caller: i think it would be beneficial -- when i call-in, if a speaker would tell what his philosophy is or where he voted i. i do not care who you voted for or whether he is a democrat or republican. the second thing is, how many members of the ama have? he is clearly talking as a lobbyist. i think there would be helpful to understand -- for people to understand. guest: we could probably talk about that offline, but let me just say that i'm here representing the physicians and patients and i'm here representing their interests, not the interests of any party, one side or the other. that is the important thing. the reality is that what we call

our house of delegates, in a way it is like the ama's congress, there are specialists from every side in the country, every state medical association in the country. they set policy. i do not set policy for the inmates -- for the ama. it is physicians, their representatives from across the country, and i would say all across the country. you'd be hard-pressed to find a position this country that is not a member. and the policy comes from them. that is why we are pushing for warming come to congress. that is where we say we are nonpartisan. we are supporting reform that we think will make this a better system for the physicians and patients in the system. . .

host: we think you for joining us. that will do with four "washington journal. " we take you to the u.s. chamber of commerce. president obama will be speaking at charlotte offering $900 million in grants. part of the americans promised

alliance. you'll see general colin powell and his wife. live coverage here on c-span. >> i found myself in one dead- ended job after another. my life was getting out of control until my mother had an idea. i cannot think her enough for supporting may with my decisions. it made a big difference. thank you. it was with her guidance and support i was able to transform myself into the person i am today. there were two other adults who helps me. miss amanda. these women help me to see past my short-term goals and to go to college. at first i waslp not fully

invested in the program. okçwith their constant help, is pushed enough to enroll in college. çthank you. [applause] my mother and these women are three caring adults who help me to become the person i am today. çtoday i am scheduled to gradue early. qi am the emcee for the annual martin luther king event on campus. i must admit, even today i sometimes wake up shocked at how my life has turned around. i believe caring is contagious. i think it is my duty to help other people. this provides youngi] people wih i have had the opportunity to helpt(xdçç others to help infm people in power about how their

support can make a real difference. lastt( month i give at( keynote çaddress. ççokkmç believe my ideas havd raise awareness. i want to let people know how beneficial educational support is for helping people succeed. i tried to show that i came through similar struggles, but this imperative to live positive live. saugh i want to help as many people as i can. i want to help america's promise to allow me to share my stories. i want to thank president obama and general and mrs. powell. it is my privilege to introduce someone who was been a leader. none more important than the campaign on behalf of our

nation's youth. please welcome general colin powell. [applause] >> thank you very much. thank you for your testimony. i mean "testimony" in the right way. it's a pleasure to have you here. you heard what america's promise is all about, and why we started it 13 years ago. all of the living presidents came together and said to the nation, in a nation with all that we have, how can it be would have millions of children who wonder if the american dream is there for them. millions of trojan who wondered if they can get a quality education. -- millions of our children who

wonder if they can get a quality education. we have been successful over the last 13 years. we have the expanded programs for the work of boys and girls clubs, as you heard patrick describe, and we are pleased with what we have accomplished. the promises we made to ourselves and the young people were very simple. every young people should not responsible, caring adults in their lives. you taheard about patrick talk about those in his life. children should have places to learn and to grow. in patrick's case, it was youth build. every child should have health care and a healthy start in life. an education that is usable of the kind patrick is getting. every youngster should be taught to give back, to serve the

community that has served you. patrick is trying to serve his community. there was one thing wrong with what patrick said. one thing very wrong. he had already dropped out and had to be captured and brought back online. that is not good enough. we have to catch our kids long before they drop out. the reason we're here this morning is to focus on a simple problem. to many youngsters are dropping out. they start dropping out inç the second, third, and fourth grade. they drop out when they realized they are behind some youngsters because in their home in farming,ç nobodyç read tothem. -- to them. they see other kids who have had that community and family embrace. they realize they are falling

behind and the start acting like they're falling behind. one teacher once said that kids all start the same way, with lights in their eyes flashing. around the age of age or nine, the light starts to go out and must is reinforced. america's promise has been focused on this with all of our partners, especially the department of education and some of the wonderful nonprofit organizations. we have been scaling up america's promise activities from the five promises to drop out summits and from dropout summit to best communities in america so we can focus on those doing a good job. we take it up to a number ♪ notr level. we have wonderful universities.

1/3 of all students are not finishing high school. 50% of minority students are not finishing high school. that is what we will be focusing on this morning. i want to ask you to continue to do your part in this noble effort. we want to make sure we can look back on this event as one of the transformational defense in our education and youth programsç y starting to put us on a path to being a grant nation. we do not do it because it is the moral thing to do. we do it for our own future security. we are in a world of 6.8 billion people cannot afford to lose a single youngster. we owe it to them and i think you for your support. it is my great pleasure and honor to introduce the chairpersonq of america'sç promise. i used to be the chair.

she is now the chair and doing a wonderful job, my wife. [applause] w3ç >> fenty, colin -- thank yo, collinok. it is a pleasure to beç here. announcement. when +et ask me what america's promise means to me, i think about the young people in the world andç what they need o succeed. i think about myç own children. we have raised three young people to adulthood who now are given back to their community. but to whom much is given, much is expected. attention on our efforts turns to young people of america.

over the past two years since we announced the dropout prevention summit, we have convened summits in every state and 55 cities. we bring together all sectors of the community to address this urgent problemç. we will issue a report on the progress that was made since our collaborative dropout prevention work began. but now it's time to turn awareness into sustained concerted action. i am excited to announce it to we are undertaking a 10-year campaign to mobilize this nation to reverse the dropout crisis and ensure our children are prepared for college and work force. this campaign will be called red nation. just told % of our high schools

account for only -- over half of all dropouts. grad nations will focus on the lowest performing schools and neighborhoods. through our national alliance partners and their networks of local affiliates, we are harnessing the power of community partnerships in places where the potential impact will be the greatest. especially in these 2000 neighborhoods. we will bring the power of the five promises into the lives of poor children in ways that change the odds and change futures. this effort would not be possible without the generosity of our partners and the support of the over 300 alliance partners that we have around the country. i want to specifically think brian gallagher and recognized him at united way. brian gallagher, president and

ceo of united way. as a member of our alliances board of directors,t( brian has helped to shape the entire united way networked in pursuing our shared goals. in these partners, and so many others, we see leaders who recognize that all of us must be part of the solution. we have made a goal of investing 100 new business partners to join the grad nation campaign. " we have to understand as we go forward and what i try to do as a ways awareness is to have to understand that there is no they. there is just us. just us. and so we have to think of that weather is keeping young people

in school, bringing them back to school, making sure they graduate. there is almost no limit to help organizations can help. for example, there was an initiative that focused on average young people fallen off the track for graduation. citizens schools has after- school programs for middle schoolers. the first t expanding its program for students in grades k-5. 4-h has learning experiences in science, engineering, and technology projects. we all know there is some many things that individuals can do and each one of us have to ask, what is my part in this? what can i do? for starters, you can become more involved in the education

of your own children and their companions. help connect them with the resources they need for success. tutored students after school. be a mentor. students who meet regularly with a mentor or 50% less likely to skip school. caring adult who was always looking for them and welcomes them with a smile or shoulder to lean on when they have a problem -- it doesn't take a lot of effort to do that. just the will. you can be a part of a career exploration program. this is a way to keep students engaged and motivated. we can donate books to children. but more important, reat ,=ì(lc+ children. there are some and opportunities to do that. urge your school district to participate in our student paul which measures some of the most

reliable indicators of whether students part ready for the future. school districts are already using this poll data to determine new ways to help students succeed. in all of these ways and more, we need individuals and organizations to be involved. with your help, we have to mobilize all americans. i am very encouraged because often a turn on the radio and hear these discussions. just the other day, npr was holding a town meeting where parents and educators would come together to talk about what it is these statistics mean and what we need to do to change that. it is good. we are glad we have people talking about it. now we want them to act on it. our campaign is like a marathon

than a sprint. we're not going to become grad nation overnight. but working together, we will be a grad nation and we will secure our future as a great nation. since taking office, president obama has made the education of our young people a key priority, even amid all the urgent priorities that he has. he and secretary duncan know and fully understand the challenges that we face. they know that this must be our goal. this is our goal and this is what we're dedicated to, and we want everyone to understand and except the role that all of us must play in this crucial issue. i am happy that our president embraces this need and is committed making a difference. ladies and gents, i have the

great honor to introduce to you the president of the united states. -- ladies and gentlemen, i have a great honor to introduce to you the president of the united states. [applause] >> thank you very much. thank you. thank you so much. thank you. let me begin by acknowledging some extraordinary people who are working on this extraordinary project. first of all, i want everyone to know someone who is working tirelessly on behalf of the young people of america. my secretary of education, arne duncan. [applause]

i want to acknowledge the ceo of america's promise, cool be implementing so much of the terrific work that will be implemented today. -- the ceo of america's promise. tom donahue for your hospitality at this extraordinary event. thank you so much a thank you for this support for this terrific effort. arne's predecessor, who helped to lead a lot of the improvement that has been taken place and we are building on. and i want to thank the powells. echostar with a more important pal, -- i will start with the more important powell, alma. a champion of children. a dedicated public servant.

a recipient of numerous awards. she has poured herself into america's promise of lines, helping to make it the largest partnership of its kind to improve education. perhaps that is not surprising. being and educator seems to run in the family. one of her mother's parents was born into slavery and the other after abolition. both went to college and became teachers. four of their children fall down. her family has educated and enriched generations of americans. our nation is better off for it. we're grateful to you for your extraordinary leadership. thank you. [applause] there's not much more we can say about the man that almost -- the manhattan alma's succeeds.

i am grateful for his friendship, for his counsel. i continue to be inspired by his leadership and his story. he is the son of jamaican garment workers. a student from the south bronx. he wasn't always at his best in high school. he went on to city college of new york, thanks to the support of his family's and friends and community. it is a story and he went on to distinguish himself in vietnam, the pentagon, the white house, and the state department. he spent a lifetime fighting on behalf of america and is now taken up the fight for america's children. the leadership of poandcoliln colin and alma is the latest

chapter in their service to this nation. i want to thank them for their extraordinary service. thank you. [applause] one less person i want to make mention of. i think it bears on the partnership that has taken place. we have colorado, patrick, who is here. where is patrick? and so we are hoping for -- we're hoping to get a whole bunch of volunteers engaged in this effort. it is fitting we're talking about education here of the chamber of commerce. for america to compete and to win in the 21st century, we know we will need a highly educated work force that is second to none. we know the success of every american will be tied more

closely than ever before to the level of education that they achieved. the jobs will go to the people with the knowledge and skills to do them. it is that simple. this kind of knowledge, giving up on your education and dropping out of school means not only giving up on your future, but giving up on your family's future. and giving up on your country's future. and yet, that is what to many of america's children are doing today. over 1 million students do not finished high school each year. nearly one in three. over half are african american and latino. the graduation gap in some places between students and classmates of color is 50%. cities like detroit and indianapolis and baltimore, graduation rates hover around 30%, 40%.

half the national average. it is true and not long ago you could drop out of high school and expect to find a blue-collar job that would pay the bills and help support your family. that is not the case anymore. the high school dropout rate -- to make $10,000 per year than a high school graduate. during this recession, a high school dropout has been more than three times as likely to be out of work and someone with at least a college degree graduating from high school is an economic imperative. it might be the best reason to get a diploma. but is not the only reason to get a high school diploma. high school dropout are more likely to be teenage parents, commit crimes, rely on public assistance, lead shattered

lives. they cost our economy hundreds of billions of dollars over the course of a lifetime in lower wages. this is a problem we cannot afford to accept and we cannot afford to ignore. the stakes are too high for our children, our economy, and for our country. it is time for all of us to come together, parents, students, principals, business leaders, elected leaders from across the political spectrum to end america's drop out crisis. this is a problem i have been fighting for years. way back when, when i was a community organizer in chicago. i saw what happened to a family or a school or community when a student dropped out. i have work with local churches

and public school officials to get state funding for dropout prevention programs and brought together african-american and latino leaders to help set up after-school programs. when we help keep kids off the streets and give them a productive way to spend their time, graduation rates go up. that is a commitment i have carried with me to the oval office. today i have steps my administration will say to help and the dropout crisis in the larger american communities. we know about 12% of american schools produce 50% of america's dropouts. we will focus on helping school districts turn around their 5000 lowest performing schools over the next five years. arne will be providing details on how we can do this. we will challenge states to identify high schools with

graduation rates below 60%. we will invest $900 million to get those graduation rates up. strategy's like to transform schools from top to bottom, bringing in a new principal and training teachers to use more effective techniques in the classroom. strategies like closing a school for a time and reopening under a new management or even shutting it down entirely and sending its students to a better school. strategists like replacing the school's principal that least half of its staff. replacing school staff should only be done as a last resort. the public servants who work in america's schools work long and hard and deserve our gratitude. i have a sister who is a teacher. my mother spent time teaching. one of the most important jobs we have in this country. we have an obligation to give them the support they need.

when they succeed, then our children succeed. if a school is struggling, we have to work with the principal and teachers to find a solution. we have to give them a chance to make meaningful improvements. but in fiscal continues to fail its students year after year after year, it doesn't show any sign of improvement, there has to be a sense of accountability. that is what happened last week. a school where just 7% of 11th graders passed state math test. seven %. the school board was not able to deliver change and devoted to lay off the faculty and staff. as my education secretary says, our kids get only one chance at an education. we need to get it right. getting it right requires more than just transforming our

lowest performing schools. it requires giving students who are behind a chance to catch up and a path to a diploma. it requires focusing on students who face factors at home, in the neighborhood, or in school to put in a risk of dropping out, and requires ideas that make class field in gauging and relevant. most dropout say the recent drop that was the were not interested in class and were not motivated to do their work. that is why we will build on the efforts in places like communities and schools, the make sure kids who are at risk of dropping out have one on one support. i will follow the example of places like ryland -- places like rhode island. possibility of succeeding in a career.

i will invest in exhilarated instruction to help students who have fallen behind, make up credits, and graduate on time. it is why it will foster better schools where students who have dropped out and who are at risk of dropping out can return to the classroom and burn their diploma. that is how we can curb the dropout rates. -- and burned their diploma. it has schools -- and earn their diploma. this should be ready for career and ready for life. that is why it will foster early college high schools that allow students to earn a high school diploma and an associate degree or college credit at the same time we want to learn from the successful schools where

students can take advanced and college-level courses. government has been responsibility. government can help educate students to succeed in college in a career. government can help provide the resources to engage dropouts and those at risk of dropping out. when necessary, the government has to be critically involved in turning around the lowest performing schools. nobody has the more passionate about this than arne duncan and. as i have said, education is not and cannot be the task of government alone per it is going to take nonprofits and businesses doing their part, through alliances like america's promise. it will take parents getting involved in their children's education consistently. going to parent-teacher

conferences, helping their children with a homer. i just went to my daughter's parent-teacher conference last week. she is doing very well, by the way. [laughter] it will take students showing up to school on time and paying attention and staying out of trouble. education is an active activity. educationg our sons and daughtes is a task for all of us. making sure none of us think it's someone else's job. we all except our role to play in making sure that we have the best educated citizenry in the world. that's is what has made the 20th-century and that is what will make the 21st century the

american century. there is an old story that collin is told. he lived about 100 years ago. george was a janitor. his job was to clean up after the artist, french. some of you may of heard of french. he carved the figure of abraham lincoln for the lincoln memorial. day after day, we carefully, he bled about his job, but barely uttering a word to mr. french other than the occasional hello or goodbye. just when france had nearly completed his masterpiece, he spoke up. he said, i have a question. what is it? >> how you knew all along that mr. lincoln was sitting inside that block of marble. that wasn't a silly question. sometimes in this country we

see blocks of marble and some people can see what is inside and some people cannot. it was a profound question about how we recognized the potential within each of us and chisel away at what is locked inside. i am confident that because of the work of colin powell and his wife alma, and worked that we're doing across this nation to give our children the best education we have to offer, college to a career, we are chiseling away at the obstacles that lie in our path. the block. children's potential. we want to of what that potential. carved it upper so that our -- carpet upparave it up.

-- carve it up. thank you so much. may god bless you and bless the united states of america. [applause] ♪

[patriotic music plays] >> president obama on an initiative to improve education. this event taking place just steps from the white house. robert gibbs will brief reporters and that will begin

at 1:30 eastern. we will have in here on c-span. just down pennsylvania avenue, a tour of the u.s. capitol. the house will be back tomorrow at 2:00 p.m. tomorrow. among the bills this week, hr- 4247, which will set standards for school personnel in using physical restraint and seclusion on students. the senate gavels in today at 2:00 p.m. san hours working on expiring tax cuts. you can see cent live on c-span- 2. the king live now at the commission on wartime contracts. that hearing discussing reconstruction efforts in afghanistan and the schedule to go until 12:30 eastern. live coverage on c-span2. back terrance c-span, will be

live at noon eastern. david johnson will answer reporters' questions. house majority leader steny hoyer will be speaking to the brookings institution, focusing on fiscal confidence. more live events at 4:00 when the cato institute hosts a briefing on states and rights. >> c-span is available on radio, television, and online. sunoco are schedule alert e- mails at c-span.org. " the head of the international monetary fund patricia's the meeting of the bretton woods committee. this is aimed at promoting economic growth and development.

>> the gavel apparently works. i'm glad we're all >> the gavel apparently works. >> there's more refreshment to come. in the pleasure to have with us today dominique strauss kahn, the head of the i.m.f., another of our great bretton woods institutions. he brought to this particular job a very broad experience indeed when one looks at his c.v. which you have in your programs, both in the private sector and the private sector.

he has been an economist. he has been a lawyer. he has been a professor. he has been a government official, a minister, and, of course, a member of the french national assembly several times, many re-elections. in his minister's portfolio, he has served as minister of economy, finance, and industry and at another period as minister of industry and international trade. his portfolios, therefore, have encompassed economy, finance, industry, and international trade, which is a great school for taking on the job that he now has. one very interesting thing in that resume you'll see is that he took on this job at the i.m.f. in november 2007 and just think for a minute about november 2007. it was the beginning of the

cataclysm in finance and the economy and in the social networks worldwide. and he took it on during those awful years since then and he has taken on as his mission, his initiative to review and reform the i.m.f. as needed in the light of the developments that have taken place during this period. it's definitely a challenging role. and he has been pushing very hard to do so and in many respects, has been successful. there is a lot more to go. the sitting title for his address today is international financial stability and the i.m.f.'s evolving role. thank you, and let us welcome the managing director.

[applause] >> well, ladies and gentlemen, it's my pleasure to be with you this morning and having this opportunity to address this audience just after my friend pascal and bob zellic and it's also good occasion, i don't have the opportunity to meet my old friend. the bretton company committee has been a great friend over the years and you have provided very useful ideas, original ideas which have been tremendously helpful for moving forward and changing the institution. today as we emerge from the crisis which could have been, remember one year ago, more than one year ago could have been as big as the great

depression as we were to shape the pascals of this world, i think it's timely to meet and think it's timely to meet and discuss the future the world is at a turning point. much of what we have worked for, more prosperity, a safer world. i like to explore with you a renewed vision of the fed, a vision that response to the challenges members are facing. a vision to will enable them to read tune itself to be more effective and also a vision which is firmly grounded and what is the mandate of the fund, so it is a new fund, but

it is still the fund. through its history and several in this audience knows better than others, the fund has adopted a lot. there is important continuity over aim which is to promote economic stability. with the goal to support -- of supporting peace and prosperity. i think there is a link between the financial stability on one hand, which is most obvious mandate of the fund, and the link between this and mandating peace all over the worldç has part -- is part of the genius of the founders and the other

visionaries. could i dare to say it proves this into the world. you'll know this story. there is no need to elaborate too much. we made the case to coordinated policies and put forward our concern about the nature. we have reformed our lending instruments and boosted our resources. we have changed our approach and our thinking. you may have noticed by looking at recent issues, the paper we issue on macroeconomics or the controls. we need to build on this momentum. updating our mandate is a critical part of this process. there is a full range of

economic and financial sector policies. but the bottom line -- the bottom line is very simple. what we need is a strengthened mandate and a strengthened role to be the guardian of systemic stability. and i think this word, "systemic," is the word most used during the crisis and the one on which we need now to focus. today, i do not want to enter into technical or legal details of the i m f's mandate. rather, i will try to set out what key elements of shared -- what key elements a shared vision might include. i see for this three priorities. the first one is that one of the lessons of the crisis is that it needs to be more

rigorous, with greater coverage of regulatory issues. also, i would say an appreciation of systemic risks. the second priority is that if the fund is to serve as a reliable provider of private financing, then our lending must be of coverage and size far beyond previous. the third point is that we need to do more to strengthen, in the long term, the stability of our international monetary system. let me turn to these three points rapidly. i would like to start with crisis prevention. we need to improve our oversight of systemic and financial risks. in principle, the fund

surveillance has to combine parliamentary surveillance with developments relating to the global economy as a whole. in practice, it is a bit different. the brunt of our efforts have been devoted at the country level. obviously, we did not pay enough attention to linkages between the different economies. that is why we need a clearer mandate to pursue risks to the global economy, but i stress -- not only for economic stabilit, but also swore -- also for financial stability. we are floating the idea of a new multilateral surveillance procedure. we need to take these issues of systemic importance, regularly

and evenhandedly. i believe the world is ready for more systemic revision of imf surveillance. the reason i say this is i feel a strong indication in what the g-20 has chosen to implement in the multilateral assessment procedure that has been defined in pittsburgh, redefined during the fall and the winter, which imh the first result being released at the spring meetings and at the g-20 leaders' meeting in june. the ideal is to make the largest economy accountable -- the largest economies accountable to each other, insuring consistency in economic policy. it is obvious that the u.s., the chinese, the japanese, and others have in mind that what

they are going to do in the coming years must be consistent. if it is not, the idea will be consistent but different from what was expected. we need to have a consistent view. it will be the role of the leaders to define some change in economic policy. they want to change the outcome that is given by what they have in mind today. the first is to insure consistency. that is what we are going to prepare for the spring meeting. this is in some ways a new kind of -- a new approach, or new hat, to multilateral surveillance. the imf will be providing technical assistance to the g- 20. it is a process led by the g-20. it shows me the world is ready for making a step forward in the direction of this multilateral surveillance. at the same time, of course, we need to enrich the systemic

content of our bilateral surveillance. one way to do this is to work on the magic accountability -- to work on a thematic accountability reports between countries, dealing with common issues. i think this will improve a cross-country analysis of regional spillovers between member countries. what about financial risks? obviously, we need to do a better job in trading -- in tracing how risk calculates through the system. it is essential to improve our ability to monitor the several thousands of large complex financial institutions that make up the basic plumbing through which global capital flows. let me be crystal clear.

the idea is not to monitor the risks to the solvency of individual institutions. that has to be done by national regulators. it is rather to get a handle on the nexus of exposure is and shifting patterns -- exposures and shifting patterns in assets and liabilities. in short, we need to be able to construct a global risk map. we did something looking a bit like that about central europe more than one year ago. you must be quite aware of that because for reasons i cannot understand there hauu been some leaks in the press, and the financial press reported about it. it was a first attempt, limited to central europe, to see how banking systems in one country may have consequences on another

country and what kind of feedback passes from the original country to the parent bank, other parts of europe, and the second wave of feedback from western europe to eastern europe. it was really enlightening and useful. i think that it helps a lot to maintain stability in central europe, as we did for the last two years. we are not doing this alone. we are doing this with our partner, the financial stability board. their knowledge, in terms of microeconomics, is absolutely necessary to completely complement what we are doing on the macroeconomics side -- the macroeconomic side. also of great importance to us -- we need to look at government

risk. you know the role of the imf. we stepped in when the capital flows stop or even reverse. to do this, effectively, the surveillance of the capital flows needs to be more effective, t 00. so what it needs to be more forthright in our policy advice. for many years now, the fund advice has been that lateralization of accounts should be pursued and cautiously, at the right time and in the right sequence. during the crisis, we have maintained this pragmatic position. but we certainly can do more in providing guidance as to what condition should be in place before realization is allowed, and when capital control may be

an appropriate response to economic pressures. the normal response when you have a big capital inflow is to have a re-evaluation in your currency. but sometimes you are in a country where the value of your currency is ok, so what should you go up with? the second response is reserve accumulation. you may be in a situation where you do not want to accumulate more reserved. you have a third line of the event -- a line of defense which has to do with prevention measures. if none of this works, then temporarily you may use capital control. it is something we should consider with pragmaticism. the last point on crisis prevention -- it is not only oversight. surveillance is certainly useful, but we also need to

strengthen our member countrie'' own capacity. and that is why we spend so much time and such a large part of our resources to helping countries avoid crisis. it is certainly one side of risk. it is also to do with new capacity in the member countries. let me different -- let me turn to my second priority, which has to do with our response to the crisis and the way we enhance things. an important fact during the crisis is that four key of emerging market economies, the fund has not been the first responder. rather, some countries turned to the fed or the central banks, who served -- who supplied

capital. without doubt, this has been a very positive move of enormous importance. but what about the willingness of central banks to provide such liquidity support in the future? we just do not know, and we should not take this support for granted. i believe it is critical that the multilateral institution will be ready to answer theñi call, and we are actually exploring various options, including four short-term multi- country credit lines. this can be done building on the stf, the flexible credit line which was created a few months ago. you know it is a credit line very different to what the fund had in the past. it relies on pre-qualification

with no further conditions. how can we bet on this? i see two avenues. the first one is to make the fcl more attractive by increasing flexibility of access and duration. but there is also another route, probably more ambitious, which is to enhance our collaboration with regional reserve pools. i do not see those regional entities as competitors. they are capitalizing forces in international financing. let me give you an example. we have been working very closely with the european union in central europe, the imf leading the missions but members of the european commission being part of our mission. at the end of the day, they provide part of the resources which were needed by hungary, in

latvia, or other countries like this. if we look even further, and being even more ambitious, we could imagine a system where federal resources could serve as a backstop to regional tools. that is mostly for emerging market economies. market economies. what about4d%)'á@ @ @ @ k@ @ @ >> we are introducing new financial instruments and streamlining.

we also had a major boost in our concessional lending resources which were the lowest to triple our lending to low income countries over the next two on top of that, we do this to increase conditionality but with the highest possible level of concessions melete which is 80 interest rate lending. it had never been done in the past at least until 2012. we will have to reconsider the need for maintaining the zero interest-rate lending if the interest rates have risen. . how it was done was part of the proceeds. we will see in the future where we will find the resources. of course, having a zero

interest rate lending scheme is one of the reasons why many countries came to us -- more countries came to us than in the past. that is part of the reason for this tripling of our resources went to low income countries. -- resources lent to low-income countries. i think we can do more. we can provide insurance for low-income countries against global shocks, including the effects of climate change, all the challenges. we can try to find a way to support members facing security issues. i just mentioned climate change. many of you may believe that is not a core mandate of the imf. why should the imf deal with climate change?

many look a little bit, you see that the serious -- you see there are serious macroeconomic ñifinancial consequences that may be a threat toñr those global economs that may not be able to face the changes they have to make in climate change. at the end of the day,ñi this is big -- probably the most critical problem of mankind has to face in the 21st century. if this is really addressed, many low-income countries will be destabilized by the efforts. then it becomes our business, which is to maintain stability in that current account and in global economic and financial stability. you may ask about time.

in this case, does the imf have the resources? our resources have been boosted to $850 billion. furthermore, i think it should be sufficient. of course, it is sufficient for the short term, the coming years. we need to carefully analyze the potential needs of our members. let me, briefly to the third area of our mandate review, namely, the stability of our financial and monetary system. in my view, the current system, despite some of the subject problems, -- despite some episodic problems, demonstrated resilience during the crisis. the u.s. dollar has played its role as a safe asset. many of you probably, including the, thought that with such --

including me, thought that with such a crisis the value of the dollar would collapse. that has not happened. we still have a tension arising from, on the one hand, the high demand for precautionary reserves and on the other hand, the high demand for those reserves. the fund has a role to play. it partly can be done to further refinement of the stl. that can play an important role. in addition, we have to do something to try to reduce the tension. to reduce this tension means broadly addressing the problem

of the so-called global downturn. we had countries before and after the crisis having accumulated and still accumulating huge reserves at a time when other countries are accumulating huge deficits. those kind of imbalance is feed the crisis. we need -- those kinds of imbalances feed the crisis. we have to address them. that goes to part of the problem, which has to do with more balance in the international monetary system. but there is another long-term question, which is the question of a new global reserve asset, which has been raised by many. is it needed? obviously, having several suppliers of reserveñiñr assetsl limit the dependence on the policies and conditions of a

single albeit dominant country. one day, the fund might be called upon to globally issue assets similar to but different to the existing ones. my point is that that day has not yet come. it is certainly intellectually healthy to explore this kind of idea, but we are still at the level of ideas. as we address these three priorities -- crisis prevention, crisis response, and strengthening of the international monetary system -- we need at the same time to address another very important

point is probably underlying the success of all i have said before now. that is governmental reform. let me say one word about that. a renewed mandate for the imf will have little legitimacy unless we tackle the longstanding grievance with our governors. our crisis prevention efforts could be hampered by concern about evenhandedness. our crisis response efforts could lack credibility. our commitment to address long- term issues affecting international monetary stability may be questioned if we are not able to solve or make progress in governance. when i addressed the board of

the imf -- the first time i met those entities, when i was presenting my candidacy to the imf in august 2007, i made a small speech. the logic of the speech was legitimacy and effectiveness. the imf needs more legitimacy. the imf needs more effectiveness. they are not too different problems. there is no way to increase effectiveness without increasing at the same time the legitimacy. here we are. we need to really make progress in terms of legitimacy. the good news is that as you all know the g-20 has provided political backing, asking the imf and our sister organization the world bank to make progress in terms of shifting money to

emerging countries, reflecting the new economic reality. for the imf, the shift will be a shift of 5%. the bad news is that translating this into reality is not always easy. xdto obtain a consensus for whee you share the shift -- the fact is that we already did. in 2008, we also had a ship as big as this one -- we had a shift almost as big as this one, 2.7%. it is difficult, but it has been done. the problem is it has been approved by an overwhelming majority of our governors, around 98%.

ministers of centralñi banks, te governor ofñi the imf approved e reform. it is still not implemented two years later. why? because for many countries we need parliamentary approval. not for all of them, but for many. until we have this parliamentary approval, it cannot be implemented. today, i have 64 countries out of 186 having done their homework, meaning having passed the building need to pass to approve the vote of their governors. we are not going to reach the majority soon if the countries do not move. i can understand it is not on the top of their agenda. they have lots of problems, especially in a crisis time. boating to ratify the approval given by -- voting to ratify the

approval given by their representative to the imf, on the other hand, is not a very contentious. -- is not very contentious. let us go forward. our african friends have passed it. the reforms included not only a shift in the corkoura, but theye ready to do it. why not implemented? because we need approval. complaining about the fact that the reform has not yet been implemented, i want to say there is no use to decide a political shift at pittsburg, to make it in the paper at the end -- for the beginning of 2011. having the governors approved it and having nothing to show for

it? the opportunity for improving the legitimacy of the imf is at least as important as a symbolic step of reform. you all know that among the countries having not yet ratified this process you have the ones which are the most vocal in asking for the reform. we are exactly at the crux of the matter. the question of legitimacy is not only a matter of choice. it is also a matter of diversity and of presenting diversity in staff and management of the institution. i do not underestimate the symbolic, and not only symbolic, consequences of a global shift. more than that, you need to have all of the countries'

membership having ownership of the institution. this means much more than a shift in core members. it means people providing the historical and political knowledge from different members of the institution. on this point we have a lot to do to improve the current situation. let me go to you with a simple idea that i guess members of the bretton, woods -- the bretton woods committee would share. the world needs more multilateralism, not less. before i say a word about that, i want to stress one point. the debate over the fund and's mandate -- over the fund's mandate is not about expanding in new directions. it is about seeking a capacity to deal with systemic risk,

which in some respect was already in the ideas of the founders, but which needs new instruments, new tools to be effective. what does that have to do with more multilateralism? it is obvious. bilateral is and was probably enough to avoid global crisis is in the past. the new linkages inh#@@@@h to be able to avoid, or at least to mitigate the risk of a global

crisis. we need to be effective more multilateralism. if thehtçó crisis has told us something it is that the world fáneeds at leastñr asñrxd much d probably more multilateralism then in 1944. ñiokñçóñiñrwhat finally is theñs thing emerging from this crisis ì(+ among countries that never happened in the past. such a large set of countries facing the same this crisis uses theñr same tools to reach the se target and succeed. ñiñrthis spirit of working toger is exactly the spirit of multilateralism. which was in the mind of the founders of the imf.

, this will to build consensus may also vanishe. that is why we need to push all of you, if you believe in this institution, to push forward to explain that we need more of this collaboration, more multilateralism, not less, more imf, not less. make no mistake. it does not mean the original mandate has not been validated. on the contrary, the original mandate has been validated. it is exactly why this institution has been built. but in a different world, we need to explain it differently and to reshape the institution to be able to provide for the global economy what our member countries are right to expect from us. so that is the work, looking

forward, for which all your comments, of course, are of extreme importance. we need to clarify and strengthen the institution even more to meet the global challenges ahead, to serve our membership even more effectively, and more simply, to build the fund of the 21st century. thank you. [applause] >> thank you very much. that is really -- when you consider what has been going on the last couple of years, amazing progress has taken place within the imf.

and i am going to ask a question related to the group of 30 report that came out last october that had to do with the government's, legitimacy -- the government'ance and legitimacy s well as coordination on the financial side. you have done a lot of work on the ladder and have tried to do a lot of work on the governance issue. we have in this room mostly americans who are very much interested in this subject, bretton woods committee members. the united states itself, as you know, has been a proponent of change, and at the same time, like every other country, we have to go to the process.

what kind of message would you like to convey to this audience as to what the priorities should be today -- today and going forward? what can be done to our congress? -- what can be done through our congress? >> the first thing you can do is certainly the help the u.s. congress has provided already. it was obvious one year ago that it was impossible to get through and obtain approval of the congress for theñr goals. the goals were very important for two reasons. the original reason was to provide the imf with a new income model not relying on its lending, being able to have current financing that will not depend on the financial crisis. it is a bit awkward to have an institution which is rich when

the world goes badly and is poor and almost destroyed when the world -- when things are going well. the better we work, the better we are able to provide stability, the poorer we are. i find that a bit odd. the idea of the report providing the imf with stable resources was certainly a good idea. but between the idea and the implementation of the idea, you have all of the realities of life. one of the main obstacles was to obtain the authorization for sale by the u.s. congress. the previous administration, this is ministration especially -- this administration especially has been extremely helpful. with lobbying in congress, it finally worked.

i am very thankful to barney frank and others who helped us going forward. whatñi can we do looking forwar? i think the idea that the imf has changed -- again, not changing its overriding goals and not changing in terms of what we need to do. but it has adapted to the new reality of the 21st century. it needs to be conveyed. it is not that obvious. you know this because, being here, you are interested in these questions. it is not obvious for not even the man on the street but even highly educated people like u.s. congressman. so you can do that. another thing is to push the idea that i tried to underline in my conclusion, which is to push the idea of multilateralism.

it is sad to say that multilateralism is not the most popular idea in the u.s. congress. ñihelping -- explaining why it s in the interest of the u.s., not only in the interest of the world. the leading economy that the u.s. is has to be concerned by the global economy. the united states itself must provide this kind of multilateral money -- i think this is very helpful. let me give you an example that probably -- you may come back later on if you wish, and i guess you will. in the aftermath of theñr crisi, we will have a difficult time. we are not out of the woods. the financial crisis itself is

probably behind us. the probability of having another lehman brothers is pretty low. but we will have to deal with the consequences for a rather long time. it is not exactly easy to manage. the temptation, for many, to find a scapegoat -- for the u.s., it is the chinese. for the europeans, it is the u.s. whatever. we all know -- we have examples from the past. it is essentially goingxd to repeat itself directly. this does not lead to good solutions. the only way is to have everybody around the table, as institutions like the imf can help to deal with.

dealing with this on a multilateral basis is the most important message. >> while said. thank you. we have many, many questions. we are not going to get to all of them. we heard announcement that the deputy government of -- the deputy government of the -- we heard an announcement that the deputy governor of the chinese central bank will be working with you. what does this mean, in terms of the voice of emerging markets with in the -- within the imf? the whole question of the population of the imf. >> i thought your question would be what does it mean to have a special advisor? >> what does it mean to have a special adviser who happens to be deputy governor of china? >> we agree. we have two points.

the first point is that one of the things we need to change in the imf is that we are less handicapped and others, but we are still not totally able to deal with the financial linkages in the economy. the imf is a unique institution standing at the corner of main street and wall street. there is no other institution working on the linkages between the two. even if we're the only institution positioned to do this, we are lacking the experience of people having worked in the private sector, or at least in commercial banks. i am not going to bash the

economists in the fund. that is probably the best team in the world. it has putçó together hundreds f ph.d. s in economics. but that is not the whole story. the more we go, the more market knowledge of the private sector is needed. we need to have people having this kind of skill. obviously, having been vice- president of the bank of china, he has this. he is not the only one, but he is a very experienced and very respected banker around the world. that is one thing. the other thing -- you noticed he is chinese. [laughter] çówell, you know, a large part f the reform will show the barry -- the very big increase of

china in the global economy. a lot of the shift will reflect the fact that the chinese economy is much stronger than it was five or 10 years ago. it is just obvious. if we want the imf to be able to deal with what i said before, being the body where people are talking together, confident in the institution, likely to find solutions sitting around the table,ñi we need all our members to feel comfortable with the institution. what does that mean? it means formal things. it also means having national actors at a really high level in the institution. i can understand not only china saying "this institution based in washington is defacto an

institution led by the europeans and americans or only by the americans." it is wrong. it has to be demonstrated that it is wrong. so i try to hire people coming from all the rest of the world. it is not the end of the story. diversity in staff and management is important. it is also the economy which is moving the fastest in the global economy. i think it is fine to have a better quality soñi that a chine member representing a large part of my corner will feel at home in the imf. that is the only way you can

discuss. if everybody feels at home. i am very happy to have him join the fun the beginning in may. his experience, knowledge, and skills in the financial sector will be very helpful. it is a way to show the chinese that they can be at home. the imf is also a way for the chinese to show that they feel at home in the imf. >> thank you. here is one that could be expected. is the greek financial crisis f#y)m@ @ @ @ @ r@ @ @ @ @ @ @ @ >> here is one -- this could be expected -- is the greek financial crisis posing a systemic risk? did the imf for see this in its article four consultations with greece? >> welker -- -- well --

everybody can see exactly how we address the fact that there is a problem. the situation is a very special situation, as everyone knows, because brees is a member of the i'm up but at the same time, not only a member of the european union but a member of the eirozone. i will not elaborate on all of the discussion about the single share for the bureau's own in the imf. that is another discussion. resources, implementing correct economic policy. incorrect economic policy, you have one tool -- in correcting

economic policy, you have one tool, which is currency. the members of the year rose on want it to deal with the problem itself. having been one of many founders of the euro, i can put myself in my shoes and understand that they need to deal with their own problem. european surveillance has not been effective enough. xdthey want to clean up the situation themself. i perfectly respect this. i do believe they are able to do that. ñiçówe remain in a position whee are happy to have, if asked -- as you know, we have been recently asked to provide to the

european commission in athens -- we were happy to provide an expert. we do what our members ask us. this institution has to be at the service of its members. if we were asked to do more, we would do more. the europeans, i believe are able to fix the problem. ñi>> i have time for one more. i would be happy to give you more as you leave. >the imf has recently shifted longstanding policy stances in encouraging countries to use spending as a tool in economic downturns and by indulging the effectiveness of capital controls. what does this say about the lessons the imf has learned over the past decade or so, and how member countries should treat

imf prescriptions going forward? >> we have advised fiscal stimulus as soon as january 2008. the reason for this is that we felt it would be important. our forecast was certainly more accurate than all of the other forecasts. why? not because we are geniuses. maybe we are, but not for that reason. as i have said before, the institution takes to kinds of information -- macroeconomic information and financial sector information. this being the first crisis created by the financialñi sect, it is no surprise that an institution having a background in taking information data,

trying to see problems on the macroeconomic and the financial side, would be able to foresee the crisis better than others. i am not arguing that we have seen this crisisñi coming four years. not at all. but in the run-up to the climax of the crisis in the first six months of 2008, our forecast showed that the situation would be a really serious one, and that the risk of the great depression was a real risk. maybe some of you remember that when we released this forecast for the spring meeting of 2008, we were criticized a lot. we were called to pessimistic. i remembered meetings with some members of big countries telling me, "i know my country better

than you know." six months later, they came back and said, "you were right." good. on the one hand, it shows the need for an institution like the imf. no other one can do this. on the other hand, it shows also that we were likely to adapt. our mandate is economic stability. in most cases in the past, to provide economic stability was to refrain in overspending and to limit deficits. if it happens that to provide economic stability was to increase deficits and provide stimulus, we were exactly in the line of our mandate in doing it. the mandate was not "the imf has been built to restrain deficits ." weñi were built to maintain economic stability. when economic stability grows to

stimulus, it is our responsibility to provide stimulus. we changed our advice. we did not change our logic. the same thing for capital controls. when most countries are trying to build a great wall of china around their country, are trying few rational arguments, one of the best things for them is to have a floating currency, when they are able to do it cautiously, and to liberalize their capital account. we gave that a vice. -- we gave that advice. to be pragmatic, countries are receiving huge capital in flu for many reasons they are not accountable for. there is a lot of liquidity in

the world. there is a search for return. i was about to say that greed is coming back. forget about this. a search for return comes back. most investors, including some wealthier than others, say, "we are not going to invest that much in japan or the european union. the u.s. we do not know. let us focus on emerging markets." a huge amount of capital goes to brazil and others. we have to see what they can do. we are not saying at theñr fund that capital control is at the beginning and the end of the story, and that the only way to deal with it is to capital control. but if, at the end, they have no other way, on a temporary basis, then using this kind of thing to

avoid damages to their economy, why should they not do it? we should make a distinction between capital controls of inflows and outflows. in the case of outflows, we advise the government to implement capital controls of outflows. we are right. we have probably saved the economy not just to this but through a series of measures. they needed to have capital close -- capital flows for stabilization. in some cases, it may be more damaging than useful. >> in my long term as an observer of the fund, i must say it is very impressive, the rate of progress you have been able to achieve over the last two challenging years. it has been extraordinary. we thank you so much, and we

will be your support. [applause] [applause] >> thank you very much. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2010] >> coming up in 20 minutes, we will bring you a state department briefing on drug -- a drug trafficking. questions will be answered in that begins in 20 minutes at noon eastern here on c-span. at about an hour later, steny hoyer will be speaking to the brookings institution, focusing on fiscal responsibility. that will be live at 1:00 p.m. here in east -- hear a cspan parade with but we will have -- we will have more live events when the cato institute and will

host the discussion on second amendment rights. you concede that live at 4:00 p.m. eastern here on c-span. right now, a discussion on the obama administration's efforts to reform health care. this is from this morning's "washington journal." castellani joins us, he is the president of the business roundtable. the president spoke to your group last week, what did you hear? guest: that he believed in the free enterprise system and the private sector as important, and that he wanted to work with us to get the economy going and create jobs. it was a good message and it was important that it was heard and that we follow through, that we get policies that help the economy grow and overcome the uncertainty we are facing.

host: so the comments made by the president last week, a meeting like that how was that organized? do they come to you and say they have a message guest: we invited him, as we have always invited presidents in the history of our meetings. they have a very good perspective with what is going on in the economy and what it takes to grow the economy and create jobs. we wanted a chance to hear what was on his mind, as well as tell him what we were seeing in the if. host: speaking largely about health care, amongst your 160 members, what is their biggest concern about the country and how the administration is

approaching health care or whatever? guest: we need to make sure that the financial sector is operating efficiently. it is our source of capital and how we do business in the united states and around the world. we need to reduce the cost of health care. every one of these companies provide health care for their employees, the biggest cost pressure that we face. we need meaningful reform so that we can improve the quality and reduce the trajectory of cost. we need certainty around cap and trade. we need to know how it will be allocated. there is a lot of discussion about what is in the air right now, the discussion being about inhibiting investment, which

inhibits job creation. we need the right answer, but we need answers. host: the president made some comments about when banks fail. i want to play you his remarks and get your thoughts. host -- >> we should make it easier for small businesses to get loans. we should invest in infrastructure projects that lead to new jobs in the construction industry. we should provide a tax incentive for large businesses like yours to invest in new plants and equipment. that would make a difference now. we need business to support these efforts. the business roundtable supported the recovery act, for which i am grateful. but i think that one of the reasons businesses have not been as vocal about their support is this belief that extraordinary measures like the recovery act work our financial stability

plan, rep -- representing a lasting increase in government intervention. let me assure you, they do not. host: address concerns about a permanent presence of government intervention. guest: and he is right to point out that concern. clearly we had extraordinary circumstances a few years ago with the collapse of the financial system. we recognize that it would take extraordinary measures to stabilize that. the congress deserves a lot of credit -- credit for acting quickly. @@@@

this congress has stressed very much what small business can do for the economy. one of the points our members made is that it is not just small business. we need big business to get moving for small business to get moving. that is part of the message, also. host: the president mentioned tax incentives for businesses. guest: and that is the interesting debate in the house and the senate who are considering a jobs bill. there are provisions in the tax code for research and development credit, that have expired. that have expired. one could argue the fact that they have not been extended and acted again into law is probably more of a detrimental impact on the economy than any jobs bill that the congress might be

passing with regard to new jobs. we need that certainty in the tax code. host: in terms of small birds -- small business as opposed to big business, is it easier for a member to say that everyone is in favor for small rather than they? guest: -- rather than big? guest: that is the political reality. but remember, every time boeing cells around the world, 12,000 small businesses right on the wings of that. small-business vendors and suppliers that depend on big companies for their livelihood. host: the lines are open for john castellani of the business roundtable. for democrats, 202-737-0002. for republicans, 202-737-0001. for independents, 202-628-0205.

maryann, syracuse, your first up. >> -- caller: midmorning. -- good morning. i heard about the $30 billion that could be going into help for credit for businesses. i was wondering about your guests opinion on the argument that the fda should be having that money so they can do direct funding or if should be going to the banks. my opinion is that the banks had a chance at this already. small business is a big deal in this country. fda to set up to do more assessment for small businesses. that is where i would prefer to see ago. what do you folks think?

guest: a good point. by the way, i grew up in the syracuse area, right outside of steny at less -- skinnyatlas. one of the problems we have seen in the wake of these questions, rules that were rightly intended for large banks, rightly intended to realistically value their assets, having a consequence that no one intended, basically that there was much less savings. what we have seen in the big business sector, we have had to bankroll our suppliers to make sure that they had access to capital. getting small business access to capital is very important. ideally the best thing that could be done would be to give the banking sector workings of

the private sector could provide the capital. those provisions we are talking about are the so-called mark to market provisions. until that can happen, until the system is working, we have proposed $30 million to be projected, that would be helpful, but a stop-gap measure. host: john castellani, the hope -- the president of the business roundtable, representing more than 12 million companies and generating $6 trillion in annual revenues, combined making about one-third of the total value of u.s. stock market. what are some of the ceo's represented in the round table? guest: caterpillar, verizon, general electric, microsoft. everything from the manufacturing sector to the

high-tech sector. host: have you ever been in a ceo yourself? -- have you ever been a ceo yourself? guest: i have not. host: next caller. caller: kudos to c-span, where would we be without you guys? barack obama spoke out very aggressively against capitalism, liberation theology being a belief that poverty is caused by sen. and that the assessment for the blame of the sin is not on the sinners, like drug addiction or alcoholism, the blame is placed squarely on capitalism. so, when barack obama goes to a business roundtable talking about how he is for free

enterprise, i have grave doubts. take a look at the fact that since barack obama entered this little town, you have seen 30% in one year of the private business taken over by the federal government. another 18%, half of the private business in america taken over by the federal government. that is not america and not what this country is. when you roll into an economic downturn, you have one of two choices. even throw the money out to the people, who restart the economic engine. george bush did that when we inherited the recession from the bubble burst out of of after thm

crash. the hyenas on capitol hill take control of the people, that is what is happening here, and i take everything that barack obama says with an entire bag of salt. guest: private sector is where jobs are created, creating lasting jobs beyond what any government can do. one of the things we have been stressing of particular importance is that what drives us is the man for our product and services. we do not make your own demand, the consumer has to be in the game. right now the consumer is very leary in the united states, as they should be. there is something else going on in the world is different, we are seeing other countries,

particularly india, china, brazil, and economies that are growing. we need access their to sell goods and services in those markets. this may be a recovery led by developing countries, but we need to address what the rest of the world is doing, getting into trade agreements with those countries that we can sell services to. something the president recognized, but i cannot be done by wishing it from washington. host: recently the administration announced that they want to rapidly increase -- guest: double. host: double the exports in five years. how'd you get the market behind it? guest: you cannot judgeships things and hope that they will buy it, you have to be able to

reduce tariffs, invest in those markets so that it can be serviced, finance, marketed around the world. that is what the rest of the world is doing, rapidly negotiating to open up markets while the u.s. has not been able to move forward. panama, colombia, giving the uw !) host: since the obama has come in, the administration has taken over 30% of businesses? guest: no, that's not true.

they supported a substantial sector of the business sector and the ones who got stimulus money paid back. there was significant investment by the government. the automobile money will hopefully get turned around but i don't think 30% -- i don't think it is close to $8 trillion of the economy. we did not spend anything like that. caller: good morning. business would not exist in this country if we did not have government, if there were no rules and regulations and oversight. corporations exist for the bottom line. they would wind up eating their own. that is pre but what we have seen -- that is pretty much what

we have seen with the creation of monopolies. as far as our tax codes, people can read and write about us having the highest corporate tax rate at 35% but the truth is that i am one of the few paying that 35%. corporations take their profits and send it to a six story building in the cayman islands and a pay virtually nothing of that 35%. yes, most of our jobs to come from small businesses. the large businesses have been squeezing. production is not the problem. the american worker, which i think you and the republican party feel nothing but disdain for have been squeezed and are now working the job of three

with lower wages than they did in comparison 30 years ago. host: thank you for your call. guest: is important to make these points -- first and foremost, there is a legitimate role for government. we need good regulation, smart regulation of our markets and the kinds of protection and security that government provides. nobody is asking for the government to disappear. we want the government to be here and be sufficient and we want to be affected. secondly, american workers can compete anywhere in the world. they need and are the best educated, they have the resources. we think with the right rules and access, american workers could make products and services that can compete anywhere in the world. we have seen tremendous productivity and improvement. business roundtable companies employing millions of workers.

people lose sight of the fact that there are 26 million jobs in the united states that depend on international trade. those jobs are increasing. the more companies that compete in the worldwide market, the more products can be designed and manufactured here. a worker who worked for a company who is involved in the international market makes 25% more than a worker who does not. the best paying jobs are the jobs that are growing and they are the jobs we think we can grow in the future because we think with the right set of rules, american workers can compete anywhere. host: it was reported about the manufacturing sector. guest: