remember, most americans have health care. what they worry about is the cost of insuring 20 million to 30 million more people. and unless the meteoric rise of health care costs is slowed, a big expansion of coverage might well remain unpopular no matter how it is explained. now, how is that going to happen? well, republican alternatives to obamacare such as they are do have a strategy to control costs. get consumers to pay more for their health care. the basic idea is intuitively appealing. markets produce efficiencies. they presumably would do the same thing in health care. but the situation on the ground suggests that markets work imperfectly in this realm. a new study conducted by the pharmaceutical company novartis and mckenzie and company shows a stunning difference among countries with regard to health care efficiency.

for example, smoking rates are higher in france than in the united states, so the french population has hire rates of lung disease. yet, the french system is able to treat the disease far more effectively than happens in the united states. its levels of severity and fatality are three times lower than in this country. and yet, france spends eight times less on treatments per person than the u.s. system. eight times less. or consider britain which handles diabetes far more effectively than the u.s. while spending less than half of what we spend per person. the study concludes that the british system is five times more productive in managing diabetes than the united states is. to understand this issue better, i spoke with daniel vercello of novartis and a physician by training. he's also frankly pro-market and pro-american, both of which have occasionally made him a target for some criticism in europe.

he emphasizes there's no single model that works best, but he explained that france and britain have been better at tackling diabetes and lung disease because they take a syst systemwide approach that gives all providers an incentive to focus on early detection and cost-effective treatments that make wellness the goal. so i asked him, is the lesson that only the government can produce systemwide improvements? his brief answer is yes, this is a case where you need government action. you see, economists have often written about the asymmetry of information. areas where consumers are not expert enough to be able to determine what product is best. evidence increasingly shows that this is true for health. after all, consumers freely make the choice to smoke, eat junk food and forgo preventive care, all of which are highly likely to make them sick, force up

their health care costs, and lower their quality of life. having us spend more of the money ourselves is not likely to solve the cost crisis in health care. let's get started. let's get right to our global panel. in london, ann applebaum is a columnist for "the washington post." in paris, dominique is the founder of the french institute of international affairs. in singapore, mubani is the dean of the school of public policy at the national university over there. and also in london, mark brown was deputy secretary-general of the united nations and a member of gordon brown's cabinet. welcome to you all. so let's start with the crises. mark malick brown, you've dealt with these issues often, and your former boss, kofi annan, is now trying to broker some kind

of settlement in syria. is he likely to be successful? >> well, i think you've got to go on giving diplomacy a chance while being very realistic that it may not get us across the finishing line. in the balkans, many of us remember diplomacy went on for too long, and we didn't, you know, turn to military solution soon enough. but i do think that kofi annan has made progress. the russian and american positions in private are closer than they often appear in public. and still, if there is a united international community, the regional neighbors plus russia and the united states and europe all rowing in the same direction on this, this is the best way to get the transition to a legitimate government that the country has. >> dominique, in france, there seems considerably less enthusiasm under francois hollande's government compared

with nicolas sarkozy in libya. sarkozy, of course, led the charge in some way for the intervention in libya. >> yes, definitely. we have no money. there is no enthusiasm whatsoever for what would look like a much more difficult military adventure. and the shooting down of a turkish plane last week was a kind of warning by the syrian government. don't try to do with me what you did with libya. it wouldn't work. >> ann applebaum, you just got back from libya. what is the perspective over there about welstern interventions? >> well, the libyans would love to see western intervention because they feel, in a way, that this is part of their revolution, too. i don't know that they're so focused on it at the moment because they're worried about their own elections, which are strangely both very, very

chaotic and very optimistic. it's a very strange moment in libya. it could still go either way. there's an enormous kind of gathering together of civil society. people wanting to make this work. and at the same time, this is a country which hasn't had elections or political parties for 50 years. so it makes a kind of interesting template which maybe, you know, we can see how other countries follow it or watch it. >> what does this look like to you on the other end of the world? do you think that -- how do the issues regard this talk in the west about getting involved in syria? >> well, i think, number one, let me emphasize that assad has to go because he's lost his legitimacy. and it's only a matter of time before he goes. but at the same time, i mean, there's not -- there isn't any kind of enthusiasm in asia for any kind of military intervention, again, in syria

because if you look at what the west did in iraq, even in libya, at the end of the day, can you show that any such military intervention will lead to better results? and there's no one in the west to finish the job. and if you start, you'll have an incomplete problem again. >> mark, do you think that the russians are the key here, and can they be brought around? >> well, they're one of the keys. i think in a sense they've been a useful device for everybody. for the russians presenting themselves as the key has meant that diplomats have had to make their way to moscow and put moscow at the center of things again. and clearly, they do have influence over assad. what's not clear is if they told him to go, whether that would indeed be the decisive thing or whether the support of iran be continued, degree of support he has inside the country would let him still hang on. but i think it's convenient for everybody to present russia as either having a veto on change

or at the very least, being the key to it. i think frankly, the russians will come into line on this. i don't think they like this public demand that assad's departure be spelled out so explicitly. but i think they, as longtime syria watchers, recognize he's finished. it's just a matter of when and how he goes. >> and when you look at the situation with iran, dominique, are the europeans, you think, comfortable with what are now pretty crippling sanctions on the iranians? is this a strategy that the europeans will stick to? because it certainly seems as though iran is going to suffer some very, very serious economic consequences, not just the regime, but the whole country. >> yes. there seems to be scenes from europe that the tougher the

sanctions are, the less likely a military intervention will be. so i think there is that logic which is shared, i believe, by the french and the americans. and i think there is now, with hollande in power, a line in paris which is probably more in tune with the line in washington. as if yesterday, sarkozy was even tougher than the americans were. >> do you think that line is shared in china? beijing got a waiver on the issue of importing iranian oil, making the case that they had cut down their imports, but they still need iranian oil. do you think they're comfortable with where things are heading? >> let me say something quite provocative here. because it's impossible to get out of the western perception of

this problem. in the west they can go around changing government is ending. western power has peaked. and from now on, it will go down. the only question is how are you going to change iranian behavior? and i truly believe, frankly, that the only way to change iranian behavior is to engage the iranian regime. now, of course, this is unthinkable still in the west, but you asked about china. frankly, from china's point of view, the more the west isolates iran, the more iran becomes a gift to china. and now that america has said, okay, you can go ahead and buy oil, china is off the hook. and that's happening because it is impossible for america to impose the same sanctions on chinese banks. they can impose on any other banks in the world. and that's why china can get away with it. so you're presenting china with

a geopolitical gift, and china will accept it. >> we're going to take a short break. when we come back, the point about the decline of the west. we will talk about greece, the euro, but also we'll ask, as we always do on international shows in america, enough about the world. what does the world think of us? when we come back. [ male announcer ] citi turns 200 this year. in that time there've been some good days. and some difficult ones. but, through it all, we've persevered, supporting some of the biggest ideas in modern history. so why should our anniversary matter to you? because for 200 years, we've been helping ideas move from ambition to achievement. and the next great idea could be yours.

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and we are back with ann applebaum in london, dominique in paris, kishu in singapore and mark mallich-brown. ann, you've written there really is no solution. no matter how you structure the deal, no matter the rescue operation, greece is simply bankrupt. is that right? >> yeah. well, i pointed out that greece's problem is to do its math. and the greek government is bankrupt, and the money has to come from somewhere. and so -- and right now it looks like the money needs to come from germany. so therefore greece needs to reach an agreement with germany.

and that's created -- we've already seen it's created all kinds of odd politics, the emergence of a far right, a far left, all kinds of dissatisfaction. and i don't think -- there was a kind of sigh of relief recently when the greeks elected a kind of mainstream government in their recent round of elections. but i don't think the trouble with greek politics is over yet. >> mark, will this be solved? will the germans essentially agree to bail the greeks out, understanding that this is a very large bill that will never be repaid? >> well, look. i think the whole of this crisis is, you know, it's always one minute to midnight. and the germans come in and do something that buys a about the more time. unless there's a much more decisive intervention that goes much wider than europe, the money must be on anne's, i think, belief that ultimately greece is going to fall out of the euro. it finds itself trapped from its

point of view an overvalued currency. it's trapped in an austerity economic program. the combination is it can't grow, it can't export. it faces an economy which is at best taking over. it's an unsustainable long-term situation. >> dominique, what is going to happen in europe? francois hollande wants to try to change that austerity regime, but will he be able to? at the end of the day, the european countries, as anne said, they do need to borrow money. and what the bond market seems to say is you've got to get your fiscal house in order. which means it's very tough to say, we don't care about that. we're just going to spend our way out of this problem. >> well, i would say something as provocative as khosur. i think it would be hurtful to bury europe right now. i think a lot of big investors

are hedging their bets between emerging countries and the west. they are, in a way, saying the virus is in europe, but the antibodies are probably stronger in the western world than they are in the emerging countries. so just wait. europe and the west may be slowly starting to be back, especially if they don't -- are falling under the guillotine in the next coming weeks or coming months. >> when you look at this issue -- and i'm going to broaden it to the united states -- do you think, you know, this is july 4th weekend, do you think that the rest of the world looks at the obama administration as having restored some of the credibility of the united states? do you think that they look upon, you know, what america is

doing now as showing a certain degree of leadership, whether it's in economic policy, whether it's in geopolitics? >> i find it quite frightening that so few americans are aware that in ppp terms, as they said in "the financial times," the united states' economy is going to become number two in the world in 3 1/2 years from now. now, the rest of the world is preparing for a new world order slowly, carefully. and america is not aware that this is happening. and here, unfortunately, the thing that's keeping the rest of the world reverted is the fact that washington is so divided, to polarized at a time when they should be coming together. so everyone's waiting for the elections to be over. then we hope something will come out of washington. >> mark, you've spent time on both sides of the atlantic. how does the united states look to you this july 4th weekend?

>> not too bad. not too bad. i think it gets written off very prematurely. i think the extraordinary change in the energy scenario which will make it energy self-sufficient through the discovery of shale, tremendous changes in manufacturing in terms of the contribution of labor costs, against intellectual property and transport costs mean that a certain amount of manufacturing is going home to america. and a fiscal deficit which is so dramatic that the politicians will have to sober up after the election. and one way or another address it. so i think those longtime american virtues that reflect ability and resilience, don't discount them yet. i think america has another chapter left in it. >> dominique, as a frenchman, from a country legendary for its anti-americanism, you have a last word. >> well, i'm like mark. i think by the end of the day,

america, to me, looks better than china because its fundamentals are probably righter. >> thank you all. fantastic global panel. up next, "what in the world?" i'll give you one reason why america has a big advantage over china. right back. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 let's talk about that 401(k) you picked up back in the '80s. tdd#: 1-800-345-2550 like a lot of things, the market has changed, tdd#: 1-800-345-2550 and your plans probably have too. tdd#: 1-800-345-2550 so those old investments might not sound so hot today. tdd#: 1-800-345-2550 at charles schwab, we'll give you personalized recommendations tdd#: 1-800-345-2550 on how to reinvest that old 401(k) tdd#: 1-800-345-2550 and help you handle all of the rollover details. tdd#: 1-800-345-2550 so talk to chuck tdd#: 1-800-345-2550 and bring your old 401(k) into the 21st century. tdd#: 1-800-345-2550

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now for our "what in the world" segment.

i was told to read the tragic story. she was seven months pregnant, but she already in one child. so local officials forced her to abort. the story could have ended there. another loss, another sad story. but friends and relatives posted graphic images of her fetus on the internet. the pictures went viral. forcing government officials to apologize. the story led to a government-affiliated think tank calling for change. writing in the china economic times, it suggested beijing should switch to a two-child policy. even a few years ago, it would have taken a very brave chinese thinker to pose that question in public. now there is public discussion about china's one-child policy. could it actually change? when the one-child rule was first introduced in 1979, china's leaders were reacting to an unprecedented population boom. from 540 million to 960 million

people in just under 30 years. and this was happening while china was one of the poorest countries in the world with little prospect of economic growth. with certain exceptions, the policy was meant to restrict married urban couples to having only one child. officials sometimes resorted to extreme measures to implement the rules. but do they make sense anymore? leaving aside the immoral practice of forced abortions, china is facing a demographic disaster. china is going to get old before it gets rich. right now only 8.9% of chinese are over the age of 65. compare that to the american ratio of about 13%. but come 2050, china's percentage of elderly people will overtake that of americans rising to 26% which is more than japan's right now. look at the median age over time in china. it's gone from 22 in 1980,

rising steadily upward to 35 now, roughly the figure for a rich country like america, not a developing society like china. but continue the projection until 2050, and the numbers get even more troubling for beijing. while the u.s. will have a median age of 40, china's will be closer to 50. so half of all chinese will be over the age of 50. the implications are immense. china's work force will shrink. it will no longer be the world's factory. all those older people will need to be supported by their families or by the state. and china will likely need to import workers instead of exporting them. and china is not exactly an immigrant-friendly society. societies with fewer young people become less dynamic, less risk taking and less adventurous. there's one more thing. china's one-child policy has been especially brutal on women. by one account, there are 123

male children for every 100 females under the age of 4. imagine what happens when they grow up. too many men. not enough potential spouses. and remember, countries with male youth volume have historically seen civil wars and revolutions. chinese officials claim the one-child policy has prevented the births of 400 million children. they point to it as one of the reasons why the state has been able to lift millions out of poverty. that may be so. but the policy is now a burden, not a benefit. the rules have been relaxed in some ways, but no formal reversal is possible until beijing's next set of leaders assume power next year. even then, it will take much courage. this is actually a fascinating real-life example of the problems with centralized authoritarian regimes. even when they're as well run as china's is. when they make good decisions on economic policy, for example,

they are rapidly implemented and well executed. but the same is true when they make a bad decision. or a decision that no longer makes much sense. that seems to be the case with the one-child policy. we will be back. up next, the man who is laying claim to mexico's presidency. we'll talk about the drug war, immigration, the economy and more. right back. she thought allstate car insurance was out of her reach. until she heard about the value plan. see how much you could save with allstate. are you in good hands? what ? customers didn't like it. so why do banks do it ? hello ? hello ?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello ?

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my next guest is the man who has, by all accounts, won the

presidency of mexico. he'll take on a number of issues vital to mexicans, to americans and to the world. what are his plans? well, his opinion editor joins me now from mexico city. welcome, sir. >> translator: fareed, thank you very much for this great opportunity. greetings to all your audience. >> we are now in the sixth year of a drug war that president calderon announced in which 54,000 people have died. now, naturally, you campaigned on policy changes, but what i'm struck by, mr. president-elect, is the similarities. you say no treaties. no truces. no negotiations with the drug cartels. you promised to continue to fight them. you've hired the former police chief of colombia, a country which went for a very tough strategy. so can we expect to see a continued bloody confrontation with the drug cartels?

>> translator: look, fareed, what we seek now in our new strategy is to adjust what's been done up till now. it's not a radical change. it's to broaden the coverage and, above all, the emphasis i aspire to of reducing the violence in our country. >> but there can only be a reduction in violence, mr. president-elect, if the cartels also agree to a reduction in violence. if they keep fighting, you will simply be unilaterally disarmed. >> translator: i'm persuaded that if we achieve the specialization in the work carried out by the various branches of the federal police and the inspector general's office, waging war on impunity will allow us to combat crime. >> let me ask you about the last president of mexico who came

from your party. he along with the former president of brazil, mr. c cardozo, and others signed a law which said the war on drugs which takes on militarizing this, using violence, trying to interdict supplies and cartels, has clearly failed. and there is much evidence for this. the price of cocaine is 75% lower than it was 30 years ago. there are so many signs that this punitive approach, whether you use the police or whether you use the army, has failed. shouldn't we be trying something that is more -- that tackles more of the problem of the demand for drugs rather than the supply of drugs? >> translator: yes, i do believe that we should open up a new debate regarding how to wage war on drug trafficking. personally, i'm not in favor of legalizing drugs.

i'm not persuaded by that as an argument. however, let's open up a new debate, a review, in which the u.s. plays a fundamental role in conducting this review. >> mr. president-elect, how do you react to the news that you read about in the united states with american -- certain states like arizona trying to put in place more and more punitive laws that allow the police to check whether or not people are from mexico or whether they are u.s. citizens? the general atmosphere, the rhetoric you hear coming out of some parts of the republican party. as president of mexico, what is your message to americans about this? >> translator: clearly, it seems

to me that these are discriminatory laws that don't recognize the contribution and the value of millions of immigrants, particularly from my country. who make enormous contributions to the united states' economic development. it's clear to me that mexico must facilitate conditions for greater economic development through structural reforms, energy reforms, treasury reform, labor reform in order to generate jobs and greater opportunities in my country. so that immigration is a decision and not a necessity for mexicans. >> you've spoken about your priorities, mr. president-elect. and the key one has been

economic growth. you have among the lowest taxes of any country. in other words, very few mexicans pay taxes. as individuals or as corporations. will you be able to change that? >> translator: that's another one of the great structural reforms that i have committed to and which i propose to carry out is a treasury reform. which would allow fair taxation. simplified tax code, and to broaden the tax base, which would strengthen the country's public finances. >> mr. nieto, pleasure to have you on. >> translator: i will look forward, fareed, to our next meeting. and i appreciate the great opportunity to have this interview and to reach your audience. >> thank you, sir.

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with the unemployment rate as high as it still is, a crucial question that must be answered is, who creates jobs? is it the 1%? or middle-class consumers? that's at the heart of the

debate we're going to have today. i'm joined by two business leaders. on my right is ed, the former bain capital partner, an unabashed member of the so-called 1%. and he says it is he and his colleagues who are largely responsible for job creation. nick hannau is an entrepreneur and venture cap list, also a member of the 1%. he says when businesspeople take credit for create jobs, it's like squirrels taking credit for evolution. let's start -- ed's got a book out. we've had him on the show before. >> sure. >> so you get the first word. why is it like squirrels taking credit for evolution? >> look, if investment was the key, then there would be apple stores in somalia. and there would be a bain capital office in bangladesh. the thing -- the goose that lays the golden egg is not people like ed and myself. we are a dime a dozen. the greatest economic achievement of the 20th century has been the creation of the

american middle class. it is demand. it is customers that drive all economic activity. look, the world is awash in capital. american corporations are sitting on $2 trillion worth of cash. ed's firm alone has raised $35 billion in private equity. i'm in the venture capital business. you can fund any cockamamie idea. the world is awash -- it is awash in cash. it is awash in capital. what we lack today are consumers. the only reason any company invests, the only reason any company hires someone is because they believe they're going to have a customer for that. look, anyone who's ever run a business knows that a capitalist hires more people only as a course of last resort. when there are no options available other than meeting increasing demand from customers. >> at some point, presumably, this logic does apply which is

that if the middle class, if the majority is 80%, 90% have lower and lower incomes, the fact that they don't have much purchasing power will affect demand. >> i think there's two problems with the argument. first of all, we know why there's no apple store in thailand. there isn't a lot of capital, workers and innovation compared to the u.s., and that has driven incomes way up in the u.s. relative, and that's why we can afford apple computers and things like that. so if you don't have the investment in place first of all, you don't get the consumption after the fact. now, you can run the math. and the assumption in the math is that if you lower the incentives for risk taking, if you lower the investment that goes into risk taking, if you lower the capital, the equity that underwrites the risk taking, that you'll get the kind of growth in the middle class that the u.s. has been able to achieve. we can look at real. world experiments out there, and we don't find one where that's true. we have three great real-world experiments, the u.s., europe and japan.

our median incomes are 25% higher. ours have grown. we can spread the income over a lot of employees, which we have because we've grown our employment much faster and much greater than they have grown theirs. or we strip the supply of labor and drive wages up to a certain extent. either way what matters is how much income you've created. and we are creating way more income at the median than europe and japan are creating. and that is because innovation is driving our economy. so we can say hey, we'll take away the incentives. we'll take away the equity. we'll take away the investment but get the growth anyway. because god bless america with entrepreneurial spirit. >> ed and i are in agreement that innovation is an extraordinarily important thing. where we diverge is this idea that we have to lower tax rates to these unbelievably low levels in order to have it. so this is my world. and the idea that you have to

have a 15% capital gains tax rate in order for people to start companies, first of all, reduces people like me and other entrepreneurs to sociopathic money grubbers who only do what we do for a dollar. and that is create gorically untrue. we start companies because we want to change the world, solve a problem, be king of the hill, be our own boss. by this logic, bill gates and steve jobs made a terrible mistake by starting their companies because tax rates were 2 1/2 or 3 times higher then than they are now. >> let me ask you what you would change. wouldn't it be fair to say the united states does provide enormous incentives for rich people to invest. taxes are, historically speaking at least, much lower than they were in the 1970s when microsoft and apple were founded. marginal tax rates were 75%. capital gains tax rates were, i

think, in the 40s. do you think that tax rates need to be further reduced? >> i would be very, very careful about reducing the incentives for risk takers. and i would be working very hard to lower the spending. and i think there's agreement on the left and the right that we have to -- i mean, we have to substantially reduce the spending over the long run. if we want to preserve the growth rates and the benefits that we have been to be able to provide for the middle class relatively to europe and japan if we want to continue that success. >> you want to invest -- the spending you're talking about is basically investment in the middle class. >> absolutely. i just want to address this risk thing for a moment because i find it absurd. i mean, if you think about the iconic so-called risk takers in our economy, bezos, zuckerberg, gates, the google guys, just imagine their lives, right? so the google guys -- and god bless them, they've done a great thing, but they grew up in families where their parents are professors in mathematics and computer science. so far no risk.

they go to stanford university to get phds in computer science. other than being born in the british family, no institution on earth more insulates you from risk than a ph.d. in computer science from stanford. at the best time and place in history, they go off to live the dream and start an internet company in silicon valley in the mid-'90s. so far no risk. the money that goes into google comes from venture capitalists. you'd think maybe they took a risk. comes from ventunture capitalis. the only people that took a risk in this entire chain are the working people whose pension funds the venture capital company invested in google because if google goes bankrupt, those people will actually lose their money. this idea that we owe the so-called risk takers special tax treatment is utterly absurd. it's just not true and not fair. >> you're making a moral being

ament as opposed to an economic argument. all you really care about is how do you get the risk taking that benefits the middle class at the lowest possible cost. >> i would agree with that. >> thomas edison said, success is 1% inspiration, 99% perspiration. business is a team sport. it is not about two guys sitting in their dorm room at stanford. it is about attracting a lot of talent to that company to make it successful, getting guys to walk away from microsoft and google. it's what's the economic guys to get those guys to walk away to create the next google or next facebook. it is before the fact when they have 1 in a million chance. they recognize unless they get more equity they have very little chance of producing as much income and wealth as they would if they just would have stayed at their job at googled a facebook as opposed to walking away and taking risk. we've been able to do it and europe and japan have been unsuccessful in accomplishing this. their most talented people go to

the beach. as you get more money you work less. we're the only place in the high-wage economies where people are working more hours, not less hours. that's beneficial to the working class and working poor throughout the world. the u.s. invasion is what is driving the growth rate. >> thank you, gentlemen. wonderful debate. maybe we'll have round two when we come back. down here, folks measure commitment by what's getting done. the twenty billion dollars bp committed has helped fund economic and environmental recovery. long-term, bp's made a five hundred million dollar commitment to support scientists studying the environment. and the gulf is open for business - the beaches are beautiful, the seafood is delicious. last year, many areas even reported record tourism seasons. the progress continues... but that doesn't mean our job is done. we're still committed to seeing this through. hey america, even though slisa rinna is wearing the new depend silhouette briefs for charity to prove how great the fit is even under a fantastic dress. the best protection now looks,

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china and europe's central banks both cut their main interest rates this week on the same day. europe's rate is now .75% and the u.s. fed rate is even lower, .25%. my question for the week is -- what is china's benchmark interest rate? is it, a, .75%, b, 3%, c, 6%, or d, 9%? stay tuned and we'll tell you the correct answer. go to cnn.com/fareed for more of the gps challenge and lots of inside and analysis and follow us on twitter and facebook. also remember, if you miss a show, go to itunes. you can get the audio podcast for free, or you can buy the video version. go directly there, type itunes.com/fareed into your browser. instead of one book this week, we're going to give you five of our recent choices. think of it as summer reading. just don't think of it as homework. these are all fun reads.

"adapt" offers a new approach to solving problems in your personal life, your career, your business. "franklin and winston," a fascinating book, one of my favorites. in the campaign season, one of the best presidential campaign books ever written was "the making of the president 1960" by theodore white. a work of fiction about iran's nuclear program and very good fiction at that. check out david ignatius' "the increment." finally, my own book, "the post american world release 2.0." if you like this show, i think you'll like the book. now for the last look. they say it takes two to tango. but two tanks tangoing? oh. and here are tanks doing a

pirouette. and there, all part of a tank ballet directed by a choreographer from the bolshoi ballet. military hardware and ballet -- two of russia's surviving strengths. this exposition held recently outside moscow wasn't about art. it was about commerce. russia was showing off its military technology, looking to impress potential buyers. one has to assume president assad had to decline the invitation, but that's okay because russia's best customers are not in the middle east, but rather to the southeast -- india, vietnam, china. asia is rising and arming up with defense budgets soaring across the region and moscow is benefiting. though not as much as washington, which is, of course, the world's biggest arms seller. the correct answer to our gps challenge question was, c. china's central bank lowered its

main interest rate to 6% this week. unlike in the united states, emerging economies like brazil, india and china have kept interest rates high. that gives them a secret weapon in their arsenal. they can lower rates if growth continues to slow. thanks to all of you for being part of my program this week. i will see you next week. hello, everyone. i'm fredricka whitfield with a check of our top stories. this hour, roger federer wins a record tying seven men's single title at wimbledon. he beat british player andy murray 3-1 sets. murray was vying to become the first brit to win wimbledon since 1936. hours ago, egypt's newly elected president announced he is overriding a military edict and ordering the return frt country's islamist dominated parliament. the decision may be the first test of the relationship between president mohamed morsi and the

country's military. kofi annan, the u.n. arab league peace envoy, arrived in damascus, syria today. he is scheduled to meet with president bashar al assad. it is annan's third trip to syria since violence broke out there 16 months ago. we have new information on that mysterious illness that is killing children in cambodia. more than 60 have already died. sara seidner will tell us what she is seeing in one of the hardest hit areas. that's at 2:30 p.m. eastern time right here in the "cnn newsroom." right now, "the next list" with sanjay gupta starts. the hope with little bits is to get people to understand technology at a very simple level and really start to take part in this revolution. >> reporter: she has invented the next generation of the lego. called little bits. they're small, colorful,

electric components that snap together to build just about anything. >> each little bit is pre-assembled, pre-engineered electronic module that has one specific function. it is to enable kids and adults even to play with lights, sounds and sensors without having any experience whatsoever and without any background in engineering. i am an engineer and i'm the founder of little bits. >> reporter: aya believes everyone is an innovator. as she tells cnn's poppy harlow, little bits are break down the boundaries of technology to empe empower young and old alike, to simply create. i'm sanjay gupta. this is "the next list." this is my first time with little bits. how would i build something? how would i know what to make? >> so the instructions are very simple. there's two instructio