those involved. the washington dulles airport is celebrating its 50th anniversary. the department of common security which work in cooperation with the shuttle flies over -- signature flight support for tugs and telling. they provided all of the support for the telling to and from. we appreciate that very much we welcome the discovery family weakened this saturday and sunday. our discovery festival is just beginning.

these will remain on display this afternoon until about 4:00. all of you have -- who have been held up while take your family of voters. we ask that you have some educational programs on the stage. we ask that you do not move the chairs. it did not come up on the stage. leave the chair is when you go. we want me to feel free to stay and enjoy the day. this is an extraordinary oppounity that we have. these are some video scenes that were films and the last three days.

if you will stand by and give us a chance, we will get organized. we wilturn you lose your photo opportunity. we appreciate the support you have given us. as we introduce the latest, thank you very much. ♪ [captioning performed by national captioning institute] [captions copyrigh cable satellite corp. 2012] ♪ >> christine lagarde on the meeting of the imf and the world bank. then the european parliament debate on syria and the discussion on the state of the u.s. housing market. tomorrow on "washington journal," the former chief of staff to laura bush.

and tipper gore examine the role as the first lady played in elections. daniell brian assesses how much time and effort goes into an investigation and robin wright, from the u.s. institute of peace, has the latest developments out of the middle east, including syria and iran. "washington journal" is at 7:00 a.m. eastern on c-span. >> when i was in afghanistan, the soldiers started telling me the government was wasting tens of billions of dollars on a mismanaged logistic contracts. >> douglas follows the money in afghanistan and fines corruption from top to bottom into the hands of the taliban. >> the brigade commander, mike

howard, this is not long after president obama took office. the state was saying we're going to give you development money. counterinsurgency. we are going to do this. nation-building. howard said do not send any more money. sandy contract officers to oversee this stuff. i need people. >> sunday night at 8:00 eastern on c-span's q&a. look for our interview with robert caro coinciding with the release of "the passage of power." >> now, managing director christine lagarde speaks at the closing conference of the imf's world bank annual meeting. she discussed the consensus

within the group that struggling governments must be reformed or risked raising economic danger. this is 35 minutes. >> good afternoon, everyone. welcome to this press conference. the governing committee of the imf, it is my pleasure to introduce you to the chairman of the committee, tharman shanmugaratnam. and to his right, the first deputy managing director of the imf. and of course the managing director of the imf, christine lagarde. we are on the record this afternoon. i will ask you to recognize yourself by name. with that, let me turn to the minister.

he will give a few opening remarks. >> thank you. you can hear me? >> i will give you a quick sense of discussions yesterday and today we had a joint press conference yesterday we discussed the strengthening of the global safety net. it was an important step forward. today, beyond that announcement, in our sessions yesterday and today, we focused the real solutions to the crisis, the sustainable solutions, that the safety nets or the fire wall is meant to support.

we touched briefly on this at yesterday's press conference. it was about the theater of policy action. fiscal reforms, structural reforms. not just in europe, although that is obviously an important focus of our attention, but also on the united states. there was a very strong consensus in our discussions on the need for everything that we do to be supportive of medium- term fiscal consolidation. that applies both to europe as well as the united states. a very strong emphasis that everything we do has to be focused on achieving medium- term fiscal consolidation.

in that regard, there was also a consensus that the steps to be taken, not only the well known steps that involved fiscal adjustments, but also equally important, the need to restore growth over the medium term. growth of the short-term is weak, partly because of the adjustments, which we have to go through in the international economy. what is really critical was to get back to normal growth over the medium term. preferably sooner rather than later. in other words, within two or three years to get back to normal growth is possible in as much of the advanced world as possible. if we do not get back to normal growth, if we do not get gdp

back to its potential levels, fiscal sustainability is not possible either. it is not just the budgetary reforms, tax reforms, spending reforms that are important. but also the growth reforms. that involves the way we craft are fiscal adjustments, the way we go about our tax and spending policies, and structural reforms in order to bring confidence and investment back into our economies. there was also discussion on other parts of the world and how they can play a complementary role in this process. that was the main focus. medium-term sustainability. and about bringing growth back, bringing growth and jobs back. >> thank you very much. i would like to begin by telling you how important it is to have a good chairman.

i have to tell you that he is a superb chairman. this should be recognized, even in front of you. he was terrific. he took us through a long journey, we discussed substantial issues. as you can imagine, we talked a lot about certain countries. the euro area, the united states, the right balance between emerging market economies and other advanced economies and all of that with the perspective of that medium- term anchoring that is so needed. it is not always easy to conduct those discussions with such a large number of constituents in the room. it worked extremely well.

for those of you familiar with the imf, there are huge round tables and is relatively hostile in essence because everybody is protected. we had chairs, it was much more fluid, people were much more in each other's face and posture, which was good for the dialogue that we had. it was lively, and less of this prepared narratives. the form and substance very often interlinked. that was the case in the course of those discussions. in terms of momentum, in terms of positive signals, we had a lot to in the last day and a half.

very open and frank discussions, a very respectful, but very true to each other as well. focus on medium-term, necessary achievements. if there were two concepts that are shared across the board, structural reforms, and discipline. that underpins it. the medium term growth and fiscal control -- consolidation. because the structural forms are land standing initiatives, and knocks it -- expectations are also difficult,>> it is nice to have a big umbrella or a big fire wall. that was the achievement of yesterday.

thanks to your initiative to put them together. finally, on more domestic and internal issues, we had a strong endorsement of the completion of the quota and governance reform that was due to be completed for the tokyo meeting, which will be in october of 2012. we have a little way to go on the quota. there was a strong consensus, and you will find it in the communique, to move on with this reform. equally, there was a strong endorsement of our determination to improve our surveillance. it is one of our missions. bilateral, and it can be improved.

there was strong endorsement from the imf to continue that and to complete the reforms that are needed to that fact. very positive. he is raising his hand, but others have, too. >> i want to began with a lady in the front. thank you. >> thank you very much. congratulations. i think the meeting proved to be a success. managing director, do you think the washington moments has been achieved? it seems to me that the bric countries that still want to link with the governance and cultural reform. the think their strategy will be successful -- do you think there strategy will be successful?

my final question about china, how would you label china? after the imf has its forecast in the next few years, thank you very much. >> one question, please, from now on. >> washington moment, yes. the dynamic that was created in the course of this meeting. we will hear more feedback because it is the spur of the moment, you tend to be quite upbeat about what has been achieved, and then you have to let it sit the bed and wait for membership feedback. we want to understand whether there were satisfied and whether they think collectively, we have achieved what we could achieve at best.

i feel that washington moment was clearly in the the room. in the course of the meetings. on the issue of the conditionality, it was never expressed as a conditionality. the part of -- maybe more so from some of the emerging market economies. review. our team, both at research --

this initiative, that will come out later. on this. important the variation had been and how strong a step was in the right direction. >> thank you. let's take ian's questions. >> dow jones. one question for the managing director and one question for the chairman, please. some finance ministers have said that there are additional safeguards for the use of the 04 hundred $30 billion resources -- $434 billion resources. could you say exactly what those additional safeguards are? it is my understanding there is regulations. secondly, the draft statement said the advanced economies should be prepared to exit

expansive monetary policy. i see that has been taken out of the communique. >> the first question for the managing director. the second one for the chairman. >> you are absolutely right. there is no change to the articles. what has been clearly reminded during the course of the discussion is that number one, those bilateral loans, which are to be adjusted, do not form a special coffers that would have a eu label on it. it must be used under the strict, nondiscriminatory, demanding terms that we have for all of our programs. you know, that is the strength of the imf. it is the conditionality, the

review, the monitoring, and the sequencing of the lending that goes with it. >> you will notice that there are a number of non-european countries and non-g-20 countries that decided to participate. it is very important to all of us that any use of these funds be accompanied by the same strict conditionality that the imf has with all of its programs. it was very important to the

british, very important to all of us. we contribute into the fund to use around the world. whoever the borrowers are, whatever the cause, it has to be the same standards. the credibility of the fund is what we are attempting to bolster. on your second question, i would not be too much into the final editing that goes into the statement. the statement does emphasize there is a very important nuance -- it does not just say that monetary policies to -- remain accommodative. as long as inflation prospects remain anchored. that is an important emphasis in our discussions. it captured both sides of the atlantic as well as the emerging countries. we spent some time discussing this. we were all pretty much of the

same mind on the importance of ensuring that inflationary expectations remain in check. if there was any indications, any trends indicating we are likely to lose control of that inflation, there was a sense that monetary policy would no longer be advisable. i think there was a good meeting of the mind on that. >> thank you. the lady over on the right, thank you. >> the imf has said it is ready to adopt some of the bailout programs in case it is needed. my question is, do you feel the need to adopt the bailout

programs for portugal? if not, if you think that portugal is on the right track. thank you. >> the portuguese program has been under way for less than a year now. it works like any of our programs. the portuguese government and opposition did a fantastic job because they came together as members of the imf came together yesterday and today to endorse it. the program of portugal as negotiated with the imf, but it is their program. we conducted regular review. we send the mission team on the ground and they work with the authorities to make sure the targets have been reached within the timetable that has been adopted and agreed between us. i do not see any reason for any

change to the portuguese program. >> [inaudible] >> the review that was conducted certainly concluded that the program was on track. >> yes, sir. >> thank you. "washington post." coming from a part of the world that is reshaping the global economy through competition and productivity, do you feel the industrialized world have a realistic sense of the adjustment their societies will have to go through to take advantage of this two or three- year window that you talk about? what are the implications if they do not get their act together?

>> to be quite candid, i have a lot more sense than i did three or four years ago. across the room amongst the advanced countries, the western economies, there is a very strong resolve to get to the hearts of issues of competitiveness, a thrift, rebuilding of household and government balance sheets. frankly, it is quite courageous. politically, it is quite courageous. there have been very strong expectations built up over the years for more of the same. it has taken tremendous political courage in the last

year to begin to paint a vision that leads to a better future. we're all very supportive of that. we know this will be a long road. there will be pitfalls along the way. which is why christine's umbrella is so important. i am a lot more confident now that i was a few years ago. i would just add that one of the things we will have to watch out for in the non-western part of the world is hubris. we will have to avoid thinking that we have got it all right, whether it is fiscal policy or savings policy or competitiveness policies, that we have discovered the new golden equilibrium.

there is a lot of learning to do on both sides. >> thank you. there is a lady, yes, with your hand up. >> good afternoon. how will be the work with low income countries? do you think these countries will be able to make the reforms? >> we do not talk enough about the work the fund does with the low income countries. of the 48 programs we have, more than half of them are with low income countries. they're not for huge amounts because everything is proportional. but we do a lot of work and we did a lot of technical assistance, capacity building for them. we do as much as we can to help

the low-income countries. we will work a lot of the countries in transition. the arab spring countries. it is a real focus for the fund. i am confident, if you look today at where the country's in the world with double digit growth, you will find them in low income countries. of those, two-thirds in africa. >> thank you. down the front, the gentleman. >> thank you. i have two short questions. do you think about the possibility that party is against the greek problem to have a majority in parliament on may 6?

thank you very much. >> our people contact all the time all over the world. i am sure they are in discussions with anybody in the mediterranean. north, south, in between. has there been a discussion on any type of program with cyprus? not to my knowledge. i would be the last person to predict the outcome of a political election. >> thank you. i want to ask about how the imf

supports the arab countries. what about the agreement with the arab spring countries, especially egypt? thank you. >> i will share a secret with you. which i am sure will be well kept. we have a commitment to the arab countries in transition, by our annual meeting in tokyo, we will have several programs in place to help them navigate the transition. it will require other supporters, donors, partners to help financially and in trade opening as well. if i have to tell you, i think, relative to other parts of the world, it is a part of the world where we give the

highest, largest number of technical assistance, hours, days. in all sorts of matters. public finance, a taxation system. you would be surprised. >> i think we have time for a couple more. the gentleman in the pink shirt. >> you mentioned in the communique that the framework should be significantly -- does it mean that the imf would take into consideration the exchange rate policy?

>> a very pointed questions. it is one of the components that we would be looking at. there are others, but it is one of them, yes. >> ok. lady way over here. >> thank you. in the communique the members collect -- all forms are protected. the ones having problems with the influence of the capital flows. and there is an increasing use of the exchange rate. it is like a war.

some are having problems with public capital flows. they are not all flexible exchange rates. what are you going to do? >> we discussed exchange rates yesterday and today. a year ago, we had a good meeting, pretty much a consensus among the emerging countries and advanced countries. whether we were talking about china or brazil or anyone else. we all agreed there had to be some greater flexibility in exchange rates over time. we were -- we agreed we were getting that. from time to time, capital flow will be very troublesome. the fund has shifted its thinking on the matter. we of all shifted our thinking as to what is a sensible toolkit for emerging countries

when faced with volatile flows. there was a recognition that in instances where you face severe volatility, some form of management of those capital flows could be sensible. work is not due to your own domestic policy -- where it is not due to your own domestic policy, but a global capital markets, some management is sensible. these are statements that were agreed to on all sides. i found that quite encouraging. we have moved some distance and the last year on this issue. >> there is work that will continue to be done so that we can really analyzed in-depth the relationship between movement of capital flows and monetary policies.

that was another matter that was of interest. there is evidence of a close relation between the two. since you are from mexico, let me say that we have had an extraordinary collaboration with the mexican presidency. i am sure it is due to the president's focus and supports on the g-20. this has been a great work experience for us. >> i was pointing to this gentleman in the second row. >> thank you. >> i'm sorry. right here. next to you. >> thank you. i am from singapore. a question on economic reforms. with the imf prefer to see a lift of u.s. sanctions? what else would they be looking to do? >> [inaudible]

>> just like everybody from singapore, you are really fast. your question about the advanced economy, u.s. and europe? >> myanmar. >> myanmar. >> we do not brag much about what we do. on this particular case, others would have. we have been behind the scenes discreetly helping the monetary authorities in relation to the most recent currency reform. we have been working with the central bank on that very actively. it is a tribute to them that

they have made this change. it was done april the first and it has been so successful. we will continue to provide assistance that they need. this is happening, you know, on a daily basis. >> [inaudible] >> some of the sanctions have been lifted already. there is a momentum that is clearly initiated. my dearest hope is that it continues. >> one last question. we bring in several journalists to washington. thank you. >> you can join the fellowship. >> good afternoon. i would like to ask you, how the euro crisis will affect the emerging countries?

macedonia has an arrangement with the imf for 480 million euros. despite that, our government is borrowing money on the commercial markets. do you think that is -- do you plan to come to visit our region in macedonia? thank you. >> i will wait until my knee is fixed. and then i will get back on the road. on the consequences in southern europe, it is more central and eastern europe. it is the immediate circle that is potentially exposed.

that is why it is so important that the europeans do what they are committed to do. but they deliver on their program, the move on with the structural reform as well as sticks to the commitment to each other and to the larger community. that is what we are seeing at the moment. it is important to them, it is important to us, it is important to the likes of macedonia. the linkages between countries in the southern europe -- it is extremely important. particularly of the banking channels. there are lots of subsidiaries of euro area banks. i think there is a clear community of interest in the euro area doing what it has to do. on the macedonian program, i am

not exactly sure where they stand on the review of the program. you know more than i do, david. >> [inaudible] >> to borrow from the commercial banks? >> [inaudible] the government is spending that money for the social transfers, but not for capital investment. do you think this is the right policy at this moment? >> i do not want to pass judgment. i have not verified that with the team. i will reserve my response. we will get back to you, i promise. >> thank you, everybody. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2012]

>> next, the european parliament debate on syria. next, a discussion on the state of the u.s. housing market. after that, a speech by the constitution party presidential candidate. thomas donohue, president and ceo of the u.s. chamber of commerce, marked the 100th anniversary of the organization with a discussion about u.s. economy, taxes, trade, and the role of business in the economy. sunday at 10:00 a.m. and 6:00

p.m. eastern on c-span. >> we need to have more. how many months you think it will take you before you are ready to put these systems in place? we would like to have you back to give us aggress report. >> we have already started making changes. but as part of what i am here to report on today. we have the good fortune of having the 2014 budget development process -- we are entering into that now. what we are going to use it is a process which culminates in recommendations in september to omb, and a budget in february. we will start delving into this. that does not mean we will wait until the outcome of the process to make changes. >> the new act in a thin strip of the general services administration spent the past week testifying on tough utah held above the more than $800,000 spent by gsa training

officials for a conference held in las vegas. our video library is at c- span.org. >> earlier this week, european parliament members discussed the situation in syria, and the six point peace plan set up by u.n. envoy kofi annan. the secretary of foreign affairs of the u.s. open the debate by talking about new sanctions on serbia. members voted in february to impose travel bans, weapons in cargoes -- weapons embargoes, and restrictions on services. this is 45 minutes. some gentlemen, we will now start debating the next point, on the situation in syria. i would now like to give the floor again to the hi

representative of the view -- high representative of the eu. >> thank you very much. we are appalled by the high levels of violence in syria. the regime forces have bombarded cities with no regard for civilians. violence has not spare children. reports of shelling in ho billionms killed in shelling -- and -- there are reports of

shelling and killing. the members know how fragile and unsafe the situation remains. the violence in homs, hama, and aleppo are tragic reminders. i emphasize a resolution approving the immediate deployment of an advanced team of up to 30 military observers in syria to begin reporting on a cessation of violence. the left on sunday, and are on the ground, starting their work. it is an important development in the sec's current plan. -- in the six. plan. -- in the six point plan. whispered no effort to try to

ensure the international community speaks with one voice. i have engaged in particular with russia and china. i have looked for their support. the security council resolution presents finally unified call to the international community. the urgent, comprehensive, and immediate implementation of this year in government -- the syrian government -- this is not a matter of choice. the plant is not optional. the government has to implement it fully. weapons have to be withdrawn from population centers. peaceful demonstrations and freedom of association must be respected. there must be humanitarian assistance allowed to all areas under the leadership. it is only through a credible

and sustained halt in violence that kofi annan will be able to lead the democratic transition that represents the legitimate aspirations of all circassians. we are closely watching the situation on the ground. it is the government to if responsibility. there is a record of broken promises. this resolution is an opportunity for the regime to change course and corporate fully. unanimous action is what we have been calling for since the beginning of this crisis. now it is of utmost importance that members of the security council continued to support kofi annan, and insure that his operation in syria is allowed. china and russia play a key role, using their influence to assure the security council

resolution is implemented. i have on a number of occasions to express my support to the special envoy, and told him and secretary general ban ki-moon that the eu and member states stand ready to provide any required support. we are training them to develop their analysis and ability to respond to crisis situations. last week, i convened a crisis platform to bring together the services of the commission under the chairmanship of the secretary-general. we are coordinating closely with

the humanitarian aid, and reaching out to the neighboring countries of syria -- both ambassadors in brussels and three authorities on the ground. we are working to ensure an effective and coordinated response. me of suspended all types of operation. the european investment bank, with which we work closely, has suspended all technical assistance to syria. we have maintained a that benefits the population, students, human rights defenders, and the opposition. those programs with syrian students and universities will continue. we are supporting efforts to deliver shelter, medical supplies, food, and whatever is needed. we have put together a contribution of 29 million euros in a bit too affected syria and

neighboring countries. the support to the neighboring countries is essential. i discussed these issues when i was in turkey over the weekend with the prime minister who also joined the prime minister by video link. the situation on the turkish border is critical. the turkish response has been critical, fast, and professional. i have offered our assistance on a number of occasions. i did so again this weekend. i remain in close contact with him and his services for whatever is needed. we are also working closely with jordan and lebanon, and are ready to use our instruments to respond to their request. i started to discuss the details with the foreign minister of jordan. it is important continue to act as fast as we can, liaising closely. many of the displaced populations do not live in

camps, but with families. that is why we are looking at wider support, including assistance to host families and support for regions and of relations most directly affected by the inflow -- inflow of syrian citizens, particularly in health and education. i have proposed as a matter of urgency a commission special measure to reserve 23 million euros for france to support specifically syrian civil society as well as refugees and the affected part relations in neighboring countries. we are ready to continue to impose sanctions and restrictive measures for as long as the oppression continues. the last round of sanctions was approved with the foreign affairs council in march. they are working on a new set of measures. today, my team is in paris, taking a leading role in the meeting of the working group on sanctions critic after the

system bombing. it is also important that our delegation remains open in damascus for as long as the security situation permits. we need to have eyes and ears on the ground, and the close to the situation. the syrian people have of us not to leave. members have decided to suspend diplomacy. they are within the you -- the eu in damascus . i believe the european parliament has an important role to play. i thank you for your efforts in reaching out to opposition groups. our main objective is to encourage groups to put aside their differences and work together toward a stronger quarter nation, for an orderly transition that is both conclusive and democratic. they need to build a common future, where circassians of all

backgrounds and affiliations are equal. we will continue meetings with opposition groups and to reach out to minority groups to encourage them in this approach. the future of syria belongs to the syrian people. their lives, their rights, and their aspirations must be respected. we need to do as much as we possibly can. it is time for president aside -- bashar al-assad to match his words with deeds. >> i would like to give the floor. >> ladies and gentlemen, representatives, there is a threefold gain going on in syria at the moment. you have saudi arabia and iran. you have egypt and its role in the arab spring. you have the alleged drug

campaign in the united states. you in addition have to take into account the climate in russia. the adoption of this resolution -- it is important for this resolution to be in tune with all the countries i have just mentioned in syria. the resolution has to be the same. in the meantime, a saab has time to carry on a pressing the population. by sending kofi annan as a special envoy, we are sending two messages. we are giving bashar al-assad more time in power. the other message is that china and russia will allow him to

continue massacring his people. it is important to take into account all these factors. the european union actions are very welcome. there is a responsibility of the commission. we now have to carry on the diplomatic approach, under the guidance of kofi annan. and we really do have to find a way out, find a solution. >> thank you very much. madam gomez and i went to keep syria-lebanon border at the start of this month. we went in order to meet part of the syrian position.

we manage to get as far as beirut. we also wanted to try to understand the risk of an implosion in lebanon as the result of tensions between shiites and sunnis. i do not really know whether we got a clear picture of these parks. certainly, what we heard was the syrians fear a proxy war, and geopolitical interests being played out, with interference from qatar and saudi arabia. they think they will have their revolution stolen from them. the kofi annan plan is the only

other option from civil war. it is not a very satisfactory solution. but that is what it for saying. the kofi annan plan would have to see us sought leaving in the near future. there are still efforts to be made. there are a lot of parks to be had with the syrian opposition about the implementation. but the fear of civil war is great. secondly, refugees. this is a huge priority. this is a per to which we think is a humanitarian one. it is also a political party, because you have the opposition opposing hezbollah.

i would like to say to you that you quite rightly maintained an embassy for the european union. >> the speaker has been cut off. >> i am sorry. you have exceeded your speaking time. >> you have given a very diplomatic speech, i should say. it is not my habit to agree with mr. sarkozy. i do not think we have still a kofi annan plan or that the plan is working. face the facts. there were more than 100 breeches of the kofi annan plan

the last 200 days the were identified. there were more than 50 people killed yesterday. i do not know how many casualties there were today in syria. how you can talk about the kofi annan clan -- plan, which is not applied in practice with bashar al-assad? everybody is recognizing that in fact it is not working. bashar al-assad is not willing to apply it. i think all of this is leading us to an increase of killings. that is in syria. we should put observers and the international community and the european union. we should give all this support.

you need several thousand military equipment to protect them. otherwise, it is impossible. in a normal operation, when you put two out of 50 observers in syria on the ground, how many observers do you need to do that? why do we do it? to protect our observers. not to protect the syrian people. i think it is really not the way forward. what we have to observe, what we know already -- the plan is not working. bashar al-assad is getting more people. he is ignoring his promises. he is simply continuing with a number of crimes against the mandate. is that what we need to know? we know who wins. what we need is