context of work. so work plus education. it's been done in many of the country. are many models for it. one way we are going to tap this is, every time a private sector comes to make arise, oil or non-oil, we're going to be knocking on their door saying hello, corporate social responsibility, your firm has signed up for the global compact. this is what we need and this is what we want you to do. and we want you to focus on two or three things. the overall development of the communities around your oil installation or your factory, or whatever. and in i want there to be big boxes of de- mining, the mine action. at 30 i want to focus on getting work opportunity to use. we're negotiating with one to be unnamed company at the moment. this is getting very

enthusiastic about setting a vocational institutes in the south of the country. so this is what we are doing. it's not solving the problem for everybody. we are sincerely worried about the impact, particularly the impact on girls. because what is going to happen to the girls as they will get married young, and then not going to have the knowledge and skills to make them independent in their adult lives. they're going to go into a dependency on the family which will continue. and which will make it very difficult for them to help their own children in turn to get the education they need, even when education comes on line. so there are two or three areas where i will individually focus on. one is education. and the other one is water. where talk ran much about water, but this is just as big an issue because the whole of development base is based on water availability. but education, yes. unicef is very active in the

country. it has more of a focus on primary and preprimary, but let's work on those two, go up the ladder a little bit, and unicef is one of the few agencies i know that does very active s. m. s. toward the cell phone, the social messaging. we need to do a lot more. one of the real puzzles for us nowadays as a development community is how to use media to get the message across. because in the good old days, if you far enough in time there was a state owned rail which everybody listen to. that was the only entertainment. and we have state owned television and that was great for social messaging. and now we have everyone has satellite dish picking up 100 channels, and probably never, ever watching the iraqi news. so it's a real issue of how to do that. so any bright ideas where we will gladly see how to do it. thank you.

>> i would just like to know, the state department's point -- from the state department's point of view, a follow-up to this, when you recognize it óming of??; 80%, and christino i'm not going to be clear on thó exact age, but we are probably talking 13 or 14 through -- >> secondary school? >> who are not in school, who are not employed, and to provide real fodder for any kind of extremist influence, internal influence, that is not in a positive direction that you would like to see this country go. what is the view? >> i -- i mean, i do not think,

there's not a short-term solution to this problem. i think what you have to do is you have to set up -- i mean, just one example as christine pointed out, the oil sector. oil offers a great potential but it is limited how many people will be able to work in the oil sector. what you have to do is develop a diversified economy that offers employment, that develops over time, and, you know, you're right about this large cohort of young people out there who will be tough to reach, and you can't do with able into more and you can't do it across the board. but the quicker you get in place an economy that they see, perhaps not nearly as fast as anyone would like, but that they see as greeting businesses, is creating jobs, is creating opportunities for people is

offering them something so that they can see a future in. that's what you have to do. i mean, it's a tough road and it's not something that happens fast. i don't have a simple, let's do this and we will take care of this, this group of young people because there's just not one bull's-eye for that, unfortunately. it's a long-term challenge. >> i think as christine said it's not widely understood that this particular problem is as bad as it is, and it's not just potential terrorist recruits. it's crime. it's young people without a future are very problematic. but i just wanted to ask leslie a question for the middle east. if i may not democracy in the middle east and look at what's going on in iraq, why should i be persuaded that a democratic

system is worth the effort? why should i pragmatically even consider going that route in my own political development? what you take away from the iraq experience to date? >> well, first of all, i think it's important to be reminded that the idea of iraq is a democracy, was something that sort of developed after the fact. i spent a lot of time having to defend this notion that democracy is something that is imposed on people, and i would say where does that come from? the united states tried to impose democracy on iraq, and that was sort of an after the fact justification. i don't think that was ever the real reason for invading iraq. i think it was in the aftermath of the invasion, i think organizations like in the eye, it seemed like we should along with many others do what we

could to help iraq become a well governed country. i would argue that being democratically govern, even though it takes a long time to develop democracy, is the best way of governing. and the vast majority of iraqis would agree with that. in fact, there's something called the arab barometer, and similar barometers around the world. but the arab barometer is a series of holes that are done every year, and this polling shows that the vast majority of arab system, more than 80% in most countries, believe that democracy is the best way of ordering their political system. so the idea of democracy is not a hard sell in the arab world. in fact, quite the opposite, an easy sell. but i think people do look at iraq. if they think if chaos comes with a democracy, they don't want it. but i also have to say for the arab world, if they think that licentiousness comes with democracy, they don't want it. there are negative things associate with democracy as

well. interestingly enough i'm going to jordan tomorrow. there's an election in jordan next monday. more than a few jordanians have said to me, iraqis have more freedom to choose their leaders than we do. and they are there and they see the bad parts, but there's also a little bit of envy that iraqis have more freedom than the jordanians do. so i don't think iraq has emerged yet as a model as once was talked about, for the arab world. but most arabs are subtle enough to understand that the good comes with the bad. democracy across the arab world is long-term endeavor. i think it is based, the idea pursue democracy is based on the aspirations of people in the arab world themselves, it's not based on us in posting something, and i think everyone in the development world agrees that ultimately good governance has to go hand-in-hand with development. and i think i would say

democratic governance and good governance go together. but nothing will happen in the next year or two years. >> i'll try to restrain myself. who else would like to address the panel? there were a couple. i must have scared you away. >> the microphone is on its way. >> john keane from the u.s. institute of peace. i've got a question for john and the strategic framework agreement. it's a very important document. i was actually in baghdad in 2008. something which iraqis requested of the u.s. and iraqi conceived idea, and children much they want a relationship with the u.s. that's not dominate by the security problem. it shows they want is a economic development. it shows that they want to be in the region, international and get out of chapter 70 the sanctions. i know it's a difficult question to answer because there isn't a

government for me to talk to. but the agreement, it's aspirational. can you perhaps give us some insight as to what is happening to actualize it, what sort of structures have been set up? >> we actualized it already, and i think it is important want to make that it has the actualize in of it, if that is a would come has not stopped during the government formation process. not to get too worked, org chart anyone, but in each of these realms in the economic realm, the diplomatic realm, we break this down, we break this down into subjects and i will talk all of it about the economic road because that's what it most recently in baghdad. we have an energy, a transportation group, electricity grew. we sit down with the iraqis and we sit down with the proper iraqi partnership across the ministries. talk about the problems that exist and if there are ways for us to solve them together.

and i continued to go on. it adds inflows of a. some things go up, some things go down. the emphasis changes. it's something that we still use every day. we did not stop using it on the day of the election. we continue to have these conversations. it's important to point out that the government currently in place does continue to function and continue to function in important ways. i jotted down a couple of memory joggers because i want to make a point of this, but during this -- during these government formation discussions, they have taken and continue to take major decisions. i'll mention a couple of them. they have announced a major part of advantage of the oil resources that iraq has is, once you get them out of the ground you got to get them from field to the gulf so you can get them on thinkers. i won't bother you with the acronym but there's a lot

acronym for this project. the iraqis have done during recently an enormous tender for this project, a huge amount of money. the government is able to function and move this process forward. they are not falling behind. they just did their third patrol big round pick this one for natural gas. another importantly source their they're working on, the government works on a draft budget for next year and so on. the point being that the government is continuing to function and i relationship continues to go on. it's a really valuable tool, and we've not stop using it. we will keep emphasizing more and more in the future. >> yes, please. is there a mic nearby? way over here. i went up with a plug-in for our interns. we have the best in washington. we couldn't function without people who help us.

thanks. >> i've been a contractor for usaid in iraq. i was very interested in your discussion of the role of the surrounding countries as a collective head of state. i wish you could elaborate on that because i've actually not seen anything written in depth on that in any of the think tanks or the newspapers. can you elaborate and talk about maybe who are the stronger neighbors and their connections to a particular political parties and leaders in iraq? >> i can elaborate a little bit. i mean, you know, i think the absence of a true head of state, you know, i don't think it's something that people just forgot or didn't do. i just think the way the system was set up, it didn't provide any and -- what happened is the political positions right from

the get-go became a part of the negotiation of power-sharing. so remember, the symbolic president during the iraq government council time was actually a sunni, but eventually when they sorted it all out in the thing occurred. but as i mentioned, just my opinion, that when the person occupying what should've been a head of state tight position is actually seen as a political partisan and is part of the sort of hurly-burly of everyday politics, that position is never going to be seen as where you go to get the legitimacy to form a government. so i think it breaks down pretty simply actually. i think for the leaders of the parties that are predominately shia, where there are connections tend to be much more iran heavy for religious and cultural and other historical reasons, they tend to travel to tehran because they're trying to demonstrate that should they form government, they would have the support, the blessing of

tehran. i'm simplifying but i think that happens for the coalition, is coalition includes a lot of strong sunni leaders, a lot of support from the sunni community that he tends to spend more time in the gulf, particularly saudi arabia, to a lesser extent, turkey, to show that if, in fact, he were to form a government or the got the upgrade he would have the support of powerful neighbor saudi arabia, and as i say to a lesser extent turkey. it then starts to break and gets much, much more competent because within the shia party there are those who are perceived as being much more sort of straight from iran. some have incidental. it's not the case that saudi arabia is exclusively promoted one party or another. i think it is much, much more complicated, but in the end in syria plays a big role as well. but as you may know, the searing

government, you know, made up of, partly made up of a christian sect. but what's obvious though is that the political parties try to establish these allegiances, some of them have existed for decades, but they're trying to use these allegiances, in my opinion, to demonstrate to the people of iraq who may be more importantly to their, within this negotiation, trying to say look at me, i go to tehran. they back me. therefore, you should back down. and then that person's competitor goes to re- out and says no now i go to we ought, they receive me. you should back down. i think there's a new item yesterday or the day before is that the king of saudi arabia issued an invitation and at least the political spin now the ballot he wasn't invited that what he was invited it was an afterthought. is a bit of a snow. that was played out. is a really trying to play this

game to game legitimacy. i agree with john that i'm not actually all that down on the whole system in since it is being played out framework. it is being played out with an eye on the election. nozzle as i would prefer, and is being played out peacefully. it's a complicated thing. so i think it is being played out. it's a shame they have upon the government i think focus group shows iraqi people are frustrated beyond belief. they're sick and tired of it because as they said, it looks like a bunch of self-serving elites try to sort of feather their own nests. which i think is partially if not completely true. but on the other hand, politics is always a messy, you know, kind of bad looking at there anyway. this is a lot of politics. the neighboring countries as i say in the absence of homegrown legitimacy, the neighboring countries add that legitimacy. >> we are just a few minutes, too, which is our close. i wanted to give college and

opportunity if they had any final points if they wanted to make. if not, i have one. >> know, i think this has been a very rich set of questions. i hope that you think we have used our time well as well. put some of our issues on the table for you to think about. thank you. >> i would like to say, it's been great being here and it's been great listening to your question. you know, our emphasis and anna christine's emphasis as well is that there still a lot of work to do it been events, the u.s. military drawdown and the sort of landmarks that we have reached come and that does not mean that, you know, we are leaving it behind them were not at all leaving it behind. there's a lot of work to do there. we're working very hard together with our partners. we appreciate the interest that you have in it, and we really

want to keep working together to build a really stable sovereign dependent iraq. because the job isn't finished. >> i was just thank fred, you and the washington office for organizing this. and i think it's nice to bring iraq back to some focused today. as i mentioned at the beginning for understandable reasons, sort of flip. i'm glad it's not the number one thing on the jimmy moore but don't think we want to be flipped to far because the challenges are huge and congratulations to the undp for keeping us on the agenda. thanks. >> i want to return to the my start which was i can't help on election day, but imagine the effect of today and u.s. politics and related to the challenges that we always have in the washington office, which is responding to interest, and largely in the congress in this

case, people don't really understand that there is an economic side, there is a develop inside to the u.n., and how much, not only undp at the various agencies of the u.n. system do in partnership very close partnership, as you have heard, with usaid and the state department. and with ngos like ndi. the whole challenge of course is one that iraqis fear for developing their own country. but the effectiveness engage with the international committee, it did with the u.n. system i think is one of the key considerations. so in our efforts to convey the information and impressions to the officials in washington, nothing else more than bringing the best and brightest and most experienced undp people to town to talk to audiences like us, to meet officials as we're doing both over the course of two days, to reengage with john and les, and i just want to express our personal things to all three

of you for helping us capture that message. thank you. and thank you. [applause] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations]

>> up next on c-span to the president of the new york federal reserve bank talks about the state of the economy.

>> the president of the new york federal reserve bank recently gave a talk about the economy at the university of buffalo. this is 40 minutes. >> good afternoon and welcome. welcome. i'm glad it are today. my name is marcia anderson that i served as vice president for external affairs here at the university. and also as director of the office of economic engagement. we are very pleased to welcome you today. delight to see so many people in attendance, people from the

business community here, from our faculty, students from the university of buffalo as well as other area colleges. school students with those. where are they? where is lancaster high school? all right, very good. from their studies they wanted to be here with us today. so happy to have them on campus. for many years ub has been fortunate to host many distinguished speakers here who provoke our thinking on the issues of the day, and our speaker today will do exactly that. on behalf of the office of the provost, the school of management and the office of economic engagement, we are very pleased to welcome this speaker here to our campus. our speaker today is the 10th president and ceo of the federal reserve bank of new york, a position he assumed two years ago. in that role he served as vice chairman and a prominent member of the federal open market

committee, the group responsible for formulating the nation's monetary policy. an economist who has served in many capacities, our speaker was a partner and managing director at goldman sachs before joining the federal reserve. his tenure at goldman sachs included time as an economist responsible for the firm's foreign exchange forecast. he also chaired the gt and committee on payment and settlement systems and the federal reserve bank for international settlements. he is a member of the board of trustees of the economic club of new york, and a member of the technical consultant group, a former of the technical consultant group of the congressional budget office from 1999-2005. we will have some opportunity for questions following our speaker's presentation, so please consider that during his time here, and will have

microphones in the aisles and we will ask you at that time to prepare yourself for a question. please welcome her to the university of buffalo, the president and ceo of the federal reserve bank of new york, mr. william dudley. [applause] >> thank you all for coming. we have had a great tour through yesterday, and a 40 our last stop before very kind with the weather today. pre-spectacular for this time of year. what it want to do today is talk of it about national and regional economic conditions and how the federal reserve is responding to them, paying particular attention to the housing sector and conditions here in upstate new york. as always, when i have to say reflects my own views and not necessarily those of the local market community or the federal reserve system.

as many of you know, this is my first chance to speak at the university of buffalo since i became president of the new york fed. so by way of introduction i thought i was her with a little bit of a description of what the new york fed does and what makes my job so interesting. the new york federal reserve is part of the federal reserve system which is america's central bank which was established by congress in 1930. so we are three years away from our centennial. with this act congress delegated the federal reserve its constitutional authority that manages the money supply and designed it to be centralized, to be represented among the entire united states, and independent of the political process. the federal reserve system is comprised of a board of governors in washington, d.c.. that's the federal agency led by chairman ben bernanke, plus 12 relatively economists that span the country. for example, the district overseen by the new federal reserve and clues all of new

york state, the 12 northern counties in new jersey, fairfield county, connecticut, and last but not least puerto rico and the u.s. virgin islands. always a good place to visit in the winter. each reserve bank is autonomous with its own charter and board of directors drawn from his district. we are overseeing by the board of governors in washington. the law that created the federal reserve system made its independence -- [inaudible] >> the fed is accountable to congress. congress has split an objective was in terms of how we conduct monetary policy. it is to pursue the highest level of employment consistent with price stability. this objective is often referred to as our dual mandate because it combines two goals, high employment and low and stable inflation. in order to make use of gestures we also pay close attention to financial stability because

without financial stability it's very hard to achieve our goals. the federal committee meets in washington eight times per year to deliberate and vote on monetary policy. our next meeting is tuesday and wednesday of next week. i am vice chair and was a good things about being the vice chairman is i get to vote on the committee. at these meetings the 12 federal reserve bank presidents, seven right now there's only six members on the board of governors, discuss the outlook for the economy and decide what they want to do in terms of monetary policy. to reach these assessments we have input for research departments with information about local economic conditions that we draw from our board of directors, regional advisory council, in conversation with local stakeholders. you may know that one of my councils the other day is designed specifically to provide us with time information. in this way the decision by