markets and how does the process of localization assist companies in accessing and succeeding in these markets? >> there's a difference between translation and localization and it's the adaptation of products or services to the country. to give an example you buy a japanese car in the u.s. even though they are produced in japan and have left and right so

you need to adopt your product which to the local regulation so that is beyond just translation also translation is one of the important parts of localization. the question you asked is what are the key changes and that really depends on the possession that very often they don't know how to put the document in the translation. but most likely that resonates with the previous panel the lack of the executive awareness and more understood almost 50% of

the income comes from overseas they would pay attention from apple computer after $8 billion of revenue, 60% of that was generated abroad, facebook revenue who grew from 33% in 2010 to 44 in 2011. wal-mart's international sales of the last quarter are almost nine per cent whereas the u.s. business more executives understood that language is a key enablers for the success and to survive they wouldn't have a lot of middle managers in the companies that struggle to get the budget. >> thank you. >> thank you. dr. goodman.

as you mention in your testimony you serve on the council of foreign relations staff for u.s. education reform and national security which concluded shortfalls in your education raise national security issues. will you please explain how the task force came to that conclusion? >> thank you, mr. tran. we began with a horrifying statistics who is 70% of our young people today are unqualified or disqualified from military service. there was a member that shocked all of us. some are unqualified because of their educational background, some because of persistent health problems and some because of obesity which we know is a

major problems we try to zeroing in on the part of that population that at least we could fix and that goes through education, and we tried to get an agreement on and got a substantial amount of agreement is that america needs a core curriculum as about 20 states and 20 governors have now accepted. what surprised me the most is i felt i would have to fight very hard for a foreign language requirement to be considered essential and to be considered core. i didn't have to have all. people on the task force really realize that is our key to understanding the world we share to prepare americans for global life and global work and getting ready to enter the national service whether it is in the security or diplomatic areas. so we believe in a core curriculum and we believe in foreign language and we also believe that the readiness audit

that helps establish the dialogue in the coordination in the private sector and also government so we know where the gaps are and can fix them. >> mr. wallace and dr. goodman, the task force report discussed the reality of cyber espionage against business and government systems. would you explain why foreign language is important to cybersecurity? it's a language so the rest is not english but there's also a

huge increase in what we call user generated continents of blogs and other social media sites. so if you want to analyze what's out there, if you want to understand what other people say about u.s. company or about us as a nation, then speak in those languages but also understanding that language in the current context and the context of the culture is absolutely crucial. >> dr. goodman? >> thank you, senator triet as mentioned in his testimony, language conveys value and sometimes conceals intentions. we need people skilled and understanding both. i think to me the same is true in this labour security area. the internet is an english speaking world a lot, not exclusively, and it's being used

by people with many different values and different intentions, so i think part of our recommendation and the task force to focus on this is to try to understand those people who are speaking english using the internet and having tensions that are different than the ones we associate with simply sharing more information. >> thank you. dr. davidson, your testimony notes that there is a general lack of knowledge of how to develop and implement language training from early childhood and you recommend using five k-12 flagship model to build a pipeline of proficient language speakers. what key elements from this

program emulated by schools across the nation? >> thank you, mr. chairman. i think the lessons of flagship car that best practices are out there in the field. flagship did not sort of create a bunch of mystical new ways of language but it mobilized the best thinking in the field and stood back with a certain perspective and said how can we do all of this letter and in a consistent way? i think in terms of the saddle role in the flagship model it is a very clever one in the sense that it doesn't attempt to purchase a turnkey shop with some kind the from the looks of the limited points of leverage along the way where a federal boost can make a difference in whether a program survives or student is motivated for the progress in learning that

language is suitably of finance. for example, never to forget the importance of the teacher it's maybe not as sassy as the head line with the teachers are critical to this process. another strong lesson we've learned is the summer intensive peace can fit into the curriculum without doing damage to everything else. you can actually pursue a part of the major requirements leader on harkening back to the requirements. those requirements can actually be continued overseas in the direct enrollment model. the key to flagship is mobilizing the best practices looker out there now. the standards, the outcomes, the field has its act together. looking at the point of leverage like the summer capstone where a little boost from an external

founder to make it all come together. my next question is for the panel. i would like to give you all an opportunity to provide any final statements or, as he must like to make. i know that you have lots to say about foreign language. so let me call on mr. loveless first on again any final statement or comment you would like to make. >> thank you have a much for giving us the opportunity to justify defeat could testify to you and the subcommittee. we are as an industry association we represent the majority of people that actually

produce the work that generates $2.1 trillion. and we would really work on the opportunity to cooperate with the previous camel and this panel because our channel -- we have all of the same challenges coming into this point we are not really talking, so again, things again for the invitation, and i am looking forward to more conversation here after. thank you. >> dr. goodman. >> i simply hope that this subcommittee and its exercise of government oversight will continue to focus on the very issues that you have identified since 9/11. the need for the country to be able to speak of the language is to operate effectively in the world that academia plays in that, the private sector plays

and the role the government plays. so i hope the spirit of these hearings will very much continue. thank you. >> thank you very much. >> mr. chairman i would like to second what was said about the importance of these hearings and the way you've been able to focus public attention over time to this very important need inside of our government. i think the good news is that the models, are there, that we can make a difference and bohm models fars scalable so we mentioned the state department programs and the flagship, these are excellent models that don't have to be reinvented and they are operated in 150 places oracle places or 24 fleeces of it takes so little to develop that number in a marginal difference in the cost would enable those models to be generalized and disseminated more broadly the country.

>> i want to thank you so much for your responses and statements. it will be helpful to the subcommittee, and we look upon you as those that have been with this problem that we are facing together. we can use our information to try to improve it for our country. we are a diverse country. we have the language here, we just have to use it well and be sure we train people well to serve in that capacity. so thank you very much. we appreciate your presence. >> thank you.

>> i want to welcome to the third panel -- i want to welcome shaunna kaplan, a fifth grade student at providence elementary school in fairfax county virginia. ms. paula patrick, the coordinator of world languages for fairfax county public

schools. ms. michele dressner, the 2010 participant in the national security language initiative for youth program. mr. jeffrey blood, was also a 2010 participant in the national security language initiative for the youth program and major gregory mitchell, a 1999 fellow of the fellowship program. as you know it is a custom of the committee's swearing in of witnesses so i ask you please stand and raise your right hand. do you swear the testimony you

are about to give the subcommittee's the truth, the whole truth and nothing but the truth, so help you god? >> thank you. let it be noted that the record, in the record of of the witnesses answered in the affirmative. before we start i want you to know that your full statement will be made a part of the record, and i would like to remind you to please, limit your remarks to five -- to three minutes. shauna, will you please proceed with your statement?

>> [speaking chinese] i just said hello i'm 11-years-old, and fifth grade at providence elementary school pete highlight chinese class very much because chinese class is fun. i've been taking chinese since the first grade which is the first year it was taught in school. my chinese teacher has been my teacher all five years. for the second chinese teacher at my school teaching my will sister. i really like learning chinese. class is a lot of fun because we get to learn using a lot of games and activities that include everyone in the class. my regular teacher told me sometimes they're teaching the same things of the same time. this year when we learned of the ancient civilization, she taught us that ancient china and a different dynasties while we were learning chinese.

i like that they go together. sometimes we even do math in chinese class. i want to keep learning chinese. i want to be fluent in chinese. i would like to visit china and be able to talk to people there. i also like shoving people in virginia housewife learned chinese, like when i tried to the account in chinese i favored things in a restaurant. the people working were free surprised i could count in chinese. thank you for helping chinese classes. i also want to thank my teacher for being such a great teacher and all the people that held her and my mom and dad who will encourage me to learn chinese and work hard in school, and even my sister, who also got to take chinese. i'm very excited to be here representing them, of providence elementary school. >> [speaking chinese] that means thank you everyone. i'm happy to speak some chinese today.

learning chinese is not hard. [applause] -- [speaking chinese] [laughter] >> ms. patrick would you please proceed with your statement. >> thank you mr. chairman. fairfax county public school is the 11th largest division in the country with approximately 175,000 students. the school division prepares students for the necessary skills they're desperately needed a federal workforce national security and of the economic front by providing a lot of language offering to students in kindergarten through 12th grade. funding provided by the federal government allows fairfax to implement chinese and arabic programs that would not have been implanted otherwise. some policy makers simply fill the languages were too challenging for elementary students. several funding made it possible

to implement chinese and arabic district funds were not available. once policy makers could see the success of the language programs they gladly provided funding to ensure students could continue the languages through high school and expand chinese and arabic to additional sites. the foreign language assistance program addressed the need of studying the critical need of languages. the funding provided a firm foundation for language study is the ultimate the increased the number of students learning chinese and arabic and provided them the opportunity to become proficient in the critical needs languages prior to the grant in 2005 we had 125 high school students learning chinese, and we had 162 students who were in arabic. we have over 5,000 schools and elementary, though middle and high school learning chinese and over a thousand students learning arabic. our fifth grade students are now connecting sentences to convey

meanings orally as well as in writing using characters and arabic. the award awarded in 2006 from the project said every level. with the funding we delivered to all online chinese learning course for the virginia department of education, which allows more students the opportunity to learn chinese not just in fairfax county but throughout the commonwealth of virginia. we developed an electronic classroom that broadcast the services to offer six county high school students attended schools that do not have sufficient a moment to offer iraq. we also developed chinese programs of the fairfax high school. which gives students a great one for calls and articulated program of study, and we support chinese and arabic programs to aid additional schools and the high schools by providing professional development and material. we also partner with georgetown university and george mason university first in the mentoring seminars, guest

speakers and summer language camps. we now have ample research that proves what all other countries have known for a long time. we must start of language learning at an early age when the brain is most receptive to language acquisition. mastering a foreign language to explain the consequential study and practice. when language supervisors proposed starting a program they are often denied due to the already stretched district and state budgets. policy makers view them as they want and not the need for students. federal funding is the only way we can initiate programs the will prove to the taxpayers and policy makers that the money is well spent once people can see what needs people can do with a second language. we don't know the world would be like in 20 years but we do know they cannot say they are educating our students for the 21st century of we are not giving them the tools they need to protect the country and to keep america of the superpower it is today. in closing i would like to see

fairfax county public school is thankful for the funding that we've received, and 6,000 trucks county since studying are thankful, too. >> thank you for much. please, proceed with your statement. >> i've always been added avenger her. i enjoy puzzles, and learning new things. the squall please let me to apply for the national security language initiative for youth. i studied russian in high school for two years. i decided that the ideal way to get to the next level in russian language was through emersion so in my senior year of high school i applied for a scholarship fund to buy the u.s. department of states through the bureau of educational and cultural affairs and administered by american council for international when i won a scholarship to study in

russia i was ecstatic. however, i had no idea how this experience would change my perception of culture and language as well as shape my educational and career aspirations. during my time in russia i lived in a host family. on my first day they were not sure of how to be around me, how to speak for me or receive seat mechem bread, pancakes, soda, what do americans eat for breakfast? unfortunately, liability to communicate with phrases i learned in high school and my program orientation. i knew how to say hello, goodbye, please, thank you and very tasty. very tasty was helpful with food issue however i felt unable to communicate my emotions and

learn more about the family kind enough to keep me as their guest. i've wanted so badly to speak to them and tell what will grateful i was for their hospitality. my host family made my reason for language learning personal and emotional. my goal to communicate in russian was achieved through practice of speaking with my family, practice around the city my study of linguistics university. they're our professor, natasha, put an extraordinary amount of effort into teaching us russian. through their teaching i quickly became able to express myself. my host mom was delighted when i asked her about her day and told her about the polymer i was reading all in russian. minute russian friends, professor and host family inspired me. after returning from russia i was confident not only that i wanted to study russian in

college but also that i wanted to pursue a career involving russia and international relations. in 2014 by would graduate from smith college with a double major, economics and russian civilization. i hoped to work in public service for either the u.s. department of state, or a nonprofit organization. by pursuing a career involving public service and russia, i know that i will be working in a field that i am passionate about and it's through nsliy i discovered my passion for studies and the opportunity i would be happy to answer any questions. >> thank you very much. to do unimaginable things we are about to support i would not have been granted the opportunity that i have

experienced such as going to beijing, china twice in my lifetime along with speaking in front of you today i wouldn't have pursued the learning the chinese language the sprigg and highlighted to id the importance of language especially the chinese language, learning the language and that it needs and others. as a student that in washington, d.c. my opportunities for very limited. however, during my tent great year i was granted an opportunity that changed my life forever. after much convincing from the government teacher i've applied for the americans promoting for the abroad primm also known as. i knew this would be able to view the world outside of my local periphery i was able to study the chinese language and culture. i am forever grateful that the

funding granted me the opportunity to go to china as a stand that had never been on a plan prior to going to beijing this was a life changing experience. it targeted students that were then underrepresented communities across the nation that is where the attention is focused now. the students can for these opportunities that are deemed globally where because the travel experiences also through the lens of the students like me because of a student deserves a global experience. since my experience i've decided to pursue a career in the foreign service working either in the international development organization or ngo. i finished my freshman year at george mason university where i am pursuing a double major in global affairs with concentration international development and a major in chinese. i am also currently in the

chinese language study program at my college where you build relationships with native citizens that come to study yet maysan. i would have pursued different from the one i'm pursuing now if i did not go -- if i didn't go to the program. these types of programs are very necessary for the development of the future young generation because without them we have limited use on the world as the united states becomes more diverse, more interactive, more developed technology wide we have to understand that the only barrier we have to break is to the communications. in proving the foreign-language capacity of the nation is crucial to the united states success over this lifetime in order to become powerful we have to learn to adapt to and learn new knowledge.

through language you achieve both requirements. thank you for your time and i am happy to answer any questions that you have. >> thank you very much. major mitchell, please proceed with your statement. >> chairman akaka, thank you for the opportunity to discuss my experience as a foreign fellow and the impact of program has on my career as an army officer. before entering the army, my fellowship afforded me the opportunity to spend a semester at the american university in cairo speak of the arabic-language institute. it was an experience which significantly shift my decision to enter the military and has significantly impacted my career as an army officer specialized in the affairs of the air of world. i served a total of 48 months in the middle east as with the combat arms officer and a for an area officer. throughout my career i've leveraged my language training to build partnerships to

tactical operational and strategic level with our partners in the region. i study arabic in a variety that includes the foreign service school in tunisia, princeton university and my all modern washington university in st. louis. however it was the semester i spent in cairo as a fellow where i laid the groundwork for a high degree of spoken arabic proficiency. i first put my arabic language skills to work in 2003 when i served in el anbar province with of the third regiment to the am i commander numbers of the soluble what could play in the unit's efforts to build rapport with local iraqi officials and placed me in charge of the squadron's government supply team. the dormitory building cities such as fallujah stevan american and iraqi lives and help my unit develop a counter insurgency strategy. in 2004 took the command of the company's third calvary regiment changed my men for a second tour

beginning in april 2005. because i could speak arabic my commander again placed me in a unique role partnered with an iraqi army battalion on the outskirts in the province. our tour was a very successful and our partnership with our iraqi battalion was recognized as one of the strongest tactical partnerships at that time. with my error but i was able to plan and execute tactical operations with my iraqi counterparts without an interpreter. i had the national security education program to think for that. because of my fellowship i came to the army with a unique skill set that i've leveraged to build, strengthen important tactical and strategic relationships with our partners in the middle east. the fellows in the national security education program alumni like me are currently serving across the department of defense and other governmental agencies. we arrived at the federal workplace language enabled and

regionally astute ready to address complex problems and build a lasting partnerships across the globe and i want to thank you for your continued interest in this very important capability. >> thank you very much. shauna, when i was a youngster might get spoke chinese and hawaiian, but at that time, people thought that was bad for children to learn multiple languages, so my parents didn't teach me come a matter of fact they said speaking polish. you are very lucky because now we understand that it's good for

students and a very important for the country to teach foreign languages. my question to you is what do you like most about learning a different language? and what made you want to learn that? >> what i like most about learning chinese is how it is taught to us through the captivities but still learning. i guess my parents inspired me to learn another language because i was already learning one because of my religion, and i just liked learning more about the other culture and i guess that inspired me to learn chinese. >> did you have the opportunity

to go to a chinese community through china cracks >> not yet, but i am hoping to when i'm older to go to china and learn more about the culture through way of life. >> there are different dialect saying china when i said my father spoke chinese, he spoke it little different from the major language. >> thank you very much for your responses. i like your mahalla low as well. do you know how often students continue their language studies after they finish your program?

and how the program has influenced their goal? >> the key is when you start language learning at an early age, students don't really look at it as being a difficult language or really even an academic subject. they look at it as a communicated to will come and we now have all of our language lessons related to content so they are using language departments in the area of mass science and social studies, to continue on as you heard today, it just seems like a natural next step. you are learning the language and continue on through seventh grade until you hit a high your level of proficiency which we are seeing in our students. the students, it's interesting, we don't encourage them to only think in the two languages. we want this to be the foundation of the multiple

languages and sometimes we see our students take on even another language in middle school or high school and continue with two or three languages and cultures. they are also more encouraged to continue with the language of the higher level of education. >> this question is for ms. dressner. major michel with a different culture shake your perspective about the world we live in. learning the language and learned about the culture is

critical to language learning in general because it gives you a basis for understanding and you can connect more through the language and have a reason for continuing to learn the language, and i believe that is growing important in this day and age when the world needs language speakers and needs people to be able to communicate cross culturally. thank you petraeus too thank you. it allows me to think outside of my yanna that i had prior to going. i think that learning a new language and about the culture allows me to learn about the language and the people that are within the culture as the people and what they do and how they interact with each other and it allows me to see them as -- it

allows me to interact with them in a way where i couldn't have before if i hadn't learned their language and with their language, it helps me develop a relationship with them. >> thank you. major michel? >> yes, sir. language is the hard science of understanding people who come from different places than oneself. i find that emphasizing the common things became things that are common to myself, to my peers in the army and people so we work with learning a language helps you to emphasize those common factors as human beings so i'm a big advocate language

determinist in the sense that it a lot of the way the we think is done in language. so if i want to know another way of thinking out a topic to learn to do that in a different language gives me a different perspective so i'm a big advocate of language training. >> fi should tell you the miami world war ii veteran, and during that time i served out in the pacific, and in that time the country used japanese citizens

who were mailed at that time because they just been drafted mails and used them to deal with the japanese of the military intelligence service, with its claim that the work out there in the pacific and that period of time because the language they were able to shorten by year's, so even at that time, the language made a difference to me and i knew some interpreters at that time who served in the

philippines as well as in japan after japan surrendered and learned a lot from them that the language speaking ability really made a difference with the japanese and were able to help stabilize the government at that time, and even to the point that it halt bring japan about so that it could become as it had one of the top industrialized nations. so, the language from all the citizens makes a difference and i am so glad that we are moving in that direction.

but from my position, i want to be sure that we have adequate resources and programs to help bring this about this is why we have you here with everything you've said will be part of the record. i would like to say thank you to the witnesses for being here today. it's clear that we've made good progress to improve the language capabilities. however, as you know, more work remains to be done to but i look forward to working with the administration and my colleagues in the senate to make sure we

have robust language capabilities coming into your helping us to do that. the hearing record will be open for two weeks for other questions other members may have come and again, i want to say thank you so much for your responses and statements. it is helpful. this hearing is adjourned.

my inclination is not to say so. - you're right. i kind of think i should stay out. what's your public relationship and all of that? on friday president obama announced a 3 billion-dollar plan to boost food security in africa. now, a washington journal segment with the administrator of the u.s. agency for international development. he talks about the role of u.s. aid funding for food programs and the future of international development. this is about 50 minutes. >> rajiv shah, the u.s.

administrator of u.s. aid, the administrator for international development, thanks for coming this morning. i want to talk of a global food security. what does that mean? >> guest: basically it means there are almost 1 billion people that go to bed every night hungry, and as a result of that, there are tremendous consequences. hundreds of millions of kids don't have the energy to protect themselves from disease and dhaka of malnutrition. those children don't necessarily learn well if they have the chance to go to school, and that holds them back and their economy back for decades. when we know that some prices go up a and more and more people are struggling to get access to such a basic commodity of food we see the sales states and syria's national security threats and risks to the basic concept of the sood securities to have more people having access to food to not be hungry and as a result to build a more

stable and secure world. >> host: in an earlier conversation we had about afghanistan and the discussions about afghanistan a caller said let's not worry about what is happening overseas. so why should americans be concerned about starvation, people going home hungry? >> secretary defense bob gates used to say it's cheaper to invest in development than to send soldiers and amended in financial terms but also in very human terms. the reality is sued security, expanding access to health so children can live beyond the age of five dillinger anwar secure planas everyone gets to go to school and be in the position to pull themselves out of poverty is part of how we keep our country secure and make sure we are getting ahead of the next conflict as opposed to dealing with the consequences of it. famously in afghanistan the united states and other countries in the late 80's essentially stopped engaging

afghanistan, stopped investing in sending kids to school and hoping that the government right over time and the results for the consequential. we do this work because it is in a work moral interest and economic and national-security interest. at the end of the day we spend less than 1% of our federal budget, less than 1% of our federal budget on the type of development activities we have the chance this morning. estimate is in an announcement for the security the u.s. is involved with as well as the g8 nations, african nations and private industry. here's president obama talking about this alliance and why the u.s. is involved in it. >> food security is a moral imperative and economic imperative. it teaches one of the most effective ways to pull people and in tiny nations out of poverty is to invest in agriculture. as we've seen from latin america to africa to asia a growing middle class also means growing

markets including our customers for exports the support american jobs so we have a self-interest in this. it's a moral entered into an economic imperative and a security imperative. >> president obama speaking on friday. rajiv shah, the president mentioned a couple of reasons why it's in his view in competitive morrill what cannot security. talk more about why security imperative. >> guest: think of it is repeated in the 1960's, south korea and taiwan were the largest recipients of american food aid and we send food to prevent people from starving and to help them survive but then we spent the next two decades helping those two countries invest in their own agricultural production to diversify their economy to build systems of higher education so they could pull people out of poverty and today both nations are tremendous trading partners for

the united states and we send debate to sign an agreement with hundreds of dozens of jobs there are companies in the institution in fast and get going in the 60's and 70's to deal with food and hunger that today aren't employing thousands of americans in america as part of their global enterprise, so we know we can get ahead of this problem. we know that sub-saharan africa for instance doesn't have to be mired in extreme hunter and poverty and in fact in the next economic frontier helping us grow our economy and create jobs at home that is what the chinese are doing in other countries in terms of investing in those problems and it's what we need to continue to do because we have a very proud legacy in this area. >> host: we're talking with rajiv shah at the agency for international development here in america. if he would like to join the conversation, democrats can call 202-737-0001, republicans,

202-737-0002 and independent come independent phone co let's look at the mission and the money and here is money that u.s. aid goes to countries like afghanistan, he, kenya, jordan, pakistan and the african countries like tanzania and the south african republic. what is the money being spent on? >> guest: we invested food security, the new alliance president obama announced on friday and we discussed at camp david with a group of east leaders around the world was an effort to say if we are going to tackle hundred and poverty we can't do it alone many other countries investing with us and years ago president obama got them to invest $22 billion to tackle this problem, and on friday we also said in the private sector, we need american companies like dupont and others to make investments to help

reach small-scale farmers in ethiopia and tanzania and other countries mentioned and we see the results of that when we partner with american firms in haiti and the cooperatives we can double and triple the production and help the haitians live out of poverty and not be as vulnerable as the have been in the past and as we saw after the tragic earthquake. we have seen in bangladesh for the first time in history the poorest state is with more than 40 million people as a result of partnerships with american universities and scientists have produced enough rights in the surplus in decades. this is all a part of a program president obama launched called feed the future and it's our top priority, it is an effective effort to partner with the private sector and eliminate hunger and none of the world come and it's one example of what you're able to do when we

invest focus and clarity around the results we achieved. >> host: let's get to the phones to democrats line in waldorf maryland. good morning. >> caller: good morning and thank you so much for having your guest on. i am very concerned about how the commodities markets affect shortages and other countries. and i'm not talking about hedging, i'm talking about the speculation in which the investors are not required to actually physically take possession of some of the sweet, corn, wheat and rice in the markets and i've just noticed that there is a connection between food instability and some of the riots we have seen in the speculation that goes on here which is very important and i hope that the guest this morning can address this issue. thank you so much.

>> thank you. that's an outstanding question because it's true when we see the food prices spiked considerably, we know that populations that are vulnerable and the world suffered dramatically. in many of the sub-saharan countries we work with our feed the future program, a typical family will spend 60 to 70% of their total disposable income securing food for their children and the families. we spend about 10% here in the united states buying food per household. that means the food prices double or triple of a sudden kids are not eating, mothers are not eating, kids are not going to school and the families suffer dramatically. here it is an inconvenience but in other parts of the world it leads to food riots and field states to release all that in 2008 were the major price spikes lead to a reversal in the trend was for the first time over four decades every year fewer people were going hungry that changed

dramatically in 2008. 100 million people were pushed into a condition of extreme hundred and poverty. we know the we need to have a more stable structure and these countries need to be able to produce more food themselves and participate and we know the consequences of not addressing this issue now are dealing with the hike field states and famines that require immediate very costly intervention. >> the agency for international development we've been talking about an alliance for food security initiative announced on friday as the countries that president obama talked about it. here are some of the details to the g8 african nations and the private sector in sub-saharan africa. will kickoff and tanzania and

ethiopia and the goal is to get 50 million people out of poverty within a decade. the private sector are worth taking in money. rajiv shah cut but private sector involvement and why it would look for so much capital. >> we've looked to the private sector because they bring more than capital. they bring the technology, logistics capacity, the ability to organize product supply chains and reach hundreds of thousands of farmers. the reality is we know how to end hunger in sub-saharan africa and that is why the president could boldly claimed a we are going to work with international partners for 50 million people of hundred and poverty but it's not going to happen with public investment alone. the president was clear we would meet over global obligations and continue to even in a difficult fiscal environment prioritize our own public investments in this area and demand as much from ever african partners and others but ultimately this small

steel companies and entrepreneurs creating seed varieties that can be used by farmers to help protect themselves and eliminate fannin and hunter during poor rainfall years. it's companies like dupont investing in science and improved seed production in ethiopia and reach 50,000 farmers companies that have committed through the process to source a significant amount of their global supply from sub-saharan africa thereby creating markets for the farmers to grow themselves out of poverty and they produce a product that are the kind of public-private partnerships by doing the work this way we stretch american tax payer dollars for every dollar spent we leverage to to $3 from other countries partners and leverage

to $3 from other private sector partners it can unlock the results and out come in sub-saharan africa because of this innovative approach. >> i can only attest to this gentleman is saying the miracles that have been over the span of my lifetime i am over 64 and my first memories are seen from korea guest today you would see an economic miracle and that couldn't have happened without our help and those folks are our best friends and among our most loyal allies of the same thing with the japanese and taiwanese, as we can count on them.

they don't suspect our motives. we didn't go there, we went there to help and they haven't forgotten that. .. because of those basic decisions we make, today they are a dynamic topic. just this year they hosted a major international summit with president obama on nuclear disarmament. that is the value of having partners that are connected to

us in a fundamental way. when i had a chance to visit there last year, i saw so many people who would come up to me and describe their own personal experiences of seeing their families not go hungry or not start because they were getting american food aid or many of them have the opportunity to go to an american university because of our partnerships. the best universities in the world and as a result of that they have gone back and helps to grow a stronger and more stable society that is now the bulwark of stability and peace in that region. so we have an opportunity today. we can make these kinds of smart targeted investments and ensure that the world as it comes together is both connected to american values and safe and secure and economically prosperous or we can retreat and let others define our future. president obama and secretary clinton have been very clear on this food security initiative is one good example of how do the

former. >> host: raj shah, albuquerque new mexico,, john on our democrat's line. welcome. good morning john. are you with us? let's go on to fairfax virginia, rich, republican caller. high rich. >> caller: good morning, how are you? you know, everybody wants to do what's right in the world but it comes down to priorities and i guess, not my issue but my concern is that you know we have people here in this country who could use the same help that we send overseas all the time. and i watched a show on 60 minutes last night and tel aviv is in this global recession and doing extremely well. you look in the middle east and all the oil countries over there who are doing very well. i just don't understand why it's always on our back.

why does the united states have to go out and take care of the rest of the world? that is pretty much a general comment that i have. apu could provide some feedback to help me understand you know, i know it's only 1% of our budget is why we should do more when we have so much that needs to be done in this country. thank you very much. >> you know there's the sentiment that you are expressing is very important. these are tough times here at home and that his wife when president obama and secretary clinton asked us to really reimagine what our work around the world could be like, we took a tough businesslike approach to reforming the way we work. we have introduced evaluations so that we now know the concrete results our investments generate an country after country. we have actually restructure the way we do procurements. people don't often talk about that of if we could save 20, 30,

40% on different operations of how we were, we can actually save the american taxpayer resources and we know in this area when we save money we save lives. that times are tough and that is why we have insisted on these reforms. we have insisted on delivering concrete results when we make investments and i would just know that you know, if the united states steps back others are already stepping up. africa is one of the few places in the world where you can visit a village, where someone will say that they have a deep and and and abiding admiration for president clinton, president bush, president obama because of the strong legacy that we have had in a bipartisan way around making these kinds of investments and trying to make the world a better place by putting our values first. we see the results of that. if we step back now we will be feeding that world through other nations like china and others that are stepping up their engagement and their investment in offering people a very

different picture of what the future would look like. >> host: we have the comic coming in. for an -- is critical to our national security and should be increase coming to the dod budget on arms. raj shah, talk about where the money comes from and talk about funding levels and how you justify getting what you need from congress. >> guest: well, the entire budget for the state department is for the agency of international development is just over $50 billion it comes in the form and appropriations act. i have been proud to know that there has been strong bipartisan support for some of these initiatives that we are describing today. this bit of the future program that specifically is funded out of an account called the development assistance account which is about $2.5 billion a year. of course compared to our overall federal budget as i

said, this is less than 1% of what we do as a nation in terms of our spending and are budgeting but the returns on it are tremendous. if you look at just one program, our malaria initiative which was started by president bush and continued by president obama, that effort since about $660 million a year and has saved approximately 220,000 young children in sub-saharan africa on an annual basis. there used to be about 1 million kitsy died when they got malaria and they got sick and passed away. now they are sleeping under insecticide treated bed nets. they're getting better medications when they come in to their clinics and they are surviving. what that means is countries that are precisely at the forefront of the battle against islamic extremism and terrorist threats to the united states are now in a deep partnership with their country and they are seeing our values and community by community they have a deep affection and appreciation for

the united states. the president of tanzania was just here and tanzania has seen a 28% drop in the children who died under the age of five because of our targeted investments in global health. he will tell you as you walk through those villages, those communities are forever associated with a proud value-driven way with the united states and the threat of islamic extremism will not threaten those villages because of that engagement. you know that it's a vision of success that we want to continue to replicate and that is much more efficient than the alternative. >> host: usaid was started in 1961 by president john f. kennedy. it had its roots in the marshall plan and long-range and economic and social development aid for foreign countries. i founded 100 developing countries doing work there and partners with over 3500 companies, over 300 volunteer

organizations. annapolis maryland, brent hugh are our next caller. >> caller: good morning mr. shaw and credit. i am curious, you might actually know, and what.does the human population exceed the ability of the planet to feed it? >> guest: that is a question that has been asked every decade for the last several centuries. the reality is there was a time in 1968 when the sociologists named paul ehrlich wrote a book called the population bomb predicting with a tremendous amount of data and clarity that three to 400 million people in southeast asia would essentially starve to death because population outstrip the planet and agricultural productivity. the reality was a scientist named dr. borlaug invented a new form of wheat in mexico.

he invented a new form of wheat and that led to the green revolution which helped double, triple and in some cases triple the yield in india and bangladesh and pakistan and other parts of salvation helps save millions of lives. that effort won the american peace prize, the congressional medal of honor. all of these examples are examples where we have overcome the stresses and pressures that you are describing by investing in smart technology and by improving -- proving that our own capacity to innovate and improve food production has avoided widespread starvation. we expect the same to take lace over the next several decades here and the next frontier against hunger is in sub-saharan africa. >> host: a question on twitter. it seems food is available. >> guest: yes absolutely and the reality is, we know that 90%

of calories that are consumed in the places and in the regions where they are produced. so we know that we have enough food commodities today to feed the world, but we also know that the typical african farmer who is generally a woman, generally working on about one or two acres of land and generally producing enough just for her family, maybe a little bit of extra on the local market. if their production goes up considerably, we note with certainty that they will move their family out of property and extreme poverty and that will set off a chain reaction where economies can diversify and grow in a more high-growth manner, creating a more stable and more peaceful and more equitable world. that is really the aspiration of this effort. >> host: annapolis maryland, joe on the democratic line. >> caller: first of all i wanted to to thank the gentleman for what he does because it is

such important work. i'm a member of red for the world and this year coincidently our congregation is participating in a circle of protection letter writing campaign. we are asking the congress not to cut the budget when it comes to hunger programs both domestically and internationally. the first question is, i wanted to ask whether or not a.i.d. works were partners with bread for the world because bread for the world works the policy and and we are very concerned about the health budget right now. especially considering that less than 1% of our total budget goes towards these hunger programs. the second question was, i was wondering if he could give us a little bit of an update about sudan. i recently talked to someone who returned from a trip there who said that actually the chinese are making inroads there but

what they are doing is taking very fertile farmland in south sudan, a working the farmland that the food is being exported to china and that is a concern to me especially with all the issues both in the northern sudan and south sudan. >> guest: thank you. bread for the world is a great organization and a movement and we are proud to work with bread for the world very very closely on this effort and food security on nutrition and health and basic human protections for the most vulnerable people so thank you for serving as a part of that movement. the reality is as you point out, hunger issues domestically and internationally need to be tackled. this administration has made commitments to do so on both fronts and president obama on friday recommitted to not only tackling this issue internationally but also ending hunger here at home, especially for children.

the reality is, we know that we can work across party lines and there are plenty of democrats and there are plenty of republicans who come together around these basic issues. i have been amazed in my few years here in washington to learn about the fact that across both parties, across leadership and rank-and-file, there is a deep commitment to doing this work if we can prove that we are doing it in a results-oriented way and that are good investments are sufficient at leveraging others and we are generating the kinds of outcomes that people care deeply and personally about. on south sudan, i would point out that right now is a very critical moment. the south sudanese have an opportunity to make some decisions about the future they choose and president obama has been clear in his request that both south sudan itself choose peace and choose the opportunity

to invest in the health and welfare and growth and unlocking the potential of their people. you point out, because we know from the chinese investment comes of land there is incredibly fertile. it is beautiful soil, rich and water sources and plenty of sunlight. you can very easily create a significant breadbasket of food, of opportunity in south sudan. at the same time, currently it has got a young girl born in south sudan is more likely to die in childbirth than to complete his secondary education. so we need to work with them to make sure that they are prioritizing investments in their people and we are backing that up and we are offering a different motto of american companies and american scientists and faith-based institutions working transparently with the american government in south sudan to create a better future as opposed to the model you describe. >> host: looking a sudan

there's a conflict between sudan and south sudan and to separate skirmishes, fights, printed things happening there on the border. the country is creating situations of poverty really in each other's countries by dealing with a oil pipeline that goes to the country and withholding it and withholding money for it. how does usaid deal with geopolitics. when you go into an area and have members of your team on the ground working on a project in a war breaks out or fights happen. how do you deal with that? yeskel you are absolutely right to point out essentially conflict and war are development in reverse. people destroy their assets. they are injured and traumatized. and infrastructure the infrastructure that was being built like roads and access to markets for small-scale farmers get destroyed and they get set back decades very very quick way. so stability and peace are fundamental to achieving development outcomes and that is really wide president obama and

secretary clinton urging, we have worked hard to bring together our development and diplomatic resources to work any more integrated, common cause manner. south sudan -- sudan and south sudan are great examples. our talented diplomatic team in the region and here in washington focused very much on creating the conditions for success and supporting a development portfolio. our development experts are helping to build roads and help farmers improve their production so that they can require less -- which over time will save a significant resources but also much more importantly provide those communities a dignified pathway out of poverty and hunger. and conflict in the two things that are absolutely reinforced. in the past there has been conflicts between those who support development efforts and those who are trying to bring about peace and stability in the reality is it's all one in the same and we have have to work

together to make sure that we are generating the best results for the american people. >> host: diane, republican from new jersey. good morning. >> caller: hello. >> host: hello diane come you are in the program with rajiv shah. >> caller: thank you for your very hard work. i have one question. do you handle all the funding yourself or your own agency or do you have to go into a country and kind of jiggle around or fight with them about how much they are going to spend for this or do you just go in and control all of the funds? a couple of years ago there was something that pakistan wanted. so i was wondering if this is something you come up against? >> thank you diana. is something we come up against. we have been very committed to working in partnership with host

countries where we work and with communities. not just the government but working with civil society organizations and countries, binding and unlocking the talents of local entrepreneurs whether they are feed companies in tanzania or media companies in afghanistan that bring stability to that nation struggles and inspires people to commit for the long run. we have under our stewardship, we have tried to change the way we work so that we are not working on the mindset of patronage but focused on building those rich and important partnerships in the country. the result of that i think have been extraordinary. pakistan is a great example where, when i started we had 140 different projects. we were doing that work without much of the deep consultation we needed to have notches with the pakistani government that the pakistani civil society.

and people fighting on behalf of those that are left out. today i just returned from a trip where we will able to launch education programs and for the same amount of resources we were going to spend before by doing our partnership we are able to help 3.2 million pakistani children achieve literacy outcomes at grade level and test their outcomes on an annual basis, bring more pakistani resources and dollars and educating their own people and begin to envision a pathway where our resources can over time, be tapered off as they take more domestic responsibility. that kind of transition to local responsibility is a big part of creating conditions where aid and assistance are no longer needed in a big part of creating the next set of south korea and taiwan so we can live in a more prosperous and peaceful world. >> host: on twitter maverick rights and globalization leads

to privatization and privatizations leads to corporations feeding their bottom line. cheap labor affects everything. that is his opinion. we have been talking about this new alliance for global security that was launched on friday, the the alliance of food security nutrition. is there a danger in relying on companies too much, giving them too much latitude? >> we have worked very closely with the companies to make sure that their investments are targeted and transparent and i would just point out that this is the first time in this area that anyone has brought together 45 different firms from the united states would also from, most are actually from africa and some are from india and asia and some are from europe. all of the companies have agreed to the basic decibels of transparency and openness and how they do their work. we will be able to measure the outcomes on small-scale farmers and their livelihoods. remember many of these are women

headed households so we will measure women's incomes and children's nutritional status, real human outcomes for these assessments. at the end of the day we need these companies to -- like vodafone is committed to reach 500,000 small-scale farmers and provide marking pricing date on their mobile phones. that is the kind of task that no country government can really tube without the private sector. our argument has been at times would we think it takes to get the work done to bring partners together and to get on with the business of ending hunger, which is a solvable problem. >> host: vidrine direct foreign aid could -- american contractors risk losing business under u.s. plan to double the share of international aid awards and entrepreneurs and government. contractors receive 59% of usaid, $14.5 million in foreign

assistance in the last fiscal year. >> this is a reference to a larger global reform we have put in place to change the way we work to get better results for american tax dollars and it turns out that if you look at the last decade usaid was asked to triple its spending and countries mostly in iraq and afghanistan. while also taking a 40% cut in its overall staffing level. that led to a widespread outsourcing of not just doing the work but also evaluating and judging and designing the next set of programs. it was very costly and inefficient for american tax dollars. we have implemented a new approach to accountability where we are cracking down on poorly managed work, insisting on a valuation for all of our projects and programs. tracking resources in trying to lower the sometimes expensive overhead of doing work and investing in local institutions

that we have a pathway out. our goal is not to be there for two decades or three decades or four decades. our goal is to create the conditions where aid is no longer needed and have more success stories like south korea. we think we can do that if we have the courage to think differently about how we do our work and if we take a businesslike approach in reducing our costs and encouraging a more diversified partnership. >> that reform has allowed us to expand their partnerships our partnerships with american businesses so i think the distinction and -- distinction would with president obama announced yesterday would never in possible if we didn't have this new approach to say okay how can we work differently with the cause in ethiopia or tanzania or unilever in nigeria or the local company that i referred to before. it is also part of generally diversifying our partner base. >> host: and independent

caller in fort lauderdale florida, welcome. >> caller: thank you. my question is, i just want to know some more about the details. when you have a government-subsidized program with private sector intersections, where is the divide there? are these commodities if proved successful are they going to be sold on the global market and won't that affect whether not africans can afford to purchase them and then also i heard you guys are going to be setting up in somalia there and my question is what if there is political unrest and some of these infrastructure projects that will have to go along with transporting these foods to the market are kind of captured perhaps will the u.s. government have to step in to ensure that their investments are taking care of? >> thank you jonathan. i will start just by pointing

out that three or four decades ago, if you look at investment into africa, the majority of the dollars going in would have would have come from agencies like usaid. development partners, the world bank. that official development assistance towards private investment. today it is the opposite. africa has grown at roughly two to three times the global growth rate and the fastest growing economies in the world according to the imf and investment dollars are now going in at a rate of three or four times that of official development assistance so in that change context, we believe we have changed the way we think in order to be more effective. we now have an opportunity to steer some of those investment resources to areas like agriculture which we now are three to six times more likely to generate real poverty reduction and reductions and hunger for every point of growth

that creates and generalize gdp growth. we can steer those resources towards benefiting small-scale rural farmers who we now continue to be the vast majority of the worlds most extremely poor and hungry households worldwide. and we know we can sort of insist on and seek basic principles of transparency and responsibility so we can track the results of these types of investments. our aspiration is really to bring all partners to the task of achieving these very significant goals ending hunger, reducing preventable child death and insuring kids have clean water to drink when they get thirsty so they don't get sick and they can survive. those are basic human aspirations and the way we want to deliver that to the millions of people that needed r. by bringing the private sector into that task. on your point about clinical unrest, we have noted that most private sector firms are not

immediately investing in somalia in this program will starting those places where countries themselves have taken the tough governance reform and policy reforms to create an open and safer business climate and there will be places like tanzania and ghana that are the initial starting points to those efforts. >> host: on twitter, if you teach them to fish they will eat for a lifetime. the usaid program areas and this could take a look at how they spend money on health, solutions from agriculture, good governance and to raj shah the frustrated. you are an conference about frontiers and development looking at the future of international aid and development. how is that changing especially went the emergence of companies getting more involved? we heard him of volunteer run organization earlier. >> guest: it is transforming rapidly and that is a great thing. 15 years ago if you wanted to be -- get development experts

together you would basically come to my building and go to the world bank and pull those folks in the adapter development experts. today pepsico is a company that has deep development expertise. ge brings similar expertise. there are students in universities on berkeley's campus or m.i.t.'s campus or ohio state campus that are inventing new mobile phone applications that help people in far-flung parts of the world a better lives. i've had a student at m.i.t. who invented a plastic water filter that would take arsenic out of water for a village in bangladesh. they did this during a summer project. that simple filtration system is now widespread throughout parts of rural bangladesh and it's helping kids avoid heavy metal contamination in their water. we live in a world that is just far more interconnected and we are doing everything we can to change the way we work with

american innovators and inventors to make sure we tap into all that great energy. >> host: alice, a democrat. good morning. >> caller: good morning libby and mr. shaw. libby i'm going to say something that is quite contrary to the most of the contents you have been getting so please keep your finger off the button until i finish. >> host: we are looking forward to hearing what you have to say. please go ahead. cocco parcel bomb is this efficiency is immoral imperative and we have heard mr. shaw say they are conditions for success and we need to create the conditions where aid is no longer needed and expand partnership of ripley actually do, what we did in iraq was first we starve the people and then they came in and we said, you must use only genitically-modified seed from our u.s. businesses, from unilever and monsanto.

we are attempting to do the same thing to iran. will they say, i heard this on c-span in 2008 at the apec conference. we must cause iran's leaders to fear starvation. this is what is being done in gaza. this is what americans do. first we starve them and then we say, our companies will come in and sell you the seat so you will no longer start. this is not a moral imperative. this is an outrage. this is a moral outrage that americans should be ashamed of, and seek to change their ways. >> host: let's throw that comment in question to raj shah. >> as you point out war has consequences and that is precisely why it's important to make these kinds of smart targeted investments to build partnerships to avoid war, to avoid going to war in the first

place. the reality is there is no focus on gmo products per se in the new alliance that president obama lunch yesterday not because those types of technologies may not add value over time. they very well made and in fact i personally tend to believe that some of the drought-tolerant technologies that will be real and five to seven years could give us a real shot at being the kind of cycle of famine that we see when we see excruciating droughts and they are increasingly more infrequent. they are not relevant right now to the challenge of improving agricultural productivity in sub-saharan africa. there's a long way to go to get to that point so we are not focusing on that as part is this of this effort. it also listed what you described in the history. america has a proud history. ever since the 18 60's when present lincoln created the land-grant system america has been a technological leader in

agriculture. help transform our own nation's economy and we brought that knowledge, that expertise and partnership to latin america in the 60's to asia in the seventies and 80s and now we are trying to do that in sub-saharan africa and the current period. we have a lot to be proud of. hundreds of millions of people have survived as i mentioned before because of american investment in agriculture and food security. >> host: the issue is how an industry can make money or make investments where she talked about real innovation weather on college campuses or company boardrooms. boardrooms. how do you spread that needle of what she claimed was we go win, we mix things up and then we have companies that can help solve the problems that we helped create. how do you walk that fine line? making? making money but also helping people. >> guest: we know that peak p. business conducted with transparency and basic values

can do both, generate profits and enable growth and sustainability and create tremendous amounts of value for consumers and producers alike. we see that as the story of our own economy and the dynamic nature of it and that is the story of what is currently happening and needs to accelerate through this new alliance. companies, more than 45 of them making commandments are making real business commitments. we are not looking for philanthropy. we are looking for you to bring your best talent, your best management teams, your business acumen to help create a more modern system canaries of the world that are literally hungry because they don't have one. we have seen the results of that. we have seen a company called western seed company in northwestern kenya has help commercialize and locally produced non-gmo seed variety and his reach tens of thousands

of farmers and has helped them double or triple their food production. that is one active business leadership and social partnership affects millions of kenyans from food aid during the last drought last august and september. that is what it looked like and it creates value for buddy. >> host: president obama notes on friday the new alliance for food security and nutrition, talk about that another things. administrator rajiv shah the u.s. agency for social development. thank you so much for being with us today. >> guest: thank you.

>> the company made a stupid decision, lost money, didn't collapse and fired people who are responsible. this is the market at work and this is how it is supposed to happen. speak to some extent that is true but i take credit for it. it is because government has played a role. if this happened five years ago the jpmorgan would have lost what appears to be more than $2 billion, think you would see much more panic in the economy. think you would have seen much more concerned. what we did in the legislation we passed in through other things was to require the financial institutions to be much better capitalize so one of the things as a result of the government telling them you had better have more capital and you have to have more capital than you would have had otherwise, that gives people reassurance.

>> i think this is one of those markets that i think people vote for, don't vote for the party. i think you have seen a lot more of that. even those heavy republican midwest which is dynamic and it is great but i think you are seeing more of that in recent years here in the midwest. they're really voting more for what the person stands for. >> it is the only remaining original structure from the 1865 to 1870 time, and it was a very important building in our history in that it is a

residence but it is also the headquarters of the wichita town and land company company they came down here to create shall we say the city of wichita. >> next to discussion on jobs, trading competition with asia. we will hear from mark anderson, ceo of strategic news service. rum seattle washington, this is an hour. >> you could have been anywheren else tonight but you chose to be here.h i think it tells an extraordinary amount abouter yoa that you chose to be here with usy. my name is michael davidson andd i'm a ceo at gen x so i run a nationwide and i came up here to seattle from orange county here and i'm particularly excited about this program. for those of you haven't given much context on gen next to begin with but we essentially try to find very successful

people who are particularly forward thinking. they want to do better and be better and we try to give them the tools and information access, knowledge, the network to be consequential on issues we believe are related to the generational opportunity criminally economic education and global. many of you year are members but for those that are not that is what we've tried to do. tonight is part of that process exposing the members and guests to people that move ideas and advance them and shape the the date occurs the board. mark anderson is the ceo of strategic news service which was the actual first online newsletter on the internet with subscription based newsletter on the internet and he did, bill gates reads it, michael reads it come any major fault leader but his very sort of prominent in this space prediction comes a

95% of the time since 1995 all of his predictions have come true. one is he predicted the liquidity collapse before anybody else. he predicted steve jobs was going to return to apple before steve jobs knew he was going to return to apple. also he runs a conference that on technology the technology conference in the world and "fortune magazine" has named him one of the, quote, smartest people we know. on cnbc you will read him in "the wall street journal" and "the new york times" and "los angeles times" every sense of the word he said please put on their thinking caps because we will get to the point there will

be q&a. with that, mark anderson. [applause] nice to be here. thank you for having me. i think my orders are this evening we will do ten to 15 minutes of me talking away and you and then we will talk together for the next 45 minutes or so. we will start taking questions and complaints and all the things i said wrong in the short period of time and we will cover that right away. i want to talk to you tonight about something which will seem have obvious to you in the other nations, too and the inventing nations and what they should do today and which they have no choice but to do if they are going to succeed it sounds very

dramatic. i feel that is well placed and i want to give you a little background about this. i spent a lot of times in the predictions of technology in the market in order to be good at that you have to look around the world of lots of things. in the countries in the pacific asia rim and try to figure out how they ran their business model not what was in the newspaper but the truth of the matter which is quite different by the way. so beginning with japan and with that story is about still and then self korea picking up all these tools that very intense of exporter derision the whole purpose of which is to be asymmetrical so this first step is hard for americans to get. we talk about free trade, balanced trade and win-win situations. you have to put on a different thinking cap because that is in

the point of view. it is a winning and losing situation. that is the whole idea of the unbalanced import and export numbers. if you were going to be successful, the whole idea of the business model is how can i be unfair, how can i do things where my partner gets hurt? that means i have a lot of export and no import. this story has been going on for a long time and it's kind of sad to say some of you are too young to remember this there was a time not so long ago japan was reaching in the exercise of this model and the bush folks on the united states we worried real power then, and we lost about five industries that were major industries overnight because they were so efficient there's a

source of the match for the business model, the u.k. business model there are things we do that make us very japan was able to agree quickly not only compete well but destroy the american presence in the industries of steel, television sets, i think that we invented it, and the consumer electronics that are around there are other things, too. we lost all those companies in the matter of a few years. and finally, intel came along and japan continues to the business model in a much more nuanced way than before and this

began a long streak of stories. if you watch salles triet today they are doing exactly what japan did to america today you were voting for tvs don't vote for japan vote for south korea and if you are voting the same story we watch japan last week and there will be other things, flat screens, so clearly samsung this taken to looks at the japanese model for this and they are even better than the japanese. still these are relatively small countries than china, and china has not only a top-down government, but the ability to be big and so every time we hear a big number and quantity matters. we are able to tolerate as an inventing nation the experience

to resell it to us into our market and destroy the industries in those markets and still survive we are here today we survived it we're looking at a quantity situation which is so large and focused i don't just mean we america i mean the number of nations which is inventing and is now in peril. the global economy which is based on an essentially today technology and inventing things. we have level of sefton occurring right now ramping up to that is so intense and so focused and so clearly planned richard clarke last week said that probably every american corporation which is interest

that same information went out written in 2007 to the top 300 ceos come so in my opinion the first chapter is already over. all of those have already been taken it's a matter of the design or pharmacy recipe. we are not the state we ask ourselves with a very cold mind the answer is no it can't. with the level of effort we are looking at, with the level on the invention of today it's not actually likely to be civil to enjoy the economic fruits of those inventions in the way the we did before and that's already

happened. i believe we can look at various markets to today and i will mention one. anybody that knows there are more coming from motorola back, so this is a very effective sang in the chosen company from china your bid is 40% below. we are seeing this with 3,000 employees in every place you look you might think it is strategic or scientifically so what are we going to do about

it? complain? i tell you what won't work, winding. threats won't work. saying you are upset won't work either. although you can be affected they are not for a couple of reasons. another reason you can't bring it up the of so many entrenchments it takes years to get one done, so these guys are full year of the employees and find china guilty of jumping i think it was 1.5% penalty. so the wto could and as far as i could tell. this means as a country not just this country but australia and britain and germany and france, anybody in the in vending business has to rethink it.

the way we did business before we got a little bit more of the gentlemen's game that isn't what works now. you invent on monday and i will steal on monday. good luck. made the best man win. so, how do we deal with that? there are two steps. one is often discussed. we've always been and inventing nation. that's america. that's what we do. we've always been and inventing a nation and we need to start seeing ourselves. we don't say every morning i come from and inventing nation but we do. the economic history of america that is what we have to get back to. i'm from and inventing nation we have it in us but we don't see

ourselves that way so i think step one is we have to imagine ourselves with that role model in mind and understand who we really are we are not britney spears, we are not celebrities, we are not drug addicts, we are not fast car drivers and we are not jerks. we are pretty smart and work hard. we are working 90 hour weeks. we've lost that one understanding of who we are. we have to work smart. no offense to anyone here at mcdonald's but it did fans as the whole nation and if we do that great things will happen. many people that touches your own personal agenda in the kit will education, higher education, make a list of things concerned about and investment

rules and regulations, all those things appeal but all of the original onion. so the positive story is if we do this it is possible to recreate the economic leader that we have enjoyed it for the first time. we've been stagnant for 1979 from all these different figures probably all true but what you are really seeing and this is the part i hope i get through to you tonight, this we just had about economics, this is a bigger story of what happens to and inventing nation one of their property goes to other countries. that's why the jobs aren't going to come back the minute real-estate of values go up.

that's why there is no old normal the lbj new normal and it's not the way you wanted. if you want a different one from you have to have high value and intellectual property not being stolen wednesday after which leads to part two and then i'm done. if you want to invest in something as beautiful as it might be if you give it away or expose it or lose track of it or is it is stolen from you the day after it won't do good weather you are microsoft or making airplanes bad things are in your future and the investment for those will be in the fall and i will say again i believe it is not in the future that this will happen, this is happening right now. the return on assets we may have enjoyed 20 or three years ago we are not enjoying today and

that's why and it doesn't matter what you make. there's a list in china right now that used to be 115, now 407 different economic segments of interest. you are and that whatever you do on less i don't know what you have to do to be on that list but it includes everything in the phone book i can think of, as we've got to be aware this is the primary risk facing if you are in national leader the risk isn't to recreate jobs out of building bridges that's not the answer. the answer is to recreate jobs on the building ideas for creating high value, high margin intellectual property you combine for your shareholders and employees and the towns you live and double the one for a while for the invention you won't be competing with your own

talent. how do you protect it? a lot of people feel like it's impossible. it's not impossible what all. what's hard is to get the ceos focused on an educational problem once you convince them they have to act the way the military acts because guess what those being assigned as target's our military teams and that's why when i said earlier is true is the normal corporations like it takes them very little effort to get stuff. it doesn't matter who you are. when you saw rsa, one of our top defense and commercial securities firms had their masterpiece listed almost effortlessly by china is going

to be the wake-up call for all of us. it's not as the you spend money and solve the problems. they took the path which google is brave enough by the way to stand up and talk about it and the huge points for this and it is standing up and talking about it it's like everything else in life is to keep it a private dirty little secret no one can get together groups and solve problems, so we need to make sure that people have the nerve to stand up and talk. if they are beginning to force that. i think the lawyers suggested that is what the ceo should do. we have to be talking to the to

opening up describe the problem clearly and then get out of it. there are technical ways you can turn to your ceo and say solve this and there are ways to identify and give them a very high value internally committed under a server and unplug the server which is exactly what the department does. it worked great. pull the plug, restrict the number of people that have access about once a year. pay attention to what car they drive. so there are simple things to do and the expensive stuff comes in and takes years but they're very effective. i think those things if america really wants to watch again we could be high energy, high

success, but it's not because they're going to pass a new bridge project it will be because we took this to heart inventing and learn to protect the stuff we make. that's ten to 15 minutes and i think now we should open up to you for conversation and get your own ideas. [applause] >> you mentioned china and in the spirit of tonight's program i have a watch that was given to me by a member and its determine just waving at me and it's a reminder you only have so much time, but also you've got to compete and there are peond thet readily remember you don't win

unless you choosless you chooseo what i'm hearing is you've never chosen to compete we run a conference call future and renew. imagine the future and review it. what was the action plan together? >> if people become aware -- we are trying to get stories and you probably saw the front cover this week writing we did that. so, we walked up about 12, 14 months ago on television and it took awhile to get in print. but we want to have other people understand the problem. that is a step number one. number two, we would like to have leaders stand up like to google, stand up, get it and here is what we are going to do about it and become role models for of the deals because the need to have an idea that this is real. i will give you an example. our job is or why the wake of

the blueprint away for nothing to hu jintao for the privilege of bidding on chinese aircraft coming gave it away. it was the only thing holding china back from competing. he gave it away. the day that he was made the job bizarre on the steps of the white house that the idea. i think what would be a good example pretty cool and i think he would be the perfect guy to do this but to stand up and say i did it, understand, i'm not when to put this at risk anymore i recognize we are a technology driven company in every decision that we've got and we are going to protect that technology and get the highest we can for our shareholders it is a whole new idea he would be great guy to do that and i think a lot of other people would get the message.

>> i am an entrepreneur and a seems like the tone has changed. even as a kid, now we've got occupy wall street attacking people, our president who saw their kind of boeing unfair if you make a lot of money, going after folks, so how do you change the stone in society where the entrepreneurs have to come that guys? >> the money, there's a lot of money class conversation i don't think the entrepreneur is got to that. >> have you seen the ov .. got enough. nobody's gone to jail yet.

so i think there's a lot of anger over wall street and the city. but in the public view that is a big fuzzy smooth -- people don't keep track. the busy they don't have time to recognize the difference between someone on wall street that sought 600 billion in derivatives knowing they were cracked and somebody starting a new -- if you are rich -- the political pundits or strategists make the case from this. both sides i think. so you are fighting a machine out there doing the wrong thing for the wrong reasons. i see we need to have a cultural change. people like you, yourself and enjoy people around you will see that and say he's pretty cool, how did that happen?

cuts will we want. i got to have to go to washington to make that happen. islamic the futures got to be better. [laughter] >> thanks for coming down to talk to us tonight. a great ideas. you didn't say this but some could incur a government action is necessary based on your description of the problems and a smart intelligent beautiful woman my wife said when you combine the government and cronyism and capitalism, you get crapitalism. we see that happening right now come into the furious that favored industries because the threat of competition and our need to get urgent about a entrepreneurism will result in bob immelt comes and we continue to fund things without money we don't have. we're greasing the skids.

>> i want to say something, solyndra. you are seeing the american solar industry gutted by a fish and it's not because they are stupid and it's not because the technology didn't work it's because right in the middle of the plan somebody bumped 10 trillion tons of silicon into the market at half price and destroyed their business plan. you can say that's life but it's not, it is a plan that china had to make sure they didn't succeed, and it worked. don't blame solyndra, blamed china. be smart. we are seeing carnage in a lot of places, and look larger,

looked around. in terms of the government part of this i'm not trying with any particular program, the only part of this that i see the government playing is i believe there is a role in trade governments make trade deals and my hope is that we've created a group for this purpose i hope is that one of the results some of which i won't talk about the governments of america and australia and canada and the u.k. and europe it together and agreed inventing nations will have as their top priority for other nations that guess what, protect i.t.. >> i encourage you to have questions and i might call on you to start thinking of one. go ahead. stomach that lends itself to a couple questions i have two parts for. first one is what can we do

because i found it like my partner behind me mentioning you're talking about government intervention from trade or something of that nature in the industry but it seems of an exclusionary path you are talking about from the standpoint of dealing of business with like. >> on the national skill. >> so i understand that a little bit. on the flip side, you also mentioned the fact that unplugging the server, keeping -- ravee ip so if you could talk to the idea how real is the danger of reverse engineering or being able to take a finalist product and actually were kickbacks but even unplugging the server wouldn't really mean anything. ..

our perspective 100% less. what if we only had 25 for 50%? the will be good. instead of zero like a tolerate 30. i don't know what the numbers is get are part of what we're doing iss get people to think about the economy in terms of the propertd tosmall on terms that's always

too small on the balance sheets of corporations, but rather than, like what did my tax guy tell me asto do, mark eight down to zero?k ofther, ask yourself what is th competitive strategic value ofoe the asset on the international market for the people who want to compete with me in my own business it'll probably be, million dollars, some number like that. the value to the guys who got it was probably about $10 billion. to be in the market for ten years, rather than sit it out, rite. that's a worth a lot of money. as an example and answer your question further. my understanding from the group, which is the probably the world's best consult sei -- india spent many years trying to reengineer it. it's not always that easy.

if jeff wouldn't give the stuff away, maybe it would be harder. >> thank you so much. that was awesome. i guess, what caught me was the idea about refinding that energy of being in the nation. it it made me think of the country vale where israel where they have more start-ups per person than any country. from an pr or advertising perspective, how do you recapture that of energy where individuals are encouragerred and almost naturally find their way toward invents and year. >> i'll say something funny to you, i think they are already doing it. you know, there are more start-ups every year, it seems like, the guy ares a little behind. lots of good money comes from california or boston. in seattle for a minute, we started with the boeing thing. pretty soon it's wire whres,

mobile, games you add all the different segments. we're doing good. that's where google coming up or anyone else. we're a pretty good answer to what do you do, i think. i wouldn't say we're doing to the wrong thing, how do you accelerate what's working already. is working hard on this, terrorist a lot of folks who trying to find new ways of starting up. and that increases the number of start-ups we find. we have a lot of dna from the macau days. a lot of guys in wireless starting mobile companies. it's cool. i think there are parts here, you look at the silicon valley, the rest of seattle and say what do we do here that made that happen and how do we name go fast ensure the only idea i have is -- i love the idea of starting companies really easy. you know, it's pretty easy now.

but i'd like it to be easier. i'd love to see a program here or anyone where you have two-page piece of paper, and you walk out in and your fill it out yourself. you say this is my company, i have two years. and i'll give you the other 400 pages. right now i want to see if it works. you can cut through the red tape and create a beautiful yiewrpship program. it wouldn't be that hard. >> you mentioned sort of a relationship here with china where the playing field isn't level. and in part because of yo have a wto that is broke. now part because -- >> china has signed all the parts -- >> absolutely. i completely agree with you. one of the things you didn't mention was around the current manipulation. if you look at the -- so i'd love to get your thoughts around that. >> the guy to ask.

>> do you think the government is doing enough? what's the solution here? >> so one of my little -- when you're a pauper like me. you have try to find the claims to fame and market them to people. one what -- i've been following japan dollar story for twenty years, i guess, as china got involved with the whole deal, it became more and more interested as i learned it was a story. i didn't see china that way at first. i thought they were a communist country. so i realized it was a america tilist model. it is a great pr word. it sounds like you struck a nail on a board and went away forever. here's what the peg is, constant intervention messing with a not-free market to make sure that your side wins.

on a daily basis. that's what the peg is. so, you know, if i'm any country, and i decide, you know, there a two ways for my guys to get rich at home. either we can work really hard and do this stuff, and get debt more. or i have another idea. i'll do what china or japan did or south korea did, i'll mess with the currency market because that's easy. doesn't take much money. and i get a 15-20% lift. brazil is lucky enough to be experiencing with china what we experienced earlier. it's fascinated. and australia. every time there's a partner dance with china and watch the unfortunate dance partner. the first sign is the currency gets slammed. the currency went up 34% in one year. the bril brazilian did. that makes things at expensive at home. we have thing out of control.

every the president, every prime minister knows this. it's clear that china is not going to be fairly, how do you a play? japan -- ask japan to stop intervened in the marketses. they'll laugh at you. it's part of their model. it's what they're doing going to do. they want to favor export companies. they're going to keep doing. you're from peru? are you going do it? you're better. if you're not, you're an idiot. everyone is playing the game except. you you're in the situation today where we have taken the wrong paths for the wrong rations to get ahead on nation-v nation competition. the and result is a completely out of wack currency system. the serious breadth of the conversation again. where take people take the pledge and say no. everyone has to stop. we'll find a new basket, we'll see what it is, no more intervention. we find your --

we find you're intervene in the markets we will gang up on you at once. you're not going to enjoy. we need that kind of situation. we don't have that right now. it's out of control. >> i'd like you to address what i think is the greatest asset we right now for the future of the united states which is creativity. >> okay. >> in general. i mean, how much of a commodity do you think it is and what can we do to leverage it. >> great question. hard question. by the way, there's a book i haven't read yet which i think is very good. it's been the on the huffing ton this week. it's called "imagine" it's about creativity. i have seen and heard the guy. i think this guy knows what he's talking about. i think he's on to a deep understanding of create. creativity.

i'm a science guy. and so you -- we're scientific method when we're kids, we're all talk about it. it's simple. i'll explain it to you now. you have an idea and test it and take the results and you compare it 0 what you thought and you go again. wow, how simple can it be? we teach this to the kids in science. this is like the answer to what we're supposed do. they fever forget one thing. why did the idea come from? it's the most important part. no one teaches where the idea came from. i've never seen one class. ion teen, -- where the idea come from? when he was 16 he asked himself the speed of light if i were running along next it and i look left what would i see? he was 16. where did he get that question.

what makes the kid ask a question like that? that's what you're asking me. i think we need to focus on -- there are some answers. there are thing we can do to lead to more craftivity. the one thing we know, one thing we know is if you sit andstair at the problem and have more and more coffee. that will not do it. if you do it for ten or twenty hours. it just gets worse. and the time when you have the moments is when you step aside and you go for a walk, or there are lots of famous stories who had the aha moments. the great thing in the mind. people had the ideas offline. so we need to include the idea of goingoff line in the thinking as part of the creativity process. if we learn how to teach that. it won't be a teachable moment. yeah? >> you talked about the united states trade countries that

protect ip. i guess, two-part country, one, the risk trading with countries and not to another value of again x. do you risk not spreading democracy to places like eastern europe, russia, china, other places where we want to spread our eye -- ideals and values by shutting down the trade with countries that don't protect ip >> didn't mean to imply shutting down. what i've been saying to people is present issue. i'd like the idea that there is a preference. that i think it's going to take that to get china to pay attention. i think the only thing that will get china to pay attention. but there is a myth, and i'll say this clearly. people have been laboring under a bunch of myths about china.

not about eastern europe, they're all wrong. i don't know if they've been planted intentionally by china or someone who has tried to help china or the pr agency. they are the literally the opposite of what's happening. i give you a few examples. human rights are getting better because we're trading with china. no. human rights are much worse today than they were ten years ago. that's interesting. how about there are more private companies now than there were before when the communism began. sorry, about two years ago, the soe thing reversed and there are more state-owned surprises today that -- let's say that china the tells u.s. they're turning way from exports to domestic consumption. we can stop worrying about it. if you look at the numbers in gdp is declining. there's less consumption in

china today than there was last year. okay. get my point? these guys aren't about to give the. whatever you think you are achieving you aren't. that's a myth. it's a mean. we wish. that were true. it isn't true. so if it's not true, what do you do? do you keep doing? as i said that's the definition of insanity. you do something different. >> i had a question, but i want to ask you a question about what you said. you said that you're not saying to stop trading with these countries. you want to give them preference issue treatment. how do you define it? >> i haven't. you can help me. >> that's how you get in the trade war thing. if you start putting -- we know that doesn't work. >> well, what you don't realize is you're in one. and you don't know it. >> no. >> let me put it clearly.

america has been bled to dmet a trade war we don't recognize we're not allowed to talk about it. and all the tools that i'm describing are unfaired, unbalanced not fair trade rules. they're playing buy. >> i agree with you. >> the effects of that almost to almost destroy our economy. so we're in. you know what's funny? the military guys do their job. they're worries about sirer cyber attack bring down the grid. hat the pacific fleet in the tracks. they could do. they have a lot to worry about. all the stuff with the job until now has been protect the nation through the military ways. military teaks. well, you know, how they say don't fight the next war like the last war? that's what we're doing. the chinese don't want to have a military fight? they have no interest in that. my favorite metaphor. there's a patient on the

substantial, there's a line in the patient's vein. the blood is going out as fast as possible. the last thing the vampire wants do is upset the patient. they don't. they're making too much money. why not just wait until we have so little left we can barely get it off the table and afford -- we're going to be done unless we get the first part fixed. not the military. if we don't get the economic stuff working and there a lot of smart guys in the pentagon who don't get this. there are more guys in the d.o.t. that understand what i'm saying than in the commercial world. they consider the economy to be the number one security issue. there was a statement made last year saying that is at number one concern. the elevated it to number one. they get it. but a lot of people don't get it it. we are in a trade war. don't be afraid to say it. say it and say how do we get out of it?

we 0 don't like trade wars. what do we do to make thins normal again? that would be great. >> the question i was going ask, sorry. if you'll let me do that. my issue is improving education because i think that's how you get entrepreneurialship and craftivity and invention. i think we're failing in the education system but particularly our k12. what's your take on that? and how do you improve that for the future? >> i can solve that problem in four minutes. i have an advantage i spent with six years with a thing called project i think cat. we took microsoft and looked at the problem from a technical perspective. we worked with kids and intiewrp tents. but i know what the answer is. ignore everybody and what they say to you and to do the

following two or three things. number one, provide broadband in every school. number two, provide some indicate of an appropriate device that can link up to the internet. number three, provide access for the students at home no matter what the parents make in terms of money. do a means of test. every kid can do his or her homework. number four, provide professional development for the teachers ahead of time before you do it for the tree months before they have the own laptop and whatever it is and they're properly trained. there are no exceptions. nobody gets out of this. if you're going to be a teach for the new school. so you to take the professional development. and then, number five or six whatever it is. provide supported at the school. when the teachers need curriculum advice. they need to know how to get going they have someone to turn to. they have someone to turn to. that's all there is to it.

i'm done. i'll suggest that that isn't even very expensive which is the usual objection. when we started it people objected the idea of technology. we want to do that, we know it's the future. it's excessive. no, it's not. today you can get a laptop for $250. you can get broadband fur not much money. and in fact, intel lookedded at this from a business model spet, and i think, i was saying it earlier hopefully the future governor. had he's a tech guy. i think what's going happen is there's a business model where the school becomes the broad band distributer, kind of an isp. and making some money doing that and ensures the kids in the school district are provided. it can be a public, private partnership. which i've seen work well in san diego. so you get all the good things out of this. and set up 19 levels

administrative courses. you have the student and teacher connected to the world of knowledge districtly and that's the revolution in k12 you have to have. it's no way around it. it's going to be the future. it you wait thirty years. it'll be thirty years of misery. it's the only way out. >> do you have a question? >> brian? >> quick questions and quicker answers so we be -- >> cieived along the lines creativity and developing talent. one of our strengths is we're an immigration. we have world talent. as the world evolves and like really aizes and economies become strong aeroand other regions. do you anticipate having any effect in terms of us being to be attract creative talent into the country. >> you bet. happens now. do you know how many students come into the united states from the university from all the countries we're talking about? in australia, i was there working with the government ip and other things.

and there are a number of two or three revenue lines is students from china coming to central ya universities. there's somewhere around 140,000. i think we do. i think we put your head down and do the job and work. be creative, create high margin things. people come from all other the wonder to learn how to do it. >> the misfortune of sitting next to me on the flight dc. you melted under the pressure. you have the camera on the headlights. you can't melt. respond to thes to observation that walmart is the greatest antipoverty. the contributing factor is the peg that we have the low cost of goods we're able to serve all kinds of people with -- >> consumer goods. >> i disagree with everything you said. let me try to -- [laughter] let me say it in a way which is reasonable. i used to think the same thing.

i used to think walmart is great for poor people. then i saw what walmart did to american businesses. so, you know, here's the story, you take -- you're making a sleeping bag. you go to walmart, and they say it's made in north carolina. they said i'd like to sell it. it's very good. you're charging us 19.95. it's got to be $9.95. i can't do that. the family has to eat. i can't do that. they're going to take it to china. they're happy to do that. it depends on the business. tvs are different than sleeping bags. walmart becoming and agent of the pla. it becomes an agent of the chinese government. walk down the aisle and check how many things are made in china in walmart. how many? >> 85% of it. >> while that's happening the people who would have made the

things who had real jobs in the middle class here are on the street. >> are they or asking biotechnology. >> no. ipse the guys who used to take furniture in north carolina they're not selling chairs through walmart. so there are people who have been retrained but not enough of them. and i don't know what the numbers are. let's guess maybe 30% get retrained in a good jobs. the rest are getting -- they're getting jobs for $7 an hour. they used to get $20. i'm not against competition. here's an interesting problem. you look at the question of free trade. and you know there a people who would, you know, kill to get $1 a day. god bless them. i hope that they get it. you're the president of this country, you say to yourself politically i'm

so if you don't want that to happen you have to start talking about what you don't like to use, trade policy, industrial policy. okay, that's not necessarily free trade is in the situation we need to be ourselves internally and if having a middle class is important, we can do that but we didn't have that. it's free trade and now gone.

>> last few questions. >> you said something on the second question that brought my question up which is a severe in a trade war match you have to recognize that but if we make these changes it's time to get back. when do you think was normal? >> that's a very good question. i have no idea. i guess it's okay. a lot of the war across theof street population if you are in the - you would like to have a somewhat sustainable project so i'm not saying there won't be

more theft or the exe -- if you lose every time been that's not too good. >> okay. >> so you're describing a situation where there is a slow-bleed, you know, where once you finally realize you're about to die you're pretty much dead. what do you expect -- weathers there's a fast bleed. >> yeah. >> okay. what is your predicts -- what in your predicts is going to be the end moment or the catastrophic moment or something where the broad public or the political environment is going to realize that something is going to happen. something has to happen. that's going to make a dime shift. >> yeah. you know, let me put this in an interesting way. i spent a lot of time on boats. and in other dangerous

situations. and i whrerned something about life-threatening crisis. whey lender was the earlier -- when i recognized the earlier you recognize you're in one, the more likely you're going get out alive. people don't want to talk about it or don't want to recognize the boat has a whole in the bottom of it. the boats are going to sink while they're on. i'm going suggest to you we're in that moment right now. we are experiencing, if you look at the economic carjack age right now -- carnage right now with the exception of central ya because of their mining it's breathtaking. we are in the middle of that cusp of that curve. we're experiencing, living it, and half the people you know, are going through bad times because of this. and you asked when is it going to happen? it's happening right now. the question is how do we focus ourselves when we're in the

middle of the chart. it's almost like your too close to see. you think it's a matter of few minutes it'll go back to normal. the boat has a whole in if. it's not going go back to normal. -- i was on the the famous rock when and i was spunk. all the people on the boat. there are 500 people on the boat. they were thrown off their chairs when we hit it at 19 notes. and the captain said get back on your seats. everything is fine. i'm thinking, geez we probably ripped 15-foot hole in the boat. the captain said don't worry about anything. if you need we'll tell you where the life jackets are if we need to. i'm going crazy! we need to ask where the life jackets are right now. >> last question. peter teal, who founded paypal,

one of the largest facebook. the end of the future was one of the piece he wrote. one of the arguen'ts there's a major difference between change and propping. weapon tend to -- we tend to look as technology that it's going solve. end of the future means we're focused on technology change. we're not focused on new ambitions. do you think he's right? do you think there's an tend the future. technology not the big solution? your education answer was technology. that's the solution. >> when i said when i said we're an invent nation and people. what we call pure science. the thing doing pure science and making the money. i don't believe that's over. i think we're doing a good job. you look anywhere one. that's my job to see which ones are going to grow and which won't. they're everywhere. we don't are a birth even the

economic -- we have a lot of people starting new countries. it's exciting. it's really exciting. here's my -- here's the problem i never thought we would have. when i was a kid and shoot forget moon. we the last thing -- i thought i was going go to mars. i was prepared to be an astronaut. i was prepared to go. i was ready to go. if you said to me half of your country is going to start thinking with the dinosaurs walked with men and ignore science entirely. and the other half won't be able to talk to each ore and all deliberation is going to come to an halt. because they can't be civil. i would have said you're nuts. that's my description of tonight. the part that -- i'm not worried about invent. i'm not worried if it's technical useful. do we have the maturity as people to do the right thing and make decisions together.

i don't see that we do. that's what i'm worried about. i'm worried about that. >> thank you so much. we have a bottle of wine. we know that the issues require a little cocktail. and the real -- sophisticated, dynamic and bold with firm structure and multiple layers resulting in a commanding but assessable offer. the wine may be again xed definitely. and you too. so please, enjoy this. everybody give a round of

the defense and state department and the department of a education testify. the senate homeland security so committee hearing is chaired by senator akaka of hawaii. >> thank you all for being here. call this hearing of the subcommittee on oversight of government management, federal

work force and district of columbia toward her. i want to welcome our witnesses. aloha and thank you for being here. as the chairman i have held seven oversight hearings to build the government's foreign language skills from developing a foreign language strategy to improving u.s. diplomatic readiness. this is my final hearing on the topic. today we will review the forms of language used to our national security and our economy as well

and examine the state of the federal government foreign-language capability and consider ways to improve the one language capacity. we marked the anniversary of september 11th terrorist attacks this tragic event exposed the nation's language shortfalls. the 9/11 commission raised concerns about the shortage of personnel needed in middle eastern language skills that both the fbi and cia which ended our understanding of the threat. these agencies as well as the department's state, homeland security and defense continue to experience shortage of people

skilled in hard to learn languages deutsch a limited pool of americans to recruit from. because of the shortages, agencies of force to fill with employees that do not have those skills agencies then have to spend extra time training employees in these languages. as we look to expand, we need employees with foreign-language skills and knowledge to access overseas markets. our national and economic security is closely linked to

how well our schools prepare students to succeed in in global environment experts indicate learning language starting at k-12 levels develop higher language proficiency. the federal government partners with schools, colleges and private sector to address the ongoing challenge as the root cause to have to quickly invest in education starting a turtle leashes. even in the difficult environment, we must fund for and study programs to build a pipeline to a 21st century

workforce including the foreign language assistance program. we must make sure budget cuts are not at the expense of strategic national security interest, shortsighted cuts to programs like title vi could severely undermine the progress we have made in this area. today we will hear about the agency's progress on their language capacity however i believe agencies can do more to coordinate and share best practices in retaining and training personnel for the more i strongly believe a coordinated national effort among all levels

of government academia is needed to tackle problem before us. if we work together we can improve the nation's language capacity effectively confront the challenges to the security in the economic prosperity. i look forward to hearing from our witnesses today and continuing the discussion on how we can address the nation's language needs. former senator from oklahoma who's been an advocate on this issue and was a friend while he

was here was kind enough to provide a statement for this hearing. he continues to urge that we invest in comprehensive language training and address the language crisis. i would like to submit this and i will submit this event for the record. a look for work to hearing from the first panel of witnesses and welcome again you here today. the honorable eduardo ochoa, assistant secretary to the office of post secondary education at the department of education. the honorable linda thomason greenfield, the director general

of foreign service and human resources at a permanent state to read dr. laura the deputy assistant secretary of defense for readiness at the department of defense, the deputy assistant director of intelligence operations branch for the federal bureau of investigation's at the department of justice and the principal foreign language area advisor for the office of the under secretary defense intelligence the department of defense. he is representing the directive national intelligence and as you

know it is the custom of this committee to swear in all witnesses. the lescol with you to please stand and raise your right hand do you swear the testimony you are a bill to give the subcommittee is the truth, the whole truth and nothing but the truth so help you god? lippitt he noted the for the record to witness's answer in the affirmative. before we start on one you to know that your false statements will be made a part of the record and i would also like to remind you please let remarks to five minutes. will you please proceed with your statement?

>> good afternoon, chairman. thank you for the opportunity to appear before the subcommittee today. i am the assistant secretary for education at the u.s. the purpose of education and i am pleased to provide testimony for the hearing on national security foreign language capabilities. i particularly appreciate your focus on this issue as i have experienced being born in buenos aires argentina when my family moved here during a junior high school. understand the importance of foreign-language programs that the only provide students of the culture but they also provided with a unique insight and appreciation of my own culture and language. before providing an overview let me express the departments appreciation of the strong longstanding support for the advancement in this country. the to permit petites it's imperative we improve the federal government

foreign-language to put the key thing with this believe the department recently adopted an articulate it international strategies to simultaneously advance the goals strengthening the educational attainment of the students and advancing the international priorities the key objective particularly relevant to the topic of today's hearing is to increase the global competency of all u.s. students including those from disadvantaged groups. the need for the competencies' which we think of as 21st century skills apply to the world is clear for u.s. civil society work force if and security. 8% of post secondary students enroll in a foreign language courses away from the multilingual society is a former economic competitors. two-thirds of americans aged 18 to 24 cannot find on the map of the middle east and latinos continue to be underrepresented.

the development of the schools including foreign language proficiency must start early in elementary secondary education, use colleges and universities have the responsibility to help students develop and deepen the skills but waiting until postsecondary education to start a test to late. this means school systems of all levels from elementary to post secondary must place an emphasis on helping students understand the responsibilities of the citizens. we believe in engaging students in these ways will help meet the 2020 college attainment goal with graduates ready to lead in the 20th century. i want to take time to talk briefly and of several programs funded by the department through education. that support international learning a foreign language acquisition. we support the teaching and learning of the languages through a portfolio of the discretionary grant programs under the title vi fulbright act. the programs received her money

to offer the domestically and for programs received 7.5 million to operate internationally. one of the rules of the title six fulbright program is meeting the need for expertise and confidence in the foreign area of studies. the research center's support could represent the department's primary mechanism for developing the language in the area of expertise on college campuses. the 127 current institutions provide instructions, research and development in over 110th less commonly taught languages from the areas. these programs play a part in meeting the needs of the nation's federal work force, national security and economic competitiveness. in addition to the resource centers companion program fellowships' provide the funds to the university's and foreign

language studies. in fiscal 201-1735 students attended summer programs overseas. title vi founding supports the american christie's center in 2010 alone the 11 centers worked with 1,000 humanities scholars, teachers and students. the investment in foreign language studies is critical to developing and sustaining the pipeline that individuals with foreign-language skills needed to address national security competitiveness. perkins of enhance the capacity of institutions and agencies of all levels including k-12 and post secondary to teach and learn foreign languages. we are committed to focus the programs to support the goal to strengthen education and the national priorities. we believe firmly the knowledge

and understanding of other cultures and languages are increasingly interconnected world were critical to building and sustaining the nation and for the coming years. thank you mr. chairman for your attention to this issue and i might be happy to answer any questions. >> mrs. greenfield please proceed with your statement. >> thank you for the opportunity to appear before you today to discuss the efforts of the challenges to build the foreign-language skills to fulfill the mission and to several america's foreign policy agenda. i will be presenting a summary of my statement today and ask that it be submitted for the record. the bureau of resources has the critical responsibility of building and maintaining an effective work force that can fulfill its role in strengthening the security of

the nation as a country clinton emphasized on the development review managing threats such as regional conflict and terrorism depends as much on diplomacy and development as the use of military force. therefore we've increased the number of positions as difficult that are vital to the foreign policy agenda we now have closed for thousand language designated positions in these posts as well as other locations. it's challenging to uphold the tube with the increasing needs that we have faced over the past years. over the past decade there has been significant shift and growth the positions in southeastern asia requiring an increase in the speakers of languages such as credit, barney and chinese. the affairs for the position the

requirements have increased tenfold and in the bureau of near eastern affairs has doubled regular positions corresponding with arabic requirements. the foreign service institute expanded its language training capacity to meet these demands and raise the proficiency of existing foreign-language speakers to get more targeted recruitment can help the current challenges and we are recruiting aggressively for certain pretty language proficiency skills to address increasingly complex national security challenges the department must have robust foreign language capabilities therefore working in our interagency partners we strongly encourage young people to study language earlier in life starting in middle school and high school and continuing through college. the bureau of educational affairs providing the like which learning opportunities to thousands of american

universities, colleges and high school students and teachers each year through our exchange program however we are very concerned over the past few years to learn that budget constraints universities are cutting the program's first before they can cut anything. in addition to the department to encourage employees to strengthen their skulls particularly in the so-called super hard language such as arabic, chinese, russian, japanese, korean and hindi. such underscore the value in the department on improving the capacity in our most difficult and critical foreign languages. we appreciate the opportunity we've received from you as well as the congress as a whole on the diplomatic high year program to train, it enables more overseas possessions to remain filled while replacement

received training so we do not continue to find people that do not have the requisite skills. while we work to recruit the staff needed in places like a chemist and indirect we must guaranty employees have a language skills necessary to be in these challenging averments but it's not limited to these countries, we have needs in many parts of the world has i stated earlier. no matter where in the world and our employees are serving the must have language skills to gather information, explaining the policy estoppels and maintain platforms, build and maintain trust and build relationships in today's rapidly changing world the need for the skills has never been more critical. thank you for the opportunity to

address you and i will be happy to answer questions. >> think you for inviting me to talk about such an important topic. this is a priority for the nation and defense. let me state secretary panetta believes having a strong language of these critical to national security and we are committed to fill in the capable source connected to our ability to communicate with local populations and partners. our current challenge lies in the language. we've been reducing it but we need help, we need to develop skills with which we can to recruit studies show expos are

to foreign-language greatly facilitates language therefore the individuals with free language to make it easy to train people to hire. this would make it easy for us to fill positions with qualified individuals. we are working to overcome these three cooperative interagency strategies to achieve our vision for language. cornyn and sustention language skills, enhance careers, building partners and increasing the capacity. through standardized capabilities based process these visa aníbal the combatant commanders to articulate the language needs to supply the

staff to meet those needs. we've often sought innovative solutions to enhance the language acquisition senate process ease which include creating a national security work force pipeline, enhancing language training sustainment, recruiting speakers and creating a financial incentive. language career is the essential to really are creating better opportunities for the promotion with critical language skills creating multiple regionally focused initiatives and offering language that has. we also recognize the need for partners. the department engages with federal agencies said the national security education