Skip to main content

tv   Key Capitol Hill Hearings  CSPAN  December 20, 2013 10:00am-12:01pm EST

10:00 am
florida -- you see a trend here. finally, reading, u.s. is on average. you see massachusetts over here and connecticut over here. florida over here. aack worked for five years as nuclear reactor engineer and worked in the intelligence community and got his undergrad at harvard. -- mastersster and and phd. thert roffman is with center for alliance for excellent education.
10:01 am
gentlemen, thank you for going through the numbers with us. thank you for being with us here on c-span. it is friday. beginning tomorrow morning at 8:00 a.m. on c-span 2, book tv, 48 hours of nonfiction books all weekend on book tv. over the holidays, you will see a lot of prime time in 24-hour periods of book tv. american history tv begins tomorrow morning at 8:00 a.m. on c-span 3. those are a couple of options for you over the weekend. happy holidays. ♪
10:02 am
>> taking a look at some of our c-span 3,g today, on getting underway, from the hudson institute, a discussion on u.s.-saudi arabia -- relations. theot abrams is among participants. look for that live shortly on c-span 3. here on c-span, we will be live with the white house briefing. jay carney has scheduled that for 2:00 p.m. it is possible to hear from the president. no official word yet. the ap is reporting that the president is ordering a review of the military's response to sexual assault in the armed forces. set to sign the defense authorization bill. the administration says it has an urgent obligation to respond. the president is giving military
10:03 am
leaders a year to report on progress in responding to crimes, including the military justice system. the defense authorization bill passed in the senate yesterday. they are back at work this morning on several nominations. a vote underway on the senate the nomination for the deputy of homeland security secretary. it is one of four nominations underway. follow the senate all day long on c-span 2. as a moderate in the privacy debate and in the privacy world, i have come to a troubling conclusion. the data broker industry as it is today does not have constraints and does not have shame. information any about any person, regardless of
10:04 am
sensitivity, for 7.9 cents a name. that is the price of a list of rape sufferers which was recently sold. lists of rape sufferers, victims , policetic violence officers, home addresses, people who suffer from genetic illnesses, complete with names, home addresses, ethnicity, gender, and many other factors. this is what is being sold and circulated today. it is a far cry from visiting a website and seeing an ad. of the personally identifiable information and highly sensitive information of americans. >> this weekend on c-span, your medical history, income,
10:05 am
lifestyle. the senate commerce committee looks into data mining on saturday morning at 10:00 eastern. tom hartmann argues that without a strong middle class, the u.s. is heading for economic implosion. is saturday night at 8:45. , by august 1945, it was becoming clear that a struggle for global dominance had begun. war,world war ii cold sunday, 7:30 p.m. eastern. >> we told you about the white house briefing at 2:00. that will be a presidential news conference at 2:00. we will have that live on c-span. russian president vladimir his state of the nation address last tuesday in moscow. urginged about ukraine political leaders to come up with a solution. a $50then, he announced
10:06 am
million deal that would prevent ukraine from defaulting and cut the cost of natural gas to ukraine. this is one hour 10 minutes. >> the president of the russian federation, vladimir putin. ,> dear citizens of russia members of the council of the federation, members of the
10:07 am
states. the president's address to the is aal assembly requirement in the russian constitution. is markingution that 20 years today. my congratulations to you on what is a significant date for both of our society -- both our society and state. you onse, i congratulate a 20th anniversary of the federal assembly, which was created in accordance to the fundamental law of the land. the constitution has brought together two fundamental priorities. status of the rights, freedoms of the the strong states by emphasizing their mutual obligation to respect and protect one another.
10:08 am
these provisions of the fundamental law are invaluable. stand still and the constitutional process should not be seen as completed and void of life. as you know, there are plans to make amendments to the constitution, whereupon the supreme court and the high business core will be consolidated. often, these courts interpret laws differently and sometimes quite differently and make different regiments on similar cases -- different judgment on similar cases. as a result, there is legal uncertainty. sometimes there is injustice that reflects on people. the consolidation of these courts will turn court practices
10:09 am
into a single work and will strengthen the guarantees that the most important constitutional principles, equality of all before law, will guarantee that the constitution presents the key, national ideas. we must support the aspiration and increasing aspiration of the citizens and political parties to participate in the life of this country. we must support citizen engagement. neople will have a opportunity in managing their
10:10 am
municipality or city in dealing with the everyday issues. there are many issues in the system of local government and the scope of responsibility and the resources for municipalities. they are not balanced. that results in confusion with authorities. as a result, there are often corruption scandals. the powers and area of education, public health, and social protection of the population have been devault in theregion -- devolved in regions. in this regard, i am speaking to the old russian council of local members of the federal assembly, and the government of the russian federation. issues toisit these bring the situation in line with common sense with the requirements of the times. i believe clarifying the general
10:11 am
strong,e and creating a independent and financially sustainable authority locally is a key task. this is something we must start doing and to provide legislative framework for in 2014. 50th will mark the 1 anniversary of the reform. it was the local government that allowed russia to make a thekthrough and find ability to productive large progressive reforms. through theterested mechanisms of elections,
10:12 am
well-prepared, ambitious and professional individuals come to this institution of power. we will continue to work on legal competition, improving political institutions and providing an environment for them to be open. recent elections have shown that political life in this country is less bureaucratized and the results are much less predictable. i believe that many new parties have made themselves heard by winning seats in municipal and regional legislatures and they lay down a great foundation for their involvement in future role federal -- future federal a lot -- campaigns. they will be strong campaigners. russia needs a broad public debate that will bring about practical results where public initiatives become part of the societynt's policy and oversees their execution. i believe that all of these are
10:13 am
key government decisions that should go through the zero reading or public reading with the participation of nongovernmental organizations and other institutes of civil society. mostlycouncils might be setup up at the federal and regional bodies of the executive . they already exist in some of the bodies, and what is notrtant is that they must be a formal and decorative entity, they should act as experts and be active participants in the system that is fighting corruption. should beramework created. i am asking the chamber, the council on human rights, and other organizations to continue to draft the law on public oversight. one of the priorities in the
10:14 am
joint work of society and states should be the support of human rights organizations. we hope that such organizations would be free of pursuing political agendas so that there will be focusing on the interests and problems faced by the individual. in this regard, the role of the senate chamber is growing. it should become a forum where the interests of various groups and associations will be expressed. there should be more professionals. i should account for at least half of the members of this civic chamber. [applause] that approach would ensure a balance of interest of social and professional groups and will take into account issues and challenges they face on a fuller scale. how important subject that requires a public debate is
10:15 am
interethnic relations. this is where many of our problems and a source of economic and territorial development are concentrated. including corruption and flaws in the operation of the government institutions. there are setbacks in the educational policies was often leads to a distorted understanding of the true reasons for interethnic tensions. this is something that is not -- by representatives of certain nations. more international that comprises both certain natives of certain southern parts of russia who have cut themselves loose and corrupt law-enforcement personnel who provide protection for ethnic mafias and all kinds of separatists. we must meet this challenge together. we must protect interethnic peace and therefore the unity of
10:16 am
our society. the unity and integrity of the russian state. [applause] dear colleagues, in the may 2012 decrees, specific measures were identified that were designed to ensure dynamic development à la the areas. those decrees provided a single program of action, accumulating the willpower and desires of millions of people. the aspiration of russians people -- of russia's people to a better life. times one hears there is not enough resource and funds. it implements plans to bring the bar down in simple fighting tasks. on anow embarking important and responsible subject. i do not believe that we are built on a -- printable. the economic situation may change and is changing, but this
10:17 am
revising excuse for our goals. one needs to do actual work and to look for solutions and to set budget and other priorities property -- properly. i suggest all government programs be brought up to speed within the next two years. the budget of all levels should be switched to problematic printable. that does not mean everything should be written in a mechanical way. it means that every executive should be made personally responsible for achieving results. resources should be used to achieve changes in specific sectors and industries. we are increasing salaries and education and public health so and the work of teachers physicians will become prestigious once again. it will bring in quality. however, as we agreed, this should not be achieved only through budget infusions, but due to reform that are intended
10:18 am
to increase the effective ness of the census. see how the schools and universities, hospitals, outpatient clinics are working better and better. ,s salaries are increased something that must be done, an entire set of other measures needs to be implemented so that all of the goals will be achieved. what kind of measures? , aeffective contract valuation of experts, and implementation of financing. social development of competition, the opening up of the budget sphere to non-organ -- it is also optimization of the budget ended due to a reduction of ineffective expenses and the removal of
10:19 am
barriers for budget institutions to achieve independence. all of these measures? 18 months have passed since the may 2012 decrees. either things are done in a way as to invite negativity in society or nothing is done at all. reach the goals set if we keep working like this. are notult, individuals feeling radical changes. we have been allocating resources, but unless reforms are conducted, quality will not increase. only effective expenses will increase. this is what is happening in this is what i want the federal authorities and the executives of the reasons of the russian federation to pay attention to. a important task is to create system of independent evaluation of the quality of social services. this will help link their financing to the results of the
10:20 am
work and therefore effectively optimize the budget network. there is a need for direct action, legislation that will toermine unified approaches standards and criteria, as well as the obligation of all the levels of authority, in terms of creating a system of independent quality and evaluation of the quality of social services. duringw must be adopted the spring session. this is my request for you, dear colleagues. we have been able to do a lot to improve the public health system lately. deaths as aw fewer result as -- of cardiovascular and other endeavors. toare still not close enough the ratio that we have established for ourselves. is a realquestion transition to the insurance-based danceable and public health.
10:21 am
to public health. there needs to be financial incentive for people to engage in a healthy lifestyle, whereas insurance companies would be interested in medical establishments providing quality medical services. it would monitor this and evaluate their operations from the financial perspective so that patients who have an opportunity to choose those medical establishments. the system of mandatory medical insurance should, to the fullest degree, secure government guarantees for free medical assistance. must be able to know what kind of assistance they are entitled to for free, whereas physicians must understand the principles based on which their work is paid for. in 2015, all children
10:22 am
and teenagers must annually , thego medical checkups same for adults, except it is only once every three years. during radical new -- during checkups, thel need for high-tech medical assistance will increase. over the last two years, we have set up a network of federal centers and supported bills that exist in the capital cities and workcenterew federal that are capable of providing medical center -- assistance at -- level. senders must be available for those who live in the cities where they are located and also to individuals from other parts of the country. financial sources must be provided for that. the hope within the next three years, we must create an environment so that 50% more high-tech surgeries will take
10:23 am
place than now. it is an achievable goal. we must not lag behind international trends. it will be a revolution in medicine. the public health ministry and the academy of sciences must place priority on research in the medical area. the role of the professional community in managing the public health system must be increased in a serious manner. i know that there are ideas that have been articulated. i am asking the public health ministry to work with the eating associations of medical to provide specific proposals. i believe that the traditions of charity should be reinstated and i suggest setting up a system of volunteers and russia. i believe that volunteers have spent a few years working in
10:24 am
medical establishments must be given an advantage as they enroll at medical schools. [applause] colleagues, the incoming 2014 has been declared the year of culture in russia. it is intended to become a year activitiescational and going back to our cultural roots to the matter of patriotism and morality. we are aware of the unifying role of culture history and the russian language for our multiethnic people and given policy, must form the including the education area. we do not need schools that teach, but schools that build character of citizens of a country that have made its values, history, and traditions their own. individuals with a wild world outlook. -- a wide world outlook.
10:25 am
people create of independent thinking. provided.n has been bypositions will be provided those in the graduating form. of great importance is the professional growth of the teachers. i am asking that a complex, comprehensive program be the schools.pdate i know that the education ministry is already doing it, including the development of a system of continuous preparation and including the qualifications of teachers. there is another problem that needs immediate attention. there are two chips -- ships. in the next five to six years, thanks to the demographics, the
10:26 am
number of schoolchildren will increase by a million. i am speaking to the government, the federal assembly, the regional authorities. the scope of this challenge must be evaluated and ineffective solutions must be found, must beg kindergarten built in such a way that they as preschool establishments. this must not result in more expensive kindergarten projects. schools and kindergartens can be built under the same roof in the same building. i understand this is not something the federal authorities or regional deal with, but we must understand the scope of this. we cannot brush aside. -- brush it aside. [applause]
10:27 am
of course, we must continue to build up the infrastructure of a mass scale force activities for children and teenagers. everything must be done to enhance the prestige of an active lifestyle. this is the main idea of andessful university gains the olympic games in sochi. i am sure the olympic games in sochi and the winter university games will be held at a high level. dear colleagues, according to the statistics, in january through october of 2013, russia recorded a natural increase in its population. this is the first time this has happened since 1991. this is great news. [applause] has exceeded death
10:28 am
rate in almost half the thetituents and it is of russian federation. virtually everywhere in siberia and in most regions in the far east, the birth rate is higher than the average in russia. another thing must be understood. those born in the 1990's are beginning to build their families. in the 1990's, the decrease in the birth rate was not as profound, it was catastrophic. special efforts need to be made so that the positive demographic trend be made irreversible. i should say that one of the s was achieved in this country in the late 80's. housing policies must once again become one of the key factors of democrat affect -- demographic development. the issue ofed
10:29 am
building affordable housing. the plan is to build at least an additional 25 million square meters of housing. middle income families can improve their housing conditions. i suggest this program be called housing for the russian families so that attention can be focused on this challenge. on the whole, crosses country by 2016, b 75 million square meters overcome, must be which would be higher than the record-setting 1987 number, which was 72.8 million square meters. modern technology makes it possible to build a lot of housing relatively inexpensively and with good quality. several challenges must be tackled. above all, all of the amendments must be made to the legislation that would unblock the process of rezoning land for development
10:30 am
for housing. this should be done within the next few months. we have been discussing this subject and over the last few weeks, we have repeatedly revisited the subject. local governments will be required to auction off all available land for development clearh transparent and procedures. the responsibility of developers should enhance as well. the next barrier that is creating difficulties for construction as the lack of funds for utility infrastructure and. -- infrastructure. be created to deal with this issue. i know that the initiative of the fiscal authorities, the government is preparing proposals to streamline internet trade. that could be one of the sources of funds for developing the
10:31 am
utility infrastructure. i suggest proposals be made to that effect. the house must be set in order as far as the current procedures. they have not been unified. up with ag to come single, exhaustive list of permits for construction to reduce the amount of time required for these procedures and to do it before the end of march 2014. collies, understand perfectly well why this is happening. it is a highly corrupt area. that is where the trouble lies. colleagues, we understand of the basic condition for dealing with social development issues is the resumption of a stable, economic growth. i am transitioning to the core of all of our work. yes, of course, we are experiencing the consequences of a global crisis, however, it must be said that the key areons for the slowdown
10:32 am
domestic. they are not external. russia is in gdp, the world's top five economies. as far as productivity, we lag behind the international leaders by a factor of two or three. this gap must be overcome asap. new development drivers must be activated. everyone knows what they are. high quality of professional education, a flexible labor market, and investment climate, and modern technologies. i am instructing the government to adjust the promising avenues of development of science and technology and based on those priorities, the russian research foundation must build its work. the foundation that was established recently, it is called upon to focus on the funding of fundamental research
10:33 am
and programs with a long rise in. i see the -- a long rise in. izon.rz you all voted for the law based on which the russian research foundation will establish. i suggest all factions of parliament send of their representatives. as far as applied research, this effort must focus on the bases of technology for platform. the fundsreorienting of targeted programs, above all, the program research and development in the priority areas of the built up research and technological complex.
10:34 am
also, the principle cofinancing of projects by the government and the business must operate and be active. as 265 scientific results, on average, only one becomes an item protected by law. by intellectual ,roperty being traded in russia it only accounts for one percent of the gdp. that is very little. in the u.s., the ratio is 12%. in germany it is between seven and eight. technological platforms should target specific results. obtainment of patents and licenses. we must create a domestic demand. this is an important circumstance. for these purposes, investment programs must be used. we are talking about gigantic
10:35 am
amounts of money. lately, activities have been fragmented and they are dealing with a multitude of projects that are not connected among themselves and are not based on innovation and not related to innovation. this is not what we built those institutions for. the projects may be good, but the institutions were not created for that. they were created to support an innovation-based economy. they have to be retargeted to achieve technological breakthrough. the economy needs to be cleansed of old and ineffective technologies and a modern system of technical and environmental regulations should be created and set up to operate flawlessly. it is a complex and sensitive issue for the economy. i believe the government, jointly with the business community and our colleagues in
10:36 am
the customs union will perform this work properly. we need to have an objective rate of our competitiveness. existed hase that been removed and nothing has been built on its paces. it needs to be reinstated. .here should be support there are many administrative barriers. canada and south korea it is eight days to obtain a permit. all these things need to be taken into account. tom asking the government of 2014.-- the first standards should set requirements, but they'll only
10:37 am
work if there demanded by the business community itself. therefore, their preparation must go on with the involvement of professional communities themselves. i suggested that a national council of professional skills be set up and not one under some kind of an agency, but as a truly independent authority and this work should be contributed to by leading business professionals and associations. over the next two years, this word should approve the entire package of new professional centers and i am asking our colleagues from the business community to not avoid doing this work. it serves your interests. of entire system professional education needs to be readjusted so as to match the requirements of those centers. a great deal can be borrowed from our own experience. what do i have in mind? this is the restoration of a professional orientation during school education and the work of
10:38 am
higher technical establishments that used to be billed on the basis of major industrial facilities. the most important principle is to train people in a realistic production environment where practicalfirms skills. i would like to say a few words about higher education. most young men and women seek tertiary education. the quality of universities and institutes must match this demand. young people's educational drive will emerge as a major incentive for national development. however, in the capital cities and the regional cities, there are many higher education establishments that do not meet modern requirements. i believe that if we are going to upgrade the system of higher education, we need to take advantage of the potential the best tertiary educational
10:39 am
establishment so there graduates will be in demand. actual will receive results. no barriers can be created for educational mobility of our citizens. for concerns payment student dorms. the prices should not be arbitrary. they should erect would depend -- on thedent conditions of the environment and services provided. i am asking the ministry of education and science and the relevant authorities to oversee the situation rigorously. i want the presence of the universities to pay attention to this. soon, the outcome will be that the finance ministry will take into account your revenues and will reduce the relevant ratios. you will see that it will happen in both education, the students, and the establishment themselves will suffer as a result. we must increase the export of andity educational services
10:40 am
create an environment for both foreign citizens and our citizens to be educated in russian tertiary education schools. this is a serious instrument of increasing russia's cultural and intellectual international influence. also, it is time to work through the matter of setting up -- setting up areas for conducting the unified state exam for russia standards. in some countries, based on russian language centers, such exams should take place at the --e time when the unified when the uniform state exam is taken at our schools. this should enable talented young people from the cia as to to enroll incis russia's institutions. and law needs to pack -- we
10:41 am
passed to boost long-distance education. that needs to target russians cis citizens. the labor market is becoming increasingly flexible. to individuals must be able retrain and upgrade their training and conditions need to be provided for those who are willing to move to another place of work, another city, another region. this needs to be done given the goals of territorial development and by attracting the business community. information support needs to be given to people, including creation of a federal vacancy database so that everybody can see what part of the country he or she can find a good job in. of solutions is needed here. i am asking that it be devised and that would include rental housing. it is a long list. it needs to be prepared as soon
10:42 am
as possible. an important goal is to raise areas for of rural both life and work. a lot of money has been invested in boosting the equibusiness. we have been able to provide ourselves with domestic -- to a large extent. a big thank you to the citizens and residents of the rural areas. we have to make sure that people can stay in rural areas so they can rely on a modern and comfortable infrastructure. i am asking that special attention be given to changes in the government's program for equibusiness. single industry towns -- this is a legacy. over 15 million people live in these kinds of towns. many of them are in difficult situations.
10:43 am
they do have a social ,nfrastructure and housing professional caterers. one needs to see what businesses from those towns and cities and what kind of preferences we need to create. i think we will be better off doing it now rather than have to spend dozens of billions of rubles in employing such individuals from the budget. proposals need to be provided as far as overall development of single industry towns. investment projects need to of proposed financing and ways of reducing tension at the labor markets. sme's.ng 4 to the we are aware of the status of budgets. we cannot live in the here and now repeatedly. the idea has been voiced. all regions of this country can
10:44 am
provide two year tax holidays for new small businesses that operate in the production of social and scientific areas. [applause] probably not all of the governors are applauding, but tomorrow, it will result in an additional revenues for the treasuries of the regions and municipalities. these are new companies, they do not exist as yet, and therefore they will not be -- there will not be missing budget revenue. on the contrary, if we create an environment for such companies, such revenue will appear. in addition, there should be an opportunity given to small businesses and self-employed individuals to pay taxes based on the one window principle. these need to be consolidated and brought into one location so
10:45 am
they can be paid on time. another problem has to do with the status of the legal market. -- the labor market. -- structuralder employment, but creates imbalance and promotes national conflict and makes for a worse criminal situation. we need to streamline the hiring russiaigners who come to on a non-visa basis and to increase responsibility of employers for using the labor of foreign employees. if they live in russia and take advantage of the health system and education systems, a must pay taxes and make other payments. we have difficult challenge to meet. we cannot break and sever our special relationship with the former soviet union republics, but the house ceased to be set in order. changes need to be made to the effective patent system.
10:46 am
my suggestion is that legal entities also have an opportunity to hire foreigners based on a patent. the price of the patents would be determined by the constituent entity of the federation, depending on a situation at the regional labor market and on the average income level of the population in that territory. the system of patents should be differentiated and incentivize. once again, the patents should only be valid in those parts of the russian federation where they are acquired. i believe if this work is organized properly, it will be an economic tool to regulate migration flows. it is an economic tool. i am referring to the value of the patent in different parts of the russian federation. there should be more control over the purposes whereby foreign citizens enter the russian federation.
10:47 am
the government needs to know for what reason and for what period of time. of not doing that, we have foreigners who come to this country on a non-visa basis and they stand russia without a specific goal. they probably do have a specific goal, but the government does not know what that goal is. violators, they will be banned from entering russia, depending on the gravity of the violation from three to 10 years. it would create additional barriers for foreign citizens who engage in shadow activities or criminal activities, or operate or work illegally in inhumane conditions and become victims of crime. dear colleagues, two years ago, with the business community, we started a systemic effort to improve the business climate in russia. results have been achieved are
10:48 am
very good results. we do have those results. we have to keep making progress. by 2015, there should be a legal framework in place that makes to doing business -- that makes doing business in russia a favorable proposition. next year we will start ranking nationally, the investment climate in different parts of russia, essentially we will become a mechanism for evaluating the implementation of the entrepreneurial initiative. at the same time, we have to create incentives for those regions that are building up their economic basis for those who support the business initiative and creation of new production capacity and jobs. very good say what is news for executives of the regions, i believe that if a region is investing its own
10:49 am
funds and creating industrial and technical business incubators, additional federal taxes over the course of three years will be paid by companies located there must be returned to that particular city. [applause] lees, pay attention. 's the extent of the region expenses on creating infrastructure for such sites. nothing funny about it. it is a good proposal. a very longsult of and difficult debate with the finance ministry. i am asking the minister of to pay to not -- -- this remains an important subject for entrepreneurs.
10:50 am
there should be oversight, but the principles of the operation are supervisory and need to be continued. the work needs to be continued and to increase transparency in this area, a unified federal website should be set up so that each inspection be individually numbered so that we can see who initiated it with respect to what the motivations of the supplying authority was and what results were obtained as a result of this. we need to increase the credibility of our arbitration. i am asking the government with the chamber of trade and commerce to quickly draft and submit to the state legislation on radical changes in the arbitration proceedings.
10:51 am
about the i spoke authorization of the economy. this is another subject to which i would like to pay attention to. i believe this must be revisited. far fairly so noticeable. i am reminding you of a large-scale transaction that took place this year and was worth over $2 billion. tmkbp.le of interest in the sellers are well known and the buyers are well-known, it is one of the largest russian companies. in estimates, russian goods were $111 billion went through offshore's and semi-offshore's last year. that is 20% of our exports. half of our $50 billion of russian investments in other countries was also accounted for by offshores. hiding behind these numbers is
10:52 am
the flight of capital. capital that should work in russia. been done over the last year in this area, i have suggestions. companies that are registered in offshoreand have beneficiaries must be based on our tax rolls. tax payments must be paid to the russian budget. we must think of a system that would collect those moneys. those methods do exist and there is nothing unusual about it. some countries are already implementing this scheme. if you want to operate in offshore jurisdictions, be our guest, but bring your money here. these things are being done in advanced economies. this scheme works just fine. further on, companies registered in foreign nurse just jens --
10:53 am
will noturisdictions be allowed government guarantees. not beuch companies must given access to performing government contracts and contracts for entities with government participation: by the government. in other words, if you want to take advantage of benefits, government support, and earn a profit while working in russia, be registered in a russian jurisdiction. incorporate yourself in russia. the openness of the economy needs to be enhanced and provision of knowingly in accurate information about the real condition of banks, insurance companies, and other financial entities is something that needs to be terminally prosecuted. their executives need to be criminally prosecuted and a principal and firm line needs to
10:54 am
ourarried off to get lending and financial system rid of all kinds of laundries. doing so, the interest of good faith customers and depositors of problem banks need to be detected. fighting the erosion of the tax basis, fighting offshore schemes is an international trend. cast by g-8re being and g20. policiesll conduct internationally and domestically. this concerns not only private business, but also executives of government controlled companies and institutions. i am asking the government to change their operating principles. there should be no areas of managerial comfort. they receive great salaries. we will not achieve a measure affect if we cut everything off for them. attractnot be able to properly qualified personnel.
10:55 am
control over the work must be set up and set up properly. all such entities should address their own long-term strategies and clearly set goals and ratios of personal responsibility of the senior management. labor contract needs to provide for responsibility for failure to perform goals assigned. on thes of companies list of strategic company should be approved by the government federation. i looked it up yesterday, we are talking about several dozen companies. a list of strategic companies only contains several dozen companies. it is an additional burden for the government, but i hope the government will be a -- up to the task. this is our national priority for the entire 21st century.
10:56 am
the challenge is be met are unprecedented in scale. we already made a decision to provide a preferential profit tax rate and other tax benefits for new investment purchase and the far east. i believe it makes sense to expand this regime to entire -- andberia, including the far east and eastern siberia, i suggest they that were be set up a special territories with fast economic development with special conditions. these to be oriented among other goals to export products. new companies located in such areas and such zones need to have, and this is what is being proposed, five-year long
10:57 am
tax,tions for profit m.e.t. tax, the tax on land, property, and that is important for high-tech production. easy rates for insurance contributions. ,hat is also important conditions will be created to conduct business that is going to be competitive with the key business centers in the asia-pacific region. including the issuance of permits for construction being connected to the power grid and customs clearance to solve the natural infrastructure and such territories. we will take advantage of the capabilities of the far eastern development foundation. a decision needs to be made where such territories will be set up and all of the necessary bylaws required for the work
10:58 am
need to be issued. , i am asking the chairman of the government to personally supervise this effort. we will make a decision on their future development based on the practices and experience of operation of such territories. we will carry on the projects that are being implemented. a new university has been built and is is to set up for found scientific expert review of development programs of the far east and to provide personnel to the region in such areas as space, robotics design, engineering, and the use of resources. i am positive that if russia were to turn its face to the pacific ocean and if it were to develop all of its eastern territories, it would open new opportunities in the economy, new horizons, and provide new additional instruments for conducting an active foreign policy. global development is becoming more and more controversial and
10:59 am
dynamic. in these conditions, russia's historic responsibility is increasing as a key year in tour of stability and as a country, a state that consistently upholds its value. including international relations. the intensity of the economic information competition is increasing, not decreasing. other influence centers are keeping a close eye on the strengthening of russia. we have been proud of this country, however, we do not lay claims to being a superpower, claims that would be understood as claims to being a global or regional hegemony. we are not encroaching on anyone's interests. or trying toposing teach anyone how to live. we will seek to be leaders, protect national law, seek
11:00 am
respect for sovereignty and independence and self identity of the peoples. this is objective and explicable for a country like russia. given its history and many centuries of -- not "tolerance," and stairwell, but harmonious existence with many lifestyles in a single state. , many are erasing additions -- traditions and societies required to recognize not only everyone's will right to religious freedom and religious views and privacy but scrutinizeigatorily the parity of the strangers that may seem evil and good.
11:01 am
these are nations that are contradictory, essentially. this obstruction of traditional values from above not only has negative consequences for society but is antidemocratic, because it is being conducted based on abstract, vague ideas despite the will of the majority of the people, and we know that there is a greater number, increasingly more people and the world who support our position to protect traditional values that for thousands of years have been the bulk of the spiritual foundation of civilization, of every people, the values of the additional family, of genuine human life, including religious life, not only material, but spiritual life. the values of humanism and diversity of the world. of course -- [applause] of course this is a conservative the meaning of conservatism is not to prevent
11:02 am
movement upward and forward, but in that event's movement back and downwards -- it prevents movement back and downwards to a chaotic darkness, to a return to the primordial state. over the last few years we have seen attempts being made to impose on other countries so-called more progressive development model, but in the reality, the result was setbacks , barbarity, and bloodshed. this is what happened in the far east north of africa dramatic situation revolving around syria . the international community had to make a fateful choice to either keep going back to iteration of the world order -- erosion of the world order or collectively make responsible decisions. i believe it is our shared success that a trace has been made specifically on the basis of fundamental principles of
11:03 am
, logic, andl law peace. external, outside of her interference in series affairs theproliferation of confidence of the region. we acted firmly in a well -thought thruway and balanced way. we have never threatened our own our own security or global stability as we did that. from my perspective, this is how a mature and responsible country should operate. [applause] as a result, jointly with partners, we have been able to turn around the developments from more to the established -- from war to the establishment of therian process and chemical arsenal has been put under international control. this arsenaln of
11:04 am
is in accordance to first run hitting the regime of nonproliferation. the syrian president has confirmed the united nations central role in global politics. as the situation around syria has indicated and also around, central point, any problem must be solved politically without resorting to power. as far as the iranian nuclear program, the breakthrough has been achieved this year, but it is just the first step, and the search must be continued for a broader solution that guarantees iran's inalienable right to develop peaceful nuclear energy region including israel -. now what is happened? the iranian nuclear program is going away but the adm system is
11:05 am
there, but, not just the situation is developed further. more on that later. once again, russia is prepared to join any and all partners in the interest of securing shared, equal, and individual security. fighting drug trafficking, mpt, fighting international terrorism and other things is what we will continue to do this year. we will be guided by this and principles in the course of preparing -- by the same printable's in the course of preparing the summit that russia will host in 2015. we are entering the final stage of reparation of the agreement economic union. we believe that by may 1, 2014, the language of the agreement approved and it will be submitted to the parliaments of
11:06 am
russia and belarus. dear colleagues, i'm asking you to support this document on a priority basis. already working groups are in place, preparing roadmaps there it -- repairing roadmaps. preparing roadmaps. i'm sure that the real achievements of eurasian integration will only increase interest in it on behalf of our other neighbors, including , even before what is happening in kiev started could i'm hoping that the political forces in the country will be able to solve all the problems, but even before all those problems, starting in may 2013, ukraine expressed a wish and has attended all the meanings of the troika as an observer, has participated in all the discussions, and has repeatedly stated earlier its interest in joining some of the agreements within the customs union. we do not impose anything on anybody.
11:07 am
if our friends had a wish to work jointly, we are prepared to continue this work at the expert level. our project is based on equal rights and real economic processes. we will consistently advance the eurasian process without putting it in confrontation with other integration projects, including, of course, such a mature integration project as the european project. we will base ourselves on our mutual problem and treat nature. we will begin -- coppola metairie nature. dear colleagues, the work on our to strengthennue the armed forces -- i've just mentioned the issue of the missile-defense system. here is what i would like to say in this regard. that thetly understand missile-defense system is going to be a defensive system because .t is called that way
11:08 am
however, in real terms, this is a significant part of a strategic offensive potential. our concern is the development of new weapons systems, such as low yield nuclear explosive vices -- explosive devices, conventionally tipped strategic missiles, hypersonic non-nuclear systems capable of delivering ,trikes within a short time great distances. we have been following the development and evolution of the first to start disarming attack if there is such a conflict and it is actively being developed in several countries. implementation of all these plans may cause some very, very negative implications for regional and global stability, increased by foreign countries of the potential of strategic, high accuracy systems, conventionally armed, along with increasing the capabilities of the antimissile defense systems, may completely neutralize all
11:09 am
the previously achieved agreements in the area of limiting and reducing strategic nuclear weapons and may disrupt the so-called strategic balance of forces. we understand this perfectly well. in this regard, we know that work needs to be done. [applause] nobody should have any illusions tofar as the capabilities gain an upper military hand over russia. we will never allow this to happen. will meet all its challenges, political and technological. we have the potential for that. our military doctrine and promising weapons samples, which are and will continue to be made available to the troops, certainly will enable us to ensure security of the russian state. [applause]
11:10 am
a great deal more needs to be done as far as development of modern and high accuracy weapons systems. even now, as far as quality barometers of deterrence forces, we successfully and based on a plan a coming -- are coming to new frontiers, and our partners have catching up to do it if our try it is to be increased even further emma development is systemsy on new weapons of strategic designation based on land, sea, and air. we will continue to build missile forces to develop the nuclear submarines. we will continue to work on the promise of long-range aviation. in line is to create a global reconnaissance system -- next in line is to create a global reconnaissance system and targeted acquisitions which will work in a single information space and real-time in the
11:11 am
interests of the russian federation. it also has to do with strengthening -- we will continue to jump -- build up general purpose forces, aviation, navy, and land forces. this year, based on our plans, the number of contract personnel has increased to 120 thousand individuals. withouta proposal -- moving student deferment, the system of military preparation and educational establishments need to be changed so that all students can come as they undergo their studies, they have their subsequent military boot camp, obtained military training and specialties. this mechanism would enable us to prepare the needed number of reservists most in demand, mostly technical military up which --ccupations,
11:12 am
without threatening them in the armed forces put i'm asking the security counsel to summit specific proposals. furthermore, the funds we are land forceso equip and navy and modernize the military industrial complex, as you know, are unprecedented. they stand as 23 trillion rubles. over the next decade, the national defense and military orders will have enough that will be able to reduce -- renew their productive capability, create new jobs. so far, we have about 2 million people working in the military industrial complex, which is about 7 million people, including their families, experts operating in is having stable, highly paid jobs, and
11:13 am
therefore their families will have comfortable living. of course, what will happen after 2020 is also important. we cannot allow these committees to be oversized and not having any demand. our positions at the international market have to be increased and the military-industrial commission to summit proposals in this regard so that our companies can timely switch to making civil products that are in demand must agree and internationally it -- domestically and internationally. we have set all the serviceman of the defense ministry who for 2012, andt at this year, be provided with permanent housing. in the near future, this goal must be fully self. of theling attention defense minister to this and i'm asking him to take care of each specific case, topping people find the scenarios of the system
11:14 am
that is best. for the first time in this country's history we will close the issue of permanent housing for servicemen of the land forces and navy of russia. we are in a position to focus our attention on creating a modern tool of service housing and comfortable military communities. dear colleagues, except the spot -- the response ability of this country is axis of the constitution of russia. it is a call on every one of us. the strategic development agenda of this country is well-known. it stresses the key avenues of work, the ways and methods of achieving the goals from everything that has been a card must be executed without any -- anything -- everything that has been declared must be executed without any excuses. duty, rather, is to increase people's confidence.
11:15 am
only in that case there will be more citizen engagement. let me repeat this -- where a decision has been made, and must be implemented. i believe this approach is the concentrated expression of suggest ability, and i it be made the motto of this year, the motto for everybody and everything, for authorities, society, and citizens. it is my absolute and diction that as we rely on our people, we take advantage of the most modern ideas of development and solve all the objectives in front of us and we'll work definitely -- we will definitely achieve success. thank you for listening. [applause] ♪ [captions copyright national cable satellite corp. 2013] [captioning performed by the national captioning institute]
11:16 am
[applause]
11:17 am
>> russian president putin yesterday parted to macau quarter castilla -- pardoned mikhail khodorkovsky. ycoon has arrived in germany hours after being pardoned by russian president vladimir putin and freed after a decade in jail." that from the bbc. hold ant obama will white house news conference before he heads off for his holiday break bit that gets underway at 2:00 p.m. eastern. we expect him to talk about a number of issues, including his nomination of senator ask baucus to be the next ambassador to china. we will follow with your phone calls and comments on these -- and on the senate floor this hour they are wrapping up work on nominations. the confirmation vote for brian davis to serve as u.s. district judge, that vote is underway. the senate should finish all of
11:18 am
its nomination work ahead of the recess and when they come back in january 6, the vote for janet yellen to be the next federal reserve chairman. in the privacye debate and in the privacy world, i have come to a troubling conclusion. dustry as itker in is today does not have constraints and does not have shame. it will sell any information about any person regardless of cents aity for 7.9 name, the price of a list of recently sold. lists of rape sufferers, victims of the mr. violence, please off -- victims of domestic violence, police officers, home addresses, the only suffer from genetic
11:19 am
illnesses, complete with the ethnicitye addresses, , gender, and many other factors . this is what is being sold and circulated today. it is a far cry from visiting a website and seeing an ad. what it is is a cell the personally identifiable information -- sale of personally identifiable information of americans. youris weekend on c-span, medical history, income, lifestyle. the senate commerce committee looks into data mining, saturday morning at 10 a clock eastern. hartmann argues that without a strong middle class, the u.s. is heading for an economic lotion that will make the great depression seem tame. tv, byican history august 1945 it was already becoming clear that a struggle
11:20 am
for global dominance had begun from world war ii cold war. sunday 10:00 30 p.m. eastern -- sunday at 7:00 -- sunday at 7:30 p.m. eastern. am competitionc wants to know what is the most to put an issue congress should address next year. $1000 in total prices. .he deadline is january 20 get more info at student camp -- studentcam.org. world bank president jim young kim outlines corruption and world bank project. former federal reserve chairman paul volcker also discusses ways to control corruption and the future challenges for the world bank. this is an hour and 10 minutes.
11:21 am
>> i am your moderator. i'm calling this room to order. i am interrupting your current conversations to start a brand-new conversation. i'll come to ope -- welcome to "speak up against corruption." now -- [indiscernible] if you have a phone or laptop or
11:22 am
ipad, anything that is likely to make noise, please put it on vibrate or silence. it is something you can tweet on, by all means keep it on. ashtag is #wblive. the reaction can be here and with our online audience as well. so if you have ever wondered what might happen if you had a current world bank president meeting a former world bank president, putting a little bit from the philippines perhaps and make it spicy with the chair constraints international and a little sprinkle on the top, the former chair of the federal reserve, that is a very tasty conversation. so i will stop talking so that we can start having that conversation, and we will start
11:23 am
with the current world bank president, dr. kim. [applause] >> thank you very much, and thank you all for coming. we have with us today 2 truly great men who laid the foundation for the world bank group's efforts to fight corruption. jim wilkinson and dared to utter the word corruption at the 1996 result,eeting, and as a richard other international financial institutions not to look the other way. volcker later, paul provided us with a clear bold -- blueprint for attacking corruption. this is an historic occasion to have both of you with us today, and a new opportunity to learn from you once again. thank you so much for coming. [applause] i am also very pleased to yvette from transparency
11:24 am
international and the finance minister from the philippines. we are also very honored to have you with us today. [applause] right from the start, i would like to make clear why fighting corruption is a critical priority for me personally and .or the entire world bank group every dollar that a corrupt official or business person puts in their pocket is a dollars stolen from a pregnant woman who needs health care, or from a girl or boy who deserves an communities need water, roads, schools. every dollar is critical if we are to reach our goals to extreme -- and extreme poverty by 2030 and boost shared prosperity. that's not mince words. -- let's not mince words. in the developing world, corruption is public enemy number one. i pledged to do all in our power to build upon our strong fight against it. how do we build institutions with greater integrity so that
11:25 am
we can help more people lead better lives? i believe there are 3 important elements in our approach. first, we need to improve the way we share and apply knowledge about building institutions with greater integrity. second, we need to empower citizens with information and tools to make the governments more effective and accountable. third, we need to build a global movement to prevail over corruption. the world bank group will be creating a single pool of technical experts in rule of law, public sector, financial him and state management and public protest financial, estate management, public or german. public sector, financial, state management, public improvement. we know that we and our partners have had an impact. for instance, one corruption threatened to derail the critical power project for
11:26 am
southern african countries, the world bank intervene, preventing more than $6 million from being misused. in afghanistan, we supported a network for integrity and reconstruction, which trained 980 people who have monitored 281 infrastructure projects with $247 million. 83% of the concerns they raised have been addressed. through innovative solutions in key sectors like engineering and consulting, we have convinced a major firms to commit to clean business practices. we also advocate for greater transparency because it leads to citizen education, which in turn leads to citizen action and real change. transparency on ownership, budget, contracts, and procurement will empower citizens and government officials. as one finance ministers said to us recently, transparency can turn bureaucrats into activists. years, the open
11:27 am
government partnership has grown from just 8 countries to 62 countries, and it has produced important reforms led by government and civil society. but we know we can do better. global law enforcement and regulatory authorities know that their ability to track, interdict, and recover money stolen from the poor has not been optimal. for example, a recent report found that the democratic republic of congo lost 1.3 million -- $1.3 billion through the sale of natural resources. congo's budget for health and education. the world bank is developing new ways to track and measure the financial impact of fraud and .orruption in our projects the amount we recover or save through our investigation -- we need more than governmental action. .e need to build a movement movements only work if they are inclusive, leaving no one behind. that is why our new strategy calls for us to engage with all
11:28 am
parts of society -- government the private sector, especially citizens -- as we help countries solve their bellman challenges -- development challenges. at the annual meeting this fall, we are committed to stepping up engagement with citizens, looking at whether the the proceeds of finance projects reach of those who should benefit. we launched the global partnership for social accountability to provide citizen groups with knowledge and financing so they can work constructively with government to solve these kinds of challenges. the private sector has to be part of the solution as well. oil, gas, and mining firms are increasingly disclosing their contracts with governments. this gives everyone a chance to scrutinize the behavior of corporate and public officials. the world bank supported transparency initiatives that have significant impact in key countries. in nigeria, recent reports show that a $.3 billion in missing tax payments -- $8.3 billion in missing tax payments, and so far
11:29 am
they ever covered $443 million. corruption from sapping public trust in institutions. to do this, we need to show that corruption is not how business gets done. today we recognize 3 integrity award winners who embody this principle. the first is the royal canadian mounted police, whose cooperation resulted not only in world bank sanctions but also legal action. the second is the senior financial management -- list -- specialist company whose vigilance in reviewing projects created a audit of treasury functions of the local government in china. tenacity unveiled fraud and corruption affecting bank finance contracts. inspired by these examples, the world bank group is more committed than ever to continue the fight against corruption him and that will be a critical part extremeork to end poverty and boost shared prosperity. thank you very much.
11:30 am
[applause] >> good morning. it is great to have you here. the only una and a that will happen is between yourselves -- the only q&a that will happen is between yourselves. i would love to hear push back amongst you, different perspectives amongst you, and for the conversation to go long. if you get stuck i will help you out, but you should really be helping me out here. i've never heard anybody say the c-word in public and not get in trouble, mr. wolfensohn. what happened when you did it in 1996? after1996i realized that one year at the bank that corruption was in fact something that was impacting our projects. and that we didn't really in those days have a mechanism for trying to make sure that the dollars that we put out went to
11:31 am
the places they were supposed to go. in my second annual meeting speech, which was to him in september, i put in -- which was to come in september, i put in a plea about the c-word. just before i was to give the speech, the general counsel can't make me, a very good man, and said would i see him and -- came to me, a very good man, and said would i see him in the lobby? i said, what should i see him in the lobby? "it is a matter that requires some secrecy." so i went out -- [laughter] i went out into the lobby and he said -- he used to call me jim all the time, but he said, "mr. president, you cannot use the c-word." i said, "what the hell is the c-word?" " corruption."
11:32 am
use the c-word? half our- " directors are percent corrupt countries -- represent corrupt countries." [indiscernible] sorry -- about the cancer of corruption. -- 6 months later, every director of the bank in the semiannual meetings talked about corruption. it got the thing going, and since that time, as i think you know, there has been a very substantial move in -- full-service moderating here. there you go, mr. president. >> it is a technical problem.
11:33 am
we need a microphone. >> governments working in it -- it was a good start. before that, the lady sitting next to me, who chairs a group called transparency international, a couple of former bank employees, if i'm not mistaken, got it started, and they have ever since that time tell me that it was not my idea, it was theirs. [laughter] i think the good thing about it is whether it was my idea or this's, -- or theirs, whole movement against corruption has become more , fore, and the question is all of us, is it effective? that is my answer to your question. >> mr. volcker, one we are talking about country -- when we are talking my countries that may have issues with corruption, and one of the most challenging things is if you are to work with that country, the risk
11:34 am
involved in that. how do you assess that? how would you say this is worth taking the risk? or don't go there? >> well, i don't know what the risk is, but the risk is not doing something in terms of development and making the world bank more effective. if i may say so, it is not just a matter of loss and money involved in a particular contract or particular project. whether it affects the whole society in these countries in a way that is adverse, you are dealing with a problem of what is called the rule of law, and the feeling that these countries, any country, united states on down, has to rely upon a strong sense of rule of law to have a successful society. there is nothing more destructive over rule of law than thinking of people getting
11:35 am
around rules of law by corrupt practices. the focus of the supplier of corrupt goods as well as the people demanding. this is a very pervasive problem. i might just say to correct the record a little bit in terms of jim's anticipation, i read that speech. it is a very long speech [laughter] . -- it is a very long speech. [laughter] >> was it long and good? >> the part about corruption was 1 paragraph long. >> 72 words. [laughter] >> i assure you, the whole speech was not 200 words. it was 2000 words. it was interesting -- though 72 words -- >> he is my friend. [laughter] -- ie drama was buried don't know whether you totally buried it -- in the middle of
11:36 am
the speech. these 72 words created a focus that had not been present before and was not very happily toeived, i think it is fair say, by many, many people and the world bank, outside the world bank and inside the world bank tr. it has been a great struggle inside the bank for a period of time, which is how i got involved in getting this into the culture of the bank, and the remarks that president kim made are very stronger marks about leadership of the world bank. remarks about leadership of the world bank. the world bank and not escape response ability. escape responsibility. you're an agency that involves in concept and practice everybody around the world, whether they are corrupt societies or not. we have our own variety in washington, d.c.
11:37 am
we are not a boring country. it is terribly important. what strikes me is that you have a counterpart in europe among the donor countries, basically, is a very is but this high priority from that standpoint, and here you are dealing with the emerging world. they are dealing with the merged -- the emerged world, dealing with practices in emerged world that permit if not encourage their own companies to make the problem with the countries you are dealing with. thinking, you have it with leadership on the development side, they have leadership on well-developed countries that attribute -- contribute to the corruption
11:38 am
problem. it is a struggle in both directions. >> mr. volcker, i see madam labelle nodding a lot. what is going through your mind as mr. volcker is speaking? >> welcome i need to go back to ji -- well, i need to go back to jim. those evern mining since and keep using them. anywhere the -- many were with anniversary of transparency international in berlin, and this is part of what we talked about, and president kim, we are all some minding your -- also minding your words, especially your speech at the cfif, a very important speech in terms of demonstrating the current leadership of the bank for this issue. paul and listening to president kim talking about the effect on people, this is what is going through my mind. i was looking at data recently.
11:39 am
if you have a country where more than 60% of the people have to pay a bribe, and you look at the number of indices -- let's take maternal mortality -- in those cases, over 480 women die each year out of 100,000. when you look at countries where less than 30% of the people say they had to pay a bribe in the last year, 57 women died. if you take it down further than -- further, then it is about 10 out of 100 women. you could do the same with water and all the indices you're talking about. the point i would like to go back to in terms of paul is the one about people -- it is not just that it kills people, that it prevents them from having a , thatr a quality of life it concentrates the money into the hands of 10% of the population of the global wealth, but it is also what happens with the trust of the people in our government.
11:40 am
when we do surveys and we look at surveys that others do, it demolishes, destroys the trust people have in their government or in the absence of rule of law in the fact that you can be protected in a country where you are. the u.n. recently had a major ,urvey of 1.4 million people and the issue of honest and responsible government was number four, at the top, by this .ery large sample and of course it touches primarily government, but again, as i was listening to all of you , we spent -- i think there is awareness now. you started that, and i think transparency international had something to do with it as well. [laughter] theally, we could say that old bank started a trend currency international, because
11:41 am
indeed, there were people who were working in the world bank that, when they retire, did that . awareness is there. a lot of countries in the world have the regulations should some are missing, of course. the problem is enforcement and when you look at where people live, and certainly in transparency international we are looking increasingly at the other levels of government, because people interface with cities, city governments, local governments. spent a lot of our energy on the national level feeling that we need to work with the public. the public conscience is pretty well awake right now. the question is, how can we help the people to move from being conscious of it to being intolerant but also constructively engaged with the tools that will permit them to move from public conscience to participative democracy, which
11:42 am
is very important as well? >> let's get a little bit more specific. imaon't want minister puris to squirm too much, but you are in government, you are minister of finance for the philippines. and you are at the very point where if there are going to be issues, you even know about them or you should know about them. take us inside your government and tell us as much as you can about how you deal with corruption when and if it arises. well, first, i think the philippines would be a good candidate to be the poster child of -- [indiscernible] -- will give. in the 1960's, the world bank identified the philippines is one of 2 countries most likely to succeed. in fact, in 1965, our total
11:43 am
experts were greater than that of taiwan and korea combined. fast-forward 40 years later, we are down the table, and what corruption does is is it creates a crisis of of confidence in people. in terms of businesses, they don't invest. in terms of markets, they charge high risk premiums. you get deeper and deeper into a vicious cycle. in 2010 when president aquino ran for office, he ran on a platform of good governance. this is where you also see the big impact of even marginal improvements in governance, because i don't think you solve inruption, but we have had her rooms in corruption as a result. since president a keynote took tooke -- president aquino office -- why?
11:44 am
with better governance, we had improved tax collections. with better governance, we had more confidence in financial markets. with better governance, we have had our investors doing longer-term investments. as a result, we are getting into a virtuous cycle third but the big challenge for us now really ?s how do we sustained this how do we institutionalize this beyond president aquino? this is where institutions like the world bank can play a role. knowing what works somewhere else, making it easier for us to convince people and to implement things -- >> who do you look to to say that it works in that region? >> singapore is a good example. it will say that it is a city,
11:45 am
but it works. meritocracy, that they have been able to create within government to that is what we are trying to copy in the philippines. we are not yet there, but president aquino has an incentive-based scheme for government and government-owned operations. there is a difference between working 8 hours and more than 8 hours, doing that in doing good. we have to work towards that path. more than just singapore, other samples beyond the philippines will do -- other examples beyond the philippines will do. what are the things we found very successful and our 3 years so far is involving the citizenry. for example, we now have a , people's money, where they can report anonymously tips about corruption. >> have you looked at it recently?
11:46 am
>> yes. >> what was on it? filed 4 cases so far and are investigating about 50. some don't have enough information. we are trying to upgrade the website so that we can give them feedback of what we have done with the information we've shared. we have a budget so that we can tell people how much money was who was the village and tasked to spend it. so that their expectations can be aligned with the money, where we are spending. a new website we are starting in january -- one of our biggest problems with corruption is smuggling in the philippines. one of the things we're going to do with our site is every day we are going to publish goods that have cleared through customs, who imported it, how much is the
11:47 am
price, from where, so they can compare. that is another thing that is work. >> will you take a breath for a moment? >> yes. [laughter] cancer, so weis a really cannot -- [laughter] [applause] we cannot take it easy. president isbank shooting me a little glance. i know he wants to jump to the conversation. dr. kim? >> i'm so glad he called it the cancer of corruption, because i'm a doctor. [laughter] and you know, cancer can be cured. so much of the advances we made in the medical field on cancer are really stunning. some of the most tremendous exams as we have ever made. -- some of the most tremendous advances we have made. the reason minister purisima is here is because of the attitude he brings. there are 2 things we can do now that we cannot do in 1996. for jim to say it was a
11:48 am
guardedly courageous, but it set us down a path. 2 areas we want to focus on. one, when you look around the world and the people doing it best -- for example, international student assessment, the school systems that are doing best are the ones that are saying what are all the things in the world that seem to be working to improve student achievement? and then they bring it to implement them. we think that rather than sitting back and saying that corruption is a moral issue and that there are corrupt people and not corrupt people, we have to say that there are ways of fighting corruption that are better than others. we feel that our role, especially in good governance global practice, is to bring all those experiences together, and the general approach we call the signs of delivery, but don't get hung up on the term. it is a very simple idea. find out what is working in other places and help countries actually implement those innovations in a way that works in a local context. that is one. >> how far along are you in
11:49 am
that? i would love to hear the idea of that is not working, we are not doing that again. >> in terms of major experiments , we have not been involved in major experiments, but in fact, some of the most exciting things we are seeing are very much related to the other major shift, which is citizen voice. ine is one experiment afghanistan -- i talked about it in my earlier remarks -- what we have done is given afghani women cell phones, with which they can take pictures of projects in action. the cellphones have an interesting feature, and that they take the pictures and they can go and transmit them to our office. they also have a feature that if they are stopped on the roadside, there is one button they push that gets rid of all the pictures. it is not put them in danger. we give them access to cell phone services, we give them a concrete way of monitoring
11:50 am
corruption, and we protect them in case they get stopped. one example, but with innovations like that that bring together better ways of tackling corruption, with citizen voice -- citizen voice is not going to go away. if there is anything we have learned from the arab spring come it is that everybody can tweet, go on facebook, the revolution has exploded. if you bring best practices with the citizen engagement, that is a path where we can fight corruption effectively. >> what i'm hearing is -- mr. volcker wanted to jump in. go ahead. >> a general point to follow on the president's comment, that you got a delivery. -- that you got to have delivered. i started a nonprofit agency to improve government. the slogan i got from thomas --son is appropriate here vision without execution is
11:51 am
hallucination. [laughter] so we've got a lot of the vision here about dealing with corruption and we can all expound about the lorries of dealing with corruption and the importance and the moral and practical difficulties. but you have a practical problem in dealing with it in very difficult circumstances. dealing with both on the delivery side and on the supply easy, and you not have to keep at it. but the world bank doesn't do it, nobody else is going to do it in this area, and if you don't do it, everybody will use it as an excuse to not do it themselves. it's obvious. getting on the delivery, getting on the execution, you've got to work, as you are, and what other agencies and the rest of us can do to help the cooperation, other aid agencies order vollman -- ors, we ought to be development experts, we ought to be there with you. >> vision without -- >> execution.
11:52 am
>> hallucination. ok, so what i'm hearing is that we have 2 different eras here. we have the era of facebook am a twitter, social media, websites come we've got smartphones ticking pictures, that can get rid of any of the pictures. and we have the aero where 72 words, were you mentioned corruption in a fed speech -- i'm just interested to see what a former world bank president that started this process of examining corruption has to say to the current world bank president, this sharing of experiences and knowledge. you can be very candid. >> well, i think there is no doubt that there are 60 countries that have signed on to corruption,nt particularly the more developed countries. ,f you take -- as an example
11:53 am
the natural resource companies, principally in africa -- [indiscernible] -- corruption practices. that leaves 52 that don't. it reminded me that when i was at the bank, we decided that i should go and talk to the presidents of african countries, and i went with a very simple proposition. we divided them into quartiles. you would meet with 14 or 15 presidents at a time. i established the principle that i could speak to them without their assistance, just 14 men or women. i got them into a room and i said, look, a large number of you are very corrupt. [laughter] >> did you really say that to their faces? >> i'm telling you exactly -- >> and wanted their faces do --
11:54 am
what did their faces do when you said that? >> tell them the family values story, jim. >> i said to them -- you might think it is because come but i said to them, "you are corrupt and it has been a practice here. 2y don't we establish a date or 3 years hence emma and between now and then you could steal anything you want?" [laughter] >> did everybody here that? "stilluly said this -- anything you want, because we can't stop you, but let's set a date when you are going to go honest, and together we can establish a practice that would wille the corruption, you all be rich, your families will be living in europe, here, whatever you want, but let's set a date when the country has to profit from a clear-cut attack on corruption."
11:55 am
some of them said, you know, that is a pretty interesting idea. [laughter] could you get in touch with me? the bottom line was i heard from nobody. we went to these countries and we tried very hard, and i even took with me on one of these trips and who became subsequently the president of germany -- a gentleman who subsequently became the president of germany, and he thought this was an unusual approach. it seems to me that that was at approachting an honest to these guys. but very sadly, it didn't work, and i don't know, frankly, how you break through in many these countries where there is a narrow governance, narrow group of people that are profiting from the corruption, and how you break it. >> if i can jump in -- >> maybe you've got an idea.
11:56 am
>> jim went to one very powerful leader and said it to him directly, there is corruption in this country and you need to face it, and he said to jim, " mr. wolfensohn, what you call corruption, we call family values." [laughter] >> who was that person? [laughter] >> it's not my story. [laughter] >> mr. wolfensohn? >> i can't remember, actually. >> oh. [laughter] >> all right, so this really illustrates, even when you are very ballsy and upfront and you call people out, it doesn't necessarily work. let's go back to transparency international, madam labelle. i know that there are some areas that are working that are perhaps not so dramatic as mr. wolfensohn's approach. can you share them with us? >> you have to -- let me just look at 2 or 3 countries.
11:57 am
there could be many more. but there are some common things that happen happening in those countries. whether you are looking at botswana, that has had very interesting leaders from the day that they got independence. and to this day, in our corruption perception index, but juana is always in the top 20 out of 175, -- botswana is always in the top 20 of 175, 180. people in the country as well as people working outside the country see the country is quite clean by comparison. when you s -- when you look at chile, when people say it is going to take a long time, we can't wait to see so many people die and barely survived inordinate -- in order -- when you look at chile, within about a decade a lot happened in terms of creating -- brazil right now is doing very interesting things. when you look at some of the
11:58 am
-- ofy legislation course, u.s. has been there a eu, time ago, but now u.k., brazil will have legislation humming into play at the end of january am at the right conditions are now there, norway -- a number of countries have been doing some of that. going back to a president kim was saying, and jim, you need to work at all levels. you can't just work at one level . you need to bring all the parties to the table. .nd that is the people you gave very good, simple examples of what one can do by helping people -- first of all, they need information, as you said, minister, but at the same time, some of the civil tools. industry -- a simple tool is good but industry, business can have an importable to play as well. societies,, civil organizations who work with the people and help the people getting involved, but also who
11:59 am
provide advice and work with industry and work with government. you need to put a fire under all of these people and bring them around that bonfire. i would like to say a word about the bank come if you'll allow me, because the bank has a tremendous -- has had and continues to have a tremendous role to play. it isn't just about every country of the world. there is people on the ground, staff on the ground who can help her to share and exchange that information, that knowledge, provided vice, provide support through the lending money as well as the grant money, provide some support for that. on the prevention side, at the learning side, and the enforcement side, because int has a tremendously important role both as a preventer and enforcer, because of people see a project where, obviously a lot of people are talking about
12:00 pm
corruption but nothing is happening, then they will think that we favor impunity, so that this has been a very important role as well. so it's now very engaged globally, of course. if you look at the g 20, were a lot of work is being done, and at least commitment are being made to deal with money laundering, big money, stealing of assets, recovery, enforcement , regulations so that bank secrecy does not prevent the investigations that are taking place to try to find the money that has been stolen from the countries and bring it back to the people so that development can take place. -- so that you don't hide your money in equity in companies around the world. there are a lot of things that are happening so the -- where the bank has tremendous knowledge and brain power and resources to make a difference. as a c s

51 Views

info Stream Only

Uploaded by TV Archive on