.. you had at least one professor who made you excited about learning. that the professor at your all modern cared about you as a person, and that you had a mentor who encouraged your hopes and dreams. how many of you say strongly agree to all three of those questions? raise your hand high. do you know what percentage of

college graduates in the u.s. strongly agree to all three? 14%. 14%. by the way, about half of the room here raise your hand. you got lucky. you take advantage of your education, perhaps in different ways than others. we also found three other items about learning and experts initial experiences. these tell your odds of being engaged in work, a slight relationship with well-being, not nearly as powerful as emotional support, but that you work on a long-term project that took a semester or more to complete. this sounds similar to the findings i just share with you, that you had a job or or you applaud what you were learning, and that you were extremely involved in extracurricular activities. how many say strongly agree to all three of these? raise your hand. about 30 percent of the audience. guess what percent of college graduates in the u.s.?

6%. we have to be doing a better job. when we do this right, it has a profound effect on our life and career trajectory, but it is happening for so few of us that it is almost embarrassing. so let me just wrapped up with what i think we need to do. we need to stop focusing all of our time and attention on was wrong and start figuring out what is strong with students and teachers and schools. need to figure out how we value more pathways to success because i will tell you right now, a kid with an entrepreneurial energy and our blasters today, we're barely more likely to diagnose that kid with attention deficit disorder than we are to think of them as the next mark zucker bird. i am only half joking. i wondered to what degree we are thinking about that as a talent and figuring out how we embrace that and support that in our schools. we are good at figuring out iq

and athletic talent. there are so many towns in this country. we need to make sure we're paying attention in embracing them. we need to figure out how we get out of this were almost 100 percent of how we evaluate students and teachers and principals is based on standardized test scores. there are important and necessary, but we have all of our eggs in that basket of. i can tell you right now, we have probably done a better job of building and accountability systems around schools then figuring out how to building business systems within them. that is the change that we need to make really fast. [applause] and that this becomes simple. if you say to my want to improve student engagement, there is only really one answer to that. there is not even a close second place. it is to improve the engagement of teachers. and if you want to know the number one driver of that, it is a simple answer. it is the great principle or college president that drives

that forward. when i was a student i never had the opportunity to meet terry stanford. he passed away my sophomore year, one of my big regrets. they deny kohl and president sanford. call them of "cherry because he was famous for walking around campus, knew everyone's name, say hello, hang out. this was a guy who cared and mentored. he is famous for it to this day. it is still part of the ethos. i tell you, there are districts that have figured this out. montgomery county, in addition to all the other things they're measuring the student engagement of all the students who show up in the building and the teacher as death engagement of everyone who reports that district from bus drivers to lunch ladies and everyone in between. they're working with principals in each of those buildings to think about how they can move the needle on those measures. we can do this. it does not cost as an arm and leg figured out. what i want everyone to try to commit themselves to do is to try to help us build the world's

greatest economy. let me tell you what it might look like. it might look like stays focused on engagements systems, not just accountability systems buried it might mean as superintendent having a goal to become the silicon valley of great principles for their district. it means schools that are focused on what is strong about students and making sure that they have someone who encourages their development and makes them excited about the future and cares about them as a person. might mean all of us, even adults, learning and doing every day because of the application of matter so much. might mean 100 percent of our students having an or some work experience because 100 percent of our employers pitch in to make it happen. it might also mean that mentor do the becomes the new jury duty . and i hope more than anything it becomes the case where teaching

becomes the most valued profession in america. thank you very much. [applause] ♪ >> thank you. i think we ought to give him another big, big hand. that was extraordinary. [applause] and if any of you, like me, are interested in giving that power point brand and has agreed to make it available. i think we can all take that home and make good use of that. thank you for sharing. [applause] now, i can tell you, as governor, we use the public in sight when we make education policy decisions. for example, you will see some common words used in 2014, state of the state addresses by me and

my fellow governors. think we have a work of the will be going up soon. they track all of our addresses and visualize or does visually demonstrated that we care about the issues across the education spectrum for early learning to post secondary. this is the type of analysis that makes ccs special. speaking of governors, want to make an introduction to the cheery led to is the governor of the great state of montana. would you please stand? [applause] i am excited about working with the governor, and that think you will see that he is a true leader in his state and nationally. now, that is what is great about this organization. you will see governors, governor's staff, legislators, legislative staff, chief state school officers, higher

education officials, teachers, education researchers, and business leaders all in one room. i hope you take advantage of this opportunity and really use these next few days to introduce yourself to others and to collaborate. so now, it is truly my pleasure to introduce our next session. this next session will discuss how we can control costs and higher education, improved fiscal transparency and create meaningful accountability systems. we have three amazing panelists today. i would like to first introduced janet napolitano. where are you, madam secretary? there she is very she currently serves as the president of the university of california, a system with ten campuses and five medical centers. she previously served as secretary of homeland security between 2009 and 2013 and governor of arizona from 2003-2009. thank you.

[applause] and just from a point of personal experience, i still call her madame secretary. it really was an amazing experience for me to be able to work with her and truly a leader in the country during some very, very difficult times. our next panelist was the governor of wailing from 1995- 2003 and served as the chair of the sea as between 99 and 2000. during his term as governor, he helped create western governors university to an online competency based university. since 2005 he has served as the chair of their board of trustees governor. [applause] and the chancellor of the

university of maryland system since 2002. he recently announced he will retire after 50 years. prior to his current position he served as president of both the ohio state university -- to -- and analysts said that because i am a proud graduate. if you would please help me in bringing up the chancellor. jeremy anderson will moderate the session. i am looking forward to another fabulous discussion. thank you very much. >> thank you so much, governor. i want to thank all of you for joining us on the panel here today. we will talk about some of the tough issues and hopefully some of the upper genevese the ec. over the past decade higher education america has really

evolved over multiple decades around serving ely's students and highly selective research institutions to being a your system in focus on providing access to and serving a wide range of students spirit that transition happens while we have a convergence of economic workforce demand, a divestment in higher education, and college affordability concerns that are changing the way each of your institutions and entities does its business. i would like to start the session by asking each of you to highlight briefly the one or two key issues. president impala town of, we start with you. >> well, i will say, too, and -- interrelated. one is that we need to do talking about, explaining, demonstrating the values that quality higher education, what it really does in terms of social mobility, but also in

terms of adding to the basic research, the knowledge available. and the second interrelated one is improving the level of public support for our great public -- particularly our public land grant universities which really formed the foundation of a large part of the united states economic growth post world war ii. the second woman come before the first, but they both need to be done and very urgent manage. >> governor. >> i want said take up on the title of this session and of the future of higher education. i envision the higher education community in the future as being something that provides shorter time to degree access regardless of time, place, and pace, wedding constant rather than

what we do today. competency is a credential, not the degree. the outcomes of tracks students' success with the employer and society than the student engagement, which is what we view significantly. we have academic mentors to mop progress mentors that contact every student who had a minimum of once per week. we have engagement. we know it does work. i see the future as being flexible, high risk of on demand , and to contrast that with the business model we currently have, which is not yielding a financial accountability. we have a business model focused on faculties and facilities to mend courses rather than students engagement and outcomes. so for instance sylvie's president emeritus of washington state was on a review board that found out that the average utilization of campus access to

of assets is less than 20%. the most populous as when times are between 10:00 a.m. and 2:00 p.m. it we are in an age of technology, the ipad that i all right here is not technology. this represents access. 247 availability. in tabling the entrepreneurs and that we see, governors, academy. assure that we have the accountability and financial management that we look for as well as the outcomes. >> dr. >> well, when i think about the future of higher education, i think the thing that concerns me the most is the fact that we, in america, are losing our ability to educate a population.

if you go back several decades will lead the world in the proportion of young adults with a college degree. now we are very much middle of the back. and this has to very troubling consequences for the united states. first of all, we all know we are in an intensely competitive global economy. so the quality and education and innovation level of our work force is going to be everything in america. and so if we don't do a better job of preparing more and more people to enter the workforce, you have to worry about where we will be in terms of our standing as an economic superpower. i think there is a second very profound issue that we all need to think about. like it or not higher education has been the ticket to our good

job and a high quality of life. it did not used to be that way. there were plenty of the jobs tickets to europe for someone with high-school degree. that isn't the case anymore. it should not be that way, what does the world 11. the difference in income a college degree entire school only degree keeps widening. it is over a million dollars now in a lifetime. and here is the troubling statistic. some of you probably know this, but if you look at the lowest quartile of encumber, about 8% of children in that category ever get a college degree. if you look at the upper quartile of income, it's about 85%. now, with the economic differential between a college degree and not a cause to green, we are at risk if we have not moved far down the path to

creating a test system built on the economy. we are becoming more and more like the england we left in fatah revolutionary war to defeat to build this land of opportunity, this upwardly mobile society, and we are losing that. so, to me, the responsibility of our time is to expand educational of virginities to include more low-income students, and to do that, yes, we need more public support. we and higher education have to find the means of delivering high-quality education at a lower cost. so let's turn to one of the first important issues that we have outlined of higher education access. within ten years the majority of high-school graduates will be students of color, yet post

secondary education has yet to resolve the discrepancies and performance in the achievement between the traditionally underserved students. research shows that during tough economic times there's less emphasis on access of some higher education officials for poor students. yes been the better part of your career advocate for increased access. how is your institution adjusting their students that are low performance of first generation and more adult learners. >> well, one of the things that we have done is establish a goal each of our institutions is measured in part each year on their ability to reduce the retention rate and completion rate between the student body as a whole and underrepresented

minorities and low-income students. and it is amazing that if you establish a goal like that and start measuring results how much progress you can make. the other thing and, you know, any number of initiatives to activities that one should embrace in this regard, but one of the things i feel most keenly about is the imperative for providing no more need bay state we are not at a time when we should allow our institutions to buy students who can afford to go to college and . we need to devote more and more of our resources, financial aid resources within our institutions in our state to support students who have financial need. so those are two things that i would mention that i feel have made a difference in maryland.

we have increase the proportion of dollars we spent by about 50 percent of the last five years. and i think that is a very important component of what we must do. >> president napolitano, what do you see as others possibility of higher education, states, and the federal government in improving access to higher education? >> again, this is why i am such a fervent supporter of the great public university as of our country. let me give you a sketch. ten campuses, 230,000 students, nine of which undergraduates or have graduate or professional schools, one campus, one in san francisco, only postgraduate, basic research, medical nursing pharmacy and dental schools. each of those four schools, by the way, the number one recipient of nih grants and the country last year and are always

among the top three. these are very high-quality institutions. very competitive and hard to get them. california, for 20 years, has had a ban on state supported affirmative-action. and it has invested a lot of resources and how you comply with the law and yet make sure that more of the university, this type of university remains open. that think we have got an okay job. i am claiming credit for a lot of work done. but 46 percent of our students who graduated or who are entering this coming year, excuse me, about 46 -- 46 above 45% will be fourth generation students. 42 percent of our students are pell grant eligible. if you come from a family that makes less than $80,000 a year in california the pain of

tuition at the university of california. now, how have we done that while the legislature has slashed the budget? well, two things. again, they are related. tuition went up. it is still a great bargain. i hope we get to have a little conversation and debate about some of the things that have been set, but think for the kind of university that uc is, it is a great bargain. it used to be a cheaper great bargain by a lot. bud we have a very aggressive return to a policy. so 30 percent of every tuition dollar goes right back into student aid. it makes it a very kind of perpetual loop that happens and that enables to be, like a said,

an engine of social mobility. how are we doing on underrepresented groups? we are not doing as well. so about one-third of our student body all told would come from historically underrepresented groups. this year for the first time the group offered admission. latinos will exceed whites in california. that is the ark of history. we still have a gap between the percentage of latino students to graduate from high school and those that applied for and then attend the university of california. that is the delta i am looking at. and then we have had for too long too low a representation from our applicant to the african-american young people in california. there are a lot of reasons for that. we are now looking for and doing a lot of things in terms of

outreach and with our community colleges and the community college transfer process to try to move that needle. >> could i just at quickly, wants the offer my commendation, congratulations to the university of california. your record, the university's record of serving low-income students, the statistics you just gave, that is a benchmark that everybody should aspire to achieve. so my hat is off to the way that the state of california and the university of california, california state has concentrated its efforts to support low-income students. >> one of the top issues that we hear a lot from different states is the governance and the changing nature of governance that many legislators are considering along with some of the current governing boards in the state. governor, we would like to hear

some of your insights on governance and/or you think that is transitioning over the next couple of years given the large amount of turnover we will see in governors' offices and state legislatures? >> i guess i would answer that looking at it in at least three different ways. the first would be how we coordinate what goes on. there's a lot of discussion about preschool. how do we coordinate that? let me just ask, how many of you participate in some sort of split class for more hybrid class from using technology and online courses? a significant amount. i would say within the next five years 50 percent of all secondary level glasses will be available on-line, all along the

lines of a con academy and in many cases of willful a law no cost. a generation of students that expect that of higher education yet we are not structuring to accommodate in our institution of higher education. it is being nibbled at as if it is on the periphery. we're not substantially changing it. we talk about the minority students and institutions, many of our institutions are getting that simply by eliminating so the proportions can be altered to fit the model. yet what we are offering is nearly all of our students are either low and a minority first generation are world. and their family, and there working full-time, and they're taking courses with chile around the clock. so governments of that kind of an activity takes on a completely different town because they also decided the functions that are typically associated on the faculty, administration, course preparation, assessment.

if you unbundle those of is that change governance? more than anything to my with said of the governing boards @booktv this will be the second area of emphasis, shared governance the turn the president, the faculty, and the trustees who are established there in some form and some makes. more than anything -- and i will go back to my state superintendent, we were sitting on the stage at the university of wyoming graduation one time. she turned to me and set, governor, how do we know that they know why we said no? >> you know. >> you know, don't you know. by the way, north dakota went in there and did quite well in terms of state support. that was the challenge back again these governing who more

than ever are being challenged on how to understand quality, being able to take on tough issues, provide the moral equivalent that we are all searching for. governance is being challenged in many ways, not just by technology. ways that our engagement related or as of the related as well. governance is being redefined as we know it. that share the board for the association of governing boards, 120013 member institution. we are looking at governance and how that model is to change with the evolving nature of higher education. >> any comments? >> well, i share the view that the whole governance structure in higher education is under some stress and challenge. i think i applaud jim and his colleagues are taking this issue on and studying it in some depth . i feel that we are in some sort

of transition point, inflection point in higher education and our country at this moment. and making the right decision about the path forward for us and higher education, you know, and it may be one of the most critical junctures in recent history or in history. so i think that the relationship between the faculty, the administration, and the board is something that needs considerable fought and steady. i happen to be blessed to have the very supportive board that has learned from the materials at a.g. be. and i think it provides exactly the right kind of oversight and accountability without getting

into the day-to-day management of the institution. but i think generally speaking across the country this is a huge issue for us in this particular time. i happen to serve on the commission that jim mentioned. but i think the report that will come out of that work hopefully will provide some very strong guidance. i think this is a critical moment for governance and higher education. >> i think that is right. i used to be on the board wow was the governor of arizona. very respectful of the work that it does. i think what we're seeing is the proliferation of different models of hired. this is going to be one answer. i don't think there will be one answer. but i do think technology used in different ways and different formats will be part of the answer and that time to

graduation part. i also think, however, that in these discussions are in this thinking about the different types of models of higher education. we should not overlook the faculty. they and a sense of the curriculum and their requirements to get the degree in large part they do that most state universities these are smart people who have invested their lives in educating the next generation in washington d.c. in state capitals i was probably guilty of this myself. we cannot solicit adequately enough the use of the faculty.

>> one of the issues that continues to be difficult for higher ed is the divestment in higher education for many of the states and some of the federal level. can you give us a little bit of insight on what happened at the university of maryland system, especially given that the funding levels from the 1980's and 90's are unlikely to come back? they're is a growing concern that the systems may be pricing students out of the opportunity to truly reach the successful goals that they desire. >> right. you know, this is such a critical topic for us. i just saw a preliminary report, a peel you, the land grant association is putting out the shows that over the last five years there has been a 25% decrease in the upper student investments by our states in public higher education. and that is a staggering number, to lose that kind of resource

over such a short amount of time. now, let me say in the presence of several of our legislators of maryland, maryland has decreed -- been treated very well. we have seen modest increases in funding. as a result of that we have been able to hold tuition increases to a very modest level. generally speaking this is a huge challenge for our nation right now. i am -- i happen to be one who believes there is ray of hope out there. i feel that we are coming into a time where two developments are coalescing. one is the incredible amount of learning resources -- research that has been done in the so-called cognitive sciences. we actually know what triggers

the implanting of information on the brain cells now, what is it that triggers people to learn something so that on the one hand. the other is the power of the internet and toes and software, and after learning. and we are not there yet, but i genuinely believe that we are on the verge of finding ways to use cognitive science technology to enhance learning and drive down the cost of delivery. no, i am not saying that machines are going to replace teachers by any stretch of the imagination, but we have been involved, and if there is time i can talk about a little bit, some really interesting experiments. not-for-profit in new york city that uses information technology to enhance education.

as a learning platform initially taught class city university and improving the outcome and holding down the cost. we'll get some very interesting results. we keep telling people, we are only seeing the first version of these new information technology driven internet driven teaching and learning platforms. this is one. tell. i think there is -- if we can make the right investment and do the right kinds of experimentation, i think there is a real opportunity here to, as i say, drive down the cost and improve the learning

outcomes. the thing we must avoid is chasing the fat. just because they're is a bell and whistle of fed has not been tested, people jump on the bandwagon too quickly. i think we can actually do damage. but down thoughtfully and correctly, i believe there is a real opportunity out there for higher education. >> i agree with you, but the opportunity needs to be tied to education outcomes. how we educate better in teach better, not how we necessarily always try to teach cheaper. is not about cost. it should not be about outcomes. i worry about in the governance area is how cheap can i get somebody a bachelor's degree? that is the wrong field to be on

. judy zack knew what you reference. use technology, different platforms, how they can be put together with other platforms, how there are interesting arrangements that can be made among institutions of higher learning. these are the things that i think are the most valuable at this point. >> i just want to mention, and i completely agree with that. i said higher-quality education at lower cost. i agree with you completely. cost is not the only driver. >> i have to at least know something. i would not call it disagreement, but i guess it is a challenge. if we take the premise that it should not cost less but should be higher quality or perhaps it could cost less but has to be higher quality, i say we have not challenge ourselves that. so much technology is a round that could enable will was

discarded. they could not afford it. it was called mastery learning. master the subject as you move along that is what we're doing. because the technology enabled that. we have not raise tuition in six years. you can get a degree for $15,000 less. we have had students as young as 17 complete a college degree. it is just an example. it is not the way. is an example that it is possible. the majority of our students have previous college credits that they cannot get credit for, work experience they can't get credit for, the competencies' and the knowledge. we don't take advantage of that and yet we have the tools and assessment to do that today. the tools are there. the culture is not. we have to challenge ourselves. the reason i say that is it we look at the attainment rate of a

college degree today, about 20% above the americans have a degree committee another 10% of another credential, but in terms of the cost three about 28%, to undo 1 percent of our adult population as a least some college credit but not agree. a huge pool of capability waiting for access. we have to challenge ourselves to do more because of we're going to have the attainment rates that president obama called for by 2020 or that the gates foundation said, they are all very high numbers. you would have to at least double our current statistics. we're talking about an era where the cost allocation of public and private activities, its other limited war vary slightly increased. so we have to do something different if we are going to achieve those goals that we talk about. you saw that even a college degree is considered not very meaningful today. means that you have to have something that is meaningful in

terms of a credential to mike competency that actually gets you that societal engagement, that satisfies the life time completion or engagement that says i did something good. i have to say, it is not about cost and quality. you have to change higher education as being offered today all we will not achieve the goals that we have talked about up here. >> there are many models. perhaps my approaches in a different way. very familiar with different models. take the university of california, a public research university. i use that word research. it is supposed to mean something how many of you have a smart phone? everybody, right? i cannot even search now. that is how you because it -- ubiquitous it is.

>> they did a from of thing in terms of the packaging. the breakdown, nine basic scientific engineering and other basic research things, technologies that were developed some of the university of california, the national labs and association. one probably in maryland, and center, that were taken and then applied to create the smart phone. that is a different type of university education model that has to be supported just as some of these access focus universities need to be supported. so i guess the point in trying to make is not to disagree but

to say, our aperture has to be larger, and we have to think about where the innovation economy is going to go and how higher ed plays into that role. >> c-span2 said -- >> absolutely. in the interest of time of up to get all three of you to also give us the one change that you think needs to be considered within a short time frame for the next year or so? we have opposed of concurrent sessions tackling some of these issues and more. but responding and then the one thing they you think. >> welcome my first just want to say how much i agree with what janet just said. there is not going to be one single approach. we have this great diversity of higher education institutions in different models will emerge. for many institutions competency based learning will be very, very important as an addition to the way that they do there work. it is very hard to say what is

the one thing you would do. since we have not touched on it, i will mention community college i am a huge fan of community college. i think generally speaking in higher education we have not built the linkages between our 2-year schools and our 4-year schools that we should have in our country. i happen to think we have done a pretty good job of that. we could do better. i think that if we could build on much tighter alignment between the 2-year and 4-year schools, it offers such a wonderful and lower-cost pathway for students to get a 4-year degree. we asked -- we have a very highly articulated program in montgomery college, a community college stars that school of

business in college park top out at our center in montgomery county. and so two years at community college, two years at the 4-year school. i asked our budget officer, if a student follows that path what did they say? the same degree at the end of the date, the state saves something like $15,000. the students saved $19,000. so there is, i think, a 85i will call its short-term, but a real opportunity for us across the country to create some lower-cost high-quality pathways to 4-year degrees. >> governor. >> the one change that we could make in a short time, to rethink what we are delivering an to ask the questions. if the faculty is the gatekeeper of the course work in the credentials and the like and how

we ask the questions, other legislatures as the question when it comes to governance how many of you as legislators are asking more and more of your higher education institutions? can you come up with the right question? the information you need to make the policy decision. as of the things that have to change. chair we think the types of organizations are relationships that we have between and among our institutions i was reading recently about the middle east country that is very rich in natural gas. they have a very unique approach to how we provide higher education carnegie-mellon love teach business administration and computer science and texas animal teach computer engineering on a single campus. while. what if we did that among our institutions? can you imagine the wrangling that would go on over articulation? that is the challenge that we

have. if our goal is quality education , the student has a usable credential. no matter how they got that and they got it at a lower cost of more motivation, and we thought of different ways to do that? that is the one thing i would change right away. >> president paul,. >> well, i think the one change -- well, not really a change, but one thing that i think could be most productive is very close working with the u.s. department of education and the united states congress on what hired is , what is the value at and what it is going to require if the united states is going to thrive in the 21st century. >> thank you for your insight. can you join me in thanking our panel for sharing their expertise with us today?

[applause] [inaudible conversations] >> a lot of the work that we do is focus around everything across the spectrum. we have an enormous amount of research on the higher ed side. i want to talk a little bit about some of the work we have done recently that is utilized directly by state leaders like you and take a moment to highlight and jerry holiday if he is here. i don't know if he made yet. the chair of the council of school officers and the commissioner of education in the state of kentucky. commissioner only recently spoke to an event. as i was moderating you, one of the reports we did just completed title increasing student access to success and tool and run the programs.

thirteen models of state-the will programs. he talked with his fellow chief state school officers about how that dual enrollment program was exactly what he needed in his state to start helping more and more students get an opportunity for a higher education certificate would agree but new politically he could not get it done by himself. so he actually took our report to the cheers of the senate and house education committee have not drafted a letter asking for a task force that will actually start reviewing this and report back to the chair by the end of this year. it is another example of the kind of work that is done with research to help you move policy that already asked for staff to be there to help give the national perspective on what is happening with dual enrollment, and these the kind of areas that you should be asking about so that we can help you also. we invite you to cause any time you have a question and engage with us because it is important for the next gaps. the next as for tonight are relatively simple.

we have the first set of concurrence. you will see that there are six of them. this is how we do this. we urge you to find the one that will be most meaningful for you. there will be about one hour in length. you want you to not awesome is the chair's reception taking place at 5:30 p.m. this evening. that will be in the ballroom on the other side of the tell. tomorrow morning we will start at 7:00 a.m. with breakfast, a a.m. with the next plenary session. i would urge you to help us the best you can when you arrive to move toward bass of the ballroom . capacity even more toward tomorrow. busy in well packed room. thank you so much for your help and engagement. we look forward to a fun evening tonight. [applause] ♪

[inaudible conversations] [inaudible conversations] >> and now live coverage continues this afternoon. 4:00 p.m. eastern time. live with the chilean president. she will be at the brookings institution. she met with president obama this morning. here are some of president obama's comments from that white house meeting. >> well, i want to welcome back to the oval office my second favorite michele. [applause] and i very much am pleased to see her again. we had the opportunity to work

together. when i first came into office. since that time we have been an extraordinarily busy doing excellent work at the united nations, particularly the around women, an issue that the united states has been supportive of and are very proud of the work she did. she is now back in office, and it gives us an opportunity to read strengthen further the house and the relationships within the united states and chile. let me say first of all congratulations to the chilean national football team or an outstanding show in the world cup. i know that it was a tough loss, but it also shows the incredible skill and talent of the chilean team. a very tough brazilian team on our home turf. so congratulations to them.

coming up we have a tough match as well. so i want to wish the u.s. team a lot of lock. your basis for the strong bilateral relationship includes the fact that we have of free trade agreement that has greatly expanded. created jobs. we had excellent cooperation when it comes to a wide range of issues, energy, education, people to people relations. been a model of democracy in latin america. able to consistently transition with center-left or center-right governments, but always respectful of democratic traditions. obviously those traditions or

hard-won. the president knows as well as anybody had difficulty was to bring about democracy and now the fact that she lay across the political spectrum respects and fights for the democratic process makes it a great model for the entire hemisphere. today we're going to have an opportunity to discuss how we can be -- push those relationships even further. education, for example, is an issue that is at the top of the agenda. it is on my agenda here. to be able to strengthen student exchanges and compare mechanisms her and ideas for how we can build skills of young people in both countries is something that we will spend some time on. we're both very interested in energy and how we can transition to a clean energy economy.

the facilitation of the construction of a major solar plan that can help meet their energy needs. we will talk about regional issues. obviously we have seen great progress in democratization throughout the region, in part because of the chilean. obviously there are still some hot spots that we have to try to address as well as issues of security, central america and the caribbean. i will be interested. and we will discuss international issues. what this seat on the united nations security council, serve as a leader on a wide range of issues, peacekeeping to a conflict resolution to important issues like climate change.

and we have great confidence that in that role gillette will continue to be a positive force around the world. not only the function, but more broadly our. the predecessor, he and i have an excellent relationship. she and i have had national relationship. beyond any particular party. i am confident that my replacement after i'm gone one of our relationship based on common values and a strong respect in both countries for the value of the u.s.-july relationship. welcome and a look for to an excellent conversation. >> thank you.

we hired and he poured. we have very strong relationship for so many his. to enhance them in different areas diet will be available. regis full and international issues. also we will deal to in a bilateral commission and work with the u.s. science and technology people to people relations, we already have a very good -- not on the bilateral but very good with california.

we are interested. this year i think we are commemorating ten years of this free trade agreement. and u.s. is, i would say, our most important foreign investor. you want to continue that path and will have the facility of having activities with the chamber of commerce and others. who want to make all these strong ran stronger. very happy to be here with you again. >> okay. thank you. >> thank you. >> thank you. thank you guys. thank you. [applause]

>> the chalet and presence of meeting with president obama earlier today at the white house we are live now at the brookings institution in washington d.c. where the chilean president will talk about democracy and stability in our country. first elected as chile's first female president 2006. she won reelection in 2013. again, she should be speaking here at brookings in just a few moments live on c-span to. [inaudible conversations] [inaudible conversations]

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institution live here in washington d.c. waiting for the chilean president to arrive. she will be talking about democracy and stability in her country. michelle bachelet is chile's first female president elected in 2006. she was reelected in 2013. that's after taking a four year break. chile does not allow its presidents to serve consecutive terms. she should be arriving here at brookings in just a few moments. until then let's look ahead to booktv on c-span2 this weekend and their interview with hillary clinton. >> booktv sat down with hillary clinton in little rock to discuss her newest book hard choices. >> i learned, though i learned before but certainly a secretary of state to expect the unexpected. nobody expected the so-called arab spring intel was upon us. and we have to learn to be agile and ready for the unexpected.

while we try to build the world that we want, especially for our children and now for my future grandchild, but we have got to be aware of the fact that all these other countries, all these billions of people, they are making hard choices every single day. we have to be ready for that because i'm absolutely convinced that we have to continue to lead the world into the kind of future that we want. we can't sit on the sidelines. we can't retreat. we are going to have setbacks. we are going to have disappointments but over time, our story has become the dominant story. it represents the hopes and aspirations of people everywhe everywhere. that is what i want americans to understand and the main reason why they wrote this book, i know there's a big debate going on about our role world and the world and we have some real unfortunate consequences still to do was from prior decisions

and the like. but we can't abdicate our responsibility. how we define it, how we execute it will be the stuff for political debate. but the world needs us. america matters to the world and yes, the world matters to america for our prosperity and our security and our democracy. >> back live at brookings institution in washington d.c., waiting for chilean president michelle chile to arrive. she will be talking about the situation in her south american country, democracy and stability

in chile. live coverage here on c-span2. expected to get started shortly. [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations]

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>> good afternoon everyone. and welcome to brookings. my name is ted to come. and the acting vice president director of the foreign policy program here and on behalf of john thornton who is with us today cochair of the brookings institution's order trustees and our president strobe talbott. i'm delighted to welcome all of you here to brookings this afternoon for a special address by mitchell bachelet president of the republic of chile. we are very honored that she was able to take time out of her busy schedule here in washington, including her knitting with president obama at the white house earlier today. for the foreign policy programs alan and jayne bachan international leaders. i also want to extend a warm

welcome to president bachelet's high-level delegation from santiago including many members of chile's congress and private sector leaders. we are especially happy to welcome back to brookings foreign minister niños who back in 1977 spent a year with us here at brookings as a visiting fellow finishing up his ph.d.. president bachelet is no stranger to our halls either. she joined us in 2009 for a talk from this podium on how latin america was coping with the global financial crisis. washington is familiar ground as well from her early days as a junior high school student in bethesda and her studies at the inter-american defense college. to her many visits as chile's minister of defense, minister of health and president from 2006 to 2010.

president bachelet joins us today as she enters her second tour as president of the republic after winning over 62% of the vote in chile's national elections last december. with the majority seats in congress held by the maria coalition president bachelet has moved quickly to an act and ambitious agenda of reforms, most notably in the areas of education, taxes and constitutional and electoral design. this agenda reflects chile's remarkable success as a leader in both economic and political terms and its determination to continue moving forward on the path of social and democratic progress. president bachelet also enters office at an important moment for latin america, which in addition to dominating the world cup competition so far is facing its own challenges as it pursues

more equitable development, greater integration, sustainable energy and democratic stability. i can think of no other leader in modern latin america more prepared to take on these challenges then president bachelet, whose remarkable career as a medical doctor and imprisoned in exile political activist, a global leader in the fight for gender equality and empowerment as the head of u.n. women and now a two-term president. she makes us all proud of the promise of democracy to deliver real results. president we look forward to your remarks. we will then have time for discussion moderated by herald, the director of our latin america initiative and including some questions from the audience. if you are following us on twitter, please use the hashtag bachelet. welcome president bachelet.

[applause] >> thank you ted for those kind remarks. and particularly thank you for being there with us watching at the football game suffering as we suffered. thank you very much for that. well, i want to say the chairman of the board at the brookings institution mr. john thornton acting vice president dr. foreign policy of institution mr. ted pacom and director of latin initiatives at the brookings institution mr. mr. harold dennis and secretary-general of the os, minister senators and congressman and members of the chilean allocation officers of the u.s. government professors and members of the academia,

ladies and gentlemen and dear friends because i see a lot of good friends here. i started this together little latin america in touch. we usually start all speeches with a long mention of all the important people. so dear friends, it's always a pleasure to return to the united states which was my home for several years. a home where i learned important important lessons and made close friendships. i think brookings and the institution that has cosponsored this meeting. i'm returning to washington as president of the republic of chile optimistic that we have initiated positive changes for the future of the country. i'm confident that this is the worldwide task. in recent decades chile has embarked on a successful path of democratic changes. we have significantly reduced poverty and have also strengthened the country stability, economic political and social. we are internationally recognized as a country with good practices, clear rules and

working and i would say sound institutions. this has given us a solid core in the globalized world. in other words, ours is a steadfast stability. ours is steady growth in the basis for this has been the stability of our domestic social, political and economic relations. above all our governance is based on identifying and addressing those issues which will lead to more equal society and dynamic development. today the challenge facing chile is the elimination of inequality dealing with this and it will enable us to achieve inclusive and sustainable development and to be counted among the most modern developed democracies. we take up this challenge not only because it is the right thing to do but also because it is the most intelligent and reliable way of thanking on our future with economic dynamism

political stability and social cohesion. this challenge requires us to deal with three central aspects. tackling inequality, understood as disparity of opportunity, lack of access or discrimination and injustice among systems. second, encouraging sustainable and inclusive growth and third, achieving greater civic participation in decision affecting all chileans. in other words we are not talking about rewriting but rather about consolidating our history of development of democracy, making improvements and changes were shortcomings still exists. and it's not only my idea or that of the people that voted for me. it's a national consensus built up over years. although there are legitimate differences regarding the best ways of achieving the transformation and this is what we have launched, a broad national debate. nobody denies the need for

change because as in most nations on the planet society itself has changed a great deal in recent years. systems have become more active, more critical and very informed and more demanding. if i would say, also more challenging. voices in a multitude of languages are calling for societies not to forget and there's additional dealings and economic management what should be the focus of any social contract, the people. although from the government's viewpoint this demand represents a challenge, it is an interesting and important one. the challenge of ensuring that people are more involved in decision-making on matters that affect them, so development policies are translated into quality of life, social cohesion and democracy. for us, this means reappraising collective life and public interest, promoting dialogue with a civic sense and a respect

for differences. the challenge of eliminating inequalities has an ethical component since it refers to good life for all but it also has economic component. that is why we are saying it's the right thing to do but it's also a smart thing to do. because we know we need dynamic and sustained economic growth in order to tackle inequality, eradicate poverty create opportunities for development and generate revenue for the implementation of social welfare policies. and so it is in both senses that chile has decided to assume and expand the undeniable progress made by the country since the return of democracy. recognizing today's new challenges and focusing on governance for growth and stability of democracy. around 2020, chile will have achieved per-capita income similar to that of developed economies but we shall not be a truly developed country if we

continue to be one of the oecd countries with the highest income inequality. this inequality affects our social cohesion's and their prospects were economic development. this is why we must tackle it and at the same time opt for inclusion and growth. like most chileans i'm convinced the biggest risk to the stability and progress and chile is not making the changes made to make. because inequality undermines one of the most important foundations both of the economy and of democracy. trust, trust in the markets. trust in institutions of stability, trust and social relations and trust is a precious asset which today chile has to decide to enhance, reducing inequality and fostering cooperation between the state, the citizenry and in the market. this is the underlying meaning of the reforms. we are optimistic because this is the best way of building a better country for all. we have a strong foundation in

which to live. in recent years chile's economic growth has been positive and unemployment has declined. this allowed the important progress to be made an expansion of social rights and opportunities for people. this reflects the global financial scenario, good copper prices and in recent years -- sorry, good copper prices in recent years and are monetary financial crisis. these conditions are cyclical and difficult to replicate. when the factors underlying the dynamism of our economies appear, growth, prospects will recede. chile is currently experiencing a period of low growth, below its gdp potential and they we must respond to the challenge which this represents. chile's growth for 2014 is estimated at just over 3%. starting in 2015, our goal was to resume the steady path of growth and in the second half of

our administration for chile's growth to be about 5% at its potential gdp level. we have set ourselves ambitious goals but we have taken a realistic approach to these economic conditions facing us. we need to generate more economic growth were not growth of any kind. we need growth that is socially legitimate and inclusive environment to a sustainable and democratically oriented. for this we need to grow the basis of development by means of structural reforms to the citizenry and our economy and now is the time to undertake such reforms. what are the changes we are proposing that are already underway? when the structure of reform of education focusing on equality come a public education and inclusion. two stimulation of economic growth and productivity, innovation and competitiveness and this obviously and attacking

the challenges facing us regarding energy. three, tax reform providing on line resources for the state and redistributing more equitably efforts of common development. it almost -- also mostly the specs of the path of fiscal responsibility which is essential that the state is to honor its commitments in the medium and long-term. four, and the end up-to-date one, allowing more scope for democracy participation and guarantees for people in all their diversities. i should like to refer briefly to all these topics. firstly education which fosters equity and democracy. i'm not going to say anything that i will win a prize here but knowledge is essential in able to achieve ongoing prosperity now these areas and to generate this knowledge must make education the focus of our development strategy. this is what countries have do done. those countries who have

achieved developments such as finland or japan, singapore or the united kingdom. chile needs and demands far-reaching changes to improve the quality, scope and coverage of education at all levels. you will undoubtedly recall hearing the news three years ago that thousands of students in santiago issued a structural demand, the right to free and quality education. that was a time when a lot of young people were all over the world but something that i was here working for the win and everybody would ask me in any meeting, how could you explain us because we understand we are doing bad and the economy but you are doing well in economy. how do you explain doing well and economy and demonstrate massively on the street. i have to tell you it was echoed throughout society, anxious to ensure that all the children and young people are given not only a basic education also appropriate standards of quality over and above what it can pay.

i have to tell you when a country so come if i would say proud of what we have been able to build coming from a dictatorship to build a sustainable mature democracy with good economic performance, people believe now it's our time. we really deserve to have quality education for all. chile has an important task here. today we are the oecd country granted as being the most independent and private funding for its higher education. exactly 85.4%. in korea, japan and the united kingdom, the reliance on family contributions is considerable but much less than in chile. more staid investment in education is therefore crucial for a society aiming at the credible and sustainable development. i know this is also a discussion here in the united states about education and the debt that the

students are having right now. chile must remedy the shortcomings of the system and provide guarantees from the principles underlying our right to education. that is integration, universality and equality. this is why we have initiated the structural reform which is already underway and a proposal concerns various aspects. improving public education and into discriminatory selection of students coming into profit-making by establishing and receiving public funds and an end to payments with mixed financing. in other words we want families not to have to pay for their children's education and establishment receiving state funding. second, the creation of two new state universities. they will be created into regions of the country where there is no public university. and third come institution

building and improve coverage of preschool education. in addition we are guaranteeing access to college for the most vulnerable students very special program of access to higher education. we are improving technical education throughout chile and regional universities and with education reflecting the economic and productive characteristic of its territory. what is our goal? i goal is to guarantee that all students in chile without exception can obtain quality education free of charge. what we really want is not to lose any of those talents, capacities. they are not distributed according to the income of the families so we need everyone to have the opportunity of a good education and then to contribute to the country's development. private providers of education continue to participate if they meet quality standards and all forms of determination and assumed they obligations

incumbent of a public service. of course the state must play the leading role in both the delivery and regulation of education. this will produce better informed citizens, promote social mobility, equity and inclusion and allow chile's growth to depend not only on its natural resources but also on the knowledge of its people. and this brings me to another focus of my government. the development of production and competitiveness. we know productivity increase increases -- and they also know integration is the main trigger of long-term growth. we must therefore adds more knowledge, more complexity and more innovation to our economy and also involve those who are not persist -- participating today or are participating below their potential. we must also diversify our production. in addition to the exploration of our natural resources other

sectors must contribute more to the generation of wealth and economic growth. in order for this to happen essentially we have set in motion initiatives to expand the coverage the country productivity and the relevance of training for work. in our specialized in targeted plants we are making a special effort to generate suitable incentives to increase participation of women and young people in the world of work. in chile they are two groups that are the lowest rates of participation in the labor market. 54.6% for women and 37.1% for young people. these figures are respectively 7.7 and 10.3 percentage points below the oecd average. in addition to investment in human capital we shall increase investment in science, technology and innovation offering incentives for a

solution of the country's problems. we must implement a strategy that takes into account the conditions, strengthen needs of our country. a strategy based on research and innovation which private initiative is essential. in this context we have announced two powerful programs that go to the heart of the economic activity. the agenda for productivity innovation and growth and the agenda for energy. the agenda for productivity innovation and growth focuses the development development strategy for diversification of the production made tricks, inclusion of more people into the labor market, incorporation of new economic sectors in our basket of exports, stimulus for strategic areas support for small and medium-size enterprises and creation of quality public infrastructure. this extensive agenda includes a series of measures to which the experience of the united states will be very useful to us. for example this agenda envisages a national network of

business development centers which will provide comprehensive advice to help small and medium enterprises to improve their business models. i know that you have small business development centers which are our inspiration i have to say. you can ask the copyright but we are going to copy it. [laughter] we just signed in mou with the government so don't worry. which as i said our inspiration and we are already cooperating in connection with this point. i'm not going to discuss and describe the whole agenda. it is very thick and lengthy and available to the public but i do want to add that we shall also have a system to support the education of our economy and expansion and strengthening of the sectors already consolidated. through those sections we shall finance goods to buttress significant investment projects with a focus on sectors with

high potential for growth and job creation. however while setting new productivity targets we are also aware that chile faces considerable energy challenges. chile imports 60% of its primary energy. this means our country is sensitive to instability and volatility in international markets to supply restrictions. we must invest in new generations and projects in order to -- it's dependency. it's not been happening in recent years and this means we have not incorporated the basic energy we can use to guarantee a reliable supply in the short and medium-term. we are aware of the urgent need to encourage energy deficit and we have said that we shall strongly support all initiatives that comply with the rules enforced and a good fit in our regions. in this area too the state and private sector must work together. this is a key point he goes one

of the obstacles to the sector's growth is a lack of social permits for those products. they are two important challenges here. to strengthen the energy institutional structure and to work two -- the local communities with transmission projects. this means work at an earlier stage following clear rules to ensure the development is feasible in the medium and long-term. we are there for working on a plan of territorial development allowing us to decide which products can be located and where. we want to see if all stakeholders together to find sort of an area of development so we can get into some agreements on this. however we also face the challenge of improving the energy market and encouraging new players to enter the market. on this we hope to be able to study the experience of the united states for which we have much to learn about gas

distribution renewable nonconventional energies, energy efficiency and good practices. and i want to stress this. surgeon for chile to ensure reliable energy development at competitive prices with the same time to use our renewable resources and a sustainable and nonpolluting manner. this is the meaning of our energy agenda, ensuring that the country will have a diversified balance and sustainable energy matrix. we aim to reduce prices ensuring greater competition efficiency and diversification and energy market. we shall ensure that 45% of the electricity generation capacity that was installed between 2014 and 2025 can -- so this accounts for 20% of chile's energy matrix within a decade. in addition we have proposed

energy efficiency should be a state policies the rule rather than exception to our goal is for us to be able to reduce our consumption by 20% by 2025. we are talking a total of 20,000 gigawatts per year. i know that here too you have much in the energy after 2005 attaches great importance to efficiency. ultimately the goal of this agenda is to give certainty to all relevant players to increase predictability, to reassure communities to introduce clarity into the rules for investors. dear friends i know the senate is an extensive program of change however the point is that chile is preserving the growth and democracy of governance that we have built with considerable effort. consequently our fiscal policy will continue to be guided by the policy of structural balance

because of the commitment of new ongoing expenditures must always be linked to ongoing revenue. this is the first responsibility of the people. for this reason and review of the need to undertake the structural reform of education and other social welfare requirements we shall be implementing reform that will give the state the necessary revenue on a sustainable basis to 3% of gdp. in addition to providing ongoing revenue the goal of every form is also to improve income distribution and tax stability. in chile we have a sad paradox. the gap between the income of the richest and the poorest households is not reduced after payment of taxes. this is a problem that we must solve as a country. under this reform currently going to congress those with the highest income must make a greater effort to contribute to public revenue. this is a well-designed

incentive to introduce gradually. some have tried to describe these reforms as anti-growth. i should like to say when the developed countries have a per-capita income similar to that of chile today most of them had tax burdens considerably higher than chile and tax systems that help to reduce income. those countries develop as they collected higher taxes on provided their systems with a higher standard of living. chile has room for improvement with regards to taxation. in 2010 chile's tax burden was 18.4% and average was 20.6% for oecd countries which at that time had a per-capita gdp similar to that of chile. there is no reason why chile cannot follow the same path. the tax refund that i have described may not please everyone. it doesn't please anyone i have to say.

but it's essential if we are to tackle the inequalities that continue to develop. it should be noted that the effect of the higher taxation on public saving and training of human capital with more than offset the effects on investment. moreover the income tax increase will have little or no effect on investment. chile is an active player in international financial markets with a low-level of risk. thanks to our macroeconomic policies and fiscal soundness we have a low-risk of the global level and the lowest risk and latin america. we have no reason to fear that a tax reform here marked for investment in human capital will alter our economic development course. taxation is only one of the factors affecting investment and it's far from being the most appropriate one. the most important factors for

investment are first, social cohesion and political stability. second, equality of public institutions. third the accessibility of competitiveness of markets including financial markets. fourth, infrastructure and five, appropriate economic legislation. in all these areas we are meeting our challenges. i shall not describe in detail all the tax reforms but i do wish to say that i have four goals. the first is to increase the tax burden in order to finance ongoing expenditures with ongoing revenue. the educational reform of which we are engaged and other social welfare policies and protections of the structural deficit and fiscal accounts. second to improve income distribution and tax levity and introduce new efficient ways of encouraging saving and investment and forth, to implement measures to decrease tax evasion and other loopholes.

i know that when asked if this tax reform of the avengers to you the repeal of law 600 concerning the foreign investments tax new investment projects in variability this legislation was adopted in 1974 and a very different political social and economic context. when there was a dictatorship in chile enter -- was at a low level. the lack of democracy and freedom meant that the mechanism was such that this was needed to encourage foreigners to invest. after 25 years of democracy with our solid international prestige and accountants of good governance and democracy and freedom we no longer needed this mechanism to make foreign investors -- investors look favorably on the idea of investing in our country. institutional stability of our countries enable us to take the

decision to continue this mechanism without affecting foreign investment in chile. i should like to share some pictures -- i'm sorry, features with you. wouldn't it be nice if i brought some pictures? [laughter] julie has trade agreements with 61 countries. these countries account for 63% of the world stipulation and 85% of global gdp. in addition chile ranks 34th out of 144 economies and four economies in the world banks doing doing business index. with regards to chile as a place for doing this as i should like to say that in 2013 our country was among the first 20 economies receiving foreign direct investment according to the united nations conference on trade and development. our foreign-policy i don't know if that is changed but we are also trying to have a new emphasis, new focuses and we are looking at latin america and the

caribbean as a very important option. latin america is our natural space and from there we shall reach out to the world. we realize that it's a diverse region but we must respect the different paths to development. differences are not obstacles for convergences. we believe that chile can help build bridges of understanding over and above differences of approach and that as i have noted on so many occasions, the most united face possible to the world. this vision precisely explains her conception of the pacific alliance. and economic integration on a project that does not preclude or oppose other integration schemes. a few days ago in mexico i reaffirmed our commitment. similarly we have promoted convergence of dialect between the pacific alliance and the countries without watering down the alliance specificity or progress.

we shall pay special attention to latin america and we shall continue to develop our excellent political economic and cultural relations with europe asia-pacific and particularly north america. our relations with united states are characterized by their solidarity trusted maturity, reflecting important shared principles values and interests. we believe in the strength of democracy and the rule of law and the rights of individuals and their fundamental freedoms. we share a common vision of the importance of free trade and ensuring development in stimulating investment and we are working together to create a multilateral trade system based on clear predictable and transparent rules. chile in the united states must move forward in our relationship and ensure that after this visit new dimensions in areas of understanding will emerge for a new association focused on scientific and technical cooperation, education, energy

and education among other things. dear friends at the outset of the speech i spoke of the importance of trust in ensuring the country's development. this trust also depends on the continuous enhancement and expansion of democratic rights. this is why i have abdicated a new consultation -- not constitution that our existing constitution dates from 1980 and was adopted in condition with what no one could describe as democratic. describe the numerous barriers in the past decade it still has the sort of deficit origin if they may use this term. in addition it contains provisions limiting allowing minorities to tie with majorities. this is one of the basic tenants of any modern state, respect for the voice of the minority and not allowing a few to veto what the nation wants. in addition this tide makes it

difficult for the country to democratically resolve its differences. a fully democratic social commandment is an essential prerequisite for trusted institution, trust and estate and trust in politics. and is essential to a healthy society in which entrepreneurship flourishes and private certainty and stability for its actions. while we have been laying the foundation for new a new constitution which is necessarily a lengthy process of dialogue and participation, we have not remained idle. after more than 20 years of this discussion chile has abolished a institution. starting with the next presidential election in chile will be able to vote. in addition we have drafted legislation reforming our electoral system for tim practice allows a tie between minorities and majorities in terms of logistical representation providing for

higher levels of competition especially for smaller parties and i should add trying also to introduce more balanced, gender balance in our parliament. we are very far away from that. we are adopting this course because we are convinced enhancement of democracy is the key to a more solid society. a society anchored in respect of the dibella jollity indifference but which can guarantee in each person appropriate standards of respect and well-being and also society which has with legitimate institutional mechanisms for resolving its differences. it is in the space of respect and trust linking individual expectations and initiatives with society. the transformations that i have described here will require time and gradual introduction so they can mature with dialogue and democratic participation and can be anchored legitimately in our

society and their institutions. so that they can enjoy the support of a sound economy and legitimate institutions. many of them will last beyond the government term of office because we are thinking about development in the long term. chile is not a populous country. and economic responsibility and democratic legitimacy are the only way to create a lasting and equitable well-being for each of its citizens. dear friends, the solstice which appeared last week the indigenous cultures of chile celebrated the new year as in the case at many places. it is the beginning of a new cycle of collecting work, organization and commitment looking forward to a good harvest and this is the task on which in this new cycle we have embarked a society and like the seasons that represents no disruption but the wisdom to recognize the tasks that are

fitting for each time. plus we shall sow a seed of social character, cohesion and well-being with deep roots which is the basis of all solid and sustainable development. i'd note that the great task in which chile has embarked in my term of office will last for several calendars but it will be a harbinger of strength in all its splendor and this is the reason for optimism and of course our tiring work. thank you very much. [applause] >> president bachelet thank you for joining us at brookings. it's wonderful to have you here with us. we have a few minutes now for an opportunity for some discussion and i would like to take the

monitor's privilege to lead off with the first question. i would like to turn back to the foreign-policy questions you raise in your speech. as you know chile is currently once again serving on the u.n. security council and it's a time of advising global insecurity, tensions in europe and asia and the middle east. i'm wondering if he could talk to a little bit about how you envision chile's role playing out in the security council to. >> well, we see ourselves as always we have seen ourselves as a country who has respect for the rule of law and respect for institutions and respect the peaceful way of solving our problems when it's possible. of course it's not the things the security council has to deal with but we will be ensuring

that the principles and values that chile must present in that we share with the united states will be the ones who every time i have to discuss cases will be similarly important issues. we also think if we were talking with president obama about that. i think we need to discuss much more on the way we are dealing with conflicts, the way -- what is the role and peacekeeping operations needs more support we need to see what else we have to do. my opinion, not only as president but having worked in the u.n. and its minister of defense we sent -- i really push a lot on chile's i would say very active participation in peacekeeping operations. after being in many countries, visiting peacekeeping operations

sides i think we need to make a stronger thoughts and assessment and see what else we can do because we need to do much more about that. >> thank you president bachelet. i think we have time to take a few questions from a audience. if you could please wait for the microphone, raise your hand if you wish to ask a question and if you could identify yourself and your institution or affiliation. while we wait for the crowd to collect his thoughts i wonder if you could talk to us more about your government's thoughts on the transparency of the market. some doubts have been raised about negotiations and i'm wondering if you could elaborate on what direction you see chile taking in the negotiations as

they go forward. >> as you know this all started with the p. for which chile was part of and then as the singapore and new zealand, and looking at the way, in aipac all the economies it has been very difficult to think on free trade agreement of the whole asia area and we believe it's a good idea and we are pushing towards that. we started inviting many other nations to be part of it so that as we came to a p7 and p aide and former aim will be a p. 12. chile has been part of this very strongly. the thing is that when we are talking about the tpp we need to see the result has to be better than what we have today. we have -- with all the rest of the countries. what we are negotiating if i may

say or analyzing how we can ensure, i mean we really want a free trade agreement with the highest standard of quality level standards that we need to ensure that those standards are also respecting the national interest. i'm not going to go into the technicalities. they are issues we need to discuss further and where not doing so. so we hope we can be able to get to a good solution for everyone because we believe this is really it could be a very important perspective on trade and economic relations between the 12 countries. >> yes, richard.

>> richard feinberg at brookings and the university of california san diego. madam president thank you for your very inspiring and persuasive remarks. you spoke of chile as a potential bridge among countries. in the western hemisphere right now perhaps two of the most difficult problems are the polarization in venezuela and the issue of change in -- i wondered if you could specifically indicate what role chile might play as a bridge of those two ongoing problems. >> i would say as a matter of fact we not only envisage that we have been doing things about that. in the case of venezuela, what we have done and during my immigration days the minister of foreign affairs had a meeting with the rest of the foreign affairs of unicorn and we believe the public standards are

good but not efficient so instead of having a big public statement we thought it would be better to put it into action. we decided to send a foreign nations. it permitted for the first time government and opposition to sit together and talk and dialogue. they are has been other visits with different was some progress made. the last time i believe progress is a little bit slow but the only thing that i believe is we know it's not easy. it's a very polarized society as you mentioned that but we have had a pass when i was president temporarily because presidents every year there's a new president. but we had a -- and i personally handled it. we truly believe that through

dialogue that probably we need to make bigger efforts so we can seek a solution. that i have to say is the venezuelans who have to show their internal issues and what we need to do is to support them with the vatican. the vatican is also part of this process. to support all the processes of dialogue and hopefully a peaceful solution to their internal conflict. we are also very active in the case of columbia and her relationship with the ferc and the al in that their government started negotiations. we have been very helpful and president santos has recognized that we will continue looking forward to support all the efforts to bring peace into columbia. and with the case of cuba we will always be able to build bridges. we haven't had yet any -- but we

are looking forward if we can do any process in supporting whatever is needed. we will be there. >> thank you. it has turned out to be very popular event and we gave them a chance to ask questions as well. a question regarding -- we have a questionnaire regarding the indigenous communities of chile and the policies of your government do you foresee in terms of their role in chile and it's one of the issues at hand.

>> the important thing is that i heard the question so i can answer it. the thing is that we have said that we need to let me see start a new pact with the indigenous communities because we do have a historical political -- if i may say with them. we have a whole agenda of different things from ensuring political participation of indigenous groups but also economic development of the land and so on, cultural measures etc. etc. so we can really be integrated but their own specific needs and culture of their own country. we have many different indigenous groups, not only one. we have from the north and the

south and of course the -- so it's very important that we have a whole agenda that work with them to mount but also what we have been doing is very important i believe and we were talking about social permits. we have approved as a country ratified the convention 169 and in that convention states with all kinds of projects. political or economic that affect directly the communities should go to consultation with the communities. so for example i have in my program university of indigenous affairs, and agenda, a council

of indigenous people. i have the minister of culture and so on but i didn't send those products to the parliament until we do the right process of consultation. and that should be in many other situations, that should be part of at least in a consulting way to be part of giving their opinion on what and how do they feel and what they would like and some issues or institutional movements. i would say it's an new way of doing things on one hand but also a very active agenda dealing with the i would say shortcomings we have had with them and some challenges that we have had. i know that we will be able to diminish some complex that we have been some parts of the country and also with a lot of social protection, because in many of the indigenous areas other places we have higher rates of poverty or higher rates

of some diseases and poverty so i would say we need to pay more attention but with respect to our own values and cultures. >> thank you very much president bachelet. i'm afraid that we have come to the end of our time. thank you for being so generous and sharing. please join me in thanking president bachelet but i would also like to ask the audience if you could please remain seated until president bachelet and her delegation have had a chance to clear the building so we can try to keep you on schedule. thank you very much. [applause] [applause] [inaudible conversations]

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