essentially trying to figure out what are the challenges what is preventing investments from flowing in? >> if the ceiling of their nuclear deal is anything to go by both governments seem willing to make concessions. for india, this has meant companies to bypass their strict
clause that holds companies responsible in the event of an accident. >> it's really where the solution lies and as long as that is agreed upon and accepted i think the mechanics can be worked out in near time. >> reporter: the new indian government is refocusing its foreign and economic policies. for years it has worked closely with russia. and the message to the american president is simple. we're also happy to do business with you. the slump in oil prices is a benefit for india, but overall the health of the global economy is still in question. there's concern that that might hurt american businesses too. but the u.s. secretary of commerce tells me it's all about the long-term view. >> i think you have to recognize that businesses invest for the long term, and there is always
going to be short-term volatility. it's one of the reasons why the president is focused on our accomplishmenting new trade agreements an agreement with asia and with europe. it's something we're very very much focused on. you heard the president ask congress for trade permission authority, the ability to get these agreements done on a fast track. >> and this is a congress that can't agree with the president on what the temperature is today. >> well we have a lot of agreement on this issue for a number of reasons that it's good for america. first of all, fairness. you know if you want a foreign company, and you want to sell something into the united states, you face an average tariff of about 1.5%. if you are an auto maker, or chemical manufacturer you face tariffs around the world that
could be 30 to 100%. so one of the things we're trying to achieve is access to markets, and a level playing field for our companies. the second thing is our values. these trade agreements promote labor standards, environmental standards, respect for intellectual property and a way to deal with state-owned enterprises. these are things that have not existed in previous free-trade agreements. very very important in terms of setting the rules for trade in the 21st century. and finally, it is time for america to play a leadership role in terms of trade globally. if we are able to get the asia free trade agreement. that's trade with 40% of the weird's gdp. you add your that's trade with almost 70% of the gdp. that's setting the rules so our workers and companies can be
competitive globally. it's extremely important. >> probably the most common thing i have heard by people sitting in that chair is a reference to india, to prime minister modi this miracle he is trying to bring to india. and my ancestry is from gudrat. i hope it works. but india has a lot of problems. you are headed to india with the president. >> yes, we're excited because there seems to be a real momentum in the relationship that had not been there in the last several years, not only from an strategic standpoint but an economic standpoint. >> most americans were completely over this cuba thing. they were puzzled as to why we can't open up relations with cuba. i also don't know that most americans know how this benefits them at all. i think they are fine with -- okay we're not going to isolate cuba.
what does anybody get out of this? >> let's start with the policy we had. isolation wasn't working. the president recognized that. and it's the beginning of more dialogue. and the second thing that there's an opportunity -- the real commercial community in the short run, because we're still subject to a statutory embargo is really in the area of telecommunication and agricultural. only 5% of cubans have access to broadband. the new regulations will allow more telecom infrastructure to be put in place, as well as the sale of personal computers, personal software mobile phones televisions, so this is going to create much greater information sharing, which has a very positive influence on cubans -- >> and the cubans will have
greater remittances from america. >> absolutely. which would help with entrepreneurial -- >> so that will create more jobs. >> agriculture. last year we had $3 billion worth of licenses to the department of commerce for agricultural products to be sold to cuba. only about 10% of that ever happened because it's so hard to pay for the goods. >> right, you have to have letter of credit -- >> exactly. and now u.s. banks can have banking relationships with people in cuba. >> so an american producer of food can sell it to cuba. >> exactly. it's the beginning. it's a long process, but we're optimistic about the beginning. representatives of the state department are there now, and my hope is that i'll visit cuba -- the president has asked me to go to cuba later this year with a group of american
if you own even one share of stock in a public company, you are an owner of that company, but when it comes to hiring and firing the head of that company, the ceo, it's the board of directors that calls the shots. shareholders have little or no say in nominating directors at most companies, but some very big investors are trying to change that. and as duarte geraldino reports, some people say that could have a significant impact on your 401k pension or retirement
account. >> reporter: new york teacher, policemen, firemen, and other pleas have $160 billion in the pension fund. normally shareholders only have the power to boat for board candidates. shareholders do not generally nominate executives. new york's pension system is targeting 75 companies that include household names like ebay exxon mobil, netflix, chipotle price line and staples. new york's comptroller is demanding that they adopt the three and three rule. giving them the right to nominate new candidates. the measure could increase the value of u.s. public companies, thereby benefiting the nest eggs of millions of americans. >> there's good corporate governance and less risk so that's praised into the company.
if the markets as a whole rose because of higher corporate governance standards, that would flow into your pension. in egregious cases where there's poor corporate governance it would be unlikely that a number of investors could ban together. >> reporter: the three and three rule was proposed after enron collapsed. nows of people lost their life savings. many people blamed poor oversight by the company's board of directors. supporters say it will help influence in matters like ceo pay, diversity, and climate change. i want to tell you about some important developments in this battle by shareholders to win more power to nominate corporate directors.
it involves whole foods market. in december the securities & exchange commission handed a victory to whole foods. it was a proposal that would have allowanced large investors to nominate members. in jan sec chair mary joe white said quote, time-out and told her staff to review the rule that it used to justify their decision. this could have big implications in all publicly held companies. scott stringer is leading the campaign for greater shareholder rights that you heard about in duarte's piece. good to have you on the show. >> good to be here. >> you have stayed out and braving the storm. this is just a reprieve.
not a victory really? >> well i think it's significant. the sec is now going to review basically these companies from preventing us from exercising our shareholder rights. so i think moving forward, when you look at what has happened in the past few months since we started the board room accountability campaign we started with 75 shareholder resolutions. we built some of the largest public pension funds in the world. and we are building basically a very strong foundation to basically say to companies, when you have 3% of the company, for a period of three years, you ought to have the right no nominate a director -- >> right. we're not saying you have the right to win, just to nominate. >> just to place someone on the ballot. but the insiders put out a
slate, and send out a ballot and you can't do anything about it. so this is such a boss tweed way of doing business it is not reflecting the concerns of the people who have ownership of these companies. >> we know if you own a new stocks -- no average person owns 3% of a company, but we're talking about the big investors who the average person would think would have a say. why tell me in 2015 is this not already the case. >> let me make a point -- we're not trying to up end corporate america. it's so hard for anybody to have 3% of anything in a company. our pension fund is worth approximately $160 billion. >> right. >> but we own a half of percent at most of any fortune 500 companies. so the only way we would nominate members, is if there
are issues that would cause people to worry about the security of the companies. we're not trying to hurt corporate america, we're trying to enhance -- >> right. because these are all investors. >> we want these companies to succeed. every day i root for every one that we have a stake in to do well because my if iedishary responsibility is for the 700,000 employees that the pension system represent. >> what if -- if you could get this right, and if -- if companies that own 3% -- investors that own 3% of a company for three years or longer could start to have a say in just nominating directors and ultimately some of those nominees would win seats on the board, what are the biggest issues that would be changed? >> so let me tell you. just the notion that we could in fact run directors, i think will
change corporate america's view of companies. they will be less willing to put their friends on boards without understanding there is an accountability. but here is what we're concerned about. we know when you have diverse boards, more women, people of color on boards the company has more opinions at the table and tend to do better. we're concerned about companies that end up giving the ceo a whole lot of pay. because then we think maybe the ceo is running the company and the director is just falling into line. so there are a lot of triggers that make us concerned, and sometimes you have to say maybe we should run a director or a slate so you could have diversity. you could not run more than 25% of the corporation. so it's not like we're going to take over a company. we just want to have a say. >> it does seem odd that major investors have to fight for this
right for us. >> and what your report says when you have this kind of rule then get what? the valuation of our companies across markets could be enhanced up to $140 billion. so there is also a strong economic incentive to do this. >> scott stringer the comptroller of the any of new york. always good to see you. get home and stay inside. >> you too. i'll see you soon. >> when "real money" returns, we'll hear from a man who says your online reputation is more powerful than money. hold on to your money. "real money" is back in just two minutes. the science behind keeping us safe on the road >> oh... >> oh my god... >> the driving force behind these new innovations >> i did not see that one coming >> techknow's team of experts show you how the miracles of science... >> this is my selfie... what can you tell me about my future? >> can effect and surprise us... >> sharks like affection
physical where -- where ababouts. michael's firm help clients manage their online images and he says not too far down the road your digital footprint will matter as much as the money in your bank account. and your online reputation is becoming more valuable than money or power. he is co-author of this book. michael great to see you. people who watch you know you are a regular guest, a fine thinker, and we love having you on but why is this anything but an advertisement for the company you are in? >> it is a terrific -- i would rather you show the cover again -- it is a terrific advertisement, but i wrote it because i believe it. ali is a brand.
ali came from cnn, he has a following. people followed do you al jazeera in fact al jazeera got your contract for partly that reason. the same is true for everyone. if you are contributing to the internet and building your reputation that people want to find you, jobs will find you. karaoke sitters becoming millionaires. uber drivers getting voted and rated on getting the biggest rise and the biggest prices and the most passengers. so this is better people better romance and better jobs. >> but what doesn't exist is a measure of your influence across various digital platforms? right? people get very excited about the number of likes their instagram postings get. or their friends on facebook or
on twitter, but it's no clear -- in a world where there are bots that follow you, how do you have influence. >> that's a great question. the question i ask in the book are nba stars good baby sitters? well, we don't know. but if you are a really good passenger on uber it probably means you are punctual and polite. if you are a really good customer on open table, that means you are a conscientious person. does it mean you are a good neurosurgeon? no it's not that accurate but companies like mine are creating universal reputation scores. >> okay. that's where i wanted to go with this. who would see such a thing. because people don't see credit scores. >> there are two places where
reputation scores will be really power. one is getting you better medical care. obamacare doesn't mandate the price or the extent of the choice. so the healthier you appear to be on line the better your prices will be very soon. second employers, the more hard core the more hard worker you, the better off you are socially as a fit for the company hiring you, and the computer that is finding resumes to consider giving to the hr team to identify you as the second ali velshi star of your own personal network. >> who is going to control that world? it's all good until somebody messes up. >> that's a really [ inaudible ] question. the question i think that might come first is hey, everyone is being scored but are the scores accurate? and the answer is not necessarily. you have to teach the machine.
-- this is what is actually. you have to teach the machine to get the accurate reflection of who you are. i know a really sort of overweight guy who has a fit bit and he puts it on his dog and the dog runs around. so he can fool the machine. [ laughter ] >> so the point is you have to make sure you treat the machine as someone that is not smarter than you. >> all right. we're going to have to pursue this is a lot more because there are a lot of big questions raised out of this book. >> so glad to hear it. well from online reality to space reality, five companies are kicking off a new era in moon exploration. they are splitting more than $5 million in prize money. i'll tell you who they are, and
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primetime news. >> welcome to al jazeera america. >> stories that impact the world, affect the nation and touch your life. >> i'm back. i'm not going anywhere this time. >> only on al jazeera america. ♪ this is an extraordinary time in history, the u.s. government is essentially handing the reins to private companies to explore and exploit the moon. several businesses are racing to develop landers and rovers to do just that and why not? some say a trip to the moon isn't anymore complicating that planning an extended trip to antarctica. two of the start-up companies in the game is astrobotic and moon express.
they have a single focus to get to the moon and make billions. >> reporter: moon express and -- -- astrobotic are small companies. >> we believe a hunk of the moon that you could hold in your hands could be worth a billion dollars. >> reporter: both companies are building unmanned spacecraft that could make cargo to the moon. payloads can mount above the deck and also below the deck. things like rovers experiments, science instruments, and even education programs. one we land on the surface of the moon we become a power station. we're like the local utility that can carry power that comes with us. >> reporter: moon express's design is smaller. >> the design of our vehicle, our little spacecraft. here it is right here.
it's -- notice it's like a little flier saucer. the payload deck. the energy of our spacecraft is like a hot rod in space. >> reporter: the ambition of both companies, to build infrastructure on the moon. commercial space stations mines for precious metal, launch facilities that can send spacecraft even deeper into space. >> the moon ultimately is a stepping-stone to bigger and better things namely mars. that's the big objective of humanity right now. we need to start with the moon. it's in our backyard. >> reporter: nasa announced that both companies will be part of its lunar catalyst program. similar to deal it already has with space x and orbital sciences. >> nasa is moving on to the frontier challenges like going to mars. but we recognize it's important
to continue our expansion with lunar sites as well. >> reporter: the ultimate goal is to promote a competitive market. but the $40 million google lunar x prize. $20 million for the 1 company to drive 500 meters on the moon and send back hd images in real time. astrobotic and moon express are competing with the prize along with 16 other companies around the globe. many companies plan to launch to the moon in 2016. astrobotic has proposed splitting the cost with other teams. >> this is our entrant to the google x-race. >> reporter: and they are selling advertising space on their rover and their lander. >> it will be full of different logos and also different opportunities for companies to
have their messaging and branding and social experiences happen on the surface of the moon. >> reporter: it's competition for the sport and for business. both companies will also be carrying paying customer payloads to the moon. astrobotic will bring among other customers a japanese sports drink. >> it is sending a drink to be the first drink to land on the moon and actually to serve as a time capsule for the kids of japan to put their dreams in. >> reporter: until now, this is what moon exploration looked like to americans, apollo missions astronauts a bit of golf now it's sports drinks and nascar races. but now it is going to become commercial. >> here is jim and i when we were testing the lunar module. >> reporter: it's a far cry from his former astronaut's day.
>> when you have a close-up of the moon and there is you know, bud wiser or nascar and it puts some ambiguity into the game. >> reporter: but he says sponsors are money. and private money is the key to developing commercial space and all that comes with it. >> innovation is the secret to the future. that's what will enable my grand kids to look up on the moon and see lights from settlements of cities, maybe, who knows. well the race to the moon is one step closer. today google x-prize awarded milestone prizes to teams around the world competing to get to the moon. the companies you just saw both won more than a million dollars in this round. five teams from around the world
won money today. joining me is an old friend of mine, and he is the president of x-prize. jake showed us these two companies that want to get to the moon and the potential economic benefit. but give me the big vision of what the prize is in -- in figuring out getting to a place we have already been to. >> thank you, ali. we have three large goals that we're trying to accomplish. one, we're trying to lower the cost of planet tear exploration, and the teams that are all competing to get back to the moon are doing that in the most efficient ways possible. these are drivers that don't necessarily inform government program, but are very important to a commercial enterprise. second we want to have google lunar x prize serve as a stimulus to young people to
build their interest in science, technology engineering, and math, to be able to increase their interests in those subjects and increase their interests in those as career fields. and finally, we want to extend the commercial sphere to the moon. right now it goes out as far as earth orbit, where satellites function, and we think that business does have a place on the moon to help sustain exploration, so we want to take business to the moon. >> tell me about these milestone prizes. the big prize $20 million to do what x-prize has set out. these milestone prizes, what is that meant to be encouragement to these teams that have come so far to keep on going? >> well ali, that's exactly right. we want the reward to more closely match the risk profile. originally the prize money was all to be won at the end if the
team made it to the moon. but these teams have very real problems they are trying to overcome on the way to the moon. one of those is capitalizing their efforts, certain technological advancements and so forth. so we wanted to offer a way where they could pick up money along the way, recognizing their incremental achievement, and also give them a way to differentiate them from the rest of the pack. and so we added the notion of these milestone prizes to be able to do that and we look to be about 18 months to two years ahead of those actual landings on the moon with these milestone prizes and they also separate the men from the boys if you will, talk is cheap, but to win these prizes, you needed real accomplishment and that's what these teams have demonstrated. >> and that's sort of a hall
mark of exprize. lots of teams start or apply to get in but in the end only those who know what is about can kin. but 18 months to two years. that's delayed. what is the delay? what is the complexity here? >> well what happens is when we design a prize, we make our best estimate as to what it would take to win a prize, what the teams would have to go through to be able to take home the gold as it were and then we make a projection about how long that should happen. this particular prize is not scheduled to be won on dates certain. we do have some competitions that are like that. instead this is based on what we call first to pass the post first to accomplish it. and our overarching interest is to see that the prize is won. because if the prize is won,
that means that c-change in innovation has really been accomplished. so it become more opvows to us over the last 12 months or so that people were not going to make it by the end of 2015 which was really the first real extension of the competition, and because we want to see this happen we wanted to continue the incentive, so we went back to google and the folks there, saw the merit in extending the competition, and made that possible. so that the teams had through the end of 2016 to get to the moon and do what it takes to win, and by the way, there was careful evaluations made of the team's progress and if we did give that that extra time the probability of them being able to pull it off. >> bob, i will talk to you many times between now and then but we look forward to celebrating with you. bob weiss the president of
x-prize. that is our show for today. i'm ali velshi. thank you for joining us. ♪ ♪ hi everyone this is al jazeera america. i'm john siegenthaler in new york. states of emergency, the northeast blizzard tens of millions affected. wake-up call the greek election. the radical left wins and a new government is chosen. taking a toll on america's military men and women. defense secretary hagel speaks out on the stress and strain from non-stop war. and living with autism siblings with the disorder and