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tv   West Virginia Governor Earl Ray Tomblin State of the State Address  CSPAN  January 22, 2016 3:58pm-4:51pm EST

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reduce the proliferation of guns in our streets. >> the president's order is a great step. mu municipalities need to regulate gun laws at the local level slarp to like chicago does. my state, controlled by people that don't live in the urban centers. urban cities, kansas city, left to deal with the proliferation of guns. you're left to control your budgets, our budgets. we have to control the guns with legislation and meaningful outcomes. we've asked for something as simple from a state court in st. luce and an armed defender docket. not to put people in jail but tracks successes. become experts at those in a cycle of violence, don't have the education, substance issues, become experts and find the pathways. summer jobs, economics, great answers.
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we have to have the abilities at the local government to have the outcomes in the court and local legislations to keep guns out of the those yun people that you're talking about. >> let me jump in in the invitation president morial gave to us. you have to run to the fire on this. it should be clear to everybody in this room that something has gone terribly wrong in america. at the moment we have dust ops all over the country. those are not just one offs. the first thing we should say, when people say it's local, it's local until it's not. we have the issue with flint. the mayor's here today. that's a local issue until it's now and now it's an issue of national concern. the issue of the bombing, local until it's not. the whole message we need to continue to send to congress is we are not a special interests group. we are parter ins in making sure that the streets are america are safe. now, this is the only place in america where people can always have an either or an or as
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though the world was that clear, and all of us know that it's a lot more complicated than that. so just on the issue of your police departments, i think the president said it right. you need to ask the question. you don't really have to wait for the civil rights division of the department of justice to show up on your doorstep, like they did with me. if you get into it and you ask yourself, are my police officers being hired correctly? are they being supervised correctly? are they being fired at the appropriate level? do you have the right kind of oversight when there is a police-involved shooting? my experience in the last 5 1/2 years and we've had five consent decrees we worked through. the community will work with you if you work with them and get ahead of it. if there's a police officer-involved shooting, appropriate oversight and transparent inquiry, you move into that, the community will often than not get to the right place, and at some instances it is a prosecution and in some
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instances it's not. and we've had both. they're all painful to go through. they're all hard. you got to find that nail. on the side that mayor emanuel talked about, i think long term, there's no question about it. the best way to keep kids' out of harm's way is to give them options. when you're fighting violence, police chiefs rightly say. why are you looking to me to be the father and mother of every child? ought to be the social worker or psych ki te psych cry tryst. substance abuse, mental illness. a 3-year-old shot in bed with their grandmother, a gun discharged. we don't know the facts around yet how that exactly happened or not, but you continually have these issues and i know all of the mayors, you do this. when you go to a funeral and you're looking at somebody in the cough aren, whether it's a police officer, or it's a citizen that was killed, dead is dead. and there are way too many people. police officers and citizens, that are being killed, and the
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mode of operation is a firearm. one thing i think all of america could agree on is that we immediate better gun safety. we don't have to get into the issue of either/or. gun safety is something that everybody in america needs to get better at, because we die at higher levels and higher rates than anywhere else in the entire world and certainly we have more than our fair share of it in the city of new orleans, but i think the president is right. on this issue, mayors need to lead. we are the one there's that it understand the complicated nature having to make sure the police officers are doing the right thing, the community protected and they're working together because at the end of the day, everybody's from the same neighborhood. it's the people of new orleans who are policing new orleans. whether on the law enforcement side, community side, the faith-based community or not for profits. at some point in time the streets are telling us that everything is not okay. and you can't turn a blind eye to this. you have to turn to it, analyze it, walk through it, go through the difficult discussions as painful as they may be. that's the only way to come out
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on the other side and be better. >> i want to add a couple of perspective the about the nature of violence in urban communities today. there is an organized element of drugs and gangs operating not only within many city, but also in concert with the same types of activities occurring in other cities. it involves the transfer of illegal narcotics. stolen weapons. fenced property. and what also goes along with this is the organized nature in which gangs operate, and they operate like gangs operated in the '30s. there are people specifically enumerated within these groups as shooters. they're people that carry out the intimidation of witnesses.
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the effort to take the lives of those that may be invading on turf. there's an organized element to the violence that's occurring in many american cities. now, here's what's true. what's true is that there are only a handful of police departments in the country with the sophisticated tools, resources and mechanisms to infiltrate some of these illegal groups of really domestic terrorists. because they're preying on citizens in our communities. so we also have to think about how we can build a stronger partnership with dea, atf, fbi, in order to be able to do that. the other thing you've got to recognize is that 80%, 70% to 80%, of all shootings in most cities are never reported. they are never reported. so you've got to look at new mechanisms to report those
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shootings. the final thing i want to say on police-community issues, i established when i was mayor a protocol whenever a police officer was involved in a shooting. and it involved an automatic and immediate investigation by the office of municipal investigations. it involved a press protocol where there would be no opinionating by any, with all due respect, police public information officers. anyone who worked for me, about, "what they're sense of the incident was." because i learned very early that communities issues are enflamed when there's a rush to judgment. and what all too often you find with these incidents is you don't know instantaneously all of the facts. and your job is to ensure that there's a level, a levelness and
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fairness. now, that's not easy, because sometimes you have police organizations and unions that want to get out there and make, offer an opinion about something, but here's the point. you need -- if the police department is under your jurisdiction and control, you need a protocol. how will we respond in the event one of our officers being involved, shooting a citizen, or shooting at a citizen. what is our protocol? and you've got to have a protocol and you can be a bit transparent with members of the city council, police unions and others about what this protocol certainly would be. i just wanted to get that in, because i think as you think about how i can deal with it particular a mayor's perspective, you also have to think about the escalating public dynamics which occur because of the advent of social media, body cams, dashcams and things of this sort that are new to these times that didn't exist
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20 or even 10 years ago. >> mayor emanuel? >> pick up on what marc said and also the police superintendent. on two points. one, there are -- we have gangs in all of our cities. but the truth is, there's a few individuals in those gangs creating the disproportionate amount of violence. as it relates to how federal legislation do you impact, we have 22 police districts. so in the sixth district, south side of the city of chicago, we've embedded dea, atf, fbi, u.s. attorney, and they're not allowed after the end of the day, they don't go to their own office. they're in the sixth district. housed, have their own office are and operate there. targeting the most violent individuals, individuals at the highest kind of heat number in a sense of causing violence. so it's focused on the individuals with the greatest propensity in using both federal and our own resources and all of us in a coordinated way.
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we're trying that out, see what impact that would have. the second, i don't know about other places, but there are a few guns where the disproportionate of guns that arrive on the street we trace to gun violence happen. in chicago we've passed i think, considered, pretty modern and top of the line gun legislation, but we're not an island in the sense of approximate simty to states and other areas and there's three gun shops right over the city's border that play a big role in the guns on our streets. we'd like to see at least state wsh died videoing of all gun sales and the type in chicago become a state-wide model so you can target the stores, where a disproportionate amount of the guns come and the individuals who create a disproportionate amount of the gun violence on your street. and the one place the federal government could be helpful, they have entities, hand covers given what congress has written about them, in a coordinated and localized way going after a few individuals creating a disproportionate a lot of the
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vileans and targeting them with both state, federal and local resources in a very concentrated way. >> i certainly agree. the embedding of the federal officers is helpful. we've done that in baltimore. we have embedded officers, and we have that collaboration between all levels of the federal government, and the prosecutors and it's being -- it's been very helpful in tracking down. we had one seller of illegal guns coming in every weekend from, i think it was outside of the state. somewhere in tennessee, i think. every weekend at least 20 guns. every weekend. without fail. and we were able, through that partnership to track that down. and -- and that is one. issues that we brought up in our meeting with the attorney general, that this is not about cutting us a check. this is about using the federal resources and our federal partnerships in ways that affect
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real change in our community. chief dotson? >> quickly, the number one around resources. partnerships much in the way of the '90s to crack cocaine war. organizations that will deliver heroin to st. louis, methamphetamines to new orleans. deliver different drupgs. without the federal focus on that and to ron davis and the attorney general, that's where we need the resources, to focus, to disrupt the cycle. heroin is an epidemic in all of our cities but you can still get crack, marijuana where it's not legal. still get the other drugs. >> i wanted to add something as a reflection. i remember sitting here about 15 or so years ago, 16, 17 years ago when the issue of gun violence was really gripping and ripping american cities, and like so many of you, we had a frustration about the inability to really move any meaningful,
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if you will, gun safety legislation through the congress. now, this was just after the brady bill had been passed, and it was actually in place then. the anti-assault weapon ban. of course, we were so -- if you will -- frustrated by what we were facing that 30 of us actually filed class action lawsuits against the gun industry. some of you all may remember that. now, we were not that successful. and we learned about the power of the -- of the organized interests that support guns in this country. but i'm proud that we had, if you will, the courage and the guts. 30 of us. and rich daly and i were the first to stand up and say something certainly needed to be done. if all we can do now is talk about a strong airtight
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background check system for all purchases of guns in this country, and number two, a ban on assault weapons, james madison, alexander hamilton, thomas jefferson and those fellas that, that wrote the bill of rights and the second amendment, i do not think they were thinking about an ak-47 or a glock. i don't think that's what they had -- [ applause ] -- in mind, and the duck hunters and the deer hunters and all of the sportsmen of the world, i don't think they uses those type of weapons, either, to do, in fact, what they do. we've got to confront and not -- not be frustrated that there are strong interests in this country. we've got to define the issue. that it's about safety. it's about military assault weapons, a strong airtight background check system and i really urge, i urge the mayors to lend their voice to that,
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because this police community relations, drug -- it all goes hand in hand. it's a vicious circle and a cycle in our communities, and you can't have a voice on one without having a voice on the other, and mayors can integrate and bring all of these issues together. >> thank you. [ applause ] i'm going to take, sprinkle in one of the questions from one of the mayors. this is from mayor yaty, and i don't know what part of new jersey you're from, because i'm -- that handwriting is a little bashar al assad where's mayor yate ji why? all right. what part of new jersey? central. got it. okay. i just couldn't read it. >> we're not going to answer until you tell us what exit you are on the highway. [ laughter ] >> on the turnpike. all right. so -- question from -- >> philly and new york media market. right? >> so, the question from mayor
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yaty, where in the conversation regarding police community relations is a specific topic regarding personal responsibility? >> yeah. i'll take it. in every discussion i have with the faith-based community, the not for profit community, whether it's in the african-american community or the others, everybody always starts with personal responsibility. there's not a discussion that takes place, and this is a misnom misnomer, as if people don't talk about this, and engage in this discussion. every mayor that i've been in community with, always say, essentially everybody is responsible for themselves, and there's only so much the government can do. even on our best day, performing perfectly, you can't ever replace a father or a mother. you can't really ever replace a church. you can't ever replace a coach. essentially the community has got to make sure that they're
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all-in or none of this can be done, but that doesn't -- so this is the either/or. the personal responsibilities. it's everything. one particular strategy, rahm alluded to it earlier in terms of getting after the small number of people that are committing most of the crimes in certain neighborhoods. which is essentially what you have. it's a three-prong strategy. looking at my friend michael, together we started cities eyed. you c united. the multigang strategy. rahm identified it for you. in one neighborhood in this city in a police precinct. it isn't just the local pli officers, they're leading it, atf, dea, u.s. marshals office and they're targeting individuals they know through intelligence that are part of gangs and going after them. in something called the group reduction strategy, their eyes and ears on the best intelligence we can find and we need more resources to do it and once they identify who those folks are they actually need to
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get either the u.s. attorney or the district attorney to identify which one of them has the best chance at prosecuting the most of them all at once? it used to be in the old days, that if one person shot and killed somebody, you'd arrest them and indict them and convict them for one murder. that's not the strategy anymore. this is starting to happen and this works. where the u.s. attorney and district attorney are starting to arrest these guys with conspiracy theories like they used with the rico statutes and in new orleans in the last two years indicted and convicted over 119 gang members, and reduce the the level of violence in those neighborhoods fairly significantly. now, there's still way too much of it, but this is a tried and true practice, in in mine opinion, once down now needs the resources of the community and at the end of the day the part of the group violence reduction strategy that actually works is actually calling in the young men you know into court and saying, we know who you are. we know who you hang out with and what you do.
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we're going to give you a choice today because we want you to be okay. if you choose well we'll put you in front. give you mental health services, substance abuse, work with you for job training, were ut if you don't choose well and exercise your responsibility the way you're es intoed to, then we are going to have to do was necessary in a constitutional thoughtful way to protect you from each other and to protect everybody else from you and that strategy is worki ining but you needed resource. the boots on the ground. the only discussion we're having where people will leave folks that need to fight the fight without resources. we don't do that in national security. we don't leave folks on the field. we give them the resources. this is a neighbor problem and in some areas an epidemic. we're not doing this now. >> i want to take on two points. there's a place where we collectively in the public side can reinforce personal responsibility. and -- our public transportation system, we now have the largest
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re-entry second-chance program in the united states. i believe the best way to make sure that an ex-convict is not, ex-offend sir not a re-offender is a job, but i can provide the opportunity, but you have to make a choice. if you don't make that choice, there's nothing else i can do, but we have toish did-what i can do and what i, as the mayor, or all of us in public life, we have to provide that opportunity. same thing with after school summer jobs. there has to be that alternative, but you have to make a personal choice to have a different life and lead a different life. sometimes we don't -- one example. we're in 26,000 summer jobs. four years ago at 14,000. we now make the kids sign a pledge to go on to college. to participate in the summer job program, you got to show some initiative you'll not just have a summer job, but do something else with your life. it's a subtle thing.
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small. it's not going to be a game-changer but it reinforces that personal choices, decisioning you make, have an impact on your life. we have a role to play to help reinforce the positive choices you make. we have a role to play to make sure there are consequences to the wrong choices. but then to also always reinforce that you don't get a pass when it comes to the decisions you make. and the same way, i know all of us in one way or another have touch ared on this, parents don't get a pass on being parents. you have a role to play in making sure your children know right from wrong, good from bad. we can do everything we need to do on the public side to support parenting but not subplant is and that is important we reinsert that value system. >> i just say, this, you know -- [ applause ] these are always important questions, but mayors, here's how you can operationalize that. visit one school every week. methodically, and in a determined way, and go talk to
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kids. go talk to them about responsibilities, hopes, aspirations, and dreams. the power of your image, going into a classroom and -- i like to visit schools and go to a classroom, not just a large auditorium, to talk to kids on a methodic's bases, to talk to them about responsibilities. these young people today, particularly when they become 10, 11, 12, are paying much closer attention. >> yep. >> to issues that go on in the community. and also it's a great way to find out what's going on and put your ear to the ground to get a sense of what's happening. it's one thing to say, let's talk about personal responsibility. it's another thing for all of us to use the pulpit, to use the -- the platform, to use your voice, to use your -- your collective will, to talk to young people on an everyday, all the time basis.
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so i'm going to issue that as a challenge to all of you. many of you do it. and many of you visit schools. if you could do it one per week, spend one hour each week at a school in your community, you'll have an impact on how these young people think and what they do and how they live. >> and personal accountability quickly -- it's a two-sided ewags. talk about the law enforcement accountability into that equation. police agencies that look like the communities we serve and it can be a long-term promise. we have to take immediate steps towards that, and that's what i pus to the officers. your experiences will be different than your experiences and as we recruit people i want a diverse police agency that has young people, young african-americans teaching older whites, older african-americans teaching younger whites, what the community is about. because we heard from david kennedy this morning that communities that have the stronger relationships see crime reductions. if we can start to have accountability side on law
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enforcement, what are we going to do? we have to look like the communities we serve, be committed to it and realize it's a small number of people that commit the crimes and focus on the people that commit the crimes, not the race. >> the biggest thing we're trying to do in chicago, and i -- always reinforce this. we can either patrol a community or be part of a community. and if we're patrolling in, you'll have a limited impact. if you're part of a community you're going to build the trust and cooperation essential for safety and legitimacy of the police department. >> so this brings us, we're -- we could be here all day talking about this, and i'm sure some of us could talk all day, but i do want to exercise the -- prerogative, as the moderator to give us a last question and we're going to start with you, chief. because a lot of what this boils down to is trust. and we know the issues that we face across our cities.
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we know that there's no switch we can flip to end racism. there's no button we can push to end income inequality, but there has to be things that we can do to improve trust. as a chief, what would you tell mayors to do to help build trust between the community and the, the men and women that you lead? >> so i think we first started, and the mayor of st. louis is doing this, public commitment to diversify the police departmen . st. louis at 56% policing, a way to go. a commitment to understanding's problem. we take all of our officers through implicit bias to understand their differences and those differences aren't bad. we need to do that. so mayors need to invest in their police departments, make a long-term commitment to diversity and give them the tools and the training, because
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every encounter and we have over 300,000 911 calls responded to every year. every one has a potential to be a michael brown or an eric carner. we have to make sure we have quality police officers that look like the community and are open and transparent. >> president morial? trust. >> it's -- i agree with all that he said. because if you walk the streets of communities, they will say, and -- mayor landrieu in new orleans, there was a time when the community, the police department, didn't look like the community. that may not be the case today, because you've got a predominantly african-american police department, and you can still have issues with a pro dominantly black police department. right? diversity alone will help but doesn't do the trick. secondly, and this was an issue in new orleans. the sense that most of the police officers lived outside of the city.
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and by virtue of that, their kids didn't go to school, they didn't worship, they were not "part of the fabric of the community." these are barriers to overcome. i fought and enforced a strong domicile ordinance, that isn't the case that one exists today in a city like new orleans. but you've got to hear what people are indeed saying. thirdly, and importantly, you've got to embrace and understand that the philosophy of the tactics and the strategies of community policing are not cliche. commanders having relationships with community leaders, about officers understanding that they're not evaluated on simply racking up arrest numbers. that what we are thinking about or what we wants to focus on is overall reduction in violence, and that means understanding that the police department is just one part of the system.
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and that there are other parts of the system, like prosecutors and courts, that are a part of it. to build trust, i also think, the mayors, again, must use their leadership, to indicate that they're going to put their credibility on the line, to build that trust between officers, the police department and institution and communities. it isn't an easy challenge, but as i said, if you don't own the problem you'll never own the solution. >> thank you. mayor -- >> i want to just, echo that with a bunch of exclamation points. do not be afraid of this. you have to run to it. this notion that somehow the community, and in this instance the african-american community did not work to work with or partner with the police departments is wrong. that is not correct. what they don't want is an oppressive police department making arrests based on race and not behavior. a lot of the crime is taking
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place in the neighborhoods, people want to be protected. the police department has to be of the community. you have to earn this. so the mayor makes -- an excellent point. the isn't the city of new orleans the police department, majority african-american. our police department looks like the city. but in the last five years everybody on that department has had to earn it back and community policing is the way you do it. you don't drive through, you stop and talk. you help if help is needed. when there's a police-involved shooting in new orleans after five years are working throughs discontent degree, mayor as soon as that happens, pmib shows up on the scene. federal monitor, independent police monitor shows up and all of the sudden a thorough and transparent investigation so that the public knows that what's happening is fair. now, the outcome isn't always predetermined and in some instances, right, the police officer did the wrong thing. in that instance, that officer
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gets indicted and/or convicted an the mayor's exactly right. when that's wrong, the police department, unions themselves, have to say listen, under those circumstances when the officer did the wrong thing we're not doing to stand there and try to justify that. on the other hand, the officer did the right thing, his life in danger and the investigation worked the right way, the community will back this up. this only happens when they're part of the process, when they feel like there's a relationship between the two and there's trust. the only way you can do this is the hard way. earn it every day and prove it over and over because of the trust-less situation, and we are in the circumstances that have occurred in our nation across all of our cities should demonstrate that we do not have this right in america right now. there is upset on the streets. there's miscommunication. there's lack of trust. you got to get back. the point it's, it's gettable and the public wants to be one with the police department and
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the police department has to understand how they have to be one with the community as well as we'll have to work through this very painful time. there is success on the other side but you have to focus not as a law enforcement ish usue ba public trust as well. deals with early childhood education, summer jobs and opportunities for folks. >> i have always believed in a community policing that every encounter between law enforcement and a resident is a teachable moment. and if they walk away positive, you got something that you're going to draw on when you need it, which is essential to safety. the trust factor is not just a goal. it's a key ingredient to affective community policing, which is what you need for safety. second, the public has to know there's a legitimate oversight. it's certain. and it's not biased, and the truth is, we're working ot that. our city, other cities, because
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there's a lot of judgment that the oversight has been laxed and not an accounting system. third, and i think the most important thing, is helping facilitate where folks in the community see beyond the badge. there's a father. there's a coach -- a father, a mother, there's a coach, there's a parent. there's people that are more complex in their lives. they're not just a uniform and a badge. in the same way the kids they encounter are not just a kid with tattoos or a hoodie. that they, too, are siblings, they're parents themselves, and get beyond the stereotypes. i've been facilitating these meetings aicross the city and want to echo something everybody touched on. i bring the community police, community is ultimate. community most affected by distrust begging for the police department to host their roll calls out in the community in the neighborhood. not in the precinct.
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so the superintendent's about to put out a memo, periodically, with some reg latery holding, in fact, the roll call you do in the department out there. in the community, so it's visible. because they want to see you. second, if you support the police department, go in and tell them you're doing a good job. they, too, need to hear periodically and have that relationship. it's simple things. one of the things we're doing obviously about one-third of our department in short order will have body cam. that gives people trust. that there's another set of eyes. this came from a resident, a woman about two summers ago. we have officers on bikes mainly in the central business district, et cetera but started a pilot, opened up a playground. and this woman about 40 feet away started walking. when somebody, when a resident has that -- okay. what's this? cutting the ribbon out on the playground. here we go. she comes in, i got something to say to you. okay. i want to say, thank you.
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i said, oh. you know? you don't get that often in our jobs. i go, what's that? she soez, ever since you put police officers out on the bikes they are stopping more frequently at the playground, at the playground and park now i let my older son walk my suyounr son to the park. doubled them, patrolling neighborhoods and communitieses because they will stop at the front stoop. stop at the playground. in the community when kids are leaving school. that interaction pays dividends invaluable. we're thinking of expanding it furth further. all of these pieces of accountability, discipline, irnts access, all reeinforcing we're driving towards a trust factor giving cooperation for community policing and the central legitimacy and effectiveness of community policing. >> i cannot thank you enough. one of the things i've tried to focus on as president, tackling the tough issues head-on.
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i think you've done that today. i know i'm grateful for this conversation and i hope al all of you who are here are as well. please give our panelists a round of applause. [ applause ] book tv has 48 hours of nonfiction books and authors every weekend on c-span2. here are programs to watch for this weekend. saturday night at 8:30 eastern, charlie savage argues that president obama who came into office saying he'd turn back the excesses of the bush administration has picked up where president bush left off, in his book, "power wars: inside
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obama's post-9/11 presidency." at 10:00 p.m. on afterwards, former senate leaders daschle and lott on their book "crisis point: looking at the current climate in congress and offering recommendations for moving america forward." their interviewed by former congressman j.c. watts of oklahoma. >> just the incredible, insatiable demand for more and more money is one of the issues i think exacerbated all of this and made it harder for the leaders to bring people together, bu first they're not in town. secondly, they're doing all of this other stuff that doesn't allow them to be the legislators they were elected to be and third, the special interests pressures. >> we don't want this to, look, this is how we did things or even look at history. history is littered with dysfunction and challenges. george washington almost had to resign because of the jay treaty. what we want to do, look forward and say, here are some things we
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think would make a difference. >> on sunday night at 8:00 eastern, journalist katherine sovt examining the changing world for young women in the middle east in her book "excellent daughters." she looks at the kind of choices young arab women are making and how they differ from those of their mothers. >> women are -- going to university in greater numbers than men. all over the region, and especially in the gulf countries. the proportions are, you know -- the proportions of women are eve be greater compared to the men and the women will tell you, well, this is partly because it's a socially acceptable way to delay marriage, or to -- to be outside the home in a way that -- their families support. >> watch book tv, all weekend, everybody weekend on c-span2. television for serious readers. the imf's deputy managing director min zhu and other
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officials from the international monetary fund talked about the challenges facing asian economies. from washington, d.c., this is an hour and a half. >> good afternoon, everyone, and thanks for coming, despite the blowing wind and the much colder temperature, but this is a really privilege for us to welcome deputy managing director min zhu and his team and at the occasion of presenting a very, very interesting book on asian, the asian financial system. i won't say too much, but it is one of the hottest topics around, and most important topics around. it, of course, there's china, but there's the whole of asia, and i think the financial system as we all learned is one of the absolute requirements for
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stability and growth, to have a solid financial system. it is a necessary condition, though it may not be sufficient. deputy managing director min zhu prevently advisor to the managing director, senior advisor and deputy governor of the bank of china, and before that, chairing a working group on financial issues. so there's few in the world, if any, who knows more about, certainly about the chinese finances but now about the whole world financial system than min zhu, our friend min zhu and he makes us an honor to come to brookings for this event. so thank you very much. i will change the floor to him and afterwards introduce the panel and further remarks from two colleagues from the fund
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from our own eswar prasad and then have the panel discussion to then having some questions from the floor. deputy min zhu, please, and thank you again. [ applause ] >> oh -- thank you, kemal dervis, for your kind words of introduction. and also for your warm hospitality to hold this event. i think it's wonderful for us to come to this place to -- to bring this book to, to the audience and also it's a great honor for me to be here to speak to very distinguished an audience as well and, thank you, kemal, and i just realized one thing when i walk in. i felt that brookings have a very good budget, resources. so brookings probably will
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provide everybody a free copy of the book. so -- because i understand, and always very tight budget restraint, but i realize there's a bookshelf there. so -- everyone -- hopefully, after this session will go to the bookshelf, line up. i hope, and i think, i might not can afford to give everybody a book, although probably we can afford to give everybody who purchases a book a certain discount of the book and hopefully the session's -- once again very much for coming to the session, in this cold weather, as kemal mentioned and at the brookings. a certain amount of background information to set the past for the further discussions, the authors will be under podium to discuss the whole issues. now, let me talk about a few
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things about this asia financial market. the market grows very strongly and fast. it's very interesting. if you're looking for the asians, this is -- oh. cannot see. it's because -- if you're looking for here -- looking for -- this is asia. modern asia. the asian financial shares and global shares, 5% to 18% from -- [ inaudible ] this is a big, big jump. this is really big. and if you see all of the banking assets from 6% to 23%, this is a global shift. you will see that asian financial sectors, really -- the market in the past ten years in a very dramatic way. if we add everything together, add together, the whole asia roughly today is 28% global
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financial assets. which is, which is quite a bit. and the growth is very impressive, but overall, this 28% is still below the asia gdp percentage in the whole world, which is 33%. and we then, you also see the big structure is very much affecting -- you see particularly in emerging asia, china, you will see the banking sector gdp, roughly 183% of emerging nations gdp banking and before it was 129%, but the markets on the 76% of the gdp -- and the market is 52%. so there is one real tale that tells us the asian sector, number one, strong growth in the past ten years, really grow strongly. particularly emerging asia from
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5% global financial asset to 18% china, from 2% of global financial assets to 10% today. growth strongly. but if you're looking for structurally, very much a focus on banking sector, and the bonds of the market, still slow. looking further, the whole financial sector, strong growth in the past 10, 15 years, still below asians gdp shares. so this is still room for continue strong growth. with asia in the global pictures, it's also very interesting. this is what we call international investment positions. this is the, asia the kept outflow. this is asia inflow to asia. so you will see roughly in 2005, to 2015, really, that asia's
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international exposure increased dramatically. roughly, asia exports $10 trillion ten years ago. today, $20 million dollar and asia import the $8 million. today, $17.5 trillion. so really international exposure also increased dramatically, but most interesting is here. this is the position -- [ inaudible ] that means asia export capture how much asia inport and that is 4.35 trillion dollar. so at the net, asia exports a lot of capital to the whole world. now, that's also very interesting charge. the chart say asia international exposure increased dramatically in the past ten years, net to
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net, asia export roughly -- oh. they asked me to not step away from the-mike, i guess. i will be here. okay. i saw -- >> [ inaudible ]. >> usually, i don't know, not in very disciplined a place. brookings is much more disciplined place, i realize today. okay. i will stay here. so you will see net to net asia export so far $4.35 trillion to the whole world, and the question is how asia can utilize this net capital for the region. i think that's also a big issue. and because of that, asia exposed to the international -- over from roughly, asia, emerging asia, quite high. roughly from 50% equity
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concerns, equity volatilities and moved 80% to drop down today, roughly still around 50%. so asia's equity market, roughly 50% of advancing economies spill over. this is also future for the markets, all things also change. looking for today. china, when china become bigger and bigger, china's financial assets from 2% global share to 10% global share and also chine 2345 pl chinena played a big role. we compared very interesting, in this chart, i cannot move. i'm sorry. and the blue bar is the u.s. temporary impact for the region. for equity market and the returns and red bar is roughly the august episodes, the financial impact from china in august last year. if you compare the two things
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you will see there's a malaysia, indonesia, india and you will see on the currency side, china have quite a bit spill impact to the asia, to the region, most equivalent to the united states. particularly on equity sides. the equity sides -- and china today have even big impacts and compared with impact in 2013's. now, that's also become the new feature of the whole financial sector we are facing today. now, this is very much the -- the system, if i saw it provide a very -- [ inaudible ] futures in the few slides. the more chinese coming from -- the real economy, the reals, the whole region in a dramatic way. the first issue is demographic change. you will see the red line is for japan.
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you will see japan in 30 years hoar rising in the next 15 years that people aging over 65, really will increase from 60% to 32%, double in 30 years. so we all move to aging and also looking to the south korea, this is a blue line. you will see almost a vertical increase in the next 10, 10, 15 years, roughly from 6%, 7% increase to 24%. almost four time aging increase. this is absolutely stunning demographic. looking for china, which is the brown line. also from 6% increase to 16% in 30-year horizon. the black line is for the whole world. to compare the whole world, we are all are getting older in terms of the demographic structure, but asian getting older faster.
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and stronger. this is a big fundamental change, because when you're getting older, withdraw and you will start today, looking for the long-term investments instruments and compared with the financial structure before we need to move to the equity market and the bankers not necessarily provide enough product to serve the aging people and aging populations. this is a profound force while shaping the asian financial market and structure in the future. steep of the curve is so -- big and has really moved china fast and huge financing gap in asia. this is u.n. and -- calculator, how much asia needs. last year, the development, because of the year of sdg, replace mgds, and financing and
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back to the region we realize in the next ten years, every year asia need $96 billion to fill the remaining for mgd. education, health care and other few things, need another $323 billion to fuel the gap for income for the people live under $2 per day, and need $718 billion per year for infrastructure investments. financial sector can help to mobile the resource from public, from private, to $1 million trillion challenge for one year in the asian, to meet stg target. that's a bit challenging for asia financial sectors, and, meanwhile, if we were looking further, there's even more tougher challenges the region is facing. the four major economies, china,
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korea -- we see how much kept in growth. you will see take a career case, that's the dark line, because it's clear, the cliline, roughlm 3 1/2% and the growth to roughly 5 1/2 and gradually down, down, down to less than 2%. japan see the same thing. china kept contributing to job even faster. that means with heavy investments and capital return particularly marginal return drop faster than you expected. and also it showed the productivity contribute to growth also drop in quite dramatic ways. you can see the dark line, the career productivity increase on the first couple years and grows to roughly less than


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