labor force with workers with radically different rights. the fact is, while trying to secure the border against further illegal immigration, i think it is in our interest of having a 1-tier labor force to turn these two million illegal immigrants into productive citizens working here for the same rights as everyone else as quickly as possible. that is not charity. you do not want employers to be able to play off one group of workers with another group of workers. you need to frame this not as philanthropy. you might get more support for a workable relations. host: we appreciate your time

this morning. that is it for [captioning performed by national captioning institute] "washington journal." morning, we will see you then. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2010] . .

>> it is remarkable how often both of my opponents have voting for hinks things like no child left behind. those are not consevative values. >> it is interesting to hear john talk about the tax trail.

it is interesting because john mccain claims he's a ronald reagan republican and right out of the gate he's violating the 11th commandment. i did make a mistake in that video. i am able to admit my mistakes. you have made mistake after mistakes that have hurt america. you continue to support amnesty that could cost american taxpayers $2.6 trillion in retirement benefits alone. >> some in congress have said the financial collapse of 2008 was more devastating than the 9-11 event. do you support congress' legislation or oppose it, and why? >> both parties have been using

the tax code to manipulate our economy. that's unacceptable to me. we have to get a fair flat tax proposal in progress. the repeal of the 15th amendment is important to getting our economy back to a stable path. both of these gentlemen passed legislation that allowed 0 -- allowed derivatives. we have to sop sending career politicians to washington, d.c. we have to send people that understand what it means to create a job and maintain that job and pay the taxes associated with that job. we have to get back to citizen candidates in the united states senate.

>> mr. hey worth -- hayworth. >> as far as i'm concerned, this new legislation is like handing gasoline to a pyromaniac. now, john voted for the bail out and another $157 million in earmarks. the kind of spending john claims he opposes. sadly that laid the predicate for what we will see with this bill which will guarantee more bail outs. >> well, the financial reform bill just passed is a traff it in no way will address the problems that brought about the collapse in 2008, and that is that institutions are still too big to fail. there is no addressing of the institutions that were the

meltdown, writes fanny mae and freddie mac. i along with others fought to change fanny and freddie. by the way, i never supported amnesty. >> mr. deakin, the final word? >> i'm sorry. in 1986, you did vote for amnesty, so i don't see how you can say you never supported it. we have to stop bailing out financial institutions. we need to get rid of fannie mae and freddie mac. >> forces could be fighting in

afghanistan for another 10 years. you said we need to stay in afghanistan until we have won. are you willing to stay for another 10 years if that's what it takes, even if some from your own party are beginning to call it the war of a losing proposition. how will we know when we have won in afghanistan? >> we will know how we won in afghanistan the way we know we won in ran -- iran. they have a functioning government. they have a government that is functioning for the people in contested electrics. i would remind you that nch said john mccain's candidacy's campaign was doomed because i supported the surge, i said i would rather lose a campaign than a war. it is long, and hard, and tough in afghanistan, but we can succeed.

i spent the fourth of july with the troops in afghanistan. they know they can succeed. you can't win conflicts if you set a date for withdrawal. the taliban knows it, our enemies know it. we can succeed in iraq. never again can we allow afghanistan to be a base for attacks on the united states of america, as was the case of 9-11, one of the great american tragedies. we can succeed in afghanistan, but we need the president to tell the american people that we will stay the cours -- course. once we have, we will be able to withdraw just as we are withdrawing from iraq today. >> mr. deak -- deakin. >> eight years is too long to

have our army in a politically fractured economy. we should use trade practices to get afghanistan, yemin, and every other terrorist-supporting nation to stop terrorism. >> we have problems in afghanistan because we have a commander-in-chief who really doesn't understand the situation. when a sniper fires on them now, as the rules candidate, if that sniper drops the rifle and tries to blend back in with the crowd, our troops can't fire back. our troops need rules of engagement where they can fight a war and win a war. secondly we should describe a victory as the eradication of the taliban. these are clearly defineable conditions. i think that will bring success.

>> of course congressman hayworth misunderstands. the rules of engagement have been set by general petraeus. i have confidence that general petraeus will do what is necessary to protect our troops. he is one of the great leaders. this is long and hard and tough. we grieve at the loss of american lives. july was one of the toughest months ever. august will be tough as well. let's support them. let's show them we love them and we can succeed and bring them home with honor. >> mr. hayworth. you were in congress and then there is your action as a pitchman. your critics have questioned your character. the mccain campaign sent out a campaign calling you "j.d.

huckster." how do you answer that? >> john, you have changed positions so much in this campaign, maybe we'll set up a separate podium for you depending on which john is answering which question. i invite everyone to go to j.d. -- jdforsenate.com. this should be on the bail outs and earmarked spending. john has a record that he does not want to run on. that's why he's engaged in this kind of attack ad. it is unbecoming to you, john. you are not a politician any longer, you are a political

shapeshifter. >> there you go again, just as i predicted at the beginning of this debate. jonk congressman hayworth is one of the big spenders. he called us jihadists. my friend, dr. coleman, said it is the gateway drug to spending. that's why he was voted out of office. i am proud of my record. >> i don't know how can go anywhere. they are both the same. both of them have put themselves in the situation to be corrupted. if they would stick to the united states constitution, and if they would spend more time in

arizona than washington, they would not get caught up in these corrupt systems. my name is jim deakin. i want to focus on the constitution, not politics. >> if you -- the fact is john mccain is caught in cynical attack politics. you chaired the committees to undo influence. never did my name come up. shame on you, john. arizona deserves better. >> mr. deakin, the next question is for you. the coalition of tea party activists are suggesting that you drop out because your candidacy they claim is hurting the conservetive cause. how do you respond to that? >> i think it is great. it is americans expressing their

opinions. that's what it is all about. when we have people marching in the streets expressing their opinions, either side, it makes our country better. when we the people stand up and say that is not acceptable to us anymore, then we can make changes in washington, d.c. i don't care whether anybody tells me to drop out of this race or not. i have a constitutional right to be on this ballot. if either one of the other candidates had stuck to their pledges, i would not be here today. >> jim has the right to run as do we all. does it make it right in this circumstance? he can decide that. you have noticed mr. mccain unfurling all kinds of attack adds. he spent millions plaking me the -- making me the de facto "six

million dollar man." in a public forum, he said it is to make a statement. i never expected to get 50%. >> senator? >> maybe every vote that goes to j.d. hayworth would detract from mr. deakin being elected. obviously, you qualify for the ballot, you deserve it. facts are stubborn things. what i have been saying are facts. those facts are that will j.d. hayworth was a lobbyist. he said he didn't do due diligence. my god, man, didn't you know that this was a group that was taking people's money to say that they would get free money. that's not a conservative.

no one can call themselves a conservative with that kind of action. >> i got into this race knowing it would be a challenge. i have sacrificed more than a year and a half of my life building name rogs which is nearly impossible fr a -- for a new candidate that's never run for office before. and i'm not just taking conservetive -- conservative votes from one candidate or the other. i am taking votes from both of my opponents. >> mr. mccain, you have been criticized for advocating

amnesty. you have been quoted as "building that dang fence." is that trying to appeal to the conservative votes of your party? >> thanks, frank. that's a very important question in this debate, object obviously. amnesty means no penalty. in every bill we had had, there were penalties that would be imposed. after the bill was raised in 2006, and i said when i ran for president, and in 20008 and 2009 -- 2008 and 2009 that the borders need to be secured first. we invited the president of the united states to come to the border and see how badly it is out of control. the violence has escalated dramatically. hours ago a car bomb went off in juarez just across the border. 21 mexican citizens were killed

just 12 miles south of nogales, arizona. i have been down to see the widow of rob krantz. they should not live in an environment of insecurity. our border is not secure. our 10-point plan completes the fence, surely -- surveillance cape -- capabilities and many other operations, such as operation stoneguard where a repeat crosser will have to go to incarceration for 30, 60, or 90 days. >> thank you very much. mr. deakin? >> we should not have to re-elect any politician to get the border secure. both of my opponents have failed arizona. in 1996 they both voted for

string migration. in 2008 they both voted for amnesty. both voted against putting an army on the border. we need to move the border patrol to the border where they belong, then we can determine what additional planpower we need near -- additional manpower we need near the border. >> i can think of no more blatant form of hucksterism. john, you mentioned amnesty by name in may of 2003. you co-sponsored a bill with ted kennedy. $2.6 trillion in incentives.

why would we provide incentives? i sponsored the enforcement first act. there's a big difference. >> time it up. senator mccain. >> in 2001 congressman hayworth proposed an immigration reform bill. the point is, we must get our borders secure, my friends. this is an existential threat to the government of mexico. which means if the drug cartels take over, the violence on our border will escalate more. the human smuggling and drug cartels coming across our border have caused arizona to be the second biggest murder capital of the world. we can stop this crossing our borders. i know we can. thank you very much. >> you made the statement that mr. mccain's comprensive prorm plan will constitutional $2.6

trillion. how much would your immigration plan cost? >> millions, admittedly, but far cheaper than the $2.6 trillion on retirement benefits alone to illegals. it is bad enough that john mccain voted to extend social security to illegals, but now he wants to enshrine it in a bill that is so ridiculous it is hard to be believed. my bill calls for the introduction of our standing troops on the border and it likewise calls for the return to our forth amendment so we no longer have the judicial activist that led to birthright zip -- citizenship. the clause "subject to the jurisdiction there have" does not mean aliens that are not subject to the jurisdiction of americans should have

citizenship. now we have people timing the gestation period to get access to all of our benefits. that is dead wrong. at lonk last -- long last, border security is national security. the most vexing problem we have is on our border with next co-. my enforcement first act will do just that. >> our legislation will probably cost just $4 billion and take just a year or two. most of it isn't just increased funding. let me tell you, surveillance, manpower, completing the fence. i just came from a visit to israel again. israel has secure borders. we have made improvements in san diego and texas. in tucson last year 230,000

illegal immigrants were abhended. we have to have signs in the southern part of our state that our citizens have to beware? we have to get it fixed so our citizens can be safe, and we have to do it quickly. >> the first combill fails because of the cost. everyone knew it would cost a lot of money. the republicans couldn't get it past when we had a republican house, fm -- a republican house and senate. we need to get the attorney attorney to do his job. we do that through prums and -- appropriations and enforcement.

>> the enforcement first act would enforce existing law but take steps necessary to protect us fpble -- protect us. while it is true you introduced this legislation, you have only one co-sponsor, john kyle. you served on the homeland security commission. we understand what this is. it is not meaningful legislation. it is a little document you are using to get this document through and fool the people of arizona once more. >> the next question is for mr. deakin. it has to do with health care. you state that the federal government should keep lts hands ow of programs dealing with the health care system. does that include programs for just maid care? do you support a long-term program to make medicare solvent? >> yes.

health care costs have gone up exponentially since we've had the h.m.o. act. we have to get medicare bk into the responsibility of the individual. let us find our own health insurance providers. we reduce the paperwork to the doctors and the insurance companies and then we will have lower costs. that's the ultimate goal. the goal isn't to control people's lives or tell them what to do or what they should eat. the goal is to get the costs lower. we do that by eliminating bureaucracy. when someone violates the law and does not provide a service that they promised to provide,

we use the law. that's how the process should go. >> i voted and worked to preserve medicare with market-based reforms that actually brought costs down as we ushered medicare into the 21st century. the one thing that will kill medicare is follow john mccain's suggestion and find out we have to pay $2.6 trillion in requirement benefits. that is to say social security and medicare to illegals. that is untenable and it is ill-as advised. >> medicare is in trouble. i am proud to have led the debate day after day and week after week on the senate floor to stop a giant take-over of the

entire health care system in america. obama-care will raise costs dramatically. the first discussion on the floor of the senate was to say, there will be no cuts in medicare. 300,000 citizens of arizona have a program called medicare advantage. that's going to be cut by obama-care. next january, my friends, when i'm back there, i'm going to lead the fight again, and we're going to repeal and replace obama-care. >> mr. deakin? a plan you want to repeal? >> i am not sending you to weesh -- washington, d.c. so i can make politics better. i want to stop thfment everything belongs to the --

this. everything belongs to the states or the people that elected them. >> you have served in washington, d.c. for many decades. why should you go back to washington when they say new people are needed? >> i understand that there is great frustration and anger out there with the people of this country, and we have seen that with the tea party movement, which i think will bring about significant change in america. the question is, who can be most effective? i led the fight against obama-care. i led the fight against the stimulus package. i proposed tax cuts and breaks for small businesses and not mortgage our children's futures. i led the fight against a huge promes -- appropriations

package. that kind of leadership in my view is what we need. not just to go and fight. i am confident mr. deakin or j.d. hayworth would go and fight. i want to lead, as i have in the past. >> mr. deakin? fundamentals. we can no longer afford to go the way we have been going. the american people are rising up because they don't like business as usual anymore. arizona dud doesn't support independent caidates. it takes way too much to get on the ballot, and you get attacked by both sides. you think these two are attacking each other now? wait until the democrats get involved. the attacks will be worse. right now we are fighting against each other, and it is dividing this country, and that is not acceptable to me.

>> it is interesting hearing john talk about his experience and how he is better educated and more ad event in the ways of washington and therefore can -- adept in the ways of washington and therefore can lead us better . you voted for the bail out and then you said it was an obscenity. then you said someone else was to blame. you have not been effective, sir. it is sad. we appreciate your service. you did not lead the fight on obama-care. if you had, you would have demanded that the abill be read and senate would -- that the bill be read and that snad -- session throughout the christmas break. john is not a leader. >> time is up, mr. hayworth. >> there he goes again. again, facts are stubborn

things. i did lead the fight. everybody knows that. we will repeal and replace obama-care next january. that's the important thing, that we are standing up for our people in the state. i have been leading, not following. i am proud of my efforts whether it be efforts to get our border secure and whether it be protecting our bases of the men and women serving in the military. look at the conservative organizes and see what they sue -- who they support, whether it is me or congressman hayworth. >> you have been crate crith cal of the -- critical of the senator's efforts to reach across the aisle to democrats. will you not work with people who do not share your view? >> no, of course not.

what we need is true nonpartisan leadership. harry reid went to a western democrat senator quho had a hold on my bill. the story i understand is that harry said, take your hold off j.d.'s bill because what this -- that will mean for rural school districts is something exsteppingsal -- exceptional. the power of a good idea transcends party lape. not go along to get along. bip that may sound -- bipartisan ideas that may sound good at cocktail parties but fails to rement arizona -- represent arizona. i am a conservative. i don't believe in cap and trade, and my opponent wrote the cap and trade in the last

session of congress. john mccain is a conserve. >> one of the reasons why people elected us in 1994 and then swept republicans out in 2006 is because of spending. we promised the american people we would get spending under control. this spending, earmarking, led to corruption, and there are people right now in jail because of this. i dinned to fight -- financed to fight against earmarking and park barely -- pork barrel spending. we should repeal obama-care which will mortgage our children's futures. >> the congressman did cross the

aisle. he did work with opponents of the other party. both of these opponents did so. they did it to increase the national debt. the congressmen crossed the aisle when they agreed to impose a capital gains tax. john mccain voted with ed pasteur to bring the light rail to the city. the people of avonkale -- avondale are tired of paying that money for transportation. >> john, you put out a piece of mail accusing me of voting for

earmarks. the facts don't comport with john mccain's assessment. >> how do you propose to secure our borders and when will you know it is secure? >> both of our poinltsdz opponents have -- both of our opponents have had an opportunity to get the borders under control. we have to finish the border fence. we have already appropriated this. we have to include technology. then we will know what we are accomplishing. when we accomplish something we'll see is in the technology.

we have to work on our immigration policy. the federal government is compealed compelled to provide naturalization. the problem is, we do not differentiate between immigration and migration. that's the difference that we have to have. once we have good solid migration policies and then natural zation policies so the people aren't waiting eight, 10, 12 years, and then we will have less illegal immigration. i was on the border yesterday with ranchers, because it is an important issue. the voters don't have an idea whaths happening in no -- what's happening in nogales.

we have to have a senator that rides in arizona. >> secure the border. in fact, we heard it just a couple weeks ago from president obama who took time to single out john mccain to applaud him for his efforts at reaching across the ime to enact amnesty. i describe a secure border as when the united states understands who is coming into our country and quho is leading our country. the plob with john mccain and barack obama and janet p.m. napaoita flfment o is that they think this is a problem that neighborhoods to be magged, instead of an invasion that nivet stopped. >> i find myself agreeing with mr. hayworth.

if mexico continues with the difficulties that it has, we are going to have even greater problems i am -- greater problems. i am glad there are 11 sheriffs supporting me. congressman hayworth's bill never had a hearing. we have won votes on the senate, and i want to assure you, we will get our borders secure and do what's necessary. >> for six years we had a republican house, senate, and president, and my opponent failed to get the border secure. failed to protect arizona. we need to hold the attorney attorney accountable. we need promes appropriations

and confirmation hearings to get them to enforce u.s. code. >> next question directed toward john mccain. allen greenspan said there is reason not to extend the bush tax cut, but favor them, even as we face the growing seff sit. >> i respect allen greenspan but he was in charge when this meltdown occurred and obviously has great responsibility for it. we can't raise taxes at this time. tax increases will hurt our economy even more. whether i voted against the bush tax cuts in 2001 because i predicted that spending had to be brought under control, and it was not. we worked from tax cuts and benefits.

i voted for tax cuts, but i didn't want to go from spluss to deficit. with you -- but we are in tage. but we are in danger. we are in danger of, at best, a very slow recovery. people are hurting. we need to have our taxes kept low. we need to cut corporate taxes, and we need to give social security tax and other payroll taxes -- taxes need to be held off until we can get the e-mail businesses back in business -- get the small business yes -- businesses back in business. but to raise taxes at this time in history woo be -- would be a terrible time in our history.

mr. deakin, thank you. >> both of my opponents failed to make the bush aaccount permanent because they were too busy making the patriot act permanent. we have to get rid of the free trade agreement shipping our trade overseas. businesses need to create jobs, not government. not government. >> mr. hayworth. >> john doesn't have on flip-flops, but boy he sure has flip-flopped here. when he check your statements, you said nothing about spending. i understand running for

president you had to suddenly get back on the side of the tax cutters, so you suddenly changed your tune, but this revisionist history does not cog conform with the facts. you need a prove yern -- proven tax kirt. that's quha i did in washington, and tchats what i will do again. >> they play want to increase taxes and not extend tax cuts fpble americans don't need a tax increase at this time. we need to get america going again. this administration is too far to the left. we need to get america back to the center. >> the next question is for mr. hayworth.

what would you have done differently and where would you go from here now? >> let's look at where we are now. the wrong-headed stimulus plan passed by the obama administration, less than half of that money has been spent. it should be stopped right now and the rest of those funds should be administered to debt relief. in terms of the troubled asset debt relief program which my opponent sase said i was for and then -- which my opponent said he was for and then misled us about. if you are going to devote taxpayer's assets to this problem, make sure it is in the banks on main street zphead of the financial houses on wall street. the wizards there will dream up

loopholes you can't even begin to understand. loans will be available to small businesses, and we will end up with a lost decade, recommend snissent of what is going on -- reminiscent of what is going on right now in japan. the way you improve the economy is back to basics -- lower taxes and lower government spending. >> senator mccain. in the fall of 2008 there was a financial meltdown, as we know. after passage, they abandoned the housing market. i fought against the take-over of chrysler and general motors and gmac and all the excesses of the obama administration. the real mortgaging of our

children's futures. i encouraged getting our economy back on the right track. i am proud of the leadership position i have taken which to fight this which is literally committing generational fraud. >> there is nothing that says he didn't vote for tarp. he voted with the republican party 96% of the time. don't believe him if he says he would have voted for it. his voting record doesn't prove that true. the solution i would have presented would have been the tax holiday. it would have cost us $2 trillion instead of $4 trillion at the federal level. boosted our state economy. it would have been a better solution for the overall health and well being of our nation. >> mr. deakin, thank you very much. mr. hayworth. this -- >> this must be a first, that someone claims to have e.s.p. to

tell me how i would have voted for my family when i was a private citizen. while i appreciate the fact, and i'll take john at his word, that he led the fight against the stimulus, he led the acceptance of tarp. $7 hundred 50 billion in earmarks, earmarks he says he opposes. discussing cutting defense spending. do you agree with that? >> we don't need to have bases all over the world because it feels good to have them there. if have that technology and we should continue to invest in our

future. but we have to bring the right people into washington d.c., senate appropriations hearings, and they can justify the dollars they are going to spend. those are american dirp dollars. american taxpayers want to be protected. american taxpayers want to be protected from our burdensome government. >> when it comes to the budget, we confront a new age of in this dangerous world in which we live where tror comes to our back -- ter or comes to our very back door on the southern border, we need to aloe indicate resources. however we need to deal with the problems we face.

we should take debt relief and -- stimulus money and dedicate it to debt relief. >> we need reform. working with democrats, we are working on cost over-runs. cost over-runs are a serious problem. we have to get debt under control. working with the country partnership and all around our state, $9.2 billion to our arizona economy and over 100,000 civilian worgers on our bases. i'll protect our bases. when we take control of the

senate, i'll be in charge of the senate services committee. >> mr. deakin, you have the final word. >> the best way to control our costs in our military is stop electing career politicians that see our military as a world police force. if we have to protect ourselves and go to war, that's a terrible thing. when we send people to be police in other countries, that's an abomination and they should be held accountable. >> final question to senator mccain. you stated your option for unemployment benefits. isn't that hurting many of your constituents here in arizona where the unemployment rate is higher than the national average? to arizona? we republicans in the senate want to extend unemployment benefits, but we want it paid

things that the democrats add on to it whether it be hiring new teachers or other things to force us to vote yes. i'm proud we stood up and said no. you give us a straight bill and we'll vote for it. but adding all that pork, we're not doing that anymore. what i would do is give our small businesses a tax break. i would tell the corporations, which are stre important like intel and raytheon and others in our state, we'll cut the corporate tax rate so you won't have to send jobs overseas. i'll continue to support the military and our bases men and wenl who are there, and the nows -- men and women who are there, and the thousands who make the apache helicopters and down at ratheon and intel is doing such a great job and employing so many people, and i have

supported them inform so many years. i am proud to have had their support, and i'm grateful for it. >> the american people do not want unemployment checks. they want payroll checks. they want jobs. business people are the ones that create jobs, not the federal government. we need to reduce regular layings and end our free trade agreement to stop sending our industries across the world. we signed these free trade agreements because we thought they would have a growing economy. it hasn't worked. we need to go back to a most-favored nations trade system so we can keep industry in this country and create jobs not only in arizona but around this nation. >> mr. deakin, thank you. mr. hayworth? >> i'm gratified, because apparently my fellow candidates agree with mefment especially to hear john mccain. hollywood gave us the movie "the

seven-year itch" but you've enacted the six-year switch. you initiated tax cuts. tax cuts that took our unemployment rate down to just a little above 4%, as i returned to private life. you have to cut taxes and cut spending. unemployment benfits. we need a safety net but not a hammock. >> senator mccain? >> the fact is arizona is hurting. we can help the people of arizona. we can help our community abouts while wall street is doing fine and main street is doing poorly. the big corporations -- the real generators are the small businesses.

the people i have appellate that lost their business yes -- >> the time is up. it has been a very interesting evening so far. and now we come to the closing statements portion of our debate 2010. at this time we would ask that each of the candidates observe our 90-second time set aside for your closing, and we begin with mr. hayworth. >> thanks to you and channel 3 for hosting this debate, and to my two fellow candidates, but most of all, thats -- thanks to you, the voters, who have a big decision to make. the choice is kwlear. either you can opt for a consistent conservative who says no to amnesty, no to cap and trade, or you can choose a convenient conservative. it is time for someone new. not the last line of defense, but the first line of advocas

combrfment for arizona. i am so pleased to have the endorsement of maricopa county. the phoenix law enforcement association. the arizona police association. and the association of border patrolt agents -- patrol agents. i am also happy to have the endorsement of john mccain's friend from vietnam. let's have a conservative in the united states senate. i ask for your vote in the primary. >> mr. deakin? >> i am jim deakin, and you have a choice in this election. america is the greatest nation in the world.

since the gick of our country we have been advancing toward liberty and freedom. somewhere along the lines we have forgotten about the united states constitution. as your senator, i will work to bring the united states constitution back to the federal government. one man is not the solution to our nation's problems. our hope is in the documents. our nation is great at overcoming obstacles. but we do it when we are together. together we can prevail. together arizona will thrive. together our nation will excel. to the delight of our allies. and the dismay of our enemies. i'm asking for your vote. i'm asking for your support.

my name is jim deakin. i need your support in the primary. i need your support in the general election. have a choice. neither one of these guys have

>> i have led the fight to keep america safe. i am proud of my record. of both in congress and my service to the country. my strength has helped lead in this tough time where it and are you can count on me to continue to lead. i seek your support and ask for your pope, thank you. >> that but that is all the time we have. we want to thank you for being with us for this senate republican debate and we appreciate all the time and effort that the candidates have put in. on sunday, we will rebroadcast

the debate at 5:30 during our regularly scheduled "politics unplugged." good night and join our regular programming in progress. ♪ >> now, campaign and from senator john mccain and former jd mccain. >> word got out that j.d. he ywood. >> i grew up with buyer beware. >> j. d. a. wood, a pork barrel senator, huckster, voter beware.

>> i am john mccain and i approve this message. >> tired of john mccain's negative ads? so am i.. i am mary heywood and john mccain has sold out the people of arizona on immigration, bail out and tax increases. now john mccain has embraced character assassination to keep his job. he should be ashamed. he is not perfect but he is a principled conservative. >> i am j.d. heywood and i approve this message. >> tonight, the final debate among four of the candidates running in the michigan governor's primary election at 8:00 eastern on c-span. we follow that with a debate among the three republicans and one democrat running to be the governor of tennessee at 9:00 eastern on c-span. finally, at 10:00, a debate among four democratic candidates

running in the rhode island first house district. that begins tonight at 8:00 p.m. eastern on c-span. >> they are the towering figures. they are all different. they have their different talents. they have their different dangers. >> this weekend, biographer on his books on russian leaders, lenin, stalin, and most recently, leon trotsky. about their relationship and their roles in developing their from communism. that is sunday night on cspan's "q &a." >> the federal reserve sponsored a conference this week to address financing concerns of small business and discuss strategies to improve access to credit for the business community. the federal reserve has posted more than 40 regional meetings

this year of this type. fed chairman ben bernanke was a featured speaker at this forum which is over 30 minutes. >> thank you, everybody. i am the director and the affairs officer, and i would like to welcome you. >> i will turned over to the director of division of consumer affairs. >> thank you, joseph. good morning, everybody. i have two duties this morning. the first one is i want to welcome you all to the federal reserve board. it is a real pleasure to do that today. i am really pleased to be here for this very important forum.

this form is a capstone of bent for 43 small business forms produced by the federal reserve banks across the country. these events were held on various topics and aspects of small-business lending. synthesizing the information from these geographically disparate events has been quite interesting. we found there were some areas specifically that emerged but there were also a number of very consistent themes that appeared across the spectrum of the event. these learning's have been summarized and is in the handout in your folder. we will be discussing all this in more detail today in the panel. as with all forums like this, there are plans executed by a large number of people. throughout the federal reserve system, this entire project has been a very unique collaboration

of staff from the community affairs program, the safety and soundness supervisors, and the research team. extra in, our main partners have been the small business administration and the community development financial institution fund. specifically for today's event, i would like to thank joseph hirshein and the rest of their team made this happen. i would be remiss if i did not also think the community affairs offices from the 12th federal reserve banks. without their efforts to produce the forums across the country, there would be no capstone event. several of these community affairs officers will service channel monitors today. i would like to thank all of our panelists and a terrific audience of participants that we have been joined in the prior forums as well as today.

i happened to peruse the attendee list over the weekend. it reads like a who's who of interested parties in job creation and small business. i very much am looking forward to today's discussion. now to the main business with which i have been charged -- it is my great pleasure to introduce our chairman, ben bernanke, who will deliver some opening comments. chairman bernanke has been very interested and engaged in the small business initiative as well as other efforts that have been undertaken by the federal reserve to insure that some borrowers have access to safe credit. chairman bernanke personally attended one of the credit discussion forums in detroit as well as a program in richmond that was focused on a work force development. we have appreciated his efforts. we know his support will continue as we move forward to

the next step. please join me in welcoming ben bernanke. [applause] >> thank you and good morning. let me begin by thanking the staff of the division of consumer and community affairs -- community affairs. for the hard work they have done to prepare for the discussion today to approve credit for some small businesses. thanks also to the many partners to help those organize today's event, particularly the small business administration and the treasury's community development solutions fund. i am pleased to welcome you all to the federal reserve board. this gathering addressing the financing needs of small business serves as a capstone for a series of more than 40 meetings conducted across the country starting in february

organized by the federal reserve system community affairs office. these meetings provide forums for small-business owners, trade associations, lenders, bank supervisors, federal, state, and local officials, and other stakeholders to exchange ideas about the challenges facing small businesses both in the short run and the longer term. some of these meetings were small group discussions while other were larger and addressed specific topics such as minority entrepreneurship and guaranteed loan programs. i attended a meeting in detroit that combined a general discussion of small business credit issues with a session focusing on specific cases of suppliers to the auto industry, many of which are small and medium-sized firms. participants in that session highlighted the interconnectedness of the office supply chain and a crucial role of stable financing for small businesses ranging from parts

suppliers to independent automobile dealers in the recovery of the auto industry. this was just one meeting in one city. a meeting in miami focused on the needs of hispanic groups. formative discussions took place in cities like new york, san francisco, and chicago among many others including omaha, neb., west virginia, a toledo, ohio, and little rock arkansas. our objective in organizing this series was to gather information that we and others could use to help develop policies that will support the flow of loans to credit or the small businesses. by identifying and addressing specific credit gaps or impediments to lending or improving the access to small businesses. this information serves as the basis for today's discussion.

we want to discuss stakeholders and what they can undertake to make sure small businesses can participate to the economic recovery. before we get to the next step, i would like to provide context by briefly discussing the importance of small businesses to job creation and economic recovery, reviewing the action the federal reserve has taken to support small businesses and offering some observations about what we have heard during the small business meeting series. small businesses are central to creating jobs and our economy. they employ roughly one-half of all americans. they account for about 60% of gross job creation. your small businesses, less than two years old, are especially important. over the past 20 years, these upstart enterprises have accounted for roughly 1/4 of job creation even though they employed collectively less than 10% of the work force. the formation and growth of small businesses depends on

access to credit. unfortunately, those businesses report that credit conditions remain very difficult. the net percentage of survey respondents telling the national federation of independent business that credit conditions have tightened over the prior three months has remained extremely elevated by historical standards. one measure dropped from more than 70 $10 billion in the second quarter of 2008 to than six of its 70 billion. in 2010. an important but the bill to answer question is, how much of this reduction has been driven by the weaker demand from loans and small businesses, how much by the deterioration of small businesses, and how much by restrictive credit availability? no doubt, all three factors have played a role. clearly, to support the recovery, we need to find ways to ensure the creditworthy

bother -- bahr wasave access to needed loans. over the past two years, the federal reserve and other agencies have made an effort to stabilize our financial system and our economy. these efforts have included working to facilitate the flow of credit to viable small businesses. we helped bring the capital and securities market to small businesses with the asset backed securities program grid. talf program is what it was called. we are strengthening the nation's banks of they can resume normal lending as quickly as possible. the stress test we conducted last year helped restore confidence in the banking system allowing banks to raise the capital they need to of sought credit losses and ultimately provide the basis for new lending. we have heard the often

expressed concerns that bank examiners have prevented banks from making good loans. we take this issue very seriously. the federal reserve has worked assiduously with other banking regulators to develop interagency policy statements on this issue aimed at banks and bank examiners. our message is clear -- consistent with maintaining appropriately prudent standards, lenders should do all they can to meet the needs of creditworthy borrowers. doing so is good for the bar were, good for the lender, and good for our economy. to ensure that this message is being heard and acted upon, we have mixed -- we have conducted training programs for bank examiners as well as out of reach for bankers who continue to seek feedback from bankers and borrowers. we believe that hours and other efforts are making a big difference. we also know that more must be done and additional effective

action requires a hearing first hand from people who can speak from diverse perspectives about the challenges now facing small businesses. the insights we obtain from small-business owners, lenders, and others in this series of meetings have given us a more nuanced understanding of the problem and will help us identify areas where we might be able to do more. not surprisingly, these meetings confirmed that facilitating small business financing is not as simple as straightforward as we thought. notably, the term small business encompasses a heterogeneous mixture of enterprises ranging from pizzerias to small start up technology firms. each small business faces a combination of local economic conditions and complex relationships with customers, suppliers, and creditors. we should be wary of one-size- fits-all solutions. one of the most important themes underscored during the meetings is that solving the issues faced

by small businesses will require collaboration. the meeting series itself served as a model collaboration, interactive discussion, and cooperative problem-solving. participants included community affairs officers, bank supervisors, economists, and policymakers from the federal reserve. we also involved our fellow bank regulators, small business administration, and of the cdfi fund. small businesses and landers played a small role. lenders certain small-business owners about the frustrations over tightened credit lenders were able to explain considerations that go into making a small-business loan. regulators heard in detail concerns expressed about the effects of their procedures and guidance on small-business lending. some common themes emerged. business owners frequently noted

that the declining values of real estate and other collateral security poses a particularly severe challenge. one business owner at the detroit owner said that if you thought housing has declined in value, to take a look at what a business is worth. business owners said a credit lines and working capital as their most critical financial needs followed by refinancing products that would permit them to take advantage of low interest rates. many reported having had to resort to borrowing from the personal credit cards or from their retirement accounts. several mentioned a need for small value loans less than $200,000 as well as the need for patient capital from investors willing to commit funds for 5-10 years without an expectation of immediate return. some of the lenders that participated and expressed the view that current lending conditions do not represent credit tightening as much as a

return to more traditional underwriting standards following a period where standards are too lax. some lenders said there emphasizing cash flow and relying less on collateral values, it seems clear that some creditworthy businesses including some whose collateral has lost value but whose cash flow remains strong have had difficulty obtaining credit they need to expend and in some cases even continue operating. the challenge ahead for lenders will be to determine how to assess the credit quality of businesses in an uncertain and difficult economic environment. it is in the lender's interest after all to lend to creditworthy borrowers. hopefully, that is how they earn their profits. regulators need to continue to work with lenders to help them to all the prudent weekend to meet the needs of credit or the small businesses. making credit accessible to

sound small businesses is crucial to our economic recovery and should be front and center among our current policy challenges. we are pleased if you have accepted our invitation to persist -- participate in the discussion today for the next step. you eat bring valuable insight and perspective to this issue and i would like to thank each and everyone of you for your willingness to share your ideas. thank you and the best for a good discussion. [applause] >> thank you chairman bernanke. we will move quickly on to our next segment. while we get ready for that, let me say a word about how things are set up. also want to thank you for all of our partners. our audience at these various

forums, i thank you for helping put this together. the board did a really tremendous job to make this meeting possible as well as helping organize the regional meetings. all of you have an agenda and i want to say a word about how this meeting was organized. robyn at the board's division of statistics will go next and she will provide a national economic outlook for small business financing and then to go into three panels with one focusing on private-sector small-business issues and the second one focus of a non-profit and the third focusing on issues with research and data. the final panel will focus on next steps. all of these discussions are intended to accomplish two goals. one is to share with you and discuss the perspectives we heard at the regional meeting

and two, to discuss forward- looking next steps that we represent in this room and can take and make sure we can address this important issue. that leads me to our next speaker. robin praeger can provide perspective on what the data says but also a perspective on some of the findings we have had from our regional meetings. i would like to thank her and her staff for the tremendous job they had in helping us plan not only this meeting but the regional meetings, as well. please join me in welcoming robyn. [applause] >> thank you, joe said. good morning, everyone. i would like to begin by adding my own welcome to those. is a pleasure for me to have the opportunity to be here today and

participate in what i know will be a very interesting and productive meeting. since joining the federal reserve board 16 years ago, my work has focused primarily on issues relating to the structure of the financial- services sector, the nature of competition among banks, and between banks and other financial service providers, and factors affecting the performance of depository institutions. i have been particularly interested in understanding community banks and the special role they play in our provincial system, providing lots and other financial-services to small businesses within their local communities. about two years ago, the director of the research division asked me to become more involved in analyzing and providing policy support on small-business finance issues. i gladly accepted this responsibility having no clue that the availability of credit

to small business or the lack there of was about to become one of the hottest topics of discussion and debate in washington economists and policymakers understanding of the credit condition facing small businesses is based largely on data collected in regulatory reports and in surveys conducted by a number of different entities including private sector firms, trade associations, and government agencies. these reports and surveys can be valuable. they provide an opportunity to provide information from a large number of market participants in a systematic and statistically sound way. however, as german bernanke noted a moment ago, there are limits to what we can you learn from these sources. we like to supplement this

information by the participants in the meetings over the last couple of months and that allows us to develop a more complete and nuanced understanding of small business credit conditions. in some cases, the stories we heard at the meetings corroborate what we had already been seeing in the data. in other cases, the meetings brought to light issues or problems of which we would not have been aware otherwise. this outcome is not surprising. it is indicative of the complementary nature of these alternative methods for acquiring information. it is my hope that some of the issues that have been raised by participants in those systems small business meetings will help to shape the questions asked in future small business credit service. with that in mind, i would like to kickoff today's discussion by briefly summarize think what some call latest survey data suggest regarding the current state of credit conditions for small businesses and highlighting some of the findings from the systems to

small business meetings. overall, the survey data suggests that current economic conditions for small businesses though still quite challenging are less dire than they were in 2009. the federal reserve's april 2010 senior loan officer opinion survey indicated that standards on c &i loans to small business of were unchanged in the first quarter but the terms tightened somewhat. this first slide shows the trends over time with a net percent of respondents reporting tightening of standards, the blue line, increasing spreads, the green line, and increasing premiums on riskier loans to small business, the red line. as you can see, all of these

indicators have been trending down for several quarters. in addition, as shown in the next slide, although a significant number of domestic banks continue to tighten standards on commercial real estate, c re laons, the net percent has declined in the fourth quarter of 2008. percentages of banks reported that demand from c &i loans from small businesses and demands for c &e loans has weakened the past few months but these were well below what was seen of the past few quarters. this does suggest that both supply constraints and weakening demand have contributed to the decline in outstanding bank loans to small businesses mentioned by chairman bernanke earlier. the rate of deterioration in these metrics has diminished

markedly in recent months. turning next to the national federation of independent business or nfib, the may 2010 data shows an increase in the small business optimum to a level that while some what we is the highest it has been since the fall of 2008. among the 36% of firms reporting they had barley needs over the three months prior to the survey, slightly more than 01/5, 8% of all firms, indicated that there needs had not been satisfied. for those firms that obtain short-term loans in 2010, the interest rates paid for on average were fairly low. the inmate nfib data indicates that only 3% of respondents cited interest rates as the most

important problem. that was compared with 30% citing low sales. in considering this data, i think it's important to recognize that even though a small percentage of firms sites financing as the single most important problem, there are likely many more firms where financing presents a significant challenge. the take away message from the nfib survey seem to be that for america's small businesses, the worst is over but the road ahead is likely to be difficult. another source of information regarding credit market conditions for businesses is the duke university cfo magazine global business outlook survey. the most recent survey concluded last month and generated response as far -- from 1100 cfo's. overall, the survey suggests

that business conditions in the u.s. are improving but at a very slow rate. u.s. cop's reported no net change the borrowing condition. among small firms, those with cheaper than 500 employees, a modest net percent reported improved conditions over 1/3 of cfo's reported that their company had restricted capital spending below the desired level over the past year due to funding difficulties. i would like to switch gears and talk about some of the things we learned from the federal reserve system series of more than 40 small business meetings across the country. both small businesses and banks reported that a variety of factors have contributed to the contraction in the supply credit

of credit to small businesses. meeting participants generally acknowledged that underwriting standards have been spiking relative to those that existed prior to the recession. the specific forms of tightening mentioned most often included stronger collateral requirements, greater attention to cash flow, and higher personal credit threshold for business owners. a key question that remains unanswered is whether this tightening represents a return to her normal underwriting standards or whether the pendulum has swung too far leading to excessively high standards that are constraining the ability of credit or the bar was to obtain the funding they need to grow their business. much attention has focused recently on the affects of the capital requirements and the ability of banks to meet loan demands and the need to devise policies that will help alleviate the pressure.

meeting participants reported that labor is an important factor. a number of banks noted that there experienced staff members including loan officers have been stretched very thin, spending much of their time dealing with problem loans and try to keep up with regulatory changes. as a result, senior bank employees have less time available to process loan obligations and some banks have become less willing to engage in the labour intensive activity making small loans to smaller and less sophisticated businesses. some small businesses noted that credit availability has been particularly constrained to areas that have experienced bank failures. this is an issue that a colleague and i have been concerned about psince 2008. we have been tracking the children of the areas for -- affected by bank failures.

this map shows the number of failed institutions with a branch presence in each state over tjuly, 2008, through may, 2010. georgia, florida, illinois, a standout as being particularly hard hit. looking at a more local level, to is clear that within each of these states, failures have been concentrated in a small number of metropolitan areas. the potential impact of bank failures on the availability of credit to farmers in these local areas is particularly worrisome. a number of bankers participating in meetings stated that the increased regulatory scrutiny of small-business loans and uncertainty surrounding assumptions used in classified assets have limited their ability to lend. several bankers indicated that concerns about regulator responses have let them to be

extremely cautious about lending to small businesses that have good cost specifications but irritated by less than perfect credit, a recent history and of being clash -- on even clash -- of on even cash flow. the picture emerging from the meetings, with the d the picture emerging is somewhat mixed. some small businesses and banks reported that demand for small- business credit has tightened. they indicated that many small firms have little reason to bar because of weak sales, declining asset that is, and the uncertainty about near-term business prospects.

on the other hand, many credit unions and community development financial institutions noted an increase in demand for small- business loans and many small businesses reported having difficulty obtaining or renewing credits. reductions in lines of credit combined with declining sales have led some small businesses struggling to make intermediate term financing needs. many small businesses are finding it difficult to refinance their loans, especially those associated with commercial real estate. firms requiring smaller loans, less than $200,000, are having trouble finding lenders. financing for start-ups is virtually impossible to find. these brief summaries of survey data and the stories heard at more than 40 meetings held across the country illustrate

the value of obtaining information about credit market conditions from a variety of different sources. our goals for today are to address the key themes and issues that emerged in these meetings and consider the next steps for addressing the financing needs of small businesses. we are quite fortunate to have a distinguished group of speakers to guide us through this process. these individuals bring a wide range of expertise and diverse viewpoints to the questions at hand. i personally am looking forward to hearing what all of them have to say. thank you. [applause] >> the senate judiciary committee will vote tuesday on the nomination of elena kagan as a supreme court justice. why -- watch live coverage on

cspan 3 and learn more about the nation's highest court from cspan latest book, it provides unique in said about the court. cspan is now available in over 100 million homes bringing you washington your way. it is a public service created by the cable companies. >> on wednesday, the council of economic advisers reported that the stimulus act has created about 3 million jobs and raise the gross domestic product about 3%. the white house economic adviser christina romer testified about the findings before the joint economic committee. this portion is about 35 minutes. >> thank you, madam chair. >> thank you very much. dr. roammerromer,he long-term unemployment rate dung this recession is at a historic high.

and in your report, you mentioned that the historical relationship between unemployment re increases and output declines did not hold during this recession andhat the unemployment rate rose much more than expected given the decline in output. do you still believe that this rule of thumb is holding? >> that's an excellent question. it does go back to how did some of our forecasts not come to be. part of it was what we discussed at length with mr. brady about the deterioration in the economy, just much faster than we or any private-sector forecasters were calling for. but e other piece of that was an unusually bad behavior of unemployment. that given what's happened to gdp, the unemployment rate has risen more than would have be expected. and the economic report, weay

it's probably abo bout bout a pa point and a half higher than you would expect. i can't help but note that law is named after the previous chair of the council of economic advisers, arthur oaken. that isertainly part of why the unemployment rate is so high and higher than people expected is the breakdown in that relationship. the question is what's going to happen on the other side? what we've been seeing is gdp has started to grow again. the unemployment rate has come down. i think that relationship is pretty much following the usual oaken's law relationship. i think the one thing we, of course, all hope for is anything sort of the- the bad residual that we got in the recession at some point do we see firms suddenly hiring more bringing the unemployment rate down more quick lly for a given ehavior o gdp? that's hard to know, but that's a hope that we can have, that

when this thing gets going strongly, do you get that oaken's law residual back in the recovery phase? >> well, many people have noted that during this great recession, we've been very fortunate to have you and ben bernanke, two noted depression schors, workg in the government and advising us. and i would like you to really express -- this is actually a hearing that we talked about that would be interesting, a hearing with you and ben bernanke on the great -- on the great depression and the lessons that you learned from them and some of my colleagues are arguing that we should look to greece as a cautionary tale of sovereign overspending. others are arguing that given low inflation rates, we are much more likely to end up with a lost decade such as japan faced. or do we look at the tight monetary policies put into place during the great depression, which many believe prolonged the misery by preventing the flow of credit. what is the most appropriate

lesson for us now? is monetary policy too tight? what are the lessons that you feel we should be studying and listening to the st? >> well, certainly i think, you know, many of the lessons from the great depression are actually things that we've put into practice in this -- in this recession. i think it is no acciden that chairman bernanke and the federal reserve took such extrao extraordinary actions, were very creative in thinking about how do we deal wi the freezing up of our credit markets? because chairman bernanke had studied how devastating the evaporation of credit in the 1930s was. likewise, what we learned in the 1930s is that a collapse of aggregate demand does cause the economy to go into a tailspin. exactly what we've tried to cou counteract is that. it's where the motivation for

the expansionary monetary polici have come from. i think if i would take one lesson, it's actually a short note that i wrote last year, is actually from later in the great depression, from the experience of 1937. i think what we saw then is the economy was recovering. it was on track. and there was a -- a desire to have both monetary and fiscal contraction, to basically get back to normal as fast as we can on the policy side. exactly what we saw is another terrible recession in the middle of the great depression in 1938. so i think one of the things that we do need to be cautious of, it goes back to what we were talking about about the g-20. everyone agrees policy has to go back to normal. we need to get our deficit under control. it's a question about when can the economy manage that? what's the right trajectory? do you have a glide path or do you have a -- a very quick adjustment? i think that's a lesson that i'm certainly very aware of and thinking about as we go forward.

>> actually, the senator and i had a personal conversation once that this would be a fascinating hearing. i would welcome him to have a little discussion about this, since we won't be having a hearing about it. this was one of your requests for a hearing. >> yes, thank you. you've been very kind to accommodate some of those. there's another school of thought that thinks that a lot of the requirements put in by the administration during the great depression also added to the uncertainty of the environment during that period of time. and that's what i keep harkening back to. that's what i'm hearing people say. now, i don' base that -- don't have a poll number to base that on. i don't have something else, but that -- that you create that uncertainty out there. that's why i've been harping at you on cap and trade at this point in time. why you would push for something like that. that's one of the other lessons.

now, i would appreciate your thoughts about when you read economists writing about that point within the great depression, what -- you must not think that was a particular problem during that era. >> i feel very strongly that the main thing that went on in the great depression was a collapse in aggregate demand and that is what caused the high unemployment. and the arguments that the regulatory regime was important, i think, are greatly overblown and actually not a very big part of the story at all. let me come back -- i mean, the issues of uncertainty, you act as though not dealing with climate change and with our dependence on foreign oil somehow resolves uncertainty. in fact, those are problems that we have to face. many times, by dealing with the problems you actually resolve the uncertainty. i' give the example of our car rule. there was a lot of question about how were we going to enforce emission standards,

california doing one thing, it was actually the industry that said can you just come together? we're happy to have a rule, but we need the certainty of that rule. after we passed it, you found the -- the truck manufacturers came and said, we want one of those, too. so oftentimes getting the legislation, getting things, you know, actually setting down the rules of the road can help to resolve uncertainty. that's the same with a company hen -- comprehensive energy plan. >> if you put cap and trade in, you're going to get a big fight here. you're going to get a big fight in the country anay. and you're not going to get the investment that you could on renewables if you don't put cap and trade in. i'll give youan easy one. raise the ethanol level up to e-15 instead of 10% ethanol. domestic produced, looks like it works pretty well. you open up to a renewable industry. you get bipartisan support for it. why not pick those pieces like

that that you can look at and say, you know, we could do something like that. >> but what the president has described is one of the ways -- again, let me come back to -- >> you're not going to go wi 15% ethanol? >> we're always happy to discuss things. i'm sure secretary vilsack would be delighted to talk to you as well. >> i'd like for you to look at it. >> we will certainly do that. i do think the -- the -- putting out what everyone knows, which -- it's an unsustainable path in terms of our consumption of foreign oil. we need toeal with it. by dealing with it we get certainty. by putting a price on carbon, then people know how to make their investment. that can actually be very good for investment because people know what they need to do. it's, in fact, if you're worried about uncertainty, actually dealing with this, dealing with this problem that isot going

to go aay can very much help to deal with that. >> i would say that finally acting on financial regulatory reform in many ways is making the economy more stable and people -- i'd like to ask the question that i hear from my constituents, a lack of access to credit, lack of access to capital. we did pass a $30 billion loan pool that the administration supported, which i think is important. but wee're also reading that banks are holding on to excess reserves. why are banking holding on to these excesseserves and not lending? why do you think that's happening? and is that what happened during the great depression? what happened after they recovered somewhat? >> this is fun. this is -- so one of the things that happened actually in 1937 was there were a lot of excess reserves and what the federal reserve did was to change the

reserve requirements and just declared that those were now required reserves. what we discovered was banks said, no, no, no, we wanted to hold excess reserves. we've just been through the great depression. they were very nervous and we saw them gathering more excess reserves above the new, higher limit. we have to be careful about figuring what is driving bank behavior. chairman bernanke was talking about what regulators were doing on the ground and how the fed was trying totalk to them about, you know, making creditworthy loans when they were, you know -- when they were -- when there were possibilities to do so. so i do think that, you know, we do need to be careful as we go forward, but there is a certain amount of remembering what a terrible crisis we've been through and how it was a searing experience, not just for american citizens but often for some of these small banks. at was a very frightening time for them as well.

you can imagine some of their behavior. think what we're trying to do through the small business lending nd is exactly to make the banks have access to capital provided by the government at a good price. if they're willing to do lending as a way of making them feel more confident about doing lending. we think th's a very sensible -- >> that's a strong argument for that. we could use help in passing that bill in the senate. i hope you'll take a good look at it. >> i've taken a lot of good looks at that bill. the nbers i'm seeing is it's going to drive down employment and drive up cost. but i understand we have a difference of perspective on that. i just want to thank the chair for being here. i do hope you get a lot re aggressive on looking at this deficit. i don't want to see this crisis of confidence come to these shores. and your stance and your view on that would be very helpful, to be aggressive on that so we don't see that. chair, thank you for having such

an open hearing. i appreciate that. i appreciate your willingness to discussion. >> and i'm just going to keep talking about the great -- lessons from the great depression if it's all right with you, senator. do you think the fed is favoring its mandate of keeping prices stable over full employment? >> so at this point, madam chair, i think it's very important to remember that the federal reserve is an independent agency and i think one of the rules that we in the administration follow is to not comment on federal reserve policy. >> okay. well, let me ask it in a different way. isn't the inflation well below the targeted level? >> i think we can have aery interesting discussion on inflation. because what is certainly true is, you know, the usual relationship is that when the economy has high unemployment, the inflation rate comes down. we have been seeing that happen in this recession and certainly in the last few months, both the level of inflation and

expectations about inflation are continuing to come down and are getting to quite low levels. >> is deflation a risk? >> it is certainly -- you know, as the unemployment rate stays high, that puts continued pressure on inflation. yes, it is a risk. >> since the fed can't lower the targeted federal funds rate, they've already lowered it to between 0 and 25 basis points, to influence srt-term interest rates, what other tools do they have in their arsenal to spur employment? >> well, here i would mainly -- again, i think the most appropriate thing would be for you to bring chairman bernanke in. i think there certainly -- there have been reports in the press of various things that other countries have done. for example, we hear about quantitative easing, which is things like the -- the fed did last year when they bought a lot of mortgage-backed securities and pushed down mortgage interest rates so that's

something that other countries have certainly been doing. that's an obvious additional tool that the president -- that the fed has certainly used in the past. >> and senator schumer asked me to ask this question. he's introducing a bill that we passed in the house and in the senate called the higher act that gave tax credits to employers to hire unemployed people. do you believe this has had a positive impact on employing unemployed americans? and do you believe the administration might support such an endeavor? >> the same question was already asked. certainly the answer that i had given then is that we were very big fans of the schumer hatch, the hire act, and that we thought the -- a jobs tax credit was something with very good job bang for the bucks that are on the line.

and so it's something that we're going to be monitoring. the treasury just did a study on the number of workers that are eligible. i think it's something that we certainly are anxious to talk to senator schumer about and see what he has in mind. and to pull together the evidence. >> many of my constituents ask me and others about whether or not we might be seeing a double-dip recession. and what is your forecast for the economy? will growth and employment gains in the second half of 2010 be better or worse than the first half? i get asked thi question all the time. i'm sure you are, too. >> the first thing to say is important. i do not foresee a double dip. >> great. >> i think the -- what most of the private forecasters are saying is we have gone through a period of turbulence. the troubles in greece that we talked about, slower growth in europe has unnerved financial markets and caused some

certainly lower growth abroad. i think what most people are thinking is that we're going to -- like the blue chip consensus, lowe their forecast just a very small amount. but it's still basically steady. i should say that the administration twice a year does an official forecast that comes out first with the budget and then with the midsession review that's going to be coming out certainly before the end of this month. i would rather not get ahead of the administration's forecast, but we will be coming out with what, you know, our updated forecast is. >> thank you. and i would say that i'm hearing in my district -- i believe probably senator brownback is hearing the struggles of small businesses' access to capital. i'm astounding at how many respected firms that have been in business for many, many years have always paid their bls and been outstanding businesses tell me they can't find or get access to capital to hire and move

forward. and it's a huge challenge. i'm hearing it in the democratic caucus. i believe it's a problem across the country. could you tell us what the administration is doing to ease that? could you comment further on the small business loan guarantee program and any other initiat e initiatives or actions that we could take to help small businesses have greater liquidity so ty could move into the future with more confidence? >> so, i hear exactly the same things that you are hearing. again, chairman bernanke gave a speech this week talking about what they were seeing in their data. yes, small businesses are having trouble getting credit and that is something that is impeding their growth in job creation. it's absolutely one of the head winds that we face and should be dealing with. you know, when we did a very compa comprehensive view of this, what we thought was the best way forward was the small business len lending fund that is in the

legislation. we thought cutting small business taxes by having zero capital gain, we think that's a very sensible strategy. we proposed some small changes to the small business administration loan program so that they could have bigger loan amou amounts. all of those, we think, are things that are likely to work. they are what we thought was the best shot we could take at dealing with this problem. we want to get it through the congress because we think it would be very helpful. >> another area of concern and if you could comment on the economics of the unemployment benefits, many economists have testified before us that all of this money is plowed back into the economy. it's not only the humane action to take care of unemployed workers, but it also has the effect of keeping them working, looking for a job instead of going on welfare and social security disability, which is very costly to the country and certainly it's better fors to

have them working to get employed and every one ofhese dollars goes back into the economy. i believe we have 15 mlion unemployed americans at this point. we have passed it in the house. we are hopeful that the senate will pass it. if you could please comment on the economics of the unemployment benefits. this committee did a study that showed -- because someof my colleagues on the other side of the isle were saying that giving the one employment benefits would discourage workers from looking for a job. they very much want a job and they are frantic to find a job. so your comments on the importance of extending unemployment insurance. >> absolutely. i think what your report found is very much what the economics literature finds, that -- especially to the degree that there are incentive -- or disincentive effects from high unemployment insurance benefits, those are issues that apply in

normal times when the unemployment rate is much lower. at a time where there is a -- a lack of jobs, the main effect that it has is keeping people attached to the lar force. i can't think of anything we want more, exactly what we're worried about is workers becoming discouraged, dropping off, losing their skills and not -- and not looking for work. the other point that you made about its stimulus impact is, again, very much supported by the economics literature. i cited a study by the congressional budget office that said this was a very cost-effective form of stimulus. it's at the very top of the list in terms of what has the best bang for the buck. that's an important point to keep in mind. it is a program that is humane to the people involved but good for the overall economy, good for the people in the community that get the jobs producing the things that unemplod workers buy with their unemployment

insurance. >> my collyialollyinalolleague concern about the deficit and the debt. to put it in perspective, how much of this deficit problem is related to the recession? >> so i think an important thing is in, you know, the short-run deficit, a very large fraction. or probably about half is due to the recession. and half to the policies that we inherited from the past. and itakes sense. when you have a terrible recession, tax revenues go down, your expendites for things like unemployment insurance go up and that naturally tends to swell the deficit. in terms of our long-run deficit, however, it's a very all part of the long-run problem. the one-time actions that we take to deal with this emergency add just a tiny bit to your deficit over time. the much bigger determinate are things like health care cost, the aging of the population, things like that.

>> because the unemployment insurance issue has come up here so much, wouldn't it be best if that were paid for? >> no. that is the simple answer. >> it's not best if it was paid for by the federal government? >> what i would certainly say, the way we set up our pay-go rules and the whole idea -- we had our long discussion of countercyclical policy. i think if anything counts as an emergency, it is unemployment of 9.5%. you will get no argument from me, we should pay for many things. we should deal wth our deficit over time. i would not get held up over paying for a temporary one-time extension of unemployment insurance. >> what if that is what's holding it up from passing? what if it would pass but for being paid for? would you then still argue it should not be paid for? >> i think the important thing is figuring out how it's paid for. because if -- so the -- if you cut expenditure that would be

aiding the recovery at the same time that you're doing the expenditures, in terms of the -- you may help the particular people that are tting the funds but in terms of the overall health of the economy, you wouldn't have accomplished very much. >> so you would prefer it not pass if you have to pay for it? is that -- that's the whole -- if i could, chairman, that's the whole issue in the senate. we did the doc fix after it was paid for. we did the home buyer tax credit after it was paid for. those passed with unanimous consent. that means everybody agreed to it. this sits there ready to go if it's paid for. and you would argue it would be better not to pay for it and -- >> there are certainly -- >> than for -- >> there are ways to pay for it. in our budget, we had listed various things that could be used to pay for various priorities. and i think, you know -- so

obviously i think the important thing is we -- you know, we need to work to do this because we all agree this absolutely has to be done. and figuring out what we can do that will get this necessary insurancein a way that is good for the economy. i think that's something we can work on. >> so you do support paying for it? >> i support passing it. and that is certainly important and i would love to work with you and talk with you about what's the best way to do that. >> i never seem to get a straight answer out of you. you're not opposeded to not paying for it? can i put it that way? that's accurate? >> so you're png words in my mouth. we're having a very sensible discussion. >> she wants it passed and she thinks it's economically important. >> i agree with that. >> if you want a way to pay for it, go find it. >> and you support that if we can find to pay for it? >> so -- at this point i don't know what we're saying. what i do know, we absolutely need this extension.

>> i agree with that. >> we absolutely, you know, the -- i think, you know, there are many things that absolutely, you know, need to be paid for. an emergency extension of unemployment insurance is typically not paid for. that's the whole point, that it's an emergency and that you actually need the stimulus that it provides. and if you wish to pay for it and you think that's important, let's think about what's the best way to do that in a way that is economically sensible and doesn't counteract any of the way in which it is helping the economy. and that is what i stand for and would love to talk with you more. >> another important part of e economy is the -- is the housing. housing is always a large part. some say it's as much as 25%. do you think that the rebound in the housing was due to the new -- the homeowners tax credit? do you believe that the homeowners tax credit was

responsible for the movement that we saw in our economy in that area? >> so what we certainly -- i mean, let me -- what the homeowners tax credit is, it's like the cash for clunkers program. it gives you an incentive to do the activity while it's in place. and what we found with cash for clunkers is what that did is to bring demand for new cars. not just from a few months the future but it seems to be probably from very far in the future because we've seen car sales continue at a higher level than they were before the program. i think we don't know yet about the first-time home buyers credit. we do so that people hurried up and bought their homes before it expired. i think what we don't know is from how far in the future they brought it forward. the big drop-off in may says maybe it didn't move it all that much from the -- from the future. so i think that's going to be the issue. it's a hard one. >> and also the issue that we're facing with the local and state

governments with the f. map that many of us are supporting. the budgetary shortfalls for our state and local governments will result in additional lay-offs d service cuts at a time when our economy is very, very fragile. was aid to the states a cost-faeblthicost cost-effective and eicient storm of stimulus? i'd like an overall statement. >> you will absolutely get one from me. i think it is one -- frankly, we hadn't had a lot of experience with that form of stimulus. and so we dn't have a lot of evidence to go on when we passed it. but certainly the -- the conditions were dire. it was worth a try. i think all of the evidence since then has been it has been particularly effective. and i will actually cite our first quarterly report on the recovery act. we highlighted the state fiscal relief and actually did a very innovative study trying to really try to pin down causation and what the results of that

showed us that it was very effective. and looking state by state, you saw a very big impact. >> how does it compare to other components that were in the recovery act such as tax cuts? what was more stimulus? what was more effective than getting the economy churning again? >> i thinke would put the state fiscal relief as one of the highest ones. i think when you look at conventional maroeconomic models, typically tax cuts have less stimulative impact than direct government expenditures and we'd put state fiscal relief closer to the government expenditures. >> do you think that additional state aid is warranted now in our financial recovery? >> i do, indeed. the numbers that you get from various sources will tell you that state and local governments have a -- still have a budget deficit of about 1% of gdp. if they deal with that by cutting spending, raising taxes, that's going to be a

contractnary force on the economy. that's something that we can very sensibly -- it would be money very well spent. it would keep our teachers in the classroom and our policemen on the beat. >> we've passed a stimulus for teachers in a supplemental budget in the house and we hope the senate will act on that, too. one of the good news that you had in your report was manufacturing where we're gaining jobs. and what do we need to do to sustain the current gain in manufacturing -- the current manufacturing trend that's very positive what do we need to do to keep this going? >> no, you are exactly right that manufacturing is one of the areas that we have seen coming back in the recovery. i think the numbers are -- we've added 126,000 jobs in manufacturing. industrial production is up something like 8.2% in the last 11 months. and that is certainly a trend that we're very encouraged by and want to see continuing. you know, what is one of the

things that the president has talked about is how important it is to -- to make sure that we -- that our manufacturing continued to grow and evol. and he has identified clean energy technologies as an xwrae of the future and one that we know china is working very hard on, korea, many other countries. germany. and he doesn't want to get left out. that's part of what is so innovative about the recovery act. in our second quarterly report, we talked about how $90 billion of the overall act went into the area of clean energy broadly defined. that was a lot of that was designed to jump start this, to make our transition to clean energy work better. i think that is going to be something that's very important. those public/private partnerships that we've been talking about in our report, that the president will be highlighting later this week in michigan, are, i think, an important stepowards helping

that sector come back, you know, very strongly. >> i want to -- i could listen to you all day, but i have -- i'm supposed to be voting in another committee. i'm sure the senator has other demands. it was really fascinating. it's always really wonderful to -- to hear your report. we're honored that you discussed the economic outlook and had your fourth cea report on the recovery act before our committ committee. we're deeply grateful. i look forward to your future reports on the leveraging between the public/private sector, job creation projts. i found that very interesting and certainly support your desire to move forward with special reports on how they're affecting the various states. and it's very clear that we need to expand every tax dollar we have and have it go farther and farther to spur jobs and the fact you've been able to document that is very, very good news. and i just -- i feel -- i just

thank you for the documenting that the recovery act is trending, moving this country in the right direction and -- and i'd like to continue working hard in congress to try to help move these proposals, to have access to credit and help create jobs in our country. and, believe me, i don't think either one of us will stop until every american who wants a job has a job. and that our economy is strong enough to support their desires. i want to thank my colleague and good friend, senator brownback, for being here today and all the colleagues. thank you, chairman romer, for your outstanding report today, and for your public service. thank you so much for being here. we look forward to the next me. we hope we hear again from you soon. mae you can come back when you have your states reports and tell us what states have innovative ideas that are really working andelping us employee americs. thank you so much. this meeting is adjourned.

[captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2010] >> tonight, we follow that with a debate among three republicans and one democrat to be the next governor of tennessee. that is tonight on c-span. at 10:00, it debate among

democratic candidates running in the first house district of rhode island. it begins tonight at 8:00 eastern on c-span. >> they are towering figures and they are all different. they have different dangers. >> this weekend, a trilogy of books on russian leaders. learn about their relationship and the role in developing their form of communism. sunday night on c-span q&a. >> now a discussion on the situation in haiti. it has been six months since an earthquake killed hundreds of thousands of people and caused billions of dollars in damage. one speaker led a u.s. relief

efforts in haiti. and the haitian ambassador is also present. this is one hour and 25 minutes. today. my name is joe hagaman willson foreman three on behalf of myself and the program we have decided to co-sponsor in an event with our trusty, henrietta fore who is quick to do the heavy lifting and hard work today but i wanted to welcome you. our panelists, whose names appear and you have their biographies and they will be introduced but i just wanted to tell you that on this sixth anniversary of the earthquake in haiti, we feel this is a very appropriate moment to look back but also more important to look forward. csis has had a long interest in working the caribbean and also working with international donner partners so we're pleased you were able to train us today, and i will turn the panel over to my colleague and trustee,

henrietta fore. >> thank you. we a very proud of your programs here at csis so thank you for doing this six month anniversary for the haiti earthquake. i just spoke to the ambassador we do not see on the panel today raymond joseph is in port-au-prince. he's just come from the ceremony of the palace honoring the six months and today was the ceremony to thank the world so he asked me o carry his thoughts to you andere they are. people say that there is no progress and geslin president clton today in haiti said that in his 30 years of experience haiti is ahead of where the tsunami construction was at this

point. the haitian people, the ambassador people said have been very patient and we are asking them to continue being patient. but t first phase has been completed. the reconstruction starts now in the second phase and that in approximately six weeks we should see a lot more things happening. he wants to thank the people around the world for their good will and for their extraordinarily generous outpouring of help to the people pt. so that is from the ambassador. let me now begin with this panel. it is the six month anniversary today, july 12, 2010, an important date after a 7.0 richter scale earthquake destroyed hagee's capital port-au-prince and surrounding communities. a comparable scale of this disaster is even greater than th asian tsunami in terms of the impact on one country.

and it is the largest natural disaster recorded in the western misphere. you know the statistics already. 230,000 people dead, 500,000 injured. 1.5 million displaced. moving from crisis to recovery, he is nothing new for these resilient people. but only a year-and-a-half ago when i was the administrator of the usaid and general team was also there we visited and saw four major hurricanes light of the services, te town was under water, 6,000 people have been killed and people were living on thr rooftops. today after the earthquake, haitians are still recovering from the shock and trauma of this cataclysmic evt. the city of port-au-prince remains that if internally displaced persons. the government is still operating out of temporary

headquarters, and the country is still in a humanitarian recovery stage rather than one of rebuilding. i visited in march with president clinton and president bush and the general was also there. and what we saw was that there has been some progress but not enough, and the last two decades he has been the scene of eight u.n. peace operations. the time of the earthquake, you and stabilization mission in haiti was in its sixth year of operation. the mission had close to 7,000 soldiers and 2,000 police march an important collaboration for the recent military in the support of pt's dearth but inside of the assistance that entered haiti over the years and this earthquakeas prompted many to proclaim that we must build back better. and so we have begun.

the clinton bush pt fund is focused on economic opportunity. the interim haiti will construction, is focusing on rebuilding infrastructure and coordinating assistance among all to match with pt's own development plan. the panel today is going to assess the concept of building back better and what it means in terms of humanitarian recovery. the inrnational philanthropic support, the role of the transatlantic partners have played in this massive effort to assist pt and haitians. and i think all of us are feeling a sense o urgency that the assistance is slow but that we are all trying to help haitians rebuild their own lives. let me introduce the panel and let me begin on my left with the general. general keen is the military deputy commander of the united states southern command in miami florida to refuse the

second-in-command of one of the tenet unified command is under the department of defense. he's a native of kentucky. he was an infantry officer with 18 years and airborne status. his experience in latin america includes assignments and panama, honduras, brazil, colombia and the commander of u.s. army south. his most recent position was the director of u.s. european command operations and planned center chief of staff. the embassador unfortunately is not with us today. raymond joseph but i know you know his fine background is a journalist and it has been our ambassador in washington since march of 2004. next on the panel was sam worthington the president and ceo of interaction. it is a coalition of united states based international non-governmental organizations focused on the poor and most vulnerable people with more thn 180 members working in every discipline country.

u.s. public contributed about $6 billion annually to its members and the members themselves who manage more than $4 billion in partnerships for the united states government. before this, she was the national executive director and ceo for plan usa, focused on tunnell senter community development. and he has been a good friend and colleague of mine. next, we ha dr. antonio, director of international economic and financial affairs for the european commission. antonio has been the director of international affairs at the directorate for general economic and financial affairs with both authority for bilateral economic relaons with non-e.u. countries and working with key multilateral and regional economic of the let institution. he also acts as the european commsion financl. he has most recently been an economic adviser to rujano, the

previous european commission prident, and he is an associate professor of applied economics in the basque country and for securities are currently on is a comment. we are hoping, paul, i'm going to spill over you for a moment because you are going to speak first. we are hoping that later we will be joined by the deputy assistant curreny at the white house and the bureau for western hemisphere affairs of the purpose of state. she's an attorney by trade. she's recently been with simpson thatcher and bartlett of new york focusing on international arbitration and antitrust law. she has published widely in both spanishand english. let me turn first to our colleague from usaid paul is in charge of the entire u.s. government approach to reconstruction and development.

he is the coordinator. i last saw paul when he was the coordinator in peru and he and his administrator or just in haiti on friday. paul, if i may turn to you to tell a bit about what you saw on the ground what are the conditions, how is the construction coordination? thank you. >> thank you very much, henrietta and to the csis for posting this. i guess you saw the results of an enormous and successful humanitarian assistance effort it was truly an international effort led by the united nations united states to a major part the european union took a major part and there was an enormous logistical support that was absolutely critical led by our own forces of the united states military forces department of defense led by general keen and the result of the humanitarian assistance efforts are still evident. we haven't seen a subsequent

disaster related to the waterboarding disease inaiti and i think people here as the media talked a lot about the six month commemoration today you will see the statistics you see things like the portable water is 50% more available in haiti today in port-au-prince today than before the earthquake. i do think it's important to recognize the successful opportunity implementing partners in this effort or the ngo community represented by saddam worthington. in terms of the ongoing effort which everyone is rightfully focused on we of the good fortune of travelinwith administrator on friday. we saw the there is a lotgoing on. we saw the traditional housing programs. there are cloe to 5,000 transitional houses that have been electein and around port-au-prince and we saw one of the programs that we saw that was inspiring is an effort to repair what are called on the ground yellow houses. there is an enormous have the ability assessment process that started with support from

engineers of the u.s. on the tree forces in haiti. they are assessing the building stock that's been damaged by the hurricane to date on hundred 70,000 structures have been assessed. 46% have been been a structurally safe and those are marked as greenhouses. a 28% are marked as yellow houses meaning that require morning to the, and repair or 24% red houses there require major repair or demolition. one of the things we and u.s. aid launched together with our partners is effort to repair t house is so we've seen what we saw on the ground was engineers working with the haiian nations and engineers with the aitian ministry volving the communitieso repair the people to move back in and that is a heartening thi because at the end of the day what we want to do is rebuild the communities. the idp camps are a big issue at we saw that is still an overwhelming issue. i think that henrieta mentioned there are still one print

5 million people displaced in port-au-prince and the effort going forward is going to have to focus in a very robust and aggressive way on helping those people move into better shelters. the hurricane season as everyone knows has started in haiti and is as i know do well here general keen say you don't need a vicious hurricane you just need a lot of rain in order to have a negaive effect on people's lives and livelihoods and see the loss of life. so the effort moving forward has to involve moving people into transitional houses as quickly as possible accelerating the process, the international community hopes to have 125,000 transitional shelters by this time next year and moving as many people as possible back into those greenhouses or yellow and red houses that have been repaired. another of the efforts we saw on the ground and meetings with a minister is the haitian

government is interested in taking the lead role in some of these key otacles i will highlight the two obstacles and then turn it back over to my colleague. one is rebel removal of the impediments to getting people out of the camps and into decent housing whether it is green and yellow or red houses or transition housing as we are moving the quantity triet we've 25 million cubic meters of trouble in haiti in port-au-prince. i could paris and several trade center of new york generated 560,000 cubic meters of haiti again in haiti 25 million. an enormous quantity that has to be removed and the absence of finding land is a significant impediment of the people of housing. they are spending about $50 million of the next month of their own resources to bring heavy equipment from the dominican republic to try to move unblocked the major affairs

and that will free up the roads for the removal of others. that's a hopeful sign. coordination as another big issue because i think everyone knows the amount that has been pledged in haiti is extraordinary. the donors pledged was to $10 billion, and it's easy to spend money fast and difficult to spend money effectively. you want to move forward quickly but sure in the right direction and if you want to do that and ensure that it is sustainable and effective we need leadership from the government of haiti. the government of haiti as henrietta mentioned crete to the interim reconstruction commission co-chair by the prime minister and president clinton and they have already approved a number of projects going forward anone of our efforts in the international community needs to be to support that commission with staff resources, equipment resources, technical expertise to enable them to play a leadership role in the planning and oversight of reconstruction

resources to ensure money is spent effectively and is transparent to the international community can have confidence the resources are going in a way that meaningfully affects and improve people's lives. thanks again for this opportunity. >> i know that we will come back with questions about property totaling and that is also a problem. let us turn to general keen. >> thank you very much for holding this form and asking south, and on behalf of general frazier i'm very pleased to represent u.s. southern command. i would like to start by taking us back a little bit and putting some of my remarks and contacts, and i would refer to the photograph is shown here. this particular photograph was taken a few weeks after the earthquake, and it's right outside of solely and he can't read the banner that is soldiers

standing there are a brazilian soldier and he banner says we guarantee the security for the reconstruction of haiti. and the was the message obviously that the u.n. forces were there to do and thankfully they were there because as our military, the u.s. military and the other military forces that responded to the earthquake it was indeed fortunate the u.n. forces were there on the ground. they had been there obviously for a number of years, and the conditions the set with regards to security enabled us to focus our efforts on humanitarian assistance. and the close collaboration and coordination we h and enjoyed with both the un. civilian

leadership and particularly obviously with the general from the menace the commander will and now general paul cruce was extraordinary. and we were able t work side by side from the first day with a result of the picture is this is a food distribution .1 of the first 16 plants that was set up to feed all of those in need throughout port-au-prince and the food distribution point where u.s. paratroopers from the 82nd airborne division standing side by side as they did on many places throughout port-au-prince with the u.n. military forces and this case handing out food but in other cases providing support to the rebel clearing were doing all sorts of humanitarian assistance tasks. and we were able to do our task from the joint task force he the standpoint within the umbrella

of security that was provided by the u.n. forces throughout the course of our time, and as you know at the height of the u.s. joint task force deployment we had approximately 22,000 soldiers, sailors, airmen, marines and coast guard and on about one february. we stood down the joint task force -- hagee but continued about 5,000 soldiers from our national guard led by the louisiana national guard in haiti today and they will be there for several more months doing a number of projects would be cled new horizons exercises in support of usaid as well as the government of haiti and the u.n. efforts and we are particularly focusing those efforts onareas outside of port-au-prince that while they were not directly affected by the earthquake, they are

impacted from the earthquake by the displaced persons that move to those areas putting strains on the medical capacity in those areas as well as the schools and we are building schools and providing medical assistance programs working with the ngos in those particular areas. so i think the highlight of my time in haiti is captured by the close coordination collaboration that we had working in support of our legal agency usaid but all of our agencies in particular with the hour u.n. forces in the ngo, and i've often said what i've learned from this experience was that the scouts and soldiers for the humanitarian assistance or ngos. they were the ones that were really doing the heavy lifting and we were able to redeploy our military forces as quickly as we did from this devastating

earthquake because of te capacity that they were able to respond and increase in their capaty the u.n. was able to put in place. i would like to talk second about what we are doing now and what we are looking to do as we go down the road over the next few months. clearly from our perspective in terms of potential mpact of what a tropical storms or disasters is a major concern to us that what could happen in the coming weeks or months so we have worked closely with usaid and the forces in haiti to be prepared for a storm, and then it doesn't take an earthquake is takes a lot of rain in a short period of time to create a major catastrophe as we saw in 2008 to respond to that.

we have done a number of things to include working with forces on the ground to rehearse for contingencies making determinatns examining what is currently in place and what capacities they have and what we have in place that could respond for a quickly and what we think we would have to bring to bear if we had something along the line of what we had in 2008 or even something worse than that. and we're doing a number of rehearsals as i mentioned both in haiti as well as u.s. southern command and with our joint staff to talk for the contingencies and what might be needed and i know the united nations has also done rehearsals with that regard. what i can say is everyone is focused from the tactical to the strategic level on what culd happen if we were to be faced with a major storm or even a lot of rain in a short period of time in a coming weeks and months in order to allow as the

sign says the reconstruction efforts to continue during a very, very difficult period of time. with that i think i will turn it back over and take any questions you might have. thank you. >> thank you, general keen. sam, you've had the perfect introduction for the nonprofit world, and you just complet a survey where all the ngos are in haiti. katella bit about the ngo response, how the money is flowing through the system and how effective you think it has been. >> thank you and for the comments about the ngo community and good afternoon. to understand the context of pt its importance to step back and look at a few basic common knowledge as. one is the sense of scale. it is good for people of washington d.c. if yu imagine every effort or fourth damaged people in the streets and then multiplying times three that's

the scale are talking about. the other reality is that this was the poorest country in the western hemisphere at 70% of the people in port-au-prince or of abject poverty before the earthquake. the other reality that we see in this is in the 21st century of disasters is a massive public outreach tearing from europe, from north america from this country that results in a big public engagement, and the last reality is the world has created long state actors to play a crucial role in all global disasters. many of these are professional institutns and represent large number of them we are releasing today account of a report for to the organizations and the work they've done since the beginning of the disaster until now other institutions that have been in haiti for decades going forward

we also have on our website at www.interaction.org and that of the operational and she knows where they are working for the country, the type of projects they are doing and the clusters and often. i say all this because there is a significant responsibility that rests on the soldier of the ngo community in terms of interaction members, our members raise $978 million. they've spent to eckert $94 million on reconstruction efforts. these will print and organizations recognized from the red cross to the relief services to go rescue committee to the mercy corps and other groups but also present in this room. the organizations will be there for a long time and because of this and because they know resources or ultimately scarce and public giving happens up front over $500 million as i set aside for reconstruction our

main fear is not one that there were spending too fast or too slow but whether there will be enoughesources left for the reconstruction of haiti because the burn rate in these camps is enormous, and we do have 1.69 million people still in camp. and as the head slowly transcend to the traditional soldier we will witness a reconstruion effort that is happening at the same time as ongoing relief and that is not going to change anytime soon. one of the things that was significantly different from this disaster than the tsunami was the degree of coordination among the different factors from an ngo perspective it was the first time we seven o coordination office ten days after the earthquake. we have ongoing dialogue with south, and u.s. military working closely in u.n. headquarters and cluster system so from the

operational command control coordination effort this is the best we see that the complexity of the disaster, the magnitude of the problem, the number of factors on the ground have made it difficult. i think it's important to recognize all systems were stretched while we focus on the government of haiti and its limitations the ngo community in essence has reached its limit of capacity down here and the issue isn't please, send more people down to pt come adis are there enough highly qualified individuals who can handle a food distribution for 60,000 people from the and have done this before working wit cemetery standing by a will to mmit the thousands of volunteers in the camps as you managed the camps there were jobs that required overtime and the professional global ngo communities in many ways have

remain stretched and we've seen some of the members move from 80 people on the ground before the earthquake to for 1,000 at this point in time and i just talking about one interaction. the interim commission on the reconstruction of haiti is a positive step. i think our challenge is that while it has been stalled the capacities to coordinate still remains limited. we need great resources invested in to that capacity. the ngo community stands ready to put resources into the government of haiti. our space seems to be the district and in the supple levelland many ways we are confronting the challenge by what hasn't happened. as paul mentioned, it is the disease outbreaks that haven't occurred. it's the access to clen water that is in place. its shelter and so forth that exist in camps and in many ways this could be one of the

distortions. for some individuals you create conditions in the camps that were better than the slums they lived in the forehand. this led to some extent individuals coming within the camps and get as the humanitarian communitis our imperative to try to make life as easy as possible to the individuals and very difficult circumstances. the next significant step is a very complex one. the world has significant difficulty dealing with an urban disaster, urban disasters cannot be handled simply in different silos of activity but their need to be some broad strategic planning, and while we do have this presidential commission on the reselement and it is beginning to look at the way it's to those individuals we still have a circumstance where individuals remain afraid to go back to their homes. there were those labeled gree wi those at have not

migrated back to their homes to some extent this is understandable given the shock of the earthquake. but itshows that it is not just about reconstructing buildings but it's about rebuilding lives. it is enabling individuals to have a sense of economic well-being in places they may be resettled to have the roof over their head may be one that is secure and safe tht they could have a livelihood and this is where it is crucial to talk about the rebuilding of pt and not just of the port ofprince and other affected earthquake areas but rather investments and jobs and the capacity of the country to lift itself. if you look at the map and see where the u.s. ngo community is working it is all over the country. and it is crucial relief efforts and reconstruction efforts look at haiti as a whole and invest ultimately in the haitian people. and i think when we are talking about to some extent the ngo community been the front line of

this disaster, the real front line are the haitian people. the work being done in the camp is being done by the haitian people. over 90% of the staff are from haiti and it's ultimately the haitian people who are moving that piece of rubble one person at a time in the work program. hopefully this gives you a general sense of the community, its work and i look forward to your questions. thank you. >> thank you bramlette, sam. i know we will want to come back to your comment about running out of money, the pull of the long-term and short-term. antonio, let us turn to you from europe. i know that you have focused on sanitation, shelter, transition but you have also been thinking about the long term. where are your priorities? >> thank you very much for having invited the utilization and myself in particular. let me add to the introduction

that time the minister of economic affairso this explains why i participate in this. so coming back to the mai subject, india, the approach that the european union has taken in this catastrophe has engaged on the predecessor of the situation which in fact others have highlighted. it has bn a major humanitarian disaster humanitarian component was key. it's more important than the asian tsunami. so that is the first point. second crucial point not the case in many other catastrophes is in this one there's almost an

injunction of the state. the key institutions were destroyed besides the human physical losses of the government of the country the parliament judiciary were which of course made it more difficult to respond in a coordinated and effective way to the huge challenges. the third element that is important when looking back to adis the country was already in a very fragile situation. so it was not the economic country there are plenty of witnesses and then these made even more difficult to report. fourth, the international community, not only the government and the state was

effective in the international community working on the ground was also touched by this earthquake. in our case the delegatio has to be [inaudible] and man others of the international community were in the situation or capacity to react and all of this led to the ability to respond to us. anyone would have liked to the gravity of the situation. so what was the e.u. response? and again, but geared to the main problem the first one to see the problem. the second committee construction both physical and reconstruction of the state or supporting the state to continue

governance of the state. in the first aspecthumanitarian aid i would not center jut as a very few figures almost $4 million in 24 hours. 800 experts, 2,000 military personnel, 260 offices were posted on the ground. and of course they can contact themselves and the rescue teams advance that of the models that russell plan necessary to the immediate need. but wright said the show the humanitarian element. we are also looking at the reconstruction of the state. the reconstruction bill to in terms of physical assets the

those are in terms of enabling the state to the objectives and this is the point i would like to make we are always under the principles that reconstruction cannot be done on behalf of the state. we construction must be run by the state and these were a very important element that indeed in the short term there could be a price to be paid for that. the longer term was in our opinion crucial because the attention of the media would fade away at one would choose to leave the country to a government that is not capable [inaudible] from the beginning. we put on helping the government

to restore its activities and being in the back seat together of the military and the ever international community's. so again in accordance with the government will treat the we have based our action on the treaty's. e was governance, the second was the slow construction enabling the reintegration of the country and from the delivery was crucial to restore the infrastructure to maintain social services. so, much of the aid was feared defeat could geared toward going

on so a big part wathe challenge to support to go on to let the government keep on paying bills and service and provide the basic service in. there was of course the help to reconstruct the post command and then the point i would like to also emphasizes that to some extent the capacity of the government to respond to the society needs has been slightly altered by the political situation and the fact there are elections scheduled for the month of november. so we believe that it recover its its own political activity and democratic activity and

therefore part to suporting the electoral process. and of course in helping the states to respond and recover and continue we have provided significant assistance to our ngos. so finally it is an unprecedented challenge with various components of the community we are facing and eight is a high responsibility because the generosity of both bilateral aid an offical aid and the pivate could not be disappointed. we know it is our response of the need to make sure people see this is useful and this example can help in the future. so, we face important problems.

it was also somewhat unprecedented. the need to coordinate the partial recovery of course when we look backwards the glass is half empty and half full the half was a significant and cannot sustain from the fact there is still a lot of suffering and a lot to be done. i will stay there. we have a few lessons to start the cooperation within the assistants run by the european commission but this comes from

the member states so we have initiated he joint programming efforts which are new methods of coordinating the so all of that are lessons we have learned and we hope will vote for the second stage in for other cases that may appear in the future. thank you. >> thank you, antonio. let me ask the panel a couple of quick questions on what they think lies ahead so that we all have a shared sense of what the people on the ground can be expecting as well as those in the development community. so, panelists, in the area of housing what can people look forward to? we of the number of issues on property rights and rebel

removal and transitional housing but there is a great number of people as sam mentioned that astelin the tent camps. what do you see ahead? paul? >> i think what we see is the major planning effort. when love was there is port-au-prince and then there are areas outside port-au-prince because we have somewhere between 400 to 600,000 people migrated outside of port-au-prince. the present different challenges but to start with port-au-prince what we as the international community to do is help the government to build a master plan. the need to have a vision of what they want port-au-prince to look like. where do they see the residential mer redds? there are some camps in neighborhoods that are viable and areas for new settlements and there are others that are not because of te terrain. the need to be this kind of master decisions made. there are other key issues that have to be booked through.

one of them i mentioned and others mentioned as rubble removal. we need to help them accelerate the rebel removal in a robust way and their needs to be planning to do that which includes things such as increased number of disposal sites. ere's one major disposal site and that is a significant impediment. the roads used for normal traffic are being used for rebel removal and we need to help them plan the increased numbers of roads and rubble and network of crushers are out the cities and you can reduce the amount of rubble that has to be moved. ten year you mentioned is a very complicated issue. i have heard the prime minister say that they had a pile wet program in the san martin years ago and they asked people to come forward and put forward their claims for land and at the people in that one city the number of claims that came in that city exceeded the entire land mass in the country of haiti o working through those property issues is great to be a smart acid we need to set up and

from our perspective a community-based way to allow people to register the claims and allow them to be at adjudicated at the community level where people know who lives where and who owns what. another complicating factor is beneficiary selections, 70% of the population of port-au-prince more or less are renters and many live in family dwellings. the model being pursued by a lot of fuss and ngos are these transitional selters which are things that are easy to put up and to deal with the humanitarian imperative of getting people in more functional social terse if you have a plot of land with a multi family dwelling and five families living in several stories and several of them are renters and some are owners and to put up one shelter who gets it? so there is a long list of things that have to be worked through. at t same time we will see in the coming months as i mentioned we have 5,000 shelters put up. we have thousands of them that

are going to start to see movement in the coming months but to deal with the month and 6 million if we have to work through that complicated issue. >> thank you. antonio, you mentioned the of the election. will they help to are hurt the situation on housing? >> i understand that ms. [inaudible] has been also handled by the case and the legislative process, so going through that may try to find the situation in the government to lead the way for the resolution and the

settlement of the situation there. >> sam, what do we evenour thoughts about the health, sanitation systems and school? because we are coming up to the new school year. ischemic the president had as his top priority getting people back to school, and there are in a lot of the camps now child friendly and school spaces for children to begin school to some extent camps. we are slightly more than 3,000 schools were destroyed. many of these are unfortunately buildings where you look and there is a floor and then 2 feet above the floor there is another floor and you unfortunately know there still may be a lot of bodies in that school. it will take a long time before we can begin to rebuild schools over time and this goes back to the question of the rebel removal and also dealing with issues of human remains ad the

whole sense of how can a community feel this is a safe space for their children to go to especially those that have lost children and so forth. sanitation and health overall the big challenge is can we have the conditioned to some extent that has been achieved in many of the camps the kind of reality for the rest of the city and that will not happen overnight. it ultimately means in terms of health the building of the ministry of health infrastructure from the top down but also from the bottom-up. the ngo community is less good at working with their ackley at the top of the ministry building its capacity and we leave that to the nation states but when it comes to the front line clinics and delivery systems of the front line clinics, the change for vaccine and so forth down to the clinics that is an expertise of the ngo community currently working with the government of

haiti with the miniry of health to elp develop the infrastructure over time. in terms of land i think it's important to give a sense of just how crowded some of the camps are there are camps on the median strips of roads. there are camps on very steep hills. people are living i've witnessed fields with about,000 people living on them. space is at a premium and this whole issue of how to find appropriately and -- and yes there has been resettlement of sites outside of the city but as paul indicated this will be a slow and complex process rking out the land rights. as it was in indonesia, and it is not simply -- you can't simply go out and rapidly build if you haven't worked out with individuals on the community what to do. and last, beyond all of the planning any ofs will do i

think we have to acknowledge the ingenuity of the people of the individuals that conducted their own plot to set up something and some of the core logic behind the transitional shelter is to give individuals something to work with to rebuild the home and recognizing that a fully reconstructed home will take time and that it will require extensive urban planning which is yet to eckert. >> thank you, sam, and general pnac, you had brought in the u.s.s. comfort for the fact there were not enough facilities and the countries. what now happens? do you feel there is enough capacity in the country to take up where you leave off? you have been an enormous help but all of us are a little bit worried with you leaving. general keen?

>> in this particular case the devastation of the earthquake was so significant that the overwhelming response from the international community and of course the robust deployment of the u.s. military and all of the areas particularly the medical area we were not quite sure what was needed in terms of how much was needed therefore we responded with house but -- hospital ship of what we knew would be great demand but many of us were surprised that in particular medical arena is how quickly the ngo community was able to respond and rebuild the capacity even in a rudimentary way to address the devastation d from the military perspective how we enabled that is by opening up the airport and at the seaport as quickly as

possible to enable these deployments of ngos whether it be hospital capabilities from the government. but we were not sure how quickly we would be able to transition in terms of decreasing the size of the military based on the increasing capaility of the international community whether it be ngos or other militaries some areas we were surprised just how quickly, medical been one of them i know i personally was surprised at how quickly that capacity was able to build. but just getting rid of the city in terms of transportation was a huge problem not only because of the devastion and the members of the roads blocked due to rebel and everything else but just the lack of transportation assets and getting those in there.

so, i think what we can be on the positive side to see was in many areas the buildup of capacity but the long-term reconstruction efforts in order to sustain that capacity i think is the question and the major area that we were faced wit in the lesson we took away was the numbers of displaced persons and how we were having to deal with that and the lingering effect as we talked about i think is a pacity that still is not reached tohe level but still a milita course does not bear to provide shelter but we were able to support the efforts of the ngo community where appropriate. >> one quick question before i turn to our just hour might panelist who just spoke the

meeting, sam, paul and general keen, are we ready for the hurricane season? hold for just one moment. are you ready for the hurricane season are we ready? >> of a fundamental level i think one can never say you are ready for a hurricane season there is an enormous amount of work that has been done. there's been various commodities, food and blankets just on the usa decide alone we have thousands and thousands of kits for people positioned either in port-au-prince or a warehouse in miami that we maintained but the american red cross, even agencies have positioned large amounts of food, blankets, nonfood items come medical supplies, so i think people are prepared. i think in the discussions in haiti on friday we saw that there needs to be a little better for of course the nation because of these different groups are doing all kind of

wonderful work and i think some conversations still need to take place to understand everything that has been done and wh the potential gaps are and maybe no gaps and maybe some gaps pletka we can do a better job of doing that and identifying where we need to fill the gaps. at the end of the day of a major hurricane hitit is going to -- 's not goingo be pretty but i think that we are able to respond quickly. i know general keen can certainly speak to the great work the u.s. military is done to prepare to rspond to the major hurricanes. >> general? >> this last november the u.s. southcom has had to spond to different disasters in latin america. it is only being one of them. so it is not only a matter of if, it is a matter of when we have to respond during this recon season. hopefully it won't be back to haiti. but i think the message iwould say is the intertional community and all of the partners in the region certainly

need to be prepared because haiti is vulnerable not just to the hurricane that heavy rainfall if you will, and i think that is something that everyone has taken extremely seriously both on the ground as well as those of us in southcom that we have watched the weather very closely, and we do things to prepare for if we do have to return and how we would do it working with those that are on the ground also the international community. 64. madam secretary it is wonderful to have your. welcome. we are interested in your talks on how we are doing. you've been talking to the latin american community and the community to be helpful. so your toughts? >> i apologize for being late. i had a presidentfernandez [inaudible] today. i think the most remarkable

piece of the stories the response from the international community through the disaster. from day one, we had at a .140 nations respond to the disaster in some capacity or another and currently in every country in latin america did something for haitiwhich is as you know the history of haiti and its relationship with its neighbors is truly amazing. the fact that he was isolated for so many years because of the way it became a nation and for the purpose of time because it was simply the poorest country beuse it is the poorest country in the western hemisphere many of its neighbors didn't want much to do with it. now, it seems to me starting

with brazil being he lead in manusta and the diversity of the countries, espially countries from south america, paraguay, chile, brazil, argentina, it started with the outcome and now we have contributions and the presence of the entire region in haiti, from canada down to chile ..

and this in the dominican republic is critical given its proximity and the fact that that the initial assistance for haiti kantor the dominican republic, roads, and airports. we hope and believe and we will continue to play that role. the biggest challenge going forward is keeping that level of commitment from the world. we want to make sure the pledges the mermaid in march and the political and moral support they

deserve from their neighbors and the whole world is sustained it is significant in that effect. our job with the state department is to make sure that we keep our commitment for political support and stability. that will take all of us. that is from the richest to the poorest. that is where we are and it is something we have never seen before in the input and participation by the western hemisphere. so far, it has been for the good. we hope people will continue that way. y from questions from the audience. please, why don't we take two at th time. please, sir, you are nber one.

[inaudible question] >> my question is first i've been to haiti under other circumstances. [iniad question] >> and i'm wondering why we have not heard very much about moving people away from haiti. i'm wondering whether that has happened. but it's been unreported and sort of relatedly, i'm wondering what the good and great are doing about family planning in the terribly over populated country. >> thank you. all right. the lady in the middle of the row. >> thank you. my name is elizabeth cutler, i'm here from the simpson center. my question is about the ngos being the real scouts and soldiers of the work getting done there. i was wondering if you could

comment on that with regard to the bureaucratic challenges that we've heard a lot about at usais and if there's something we can learn from what the ngos are doing. >> thank you. all right. panel? who would like to take the immigration, emigration question? family planning? and general, you are a question. >> i'll address the immigration, i'll leave the family planning up t others. we have not seen an increase this those leaveing haiti. and historically, natural vasters have not initiateed any increase in migrants moving out of haiti. i think obviously we are all paid very close attention to this following the earthquake

and the devastation, and we continue to see the same trend. no increase in whether it be off of the north coast or through e border area with the dominican republic. so i think that's the good news. we have not seen it in historically these conditions whether it be earthquake or tropical storms have not initiated major migrant moves. >> thank you. sam, would you like to take ngos and family planning? >> well, one as individual move tremendously within haiti. 600,000 people out of port-au-ince and significant population along the border with the dominican republic. again, not out of haiti itself. you do have reproductive health services as ongoing efforts in

haiti that has been ongoing to be a long time. on the second question, again, i don't work for the u.s. government. in case, we saw usaid at, i think, its best. they responded rapidly. they took a leadership role throughout the u.s. government. there was active coordination with the u.s. military. and they were on the ground from the get go of their assessment teams. so it's been an interesting, i think, a story of our development of professionals at their best in some pretty tough environments. >> antonio, any thoughts from the european point of view? >> i'd have to be on the ground to respond to tat. >> also. julissa, would you like to say something? >> just to concur on the flow of migrants, it has been -- centrally an average -- the flow

of migrants has been the same as the year before. usually what we have seen is there's a flow migration during political turmoil. we thank goodness have not had that yet. hopefully we'll never have that again. in terms of the border with the dominican republic, there has not been massive migration to the dominican republic. so these things are stable at this point. >> good. thank you. more questions. let's start at the front row. why don't we do three at a time. the lady on the end, the gentleman and the lady. >> hi, i'm krista ridley. i've been on the ground. i wanted to ask professor worthington about the housing. i think all of us understand the constraints and challenges that

the government of haiti has with this. but it's been urgent for a while to get a natural resettlement strategy or plan written and disseminated widely. people in the camps need to kow what their options are. they need to be able to make decisions based on an informed choice. up to now there hasn't been any inrmation as to whether they will get a package or whether th should go to a new camp that's been developed with transitional housing or et cetera. there's -- i know the ngo facilities have been planning for this for a long time. i'm wondering how close the government is to a fully well understood, well disseminated plan, and what's the u.s. government doing to support that or make sure that happens? >> thank you. >> hi, bob goodwin with the executive of our borders. henrietta, i know there is a big thing that you championed was

public private partnership. i just helped lead a delegation down to haiti, fedex, timberland, dow, and we saw a lot of opportunities for businesses to get involved. but not a great framework or opportunity in order to so. i'd like to hear from the panel as far as these public-private partnerships to map out the programs. i know dow is looking to do a recycling plant, looking to find a haitian parer, and mberland is trying to set up a factory, and if there are small capital in the u.s. government they would match their framework. i didn't see a great framework for that. i wanted to see from the panel. >> thank you. thank you both. >> i'm from the "washington post". i'm wondering there's been somewhat of a delay passing the supplement with the haiti aid. i'm wondering what impact that's

having or what could happen if there's not a quick passage. >> thank you. panelist? >> okay. >> very briefly, i mean both on the strategy and framework for the opportunity, it is important to -- again to support the government. and that's what we try to do. to provide so that the planning is set adequate. so businesses can start working. also to clarify about certain key issues of rule of law that are crucial for -- i mean for the proper conduct of businesses. so this is where we are putting much of our emphasis in priorities in our assistance to enable the government to -- both to run the country and to clear the political houses that maybe on theoad.

so to have a fully legitimate government through the elections so they cannot rest very quickly and clearly the key framework problems that the country is facing. >> i would add into that the clinton-bush haiti fund is also focused on quick recovery. they have also be a good partner for public-private partnerships. much has been said and connected with the die dies a pray. >> i think there are donor efforts to the ngo effort. the good news is four weeks ago president prevail stood up on the meeting for the issue. and he's attending the meeting on weekly or daily bases.

they are looking on the alcohol demar. they are using this as a test case to walk through the issues. we've provided them. we have two or three staff members to work directly on the presidential commission. we are looking to providing more staff. the diaspora. we signed with habitat for humanity that's going to help urban planners to help them work

through the issues. public-private partnerships? absolutely. we think haiti will not recover until the economy recovers. the camp people will not survive based on hand outs of the economic assistance. they need to have the economic resources to purchase housing and necessity o life. the way to do is from sustainable public-private partnerships. we launched about two or three weeks ago a partnership with the bill and melinda gates foundation to provide a fund for banking to provide money for the first private sector operator that sets up the first banking. coca-cola is looking at the efforts. we're still in the design phase. question about the supplement. we hope to have the supplement soon. the ideas that it'll be passed by congress before the end of

the month. that's a decision of the congress. it's not one of our decisions. in each of the areas where we will work which is infrastructure, agriculture, energy, health, and support for improved governance. each area we're working at something setting aside an incentive fund for like the banking effort to try to stimulate ideas that have high impact on trying to involve private sector partners. >> thank you. sam? >> first just acknowledging federal ex-press in interaction to map our community. we have 980 projects mapped throughout the country. i think the importance here is not only where the habitat for humanity or some other organization is working. but it's a partnership in to give people a sense of what is happening on the ground, where people are working, and allow corporations to engage.

this is the point of the supplement. there's always a big difference between the public and private. private aid flows right away. it's real cash. it's money the european public and american public. $1.million from the american and $250,000 from european and $250 million from the canadians and europeans. that money is in place and employing. the challenges with the spend rate happening in the time in the next three to four months. one starts getting into a resources that have been set beside for reconstruction. because ngos will continue to spend o relief needs. and so we need these resources which are slower to raise because they have to go through parliaments and in this case through congress and supplemental to be in place to really kick in for the longer term are recovery and all three

in this case because so much resources have been front loaded by usaid that those resources need to be replaced. >> good. thank you. all right. more questions. yes, one over year and you two. >> i'm with oxford university in working with the group called sustainable haiti here in washington. i really appreciate what everybody has done up here. i was a darfur officer for aid in darfur. i know how hard the ngo is working. the burden put on usaid, and a lot of pleasure to be the heavy lifter. beyond public-private partnerships i'm grateful that our colleague is looki into that. i'm also very curious from the perspective of longer term

investme opportunities in that country. about creating the conditions to reduce the risk profile in haiti for fbi and other private flows, private equity, and venture capital. right now haiti is glowing. and i know working with a lot of private firms, the risk profile is too high. ere is a role for the u.s. government to play legislatively, policy, european union as well, and many other arms of government beyond just usaid that would throw their weight behind an effort in terms of governance, security -- but especially governance, and lay that ground work so haiti is a lot more attractive to fbi. if you could please explain what's being done beyond usaid. but the whole government approach to tackling this

pernicious issues for haiti itself? >> thank you, eric. and you two? yes, whoever gets the microphone first. >> thank you. margaret daly with editors based resear. i'm also interested in the governance question. i'm a political scientist. we use the word governance as if it's the solution to all things. we have trouble defining what it means. i'm curious as to what more specically the european union is doing in terms of building sustainable government capacity. the article by prime minister bellerive and president clinton in today's "new york times" called for a more visible and robust role for the world bank, especially in administering these funds. what is to be the role of the

world bank? you haven't -- nobody has mentioned that in this discussion. and then finally, julissa, out of curiosity, my friends in the dominican republic obserd that their response to this crisis really is one of national security. because they know that the burden of the outflow of people is likely to fall in the dominican republic. what did president fernandez ask of us in support of the dominican republic as we go forward? >> thank you, margaret. >> good afternoon. i'm my is coxville. i'm a private attorney represented business interested in doing business. we just recently came back from the american chamber of commerce for haight key and the dominican republic conference in haiti talking about

business-to-business opportunities. one of the issues that's been raised is the capacity of the haitian government to herald the procurements a sects necessary to get the business sector involved. i understand that the temporary committee has a structure that's in place to review all procurements over $100,000, and then over procurements above $500,000 fall into another review process, and those over $1 million fa into another review process. that could be discussed or we could have some enlightenment on the procurement process for getting prate sector enterprises involved in the rebuilding effort in haiti. thank you. >> very good. thank you. all right. julissa, do you want to start with the dominican republic question that margaret posed? >> sure. the -- mind you the president

rand just got here. i don't know what he's going to ask for. but obviously from the -- essentially from the beginning, the dominican republic we have been asking -- we have been working very closely with them and asking themor assistance in terms of facilitating the flow of goods d people in the like. we have been working closely with the government, especially accident happened the border to make sure that they have what they need sport to help, at least in the initial stages, the flow of individuals in the haitian migrants that were entering the dominican republic through the border for emergency medical assistance. and in that respect, we did provide u.s. aid and our u.n. partners assistance to the dominican government.

we have not received any specific acts from the dominican government, frankly. but we are obviously in continuous communication with them in terms of making sure that we are fully cooperating and if there's any immediate need, we are there to respond to it. it. the number of -- i mean it's hard to even describe how helpful they were. especially the immediate days after the earthquake. we were, and i think general keene and i had a couple of weekends to try to plan assistance for the young women that were on the comfort, and that needed to be medevaced. andeeded to take haitian patients, thousands.

they can't even keep track. i think at one point they had over 10,000 haitian patients in their hospital system. and they waved any migration kind of status problems that might ha resulted from those -- the haitians been in dominican. so as you know, that's a issue to begin with given the history. but frankly, there hasn't been a list of particulars from the dominican government as to -- as to ask for being helpful. so, so far so good. >> thanyou. then we could have two one-minute answers. antonio, could you turn to you for the e.u. governance and the role of the world bank in one minute? and paul, may i turn to you for the financial risk question about the procurement question also in oneinute? all right. antonio. >> thank you. it's easier than the

reconstruction of haiti. but now for the first point, we were already involved in governance before the earthquake. and at that point, the main issue was to -- the main focus was the decentralization of the political process. so after the earthquake, we viewed the priorities with the government. they thought that decentralization was important in order to better provide the services. in addition to that, i mention that the states of governance before the earthquake was not ideal. so introducing and taking the opportuny to introduce more transparency in the issue is important. this is beside the mirror and meet needs of finding additional and findin alternative lodging for the administration and providing assistance to cope

with the scarety of experts was the main priority in this -- at least in this first stage. for the world bank, i mean we have -- we ha seen plenty of infrastructure work to be done and also planning where the world bank is also an expert in oviding contribution. >> thank you. ul? >> thank you. in the longer term investment opportunity questions is a great one. again, the economy recovers, haiti will recover. the question mentioned is security issue. political stability, security is absolutely the key. we have talked about the programs that we and other donors are doing to provide that. i also work in the microbusiness area. we have been working in the area and we will continue to work for the registering and starting a business and managing a business can be simplified and reduced so

the business climate at the microlevel could also be improved. the investment climate in haiti is also affected by infrastructure capacity, ports, airports, roads, and the's going to be a big focus on that in the deconstruction. and decentralization. as antonio mention. creating alternative zone is a big part of the government plan will help not only depop late port-au-prince, but it should stimulate some additional investment if the balk is put in the areas. as in terms of the procurement question, particularly subsequent to the earthquake to handle procurement is one the reasons or one the principal reasons why the committee was formed. they also looked at successful models, as it mentioned from president clinton and prime minister bellerive this morning. this is receiving pro bono

support in setting up the procedures, including procurement, financial procedures, they are putting all of it on the web. they have web site that's up and functioning. if you look at the presidents, you can click right on the web site there and it'll give you information about their procurement procedures. >> thank you. let me see if joanna would like come up to close out the session. let me apologize to all of you who's questions did not get to. we are hoping that you can catch these very busy, but very good panelist before they scoot out today. would you join me in thanking each of our panelist? [applause] >> and thank you all very much for coming to mark the six month anniversary. we will meet again at the one year anniversary. thank you. >> a on behalf of the program with my colleague and her staff and the americasrogram we thank you.

obviously we could have stayed here many hoursith the talent that we have on the panel. i wanted to let you know that ambassador joseph send me another e-mail regretting he would not make it. he was held back by his president. i guess csis didn't make it on the list. we're hoping at a year we'll be able to get him here. look at the web site, heather connelly my colleague and i put together on some of the questions that you raised and thank youo henrietta for holding the flame on haiti. thank you. [applause] [inaudible conversations]

>> the senate judiciary committee will vote on tuesday for the nomination of a landing kagan. watch live coverage on c-span3. to learn more about the nation's highest court, read, "the supreme court, " providing unique insight on the court available in hardcover and as an e-book. c-span, are content is available on television, radio, and online. you can connect with us on twitter, facebook, and u2. saddam for our schedule alert emails @ c-span.org. on monday, nicolas sarkozy --

now, a town hall meeting on bp's $20 million oil spill fund. the government appointed kenneth feinberg as administrator. he talks to residents in the louisiana about the claims process. this is a little over one hour. >> good morning. good morning. today, i am really pleased to introduce the individual that i will be introducing to you. this gentleman has had a long history of working with people to resolve certain problems. he worked with agent orange people. he has worked with the 911 people. he has been a mediator and he is a very impressive media.

i have some -- i have heard him speak to our price. i heard him wind senator mary landry brought him down. after that, we begged him to please come here because we have so many people who need claims, information and what is in the future. it is my great pleasure to introduce the person known as the $20 billion man, the man selected to actually handle the $20 billion fund, mr. kenneth feinberg. [applause] >> thank you very much. that is a nice introduction. i want to thank everyone for being here, particularly the governor who i had been working with to try and get this

program up and running. he helped arrange this entire day. i am travelling throughout louisiana today, mississippi tomorrow. alabama next week, florida on the 29 to. i will be coming back here as often as is necessary to answer questions and to help you understand what this program is all about in the next few minutes, before i take questions, let me try and give all of the it a thorough understanding of what is going on. first, the program than i am administering is a private program. i'm not working for the government and the united states or the government of louisiana. i am working for the people of louisiana. an agreement was entered into

between the obama administration and bp to set aside $20 billion to pay any and all claims arising out of this bill. if the $20 billion is not enough, bp has agreed that they will honor any and all of their financial obligations of of $20 billion. the money is there. i am not working for bp or the administration. they picked me to run an independent facility -- company, a clam's program. it then works, i get the credit. if it does not work, only i get

the blame. nobody else. this is not about politics. this is that helping people in the gulf. that is what this is about. i am working for you, not for bp. next, i believe that bp deserves some credit for the program they have already set up. the man behind bp on this is right here. they have paid out about $160 million already. those are in the eligible claims. that has not come out of the $20 billion. it is separate. when bp has already done, i commend them. in about another two weeks, around august 16 -- august 10,

bp is gone. they are out of the claims business. i will be responsible for processing all claims from individuals and businesses. i do not have jurisdiction over two types of claims. i want you to understand. right now, i have no authority to process government claims, the county's, parishes, and i do not have that power. government claims go to bp. i also do not have jurisdiction yet over moratorium claims. bp set aside $100 million not

part of the $20 billion, an additional $100 million set aside just for big rig workers out of work because of the moratorium. that $100 million is for rig workers only, not break-related businesses, just for bringing workers. unlike the $20 billion, it will not be added to. that is it on the moratorium claims. now, right now that $100 million is not part of the $20 billion. it is not part of my program. it is over here somewhere. bp is currently trying to decide how to distribute that $100 million.

so, keep in mind i am not here today to talk about government claims. i'm not here today to distribute $100 million in moratorium claims. i am here with a $20 billion fund for individuals and businesses. i am handling the private funds. now, keep in mind that this program, this $20 billion, is not just limited -- the government claims, the $20 billion even though it is not part of my watch. the government claims do. the moratorium claims are separate. cleanup costs, the $20 billion.

i do not control the $20 billion. i. control whenever i need to process individual and business claims out of that fund. if it is not enough, bp has stated they will pay additional plans as needed. now, and want to urge everybody to file a claim in this program. i believe, and i told all of the louisiana government officials who will listen to me, that it is a mistake for people not to file a claim. here's why. if you violate claim with me into the clan is eligible and it

is corroborated, you will be paid forthwith within 24-48 hours, immediately. you will be paid emergency payments totaling one you need for six months. bp, to its credit, has been paying emergency payments one month than a time. you come in for one month, you get a check, you go back, you get a check, you come back the third month and get a check. forget it. when the gulf coast klan's facility is up and running in the next few weeks, you come in, file a claim, and get six months in advance emergency payments.

you might like coming back every month. that is all right, but if you want six months of fraud, no obligation -- but if you want six months upfront, no obligation. you do not waive any rights. if you need an emergency payment and you are eligible and you corroborate the claim, you will get a check for six months without any requirement that you sign away any legal rights that you may have or what have you. but if you do not file the claim, i cannot pay you. i have to look at the claim, make sure it is backed up with facts. six months emergency payment. when the oil stops, and you want

more money, you can come in and i will examine your claim for all of your loss now and in the future. mr. feinberg, i think i will now be able to fish for 18 months. it will take 18 months for me to get up and running. i will examine that and i will look at the claim. i will turn to you and say, "i agree with you or i do not agree with you." here is a check for 18 months lost pay, lost income, but now think long and hard because then, in order to get the big check, the lump-sum full payment, you have to release bp

and sign a piece of paper that you will not soon --sue bp in return. if you like the amount of the check, here. keep in mind that this program is entirely, 100%, voluntary. nobody has to come into the program. if you think this is a trick, if you think this is a trap -- it is not. if you think that, do not do it. you can go file a lawsuit, but my friends, and i am telling you that lawsuit, you will litigate for years, you may not win, you have to pay your lawyer. i suggest to you that the

program i am setting up here in the vienna -- here in louisiana, i am convinced it is absolutely the way to go. now, let's walk through what happens if you file a claim. mr. feinberg, i am here and i want emergency payments. i cannot work. ok. the lab the form. by the way, in a few more weeks if you want, filiform online. you do not even want to go to the office. we will have the forms on the internet. philip out electronically. as you know, we have 35 clams offices that bp cent of all over the gulf. you can go to any of those offices, call a 1-800 number, make an appointment, or do it all in your living room on the

internet. i am out of work. the fishing boats is docked. i cannot work. all right. fill up the form. corroborate your claim. here is a check for six months and you do not have to sign anything. take the money. if later on you do not want to participate, do not. still keep the six months. it is a gift. wait a minute, mr. feinberg. and says that i need to corroborate the claim. i have an all-cash business. nothing illegal about an all- cash business. that is fine with me. how are you going to show me that you are losing $8,000 a month or $12,000 a month? you have to show me something. you can edit walk in and say, "give me the money."

show me your tax return. if you lost it, show me a profit loss statement, a checkbook, something. well, i do not have that. tell the captain of the boat, and your priest, your sheriff, the mayor,, on in to vouch for you. that is good enough. i have to have something to avoid fraud. i have to have something that verifies your claim. i am not looking to get fancy here. i want to get the money out the people who need it. i work for you. that's good creative as to what you offer in the way of corroboration. i will bend over backwards to corroborate these emergency payments, but i have to have some corroboration so i know how

much to give you per month for six months. no obligation. well, mr. feinberg, i am losing $7,000 per month that bp put me to work on a vessel skimming which makes up $6,000 a month so i am only l 1000. ok, i have given -- i will give you 1000. you had mitigated being out of work having another job, so i will mitigate that. emergency payments. when the oil stocks and we all have a better handle -- when the oil stops and we have a better handle on where it is going and has spread, then you come in and say, ok, now i want a lump-sum payment. i am a shrimper.

i think that shrimping -- i am not of love. -- i am out of luck for three years. well, that is what you said. i am looking at this and night as to the experts down in the parish. he will not be down on a look for three years. he will be down for two years. i will give you $143,000 if you and release bp from any lawsuits. you can go to someone else if you want, but in return for $143,000, here is the check. you signed a way that you will not sue bp. you decide. yes, give me the check. you are gone. sign the release. or you're not treating me fairly, i think it is not enough, i do not know about the future, i do not want the money.

do not take it. do not take it. go file a lawsuit. wait. come back one year later. this program will be up and running for, i think, three years. no rush of you want to wait and see. that is up to you. that is how the program is going to work. that is not how the moratorium is going to work. he wondered in million dollars is different for the moratorium. that is altogether different. that is not part of my program, but you will ask questions about it and i want you to know it will happen. the $100 million moratorium rig worker funds -- wages loss only because of the moratorium on the rigs.

there, someone will add up all the rig worker claims and divide it up by the $100 million. 1100 works, divide by what you get, that is it. bp will not -- will not -- add to that $100 million. that is a one-shot. keep in mind that i cannot help anybody here if you do not file a claim. i am worried there will be too many people that, for whatever their reasons for motivation, will not file a claim. if you do not file a claim with the gulf coast clams facility, i

cannot help. if you are already filing a claim with bp, that is good enough. you do not need to refile. when i take over for darrell, who think of goodness is not going anywhere, you do not have to start all over. as i have explained over and over again, one eye takeover we are not reinventing the wheel here. and is already in place -- a when i takeover we are not reinventing the wheel. i want to make the program better. i think the bp program is not swift enough, especially with small businesses that are waiting. and is not fast enough. we need to accelerate the process. we need to make it more efficient. we need to get the money out quicker. i realize that. i am coming here to si