winston churchill fashion, the british prime minister's epitaph reads -- i am ready to meet my maker. whether my maker is prepared for the great ordeal of meeting me that's another matter. thank you for watching "state of the union." i'm michael smerconish. find me on twitter if you can spell smerconish. "fareed zakaria gps" starts now. lmplts . in is gps, the global public square. welcome to all of you in the united states and around the world. i'm fareed zakaria coming to you from davos, switzerland, the home this week of the world economic forum. we'll begin today's show with the death of a king. king abdullah of saudi arabia. the custodian of the two holy mosques. saudi arabia has been an island of stability in the midst of the firestorms of the middle east. but it is also home to the most

puritan cal version ofe puritanical version of islam which has helped shape islam. is it part of the answer or the solution? i will ask tony blair about that and much else. . also u.s. naval station in cuba. . also the price of oil has fallen in the last six months. oil revenues make up 90% of the saudi's income. will it whether this storm? i will talk to the "financial times" times"'martin wolff about saudi arabia and its addiction to oil money. then all eyes are on the european economy in 2015. will it descend into deflation. i'll talk with the finance minister of one of europe's fastest growing countries, george osbourne the chancellor of the united kingdom. inequality was the talk of

the week from the u.s. congress to the center here in davos. but what is the answer? i'll give you my solutions, and i'll show you a place here in switzerland where the world's privileged traveled in order to begin to understand the lives of the underprivileged. but first, here's my take. the conversation at davos is often dominated by economics and this year is no different. but the shock of the paris terror attacks lingers, and discussion has often turned here this week to radical islam. the death of king abdullah has underscored those concerns because of saudi arabia's come to his death. applicanted relation they said initial indications ship with are that terr's death was a islamic fundamentalist ideology. i posited last week that the solution does suicide but there has been no not lie final determination. >> a navel officer had an affair in that was totally inappropriate. more >> but the alleged love triangle american has nothing to do with the military guantanamo prison. inter >> inside the prison itself, he vention has nothing to do with that. s that is run by an intelligence in agencies and everyone is well the cared for. middle east >> he has not been named a suspect in terr's death, and . but what then is the owns? the problem is deep and structural. as i wrote a few weeks after

9/11 in "newsweek" in an essay titled "why they hate us." the arab world has been ruled for decades by repressive mostly secular dictatorships. that in turn spawned extreme, mostly religious opposition movements. the more repressive the regime the baltimore extreme the opposition. islam became the language of opposition because it was the one language that could not be shut down or censored. now the old arab order is crumbling, but it has only led to instability and opportunities for jihadi groups to thrive in the new badlands. over the last few decades this radicalist ideology has been globalized initially fueled by saudi money and arab discenters eplomimams and intellectuals, it's taken on a life of its own. today radical islam is the default ideology of anger, discontent and violent opposition for a small number of

alienated young muslim men around the world. only muslims and particularly arabs can cure this cancer. that doesn't leave america and the west help else. washington and its allies can support muslim moderates, help these societies modernize, and integrate those that do into the world. but that's for the long haul. meanwhile, they must adopt a strategy that has four elements. intelligence counterterrorism integration, and resilience. intelligence is obviously the first line of defense, but also attack. we have to know where jihadis and potential jihadis are and what they're planning. that means using sophisticated technology yes, to search through various kinds of communications. but it also and crucially lycrucially means developing good relations with muslim communities because only they can early on identify the

potential troublemakers. counterterrorism is the natural follow-on to intelligence. when you know where the bad guys are, capture or kill them. it's easier said than done of course, but the united states and other western nations have had considerable success with there tactic. not only in war zones like afghanistan and pakistan but also in intercepting plots on their way to cities like paris and london. we must always remember though counterterrorism has its down sides. for instance while drone attacks look seamless from the skies, they inevitably produce civilian casualties. integration is third. it's something america does well and with which europe struggles. one of the chief reasons that america has not had as many problems as many predicted after 9/11 is that its muslim community is well integrated largely loyal and believes in american values. finally, resilience. terrorism is an unusual tactic.

it doesn't work if we are not terrorized. bouncing back returning to normalcy. these are all ways of ensuring that terrorism does not have its desired effect. we've not always managed to do this. in recent months we have massively overreacted to the isis execution videos which is why they were produced in the first place. the paris attacks were barbaric as were those in ottawa sydney london madrid and ft. hood. but one way to gain perspective might be to keep in mind the numbers. according to the global terrorism database in the 12 years between september 12 2001 and 2013 the number of americans who have died on u.s. soil due to terrorism is 42. meanwhile, in one year alone, 2011 the cdc reports that

32,351 americans died because of firearms in one year. the number who died in car and truck accidents in that same year was 33,783. so keep calm and carry on is more than a slogan to wear on a t-shirt. for more on this go to cnn.com/fareed and read my column this week in "the washington post." let's get started. the death of king abdullah of saudi arabia while not unexpected has nonetheless sent slivers across the world. any leadership change in such a crucial country is aptd to cause concern. will the new king change course on oil, syria, relations with the west. let's start with the political. to talk about that i asked tony

blair, the former prime minister of the united kingdom, to join me. tony blair, pleasure to have you on. >> thanks fareed. >> you knew king abdullah well. his reputation certainly some of his talk in the few times i had an opportunity to talk to him, were about reform and about change. but if you look at how much has changed in saudi arabia, it isn't that much. i mean women still can't drive. there still is segregation by the sexes. the religious establishment is still very powerful. they stilled a ed aadhere to a very puritanical version of islam. >> i think if you talk about it relative to say a country like the usa or britain, then that may be being a cat rat. but if you look at it relative to where saudi was, you now have more young women in university than men. you have a situation where king abdullah was an author of the interfaith dialogue and actually

would meet both jusews and christians to talk about faith issues. he was the arctive of the peace initiative in 2002 which offered a two-state solution for the arab-israeli conflict. you take a company like saudi america, it's probably one of the best run countries in the world. i think he was a genuine reformer around modernizer and i hope expect that that process will continue. obviously there is a long way to go. i think the evolution for limb and actually for saudi arabia is infinitely preferable to revolution. >> you've spent a lot of time trying to deal with the issue of radical islam, an ideology that you believe is pernicious and spreading. how should we think of saudi arabia then? because certainly in its origins, it was very much saudi money and saudi priests and saudi donations and in some ways again, the saudi version of islam that was globalized in the 1980s and '90s.

is saudi arabia part of the problem or part of the solution? >> i think today it's genuinely part of the solution. in the sense that it's important both because you've got the two holy mosques there in saudi arabia and because in recent years, really under the leadership to be fair of king abdullah it's pursued an attempt to reach out across the faith divide and also taking a very strong position against extremism and post-9/11 which is i think the big shock to the kingdom. not only to us. they didn't really take a lot of security measures but they also looked very care from i at what was happening within their own society as well. so i think now as we speak saudi arabia is and has got to be indeed an ally in this fight. >> but one thing i wonder did he confront the religious establishment enough? i mean in saudi arabia you have this very hard-line religious establishment. the theory is that the regime --

that the royal family gets its legitimatecy by its alliance with these people and, as a result doesn't really object to their views of religion their very retrograde views of religion. does that need to happen? does there need to be a head-on taken to task with the government in saudi arabia? >> this is a discussion i used to have with king abdullah. his attitude was, look there is in some ways a very conservative country. we're doing the change but let us do it at our own pace. you can always have a debate as to whether you should accelerate and go faster and so on. but what he was really trying to do i think, was create these vehicles of change in the country. for example, saudi aramico is the oil company. not run like many oil companies around the world but really a well run company. the university here establishes, the king abdullah university of

science and technology. men and women treated equally. educated equally. and the term science and technology was chosen for a reason. so i think his view would be that he was moving as fast as he could. i think it was only maybe in the '60s or '70s that in saudi television was accepted. so you can have that debate. i think provided the direction continues along ot past of modernization. then i think it will be good for saudi arabia. and we need saudi arabia to be successful. as you can see, not just in terms of the oil price, but saudi arabia's key country, two holy mosques there and therein many ways beats the lart of islam. it is important for us that they continue to make progress. >> when you look at this phenomenon, at the pares ais attacks and what's happening in the middle east is the wage of radicalist ideology waning or

going up? >> i'm afraid right now i think this islamic ideology is growing. i think it is global. i think there are many lessons in how we try to deal with it post-9/11. lessons from my time in office lessons from now. but i think we've got to learn those lessons and apply them and we've got to apply them in alliance with the modernizing muslim countries, those who believe in an islam that is peaceful and reaches out to the rest of the world, who can ally ourselves with those. we've got to create both the force capability to fight them where they need to be fought and the education systems that educate our young people to respect each other and respect difference not view it as a reason for violence or sectarianism. i think that's the task. it's a huge task. it is the single biggest security issue i think that we face. and i think there is an urgency about it frankly.

there are thousands of these people now being trained in terrorist camps along north africa and the middle east. and we can't afford to have that happen. we know what happened when afghanistan became the training ground for terror. we're at risk of several afghanistans at the moment. >> tony blair, pleasure having you on. >> thank you. >> that was tony blair on the political implications of the death of saudi king abdullah. in a employment we will look at the economic implications. will saudi change course on oil? we will ask. tums smoothies starts dissolving the instant it touches your tongue ...and neutralizes stomach acid at the source. ♪ tum, tum tum tum...♪ smoothies! only from tums. when the flu hits, it's a really big deal. the aches. the chills. the fever. an even bigger deal? everything you miss out on... family pizza night. the big game. or date night. why lose out to the flu any longer than you have to?

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in 2010 venezuela passed saudi arabia as the country with the world's biggest proven reserves of crude oil.

according to opec. since then the united states has passed saudi as the top oil producer. to add insult to injury the price of oil has now collapsed. fallen in half in the last six months. and now saudi arabia is enmeshed in a transition at the very pinnacle of power. what will it mean for the price of oil for, for the world economy and for saudi arabia? i asked popular continue wolff to join me chief economics commentator for the "financial times." martin wolff, pleasure to have you on. >> great pleasure as always. >> first question. how central does saudi arabia remain in the world of oil? because at this point the u.s. has surpassed it in production. opec production is not even as great as non-opec production. but yet, saudi arabia does seem to play somewhat of a central role. >> well it is the central producer. it remains the biggest exporter and of course it has enormous

reserves and temperatures the cheapest producer. and ultimately because of the sheer shear scale of the production -- >> it can turn it on or off at will. >> in the past it has been able to reduce output as necessarily, or increase output as it sees fit to do. if you want to be a producer of supply and demand in the world, that's the only one. >> the price of oil has fallen by more than half in three or four months. how long can it stay this low? what does history tell us? >> history tells us it can remain quite low. it has been for a long time. there have been several big price falls in the past dramatically so in '86 and the late '90s. in both cases prices remained low, or even went lower, for a long time. up to five years, or even more. and if you look at the forces that seem to be driving prices down now, unless something

dramatic happens on the supply side something -- war, unpredictable war. who knows. as has happened for example in the '70s a war. or some huge recovery in china. one has to look and say it looks as though tho willere will be a glut for for quite a while. but of course volatile. >> so the last time you saw a drop like this, it was 1986. and what happened walss the soviet union collapsed because it was a large oil producer it relied on those revenues to finance the soviet empire. what happens to -- start with saudi arabia. saudi arabia the reports are, needs oil at $80, $85 a barrel to balance its books, to not run a deficit. so what happens now? >> well first of all, in the late '90s remember $10 oil? it has happened before. it doesn't always bring empires down. saudi arabia as i understand it should be good with the

reserves it has for quite a few years. it has reserves i think, of about $800 million. so it ought to be able to keep going. and of course it can cut spending. i mean remember it supports its people pretty generously and they don't really have anywhere else to return as long as the regime is stable and they've done it in the past in tough times, they can cut back on their generous spending on the population. so i would expect -- this is ultimately a political judgment -- that if the regime is stable enough they can survive at this price level more satisfactorililyy lythan much other large producers which have reasonably substantial populations in a relatively robust position compared to say nigeria. >> oil revenues in saudi arabia make up 90% of revenues. even if they have reserves this is a big hit to the purse. >> yes. i mean their ability to fund

madrassas all over the world would be reduced. i would regard that as unambiguously good. the consequences of that have been pretty diabolical. the internal politics are clearly ones in which if this were to continue for five six, seven, eight years, then they'd have to cut sharply. but the saudis have another possible choice which is for them a very complicated one. at what stage do they start cutting production? it might raise oil prices but of course they would bear a disproportionate part of the losses. two depend on how they think that would affect our country's output and what they think the response of the price would be for a reduction. they would have to suppose for it to be good for them that a modest reduction in output will bring back prices very sharply and they might not think that's the case. but they have that option. they could actually decide not just to cut in spending on the people they could decide to cut production of oil and try and get prices back up. so far, they've cleveland been unwilling to do so and i believe

they can survive from what i see of the regime with the resources they have for many many years. they can probably outlast pretty well everybody else in this game. >> martin wolf pleasure to have you on. >> pleasure. up next -- inequality was a top buzzword again this week. the president talked about it in washington. other world leaders and ceos were discussing it here at davos. but can we do more than talk about it? coming up next. to get from the old way to the new you'll need the right it infrastructure. from a partner who knows how to make your enterprise more agile, borderless and secure. hp helps business move on all the possibilities of today. and stay ready for everything that is still to come. ♪ ♪ [ male announcer ] you wouldn't ignore signs of damage in your home. are you sure you're not ignoring them in your body? even if you're

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now for our "what in the world" segment. over the last few years, the subject of inequality lass gained greater and greater attention. with best-selling books and speeches and remarks by everyone from the pope to mitt romney. this week it featured prominently in president obama's state of the union address. >> will we accept an economy where only a few of us do spectacularly well? or will we commit ourselves to an economy that generates rising incomes and chances for everyone who makes the effort. >> but the report that stunned me came also this week from oxfam which showed us that the problem has gotten dramatically worse in just the last four years. in 2010 oxfam said the 80 wealthiest people in the world were worth $1.3 trillion while the poorest half of the world had $2.6 trillion.

in 2014 the 80 richest had $1.9 trillion up 47%. while the poorest half had just $1.8 trillion a decrease of 29%. oxfam showed that in 2010 the wealthiest 1% of the population ren enjoyed 44% of the world's wealth, while the remaining 99% of the world's population had only 56% of the pie. by 2014 the richest 1% had 48% of global wealth leaving the rest with 52%. if that trend continues, the top 1% will own half the world's wealth in 2016. and 54% of global wealth in 2020. leaving the rest with just 46%. the world over 80 billionaires in 2014 had about the same amount of wealth as the poorest 3.5 billion people oxfam said.

in the united states income inequality is especially bad, thanks in part to what david leonard of the "new york times" calls the great wage slowdown of the 21st century. he notes that wages and incomes have been going virtually nowhere in the u.s. for the last 15 years. pointing out that the typical american household makes no more than the typical household did in the final years of the 20th century. we haven't seen anything like that since perhaps the great depression leonard says. so what to do. there are no easy solutions. some of the causes of the problem, like machines replacing humans in the workforce, are 21st century facts of life. and it is worth noting that the policies of central banks, low-interest rates and quantitative easing might be necessary to avoid deflation, but they have the predictable effect of sending the assets of the wealthy, stocks and real estate soaring, while doing

relatively little to boost wages. but it's interesting to note that income inequality varies widely belong rich countries. a report this month from the center for american progress compared the middle class in nations around the world. the bottom 90% of earners in canada for example, averaged over 1% annual income growth in the 2000s. in australia, they averaged 2.5%. but in the u.s. the average abulab annual income declined over that time. so it seems like something can be done about income inequality. lou about tax being the super rich? that's one possibility. though the top 20% already pay 69% of federal taxes in america according to the cbo. the key is to make major investments to help push people up the economic ladder and that's something that other countries in northern europe and canada for example, are doing much better than the united states. president obama's state of the union proposal such as free

community college and improved access to child care are on the right track. he has at other times proposed expanded free school nutritional assistance and other early interventions. all are effective in helping get people out of poverty. if we don't act now and the gap keeps widening soon someone will start suggesting some very radical solutions. next on "gps," george osbourne finance minister of the uk on the fears over the euro worries about terror and the ever-cloisser relationship between his country and the united states. the big game. or date night. why lose out to the flu any longer than you have to? prescription tamiflu can help you get better 1.3 days faster. that's 30% sooner. call your doctor right away. and attack the flu virus at its source with prescription tamiflu. tamiflu is fda approved

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my next guest, george osbourne is her majesty's chancellor chancellor in less fancy terms, the finance minister of the united kingdom. as such he oversees the kingdom's economy and every year carries the red briefcase with the budget from it from downing street to parliament. we talked about the number one economic issue that was on everyone's mind at davos -- the fear of a deepening crisis in europe perhaps a downward spiral of deflation. we also discussed the terror attacks in france and why it is that his boss the conservative david cameron, is so similar to

the liberal u.s. president barack obama. thank you for joining me. the great worry about the global economy right now is europe. the imf is pointing it out. really everyone is worried that europe is on the verge of some kind of a deflationary spiral. how serious do you think it is? >> well there is no doubt that stagnation in the eurozone is one of the biggest problems for the global economy, let alone for citizens of europe. and we need to have a multi-lti- multi-pronged approach. we need to make sure the european central bank is support rg the economy supporting the economy. it is important they be given the political space to do that which they have not been given in the past. but that by itself is not enough. you also need these structural reforms to make these economies competitive again and make them a place where jobs are created. then i think those two things with the falling oil price will

potentially lift the eurozone economy off the rocks. >> when you talk about political constraints on the central banks, these constraints are being imposed by germany. do you think germany is not exercising wise leadership on the continent? >> first of all, the german economy is a real source of strength for europe. and to suggest that europe's problems are german frankly, i don't think is fair to the germans. because i think they have been a really powerful motor for european growth. wla what i would say -- again, i don't want to point fingers at any one country or any one set of policy plashgs. ill yes to fiscal responsibility but alongside it active monetary policy. give the central bank the tools it needs to do the job. >> what did you make when you heard this report on fox news in america that there were parts of britain that were no-go zones, where sharia law had been imposed and there were prayer

rugs in hotel rooms. >> you inviting me to engage in a bit of network rivalry here? i didn't actually see the original remarks. but i think to be fair the commentator then corrected himself. but you know we have a challenge in our country, like many many western countries have of integration, of making sure that all communities feel part of a shared future and we've got a big job to do to combat poisonous islam sick ex extremism. that's part of the challenge we face. >> what do you think britain has learned since the london bombings? they had some similarity with the paris ones in the sense that these were locals. in actually the london case they were people who seemed remarkably well integrated then got radicalized. >> well it led to a lot of soul

searching in the u and i think it led to an understanding that the idea that you can allow everyone to live in separate communities and to have a completely different view of british identity was a mistake. the term used in britain for that was multi-culturism. we needed a different approach where people bought into collective british values. so as a result of those tragic deaths in london i think we've got a much more active policy of combating this islamicist extremism. i think we need to go further, root it out of our colleges and universities for example. we shouldn't tolerate the intolerance that you find in some communities. but, that said it's got to go alongside a strong and tough security response. it's not enough to have better community relations. you also need to make sure you are catching the bad guys and

if necessary, intercepting their conversations to prevent them carrying out murderous attacks. >> what did you make of president obama's state of the union, and particularly the proposals which are really at the center of the speech to combat rising inequality? if i look at what obama is proposing, it is community college, ed ka igsucationeducation, education reform tax being the rich, some taxes on financial firms. seems a lot like a british story. >> well barack obama is a democrat and david cameron is a conservative. interestingly enough when they met the other week in washington they found common cause, both in pointing out that the u.s. and uk economies have pulled ahead of many other western economies, britain had the fastest growing of any of the major economies last year. and tlat solution to some of these challenges of inequality and lack of opportunity, yes,

fair systems, good wages and the like but also education reform. so yes, there was a common view as i think the president put it. we must be doing something right if we've got both us job creating economies. but there is a lot more to do. there is a huge challenge to stay competitive in the world. i don't think there is any reason why britain can't be the ploeft most prosperous major economy in the world in the coming generation. we've got great universities. 4 of the top 6 universities in the world are located in the uk. we've got the lowest most competitive taxes of the g ln 20-20. investing massively flu ourinto our infrastructure. we've got the ingredients. that's why i'm an optimist about the future. there are lots of risks out there but there are strong rewards for clear economic

plans, open economies and clear education system. that was george osbourne. next on "gps," we will return to saudi arabia in the wake of the death of king abdullah. this time the focus on saudi culture. how do you make a movie in a country that barely has movie theaters? how do women work in a country where they're not even allowed to drive? i'll talk to the director of that country's first-ever film submitted for oscar consideration. the instant it touches your tongue ...and neutralizes stomach acid at the source. ♪ tum, tum tum tum...♪ smoothies! only from tums.

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early friday morning, kingdom of saudi arabia announced the death of its king. the succession could bring about big change. we've talked about the political and economic realities of saudi arabia earlier in the show. but we also wanted to take a look at that nation's culture. as i'm sure you are aware, it is oscar season again. but some critics are still smarting over a snub from last year's oscars. left off the list of foreign language nominees saudi arabia's first-ever submission to the academy awards. indeed the first feature film made in saudi. a film called wadj.d.da.

she enters a competition to win money. spoiler alert, she wins but then has even bigger problems in a world where girls and bicycles aren't supposed to mix and the film is also a withiner garnering awards from around the world. even more groundbreaking than the film, perhaps, is the film's director. a woman working in an ultra conservative country where women need a male relative's permission to work. where of course women are not allowed to drive. i sat down with her to talk about her film her experience making it and her country, a place which, by the way, has no movie theaters in which one could watch the film. pleasure to have you on. why has saudi arabia remained so conservative? i'm struck by -- whether i travel around even the arab world, there's much more modernization taking place in other places. why is it so conservative? >> absolutely it's very conservative. i think we are very tribal.

we grew up like being conservative to start out with. but there are a lot of liberal voices that call for change. the prince is very much proactive and empowering women. and it is exciting now that we see change in saudi and i come from very small town so i see the change happening in my family people around me are very conservative. now they're moving away from those ideologies and enjoying a different perspective of the world. >> and yet, you have this blogger who has been sentenced to 1,000 lashes. when people see that in the west they can't understand it. >> oh that is very unfortunate. i think in the -- in his case he angered a lot of people and a lot of people complained. and you don't want to be in that position but it is really nice that the king is sort of reviewing sentence and hopefully no more lashes in saudi arabia. i think we need to stop and reflect on the laws that we have to be in this age and are

entering modern globalization and saudi is such an important country in the world and very important to modernize. >> but one of the areas which hasn't changed much is the segregation of men and women. almost everywhere. when you directed your film i remember you saying that you had to direct it from sitting in a truck using a walkie talkie telling the cameramen what to do because you could not be out there actually with the cameramen describing what -- leave alone giving directions to men, you couldn't even be seen with men. >> yes, absolutely. it was very difficult, especially for a director because you need to fill the space and blocking and be for the actors to -- so their performance. you witness their performance firsthand. but saudi is changing even in that. people don't -- people themselves are conservative and they don't want their woman to work in the mixed environment. that is changing. there is a lot of woman, i'm very proud of them that they're

taking the challenge and standing up for are themself and they want to make change and that is very nice to see that. >> you are married to a californian. . how did that go down in your small town with your conservative relatives? >> well yes. he's a very nice guy. and, yeah it's difficult for them to accept. >> you seem very patient and understanding of a system that must cause you at times to just get very angry. >> absolutely when you go to all men restaurants, and you're allowed as a woman, you feel duly angry. but you have to relax. sometimes it is daunting but it's more effective in a place

like saudi arabia peopleation change. you need to show respect to that culture so you move away from just confrontation and fighting and complaining. >> what's your next movie? >> my next movie will be about mary shelly, and it will be my first attempt at english speaking and my first attempt at hollywood. >> so you won't be in a band and you'll actually be able to direct the actors. >> she grew p up in england. in a very similar environment like saudi, people expect you to act and stay and be in a certain way. when i read her story, it was amazing how she owned her own voice and she created this book that is an amazing legacy.

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>> the swiss national bank sent shock weaks throughout the sbeer national market. the swiss franc rose dramatically. it currently takes about $1.15 to buy a euro. that's similar to the exchange rate at the euro's introduction 16 years ago. at the dollar's exchange rate how many dollars did it take to buy a euro?

75 cents, 83 cent, or $1.13. this week has been an anti-dote to the busyness and craziness of -- arianna huffington thrives, creating a life of well-being wisdom and won't wonder. there's a wonderful guide to leading a more rich and meaningful life. she acknowledges her own mistakes in a way that makes it so much easier for all of us to make the effort. one of the things is to unplug from technology which you can do after you order this book jauchb line. you never know who you'll run into at the world economic forum, from presidents to policymakers, to ceos to singer -- we found him in the slums of z

davos. a slum is not what you would expect to find in the land of ski chal lays and private planes. the foundation set up a slum situation not far from where the forum is held. participants can experience to a certain degree what it's like to live on $2 a day or less. something more than 2 million people in the world do they must make bags out of newspapers to make their living. they must sell their bags and when they don't earn enough they will sell the clothes off their back. they face additional obstacles, like health emergencies, sanitation problems and having to face school kneefees.

spurral spurle spurling -- the simulation does not trivialize living in such abject poverty. >> you'll do anything to take care of your children and you feel that pressure in that simulation and it does give you a sense of what this is about, struggle for sure vial. >> it aims in part to help policymakers and business leaders understand the impact of their decisions. spur spurling told us of the difficult decision of choosing to feed his family instead of sending his chain to school. >> there needs to be a complete focus on education being free not just free in terms of the

education, but books, transportation costs. it puts extremely poor parents in an extremely difficult situation. >> perhaps more policymakers could benefit from this kind of simulation walking a mile or a meter in someone else's shoes. if they're anything like gene spurling they'll find they've sold their shoes to feed their family. in october of 2000 the exchange rate with $.86 to the euro. it's also looking pretty affordable right now. that is if you're going to a country that uses the euro. if you come to the beautiful country of switzerland. for a tourist, the price of chocolate at the moment is outrageous. thanks for being part of my program this week from davos,

i'll see you next week. >> happening right now, parts of new york city boston and connecticut facing a potential major blizzard, winds approaching hurricane force along the test and snow totals of one to two feet. plus. >> the alternative would be for us to play whac-a-mole every time there is a terrorist inside any country. >> president obama doubling down on a strategy to fight