of our lives. we hope you feel all the emotion say thank you. to our fellow survivor would we dohat without each other? thisould have never met way but we are so grateful for each other. despair,hared our sense of loss and challenges as gratitude andpe, triumphs. we have been there for each other and we will continue to be there to pick each other up and celebrate milestones for years to come. most of all, we will cherish the friendships our families have of mutualh bonds admiration. those who continue to struggle through despair, theing medical care and prospect of heartwrenching forgetl decisions, don't for a second that we will be moment's you at a

notice. we will always remember our angels, lingzi, sean, krystle and martin. whether we raise them as our knew them for years, met them once or only know them carry them inwill our hearts. families, know that you will never be alone and that the beside you. we remember those who died as us, the intellectual charm of lingzi. justice.mmitment to krystle's infectious smile. of the childhood charm martin. the we will choose to think of them not in association with but forever connected to our commitment to peace. peace, that will be their lasting message to us. historians when

these -- devastation that was brought upon our four guardianow angels came to be but i also hope they will tell of the compassion and unity that followed. thinklonger have to philosophically about the capacity of the human spirit. it is right here in the city of boston. whether our families have been here for generations or recently called boston home, we know that we have written another chapter in a rich history of revolutionary people and we take pride in knowing that we are part of something much larger than ourselves. in this spirit we choose this monday to show the world what boston represents through our deeds and dedications. us who will ride and run, we will do so for those with us.o longer for a family member with cancer, great city and for

countless other causes. for those of us who will crowd the route, we will embrace roles as motivators and emotional catalysts. and for our guardian angels, let them hear us roar. let's show them they live on in our bonds of family, friendship and community and in the infectious spirit that we will inl on the third monday april for years to come. bostonianoud to be a because i am so proud to be of you.d to all [applause]

>> vice president biden, governor patrick, mayor walsh, survivors, first responders and distinguished guests. marks one year from when our lives were changed forever, that none of us wanted, nor a change we would wish on anyone else. each of our paths to recovery have been unique and we at our ownaveled pace, we continue to move forward. they, i will not focus on

past but be mindful of our successes and thank those who have helped us take our first steps, reclimb our first mountains and reclaim our lives. forhe first responders, running into harm's way and giving us the aid that we needed. to the doctors, surgeons and who completely gave of themselves to ensure that our most severely injured were given chance to live again. to all law enforcement agencies who worked tirelessly and quickly to make our city secure again. the physical therapists and continue toho support us physically and emotionally. boston athletic association, the one fund contributors and the countless others who combined gave us the to recognize each day as a new beginning and the hope tomorrow.hter

thank you for your love, compassion and generosity. you have touched our hearts in a way that many times our could only be expressed through our tears of joy. [applause] governor patrick and mayor menino, thank you for your leadership during one of the city's darkest moments. you are both symbols of strength compassion. during the early days, you gave tothe opportunity to mourn, grieve and to reflect, in street and boylston through the creation of the one fund, you immediately provided critical and much needed financial and emotional support. thorpe, lori van damme staff, entire one fund

thank you to your tireless commitment to the survivors and their families. proactive in anticipating our needs and are -- devoted to ach and every one of us on personal level. to the survivors, although your journey has not been easy and long, your still inner strength, determination displayed during these past 12 months have made you an inspiration to many. each step forward is a step away from the past and a step towards new tomorrow. thank you all for exempifying in mankind qualities and bless those that lost their this tragicesult of event. be proud of what you've accomplished. be proud that you've decided to control of your life and be proud that you've chosen to live of you areat each making a difference in the lives of others. president,s of our

barack obama, one year ago, heart that even when our aches, we summon the strength that maybe we didn't even know and we we carry on finish the race, we finish the race and we do that because of who we are and we did to do that know that someone around the bend, a stranger has cup of water, around the bend, someone's there to boost our toughestnd on that mile, just when we think we've hit a wall, there will be there to cheer us on and pick us up if we fall and this the thirdear on monday, the world will return to tos beautiful american city run harder than ever, to cheer before for the 118th marathon and bet on it. president obama was right. here we are, one year later, we and seeboston strong

you on monday. [applause] good afternoon. one year ago, my husband, major adam davis, had just returned from afghanistan where he was on terrorhe war uninjured. we took a long walk into sunny boston and in a matter of seconds, our world was changed forever. difficult to believe it has only been one year. weeksls like only a few and we have a long road yet to walk.

today as a proud bostonian, although adam and i boston three short years ago. the city has stood by us, supported us and helped us heal. together we held each other in face of terror. we grieved in the face of and we grew in, the face of adversity. survivor community is not something any of us have chosen just a part of yet we are that, a community. there were many moments we could through had itt not been for one another. we find peace in providing a cry on, a warm embrace, and a hand to hold in a crowd. know just by eye contact what the other is feeling. for ournkful friendships. and as i look back on this past year, i think of the lessons that we have learned and have no to relearn, that

milestone is too small to alebrate, even walking into nonhandicapped bathroom stall the first time doing a happy dance. little things. i also learned that moods are ouragious, our community, city, our first responders, our physical and mental therapists would not and theirot let us fail and unwavering devotion to strength we stand here boston strong today. i have also learned that it is ok to not be ok, that we still to let ourselves grieve. we can stay in bed, even, for a few days. yet it is that boston strong back outthat gets us and when we cannot find the strength to do it ourselves, we that lift around us us back up. my wish, if i were allowed to

one, is that we use this day not as just a day of remembrance, but a day of action. i wish that everyone who is facing adversity today would that we haveort had. if anyone is wondering what they do, i would you can answer, look around. people in your community need your support. they need your patience and they need your time in dealing with similar situations such as ours. a day when wee all work together to make this world a better place. of all the lesson lessons that i have learned over this past year is that something your life, in anyone's life, can go horrifically, terribly of seconds,atter yet it is up to us to make every single second count after, because, believe me, they do. thank you. [applause]

i've heard it said that people ame into our lives for reason, bringing something we and we are led to

us most to grow return, wellhem in that's know if i believe true, but i know i'm who i am today because i knew you like it, and hold from orbit as it passes the sun. like a stream that needs a boulder halfway through the wood. who can say if i'd been changed for the better. but because i knew you, i have been changed for good. it will may be that we may never

meet again. in this lifetime so let me say before we part so much of me is because i have learned it from you and you will be with me like a hand written on my heart. and now no matter how our stories end. i know you have re-written mine by being my friend. like a ship blown from its mooring like a seed dropped by a skybird

i don't know if i have been changed for the better, i do believe i have been changed for the better and because i knew you because i knew you because i knew you i have been changed for good. [applause]

>> as it says in the book of james, the testing of our faith produces perseverance. perseverance. we have learned that in boston this past year. all of us. we have built it, we have seen it, we have shared it. for the families who lost loved ones, for those recovering from injury of every kind, it is what life is all about now. it is about dancing again after losing a leg, it is about starting a marriage forged in tragedy, is about learning to

care about family and friends. the testing of our faith produces perseverance. is there a tougher test of faith for parents than the loss of a child? or seeing your child badly hurt while you fight pain and injury yourself? neighbors, friends, on this day of remembrance i started at the heart of the dorchester, the community where i was a kid, where martin richard was a kid. the other day i came across some pictures from a neighborhood party a few years back. one picture stopped me cold. there he was with some friends, my arm around a little boy, holding him close. he was wearing a dorchester t-shirt and a mile that could

light up and we are. the little boy was martin richard. a day has not passed when we do not cry over him, but we also feel like this is the right way to remember a little boy with a gusto for life and a caring heart. martin played in his little league with enthusiasm and shared joy. as a coach in that leauge, understanding the importance of never giving up. his older brother gets that. he is an exceptional student, good athlete, a great kid, always eager to help. he is the kind did you want your kids to be friends with. so as his sister. they are teaching us a thing or two about never giving up. by the way, you did not hear it from me, but james is playing basketball again. [applause]

martin would love that, the way he saw the world, anything was possible. all across our city, we are learning that too. we are learning not just perseverance, but resilience. resilience rooted in hope. weeping may endure for a night, but joy comes in the morning. we endure the night, violence came to our city, boylston street and the square, and felt like everyone was hurt, everyone was suffering. down the red line in dorchester, up 93 through somerville and medford, and on memorial drive to m.i.t. our grief drew us a painful map.

in the darkest hour of that night, we looked to our first responders who are always our begin on hope, of courage, of heart. we saw police officers, firefighters and emts running toward danger as they always do, and they always will. we saw medical staff and volunteers tending to the injured. we saw businesses on boylston street children traumatized. our public employees from the city of boston were rushing to find resources. we saw people who came to cheer on the runners instead of running away themselves, running to save the lives of perfect strangers. as the day went on in wheeler to handley of loss, we saw that their lives told us a story of our city. lingzi lu was drawn here from halfway around the world to study, learn, and explore. krystle campbell was always the last to leave work, but she was always there when her

grandmother needed her. sean a. collier was doing what he always wanted to do, building a career as a police officer devoted to community. and martin richard was a little neighborhood kid with a big smile and even bigger heart. together they showed us the qualities of our city that will carry us through. to the survivors, we bore witness to your experience, we gain strength from your courage, and hope for our future. we came together as a city within 24 hours. business leaders, government, philanthropy created the one fund. help came from across the world. people reached out to us in solidarity, offering messages of healing and hope. next week thousands of runners

and millions of our friends from around the world will come to boston. the 118th boston marathon will be a living breathing celebration of our cities resilience. we still hurt. we hurt from trauma, we hurt from grief, we hurt from loss. we hurt whenever violent hits our streets anywhere in our city and our kids become victims. we hurt now as we mourn the loss of two of our firefighters in a fire. a young boston police officer injured at the scene in watertown a year ago was honored for his bravery and is suddenly gone. we hurt when brave first responders give it their all. weeping may adore for a night,

but joy comes in the morning. after a dark night and a bitter winter, spring is here, the snow is gone and the red sox are back, and in a week marathoners will be too, running for martin, for family, for friends, for boston, for america. we are never going to be the same, we are stronger than ever. we've been tested and tested again. we face these hurts with a new understanding of our strength. we have survived the dark night to survive and face the new day. we can believe that anything is possible. this is boston, the city of courage and champions, the city

of hope, and the city of heart. god bless you, god bless the city of boston, and god bless the united states of america. [applause] [applause] [applause] >> mr. vice president, ladies and gentlemen, brothers and sisters, none of us at this podium could possibly add to the testimony of the survivors who have spoken today. i'm just glad to be here with all of you. i'm glad to join in the

remembrance of krystle campbell, and lingzi lu, and martin william richard, and sean a. collier. there are many years till heart from this tragedy, and yet and inspire us with their determination. i am glad for the chance to honor and thank again the first responders and medical professionals and volunteers who cared for and comforted those hurt. the law-enforcement officials who meticulously and methodically worked to solve this crime and find the killers. the many political leaders who put their emphasis on leader and not political throughout that week. i'm glad to have this tragedy behind, and the next marathon is upon us.

i'm glad especially to share in the timeless triumph of our community's response to this crisis. boston's strong is about the triumph of community itself. over and over again these last several years we have emphasized the importance of building community. of seeing our stake in our neighbor lost dreams and struggles as well as their own. sustaining such sentiments as top in the face of the crushing cynicism so prevalent in modern culture. yet for me the thing we witnessed in the aftermath of that vicious attack last year, and that i submit we are here today to celebrate is precisely that sense of community. that in during an transcendent display you and so many others showed last year of kindness and

grace. there are no strangers here. in the days and weeks after the marathon last year we were reminded how few degrees of separation there are in fact between us. i think of the young lawyer on my own staff who finished the route on boylston street equidistant between the first and second blast. the friends who left the finish line minutes before the first explosion because their small children needed a nap. or the friends who did not. they are no strangers here. i see nurses and doctors and elevators at the cbs who met on the third shift hearing for the injured. our daughter was walking toward boylston when the first bomb went off. i carry in my pocket today the photograph of martin richard

holding a campaign sign for me when he was three years old. he got around, mr. mayor. [laughter] there are no strangers here. the day after the bombing i met with karen rand, her boyfriend and his brother in the hospital while she waited to see if doctors could save her leg. i did what i could to encourage and support her, and she were reminded me that we had met on shelter island. last summer when a street in chicago, where i was born and raised, was renamed for me, who should come rolling up in her wheelchair to support me but the same karen rand. there are no strangers here. we are not strangers. we are all connected to each other, to events beyond our control, to a common destiny. we share the same fears over the same hopes, the same community. we are all caught in an inescapable community.

whatever affects one directly, affects all indirectly. we are not strangers. we are, in the end, one community. i hope we hold tight to that. as we remember the dead, and encourage the injured, we remember the community. i hope that we remember the courage of the first responders, we remember community. i hope that as we thank the medical teams and the public officials, we remember community, because it all adds up to an enduring example of the power of common cause, and of working together and turning to each other when we could have easily turned on each other. indeed the power of love itself, that is when a community is.

i am so proud to be a part of this one. god bless you all. thank you. [applause] >> i have been part of some

incredible tributes, but i have never witnessed a tribute like i have heard today. [applause] we are honored to be asked back. say to those quotes survivors. you have survived and you have stored -- sword. soared. you are inspiring. i have never heard anything so beautiful as what all of you just said. [applause] you are really good.

i am serious. it is remarkable. tommie, i can tell you one thing. there is not a single person whose heart you did not speak to. they understood every word you said. you have been my friend for a long time. the reason they heard it is your heart is as big as the city. it is an honor to be with you. what -- first of all, thank you for having yield and me. what an incredible job you have done. this is an important day you

bostonians do not understand. it is important day for the country. the victims.of this is a bittersweet moment for you -- knowsny of rings --anniversary brings every memory back in such sharp relief. you would almost not have it happened. you, thank youo for your courage. i hope you take some solace,

again, from the outpouring of love and affection of all the people in this great city and the country. but it is still difficult. i know that no memorial, no words, no acts can fulfill what you yearn to fulfill. it takes incredible courage for you to be here. they see you. they hear you. they know of you. the fact that you are here, i promise you, gives them hope that maybe, maybe they can overcome what they are facing right now. the one thing you have vastly

underestimated what you're doing for so many people in dealing with your own grief with such courage. you inspire them and we owe you for just being back. and to patrick and adrien, louise, david, all the survivors here and elsewhere, you are living proof that america can never, never, never be defeated. you are the proof of that assertion. so much has been taken and you have never, never given up. and all the survivors were not here, even those tough days lying in a hospital bed -- i remember looking up at the ceiling wondering, god, i cannot do this anymore. i don't want to do this anymore. and wondering how much more can you take. but you mustered the courage and you got up and you kept going and you brought an awful lot of other people with you as you walked on on a prosthetic leg.

and you are here. you are undeterred. and you are unyielding. that stubborn perseverance that the mayor spoke of in the face of unfathomable challenge, that is just your courage. that is just courage. my mom -- they kid me because i talk a lot about my mom -- but my mom was a great old irish lady. she told us from the time we were kids to each of my siblings but to me, joey, you are defined by your courage and you are redeemed by your loyalty. the four of you are the purest example of my mother's standard i have ever met. you are defined by your courage. and you are redeemed by your loyalty. you'd didn't just take care of yourself. you reached back and help so many other people.

in your loyalty, you inspired this great city. and even though i am not a boston fan, i love you guys, man. [laughter] what an incredible city. it really is. you are an incredible, incredible city. i know politicians are not supposed to say that, if you are not a red sox fan. you get the living hell kicked out of you. that was a good reason not to say you are not a red sox fan. in the face of america's resolve, not a liquid happen on 9/11, you become the face of america's resolve for the whole world to see. i have traveled over 900,000 miles just being vice president, all around the world. people know all about you. they know who you are. they know your pride. they know your courage. they know your resolve.

they know who you are. that is why the twisted, cowardly terrorists who acted here and in other places do what they do. they try to instill fear. they try to instill fear so that we will jettison what we value the most. and what the world most values about us, an open society, our system of justice, our freedom of religion, our access to opportunity, the free flow of information, ideas, and people across the country, the willingness and capacity to gather anywhere and in any numbers and say what we believe. that is their objective. that is what they attempted to do directly in boston, is to make us afraid. not just boston afraid, but to make america afraid. so that may be, maybe we begin

to change our ways. that is the objective. the very soul of who we are. they figure, if they instill enough fear, we will change. and it infuriates them that we refuse to bend, refused to change, refused to yield to fear. you are boston strong. but america is strong. they are not unlike you. all around america. that is what makes us so proud of the city and the state, what makes me so how to be an american. we have never, ever, ever yielded to fear, never. just look at what you have done over the past year recovering

from the attack. you form support groups, established foundations, colleges set up scholarships, local businesses supported charity drives, houses of worship have provided comfort and so much more. the organizations like the one fund have gone above and beyond to raise millions of dollars to help the families of the victims, the survivors and the city recover and rebuild. and you have taken greater pride in your community that stood by you, protected you. pride in the world's greatest doctors, nurses, emt's, members of the national guard, veterans, teachers. of course, pride in the world's greatest police officers and firefighters was mentioned repeatedly today. [applause]

last year, i had the great honor of asking to speak for officer collier at m.i.t.. thousands of men and women in uniform stood in line as far as the eye could see. it was incredible. they showed up because they shared a fundamental obligation to serve and an unbreakable sense of duty. it is not just what they do. it's who they are. it is who sean collier was, patrolling to protect a campus and community that he loved. it is also what officer dennis simmons, who put his life on the line last year in a shootout to hunt down the killers, he suffered a severe head injury and ultimately he succumbed. and also, it is the

firefighters, michael kennedy and ed walsh, had recently to deal with when they responded and their grieving families knew every single time they responded to an alarm, something like this could happen. yet we know there is not a single moment, not a single moment of hardship that america has not been transformed by, made stronger by. we know this for certainty because it is the history of the journey of america. it is written in the not just in the brave men and women we honored today in uniform, but anchored in the end on thing courage and uncommon resolve of ordinary americans. that is the incredible thing about america.

we teach our children this in schools, that these are qualities ingrained in our national character, stamped into our dna. they animate our national identity and they continue to define who we are. and last year's marathon, the whole world witnessed ordinary citizens doing extraordinary things. shopkeepers delivering blankets and water, doctors running through the finish line, to the hospital to care for the people who had been wounded, residents and store owners opening their doors to folks for shelter. and what has become an iconic photograph, carlos in his cowboy hat pushing jeff ballmer. that photograph -- [applause]

that picture is hanging on walls around the world. carlos did what you bostonians do and what americans do. carlos ran to him rather than from him. a normal human instinct is to run from, not to. he wasn't a firefighter. he wasn't a trained medic. he wasn't a police officer. but yet he instinctively ran to. that is what bostonians do. that is what bostonians did. and when the 36,000 people line up to start the marathon, you will send a resounding message around the world, not just to

the rest of the world, but to the terrorists that we will never yield. we will never cower. [applause] america will never, ever, ever, ever stand down. we are boston. we are america. we respond. we endure. we overcome. and we own the finish line. god bless you all and may god protect our troops. [applause] ♪

♪ ♪

while the storm clouds gather far across the sea allegiancer

to a land that's free let us all be grateful as we raise -- prayer god bless america land that i love her and guide her through the night with the light from above from the mountains to the prairies foame oceans, white with

my home, america, homeweet god bless america, my home, sweet home ♪ [applause] ladies and gentlemen, we ask that you join us in a moment of silence.

>> thank you. [bells ring] [bells ring]

[bells ring] ♪ ♪ by the dawn's early light

that so proudly we hailed last twilight's gleaming broadbroad stripes and stars -- the ramparts we watched were so gallantly streaming and the rockets red glare the bombs bursting in air gave proof through the night that our flag was still there oh say does that star-spangled banner yet wave o'er the land of the free ♪d the home of the brave ♪

[applause]

[bagpipe music]

♪

♪

♪ is pleased to present our winning entries for the documentary competition. encourages middle and high think students to critically about issues. winning entries were based on the question what should congress consider as their priority.

believesd place winner congress should make education their most important issue. >> i want to be a ballerina teacher. >> i want to be a soccer player. >> i want to own my own hair -- >> many of us are introduced to the american dream. the idea that we can become whoever we want to. but even as our schools are improving, reform ideas have been anything but equal. america has to deal with rotter economic and social questions, but we can't use the reality of poverty as an excuse to avoid responsibility for educating children. helping them beat the odds. recapturing the dream begins with education.

[bell rings] every weekday at 2:04 p.m., students at troy high, one of the best schools in the nation, finish their course work and go on to enjoy a variety of opportunities. >> the troy school district is successful because of the culture of our city, the culture of our school. it's a culture of high expectations and excellence. >> i think the strength really lies in our staffing. we have really made a concerted effort over the time i have been in the district of 31 years of hiring quality, quality staff. >> our success shows that education in america is fundamentally not flawed at all. in fact, our success shows that the system works when it's properly supported. >> the current state of education in america is really dependent on where you live. in communities which are traditionally more underserved, the education system is really

lacking in a lot of capacities. kids in classrooms here are in elementary rooms full of 40 to 45 kids, whereas their peers in more affluent communities 10 miles down the road are in classrooms of 20 to 25 students, typically with an aide, as well as other specialized programs. >> this anecdotal evidence reveals the stark disparity between american schools and is indicative of the persistent income achievement gap, a term which refers to the lapse in learning between wealthier and poorer students. research and data not only support the existence of such a gap, but show us the extent to which many of our schools are failing. >> your income level plays a larger role in your academic achievement than your race. so what the stanford center for education did is they looked at standardized tests, and they saw that the test scores between affluent and low-income students has grown by 40% since the 1960's. >> the gap in test scores between poor kids and wealthy

kids is now nearly twice what it is between white kids and black kids. >> fully 96% of kids from the highest income group complete high school -- it's just almost a given, 96% -- while less than 2/3, only 63% of those who come from the lowest economic quartile, do. >> according to the education department, many poor public schools do not pay teachers and educators as much as wealthier schools just a few miles away. >> that means the u.s. has these huge inequities between wealthier districts, typically in suburban areas, and high-poverty areas that no other advanced nation tolerates. >> think about what that does and how it hurts us as a country -- in jobs, in terms of our international competitiveness, and what it means for lives of children, families who are trying to escape poverty and trying to escape psycho-social failure. >> this is not the american dream. and so the american dream says that that child, that student, that family should be able to

elevate itself, lift itself up out of that really terrible situation through the public education system. you perform well in school, you can go on to do anything you want. education is anybody's ticket to success in this country. we need to make sure it's always that way, and we need to provide those tools for students and the youth in our country to always have those opportunities. that is the root of the american dream. it really is. >> and it's frustrating to know that i can be learning all of these things and i can be doing all of these things and i can't, and people think that people from -- that that children in schools are stupid and brutish because of what they see on television. and it's not true. we want to learn. we want to be able to do what the other children are doing. we want to have the same opportunities, but they keep taking them away from us. >> we got so many gangs and so

many drug dealers hanging out on corners that could have been or should be productive kids in school, students that have a desire to do something. these guys are not dummies, but when you got a failing system, you create dummies, you create kids that don't want to do anything because they don't have a future to look forward to. >> no matter how you look it, the issue of educational inequality is a dire truth. so what can we do about it? >> congress, you need to listen to your educators. you need to hire educators for your government positions, your advisory boards. >> you must somehow have highly qualified teachers everywhere, but how do we get them? you have to convince people to do the first and you have to convince them not to leave. a lot of people leave teaching because they find it very stressful and an unsatisfying role. >> i would really hope that they would continue with their title i support. >> the more we can address all of this at the elementary level, we will have less intervention and less discipline problems and less failures in our middle and high schools. >> congress really needs to look

at and evaluate how they're going to fund out-of-school-time programming. >> we're running after-school programs. we're running programs on the weekends, on sundays. >> this is our money. this is our school system. the state of michigan needs to have the ability to run its school system, receive its funding internally. >> as we have seen, there are countless potential solutions for the education crisis. but, congress, what really matters here is that you prioritize the issue, that you make it your greatest concern to provide a high-quality education for all children, because we, the youth of america, are the future. >> our children only have one chance, one chance to get a great education. they can't wait for poverty to magically disappear. in fact, for them and for their parents, education is the way out of poverty, and they don't want to waste a minute. they are chasing the american dream with everything they have, and we have to help them get there. we all share in that responsibility. >> to watch all of the winning

videos and to learn more about our competition, go to c-span.org and click on studentcam. and tell us what you think about the issue this student wants congress to consider. post your comment on studentcam's facebook page, or tweet us using the hash tag #studentcam. >> a discussion on proposed changes to the tax system. the women in the world summit. including a some -- pop singer. a conversation with heller clinton. -- hillary clinton. and stories of bombings and chemical attacks in syria. here is a little of that event. >> we were -- me and my cousin, preparing activities for the kids. working with them.

we heard on the internet that a chemical attack -- after an hour, we heard of a similar attack that hit my town. the missiles -- you know, the bombing -- we didn't recognize that these balmy's -- bombi this nightn were different than other bombings. they were carrying gases. after half an hour, we started feeling dizzy. our noses and eyes were running. we recognized there was something different in the air. we rushed to the rooms and woke up the family members.

we tried to help them. put scarves on their noses. >> were your throats and eyes burning at this point? >> yes. our noses were running. we couldn't see well. we had difficulties breathing. we didn't imagine it would be worse. we decided to go to the hospital to help. we used to be nurses at that hospital. we rushed to the hospital and try to help. on our way, it takes us usually five minutes. but because the bombing and shelling, it took us 20 minutes. i remember when we arrived at the neighborhood, i saw thousands of corpses on the streets.

women and men and children. i remember screaming and yelling out. saying, oh god. i was so shocked. i didn't imagine to see that view. >> this is one hour. >> it is a pleasure to be here. i asked him how many times he had been here. he said, more than 100 times. i thought i would start by remembering that you presided at

the home for a horrible financial crisis. i thought i would start by remembering that you presided at the home for a horrible financial crisis. we were a country with a sophisticated financial system with the people running it. it didn't turn out to be as good as we were led to believe. in some sense, the chinese are facing what is regarded as a potential for a financial crisis. but cap -- perhaps with less expertise. they do have a few resources that they need them. i wonder if you could talk about how big a risk you think there is in shadow banking or credit boom or housing. how well prepared they are to manage it if it hits. >> thank you david. it is great to be here. that was a question i got a number of times in china.

everyw is, of course economic system known to man, every economy from time to time, will have financial crises. the roots are almost always government policies and then they manifest themselves in the banking system. we have an economy like the chinese that relies on debt financing for real estate, plant investment. the problem is inevitable. havecertainly are going to bad debts. in many ways, this is similar to

in 2000.ened in 98 and part of the bad debts are related to the financial crisis because of their fiscal stimulus program and policies. the of it is related to shadow banking. are, you know,t in that market to the private sector. funding.it, municipal the way i look at it is that first of all, i don't think capacityubts that the or commitment they have to prevent the failure of systematically important companies -- today, the problem

municipalities. estate owned -- state owned enterprises. the public do not have the leverage. the central government has huge capacity. today, the things that i tell in the system with diffuse decision-making, they need clear lines of authority. some tougho make decisions about which institutions are systematically important and which are not. whether the losses should be shared with market participants. they need to make it clear where the government is on the hook and where it is not. i'm not making light of the current situation. i think it is manageable. is the floridaus

government policies that led to governmentthe flawed policies that led to this. is a triangle between the banks, the government, and state owned enterprises. dealing with that. the other, a very significant problem, is the system of municipal finance. which is overly reliant on real estate sales. municipal governments taking land from the farmers and selling it to developers. they need a new system. it is not sustainable. they need a new system of municipal finance. it it is easier said than done. right now, it doesn't work. it won't work unless there is a new tax system. fiscal reform. what happens is mayors have huge

obligations and do not have access to sources of revenue. enough sources of revenue. what they are doing is taking land and selling it and funding it in the shadow banking market. from banks, on a short-term basis. it will take a while to fix this. fiscal and to take tax reform. the leaders understand it. they need to manage their way through this period while they do something that is going to be -- >> it sounds like you could have a few big bumps on the way to a better system. like the state of illinois. that the chinese economy, i wouldn't compare with the state of illinois. we have some very significant

problems. china does -- has their own problems. i think they, like any economy, will have bumps on the road. to step back and look at it more there is a huge need in china to develop a new economic model. the administration is committed to doing that. they put their credibility on the line and laid out a very broad program to do that. it is easier said than done. to take the economy and developing new economic model and rebalance it. you can to doink

something like that without significant bumps along the way. >> to what extent - have the transformed into changes in incentives for local government? we talked about how, if you wanted to be promoted, you had to produce growth. top is forc at the balanced growth. have they changed the incentives for the local officials? it will take a while to do that. the incentives are important. the environment is an area where it looks like they have changed. have the institutions to deal with environmental issues the way we do. they don't have a strong, you know, protection with regulations that can be enforced. the approach that the

administration is using is making the environmental protection, clean air and clean water, an important part of the way the of valuing officials. -- they would go through their litany of what they had done with their gdp. job creations. now, in addition to that, they are all talking about the environment. if they believe that is going to impact their career, it is going to be a very important part of their performance. it will make a big difference. >> did they have measurable targets like reducing particulates? >> that is not clear. that is clearly something that needs to be done. -- i am frankly encouraged.

i don't believe it is rhetoric. to do this if it is going to keep its credibility. >> you have been working a lot on the environment. talk about something that convinces you this is more than just press releases. you, to me,st given the best example. further, if even five or 10 years ago, somebody had told me bees are the things china is going to do in terms of investing in clean technology and shutting down dirty plants, i would expect them to have made more progress. is despiteppened some extraordinary steps, it has

been blown away by the growth. there is a real understanding today that the quality of the growth is much more important then just ramping up gdp. the chinese people are demanding it. it is the big issue. remember, i was there at the end of february. when i was there, you could hardly see the sun. was, you know, the rating is -- thedanger zone leaders are right there in beijing breathing the same air. need.is a huge

they are doing important things on resource taxes. they are doing a lot of things. there is no doubt they are serious about it. >> one of the things you mentioned to me and came up this morning, in the leadership period, the role of the party seems to have changed some. talk a little bit how the role of the party is compared to the last couple. >> the party has always been predominant in china. i think some americans -- because when we talk about reform, we are thinking the chinese may be in the back of our minds. they are trying to create a system like we have. so when they look at market-based reforms, these are reforms that are good for china and us. when you look at what they are

doing in modernizing the government, it is good for china and us. it came from a very prominent and powerful family, a chinese communist party. he sees a strong party is critical to him being able to achieve successes in the reform areas he is pursuing. he sees the party is the only strong institution. he has done things and doing things increased the credibility of the party. and whole lot of things including very, very strong anticorruption campaign.

he is making the party -- as someone who has been going to beijing a long time, i hear in the conversation with officials, you hear the party mentioned much more frequently than in the past. >> is that a substitute for government? is he trying to break the gridlock of government? how do you build a strong government if the party is being so much -- >> that is the $64,000 question because what happens is -- if you look at the reforms, most people in the u.s. and most of the press are focused on the economic reforms which are very broad in scope and extraordinary which is all about giving the marketed decisive role. it is good for china and us.

it is also a huge agenda in terms of modernizing government. the institutions of government because china does not have the institutions, the governmental institutions that it takes to govern a country with an economy as big and diverse as china. there is work on restructuring. part of it is a structural issue. take the ministry of environmental protection. in certain areas, it is going to take more centralization which is counterintuitive to many americans who think there is already too much authority and top-down authority. how do you regulate the environment if it is not done

centrally when you have consistent rules at the local level that are enforced? part of it has to do with the legal system and where due process and the role of law and restructuring the disciplinary process who my counterpart has done. there is a catch-22 which is the party probably is the only organization in china that i strong enough to get these thing -- that is strong enough to get these things done because there are huge vested interests.

is it less about hard power and more about trying to clean up the system? background, those who have not been following this --sely, they have been led i he runs the central disciplinary -- to go after the

tigers, not just the flies. in terms of what they are trying to accomplish, first of all, there is no doubt in my mind when you look at the chinese people and the issues they care about, right up there with the environment is corruption. property rights. clean air, clean water. there is no doubt that this increases the credibility of the party with the people. two, to the extent that

some of the people being -- ared our senior senior, will lessen resistance to reforms. i believe they are serious about solving corruption. althoughrstand that arresting people for past transgressions will strike fear into the heart of people, this is a systemic issue. one that has to be changed through long-term policies emphasizing values and integrity. changing incentive systems.

part of which will be paying underpaid government officials. part of it will be having clear rules on anticorruption. legal system that is more even as it enforces the law. a big part of it is doing what they want to do in terms of having the market play a bigger role in the economy and government playing a smaller role. because i think the current government play --h a big role was again >> so there are twin

>> first of all it strengthens the party. there's no doubt that i think the vested interest in state owned enterprises and think the fact that some of those people have targeted will help get reforms done. some think they can't have capitalism without also having freedom. the chinese don't buy that argument. but do you see a tension there, are they going to feel pressure freedom?ore political are these demonstrations a manifestation of a restlessness among the chinese people, or if deliver the goods and clean air and safe food for your reeducationew

camp -- less reeducation camps that they get way -- >> first of all, boy say that she is very popular -- very popular in china. most of the people, almost all to are focusedlk on delivering the goods on these toer things that are going be very hard to deliver on. ofn you talk about the sorts things that he's taking on, they're going to be very difficult. my own view has been for some be that it continues to thatystem is evolving, and ultimately, as you move to have market driven economy that is as integrated as china is with world that the

system needs to evolve to become inclusive.nd it really does. i believe that the government won't achieve the success that expected to achieve unless they move in that direction. i think there will be pressure that direction. this is a pragmatic leadership. reasons why i've as much as ichina have over the years is they are, focused on their reforms objectives and are practicing mat ib, they're not locked into ideology . what willoking for

work. andthe system won't evolve will need to evolve. >> when you worry about china, about what could go wrong, what's on your worry list? picture to me, the big is this. the big picture is that this is country that has accomplished an extraordinary amount over the last 30 years, and they've done thatth an economic model is run out of steam in my judgment. just plain isn't sustainable. a bunch ofget economists, we can sit around got to dobout they this, that and the other thing. when you talk about what they in terms of reforming market, removing immigration restrictions, all of

reforms, theocial government reforms, the economic reforms in order to unleash the potential of the private sector, to reign in the state owned to reform the financial system, at $9 trillion to change the model is a do.icult thing to theo me the good news is leaders understand it. it's not like talking to u.s. sometimes where guess what, the problem doesn't exist. twawk them they are very pragmatic, they know the problem is this, they talk about it. so the question is are they going to be able to get the done. toause, and here i'm going make a very big important point, probably the most important

will say,ink i because when you look at the the issue and the scale taken on, and the personal credibility that xi has put on the line, very unprecedented for a general be the onetary to that heads up this central reform in a leading group. reform.mic on.hey've taken it but the question is, it's so do this, and they've done a lot. whetherwe going to know they'll be successful or not and to me it all comes down to competition. plain and simple as that. mean inside china?

>> define competition, economic competition. so the things i'm to look at are, first of up, are they going to open the key sectors to private sector competition. talking about energy, we're talking about finance. theynk they will, but are going to do that. secondly, are they going to ownedin the state enterprises and continue the reform of that, which isn't an to do at the time when they're really underperforming and you take and specialubsidies advantages and regulatory protections and put them on a them playing feed and make compete. that's going to lead to unemployment in those areas. it will get back to what it will do in a minute. which i think is really important, is are they foreign open up to competition. and i think that is critically important. there are two groups of

reformers in china who say reformers, many of whom are the domestic companies that longll for competition as as you let the foreign capital in, but let us run our own companies. so that's why i have been as thised as i have been on bilateral investment treaty, just like they used wto to thrive economic reforms internally, i think this what the current xi like to do.ould >> the treaty to introduce more competition within china because that's what you'd have to do -- >> yes, because it benefits terms ofmendously in increasing the efficiency. i don't think the reforms will be as successful as they need to be without it.

and it's the only way you're healthy, strong companies in china. look what happened in every industry, every country when you protect an industry. we protected our auto industry import quotas and got.what we so i just think that's important. worry about is i big agenda and vestedill be strong resistance,ological political resistance, that it's going to take some doing to get it done, and it's complex. reforms.equence these >> so it will be difficult, if growth is slowing and they're worried about not creating jobs and then you tell them we want you to take away

from the protections from the owned enterprises, i could see the dynamic. be, right now i've been looking at what they've growth.ing about i was very encouraged by two premiere saide i was there. of the growthe slowing down, and i don't see into theirng back of lendings stimulus, building a lot of infrastructure, some of which needed. so i think they recognize you growth and quality really, inounced this pilot at it as a massive

project or program between the stocks exchange and exchange,ai stock which will lead to a lot of two-way investment flow into each market and if it works it could be replicated with other markets around the world. so they're serious about doing this, but what i think we all about is you know done.sy it is to get >> one of the things i've noticed when i visited china not nearly as much as you, you talked to very wealthy people, orcessful entrepreneurs companies that serve these people, i sense a great deal of insecurity among that they're afraid they will be accused of toruption or they all seem be, i'm buying a house in vancouver, making sure my kid goes to harvard and gettings a green card.

am i wrong about this? to private sector people, is there insecurity about their future in china? >> well, i wouldn't lump everybody together. quite a vibrant .rivate sector friends i talk to my about what they're doing in taking onanking and the banks, there are a lot of people areor they reallyecause believe that this is a thernment that understands future of the country is the .rivate sector xiping there was a big fa says

the private sector as opposed to state enter surprises. other course there are people who have accumulated a lot of wealth and people that benefited from the vested interest that have got concern. is, whoink anybody who understands china, and i got to areeve most people that there understand it better than do, recognize that these easy.s art going to be >> what role does the people's liberation army play in the reforms? are they an obstacle to this? because they are a vested or not?, the, that asy that state ownedthe enterprises or government owned

oferprises, you have a group central government owned companies. owned talk about state enterprises, that's what i've been focusing on, but there's basically 100,000 plus entities in china owned by different pieces owned by different entities. and some of them no doubt owned addition to. in municipal governments and so on. those entities need to be reformed. underperforming. i frankly think that they will will belot of them broken up, be sold, be taken

youic, restructured because look at the pressure on governments to pay down debt right now. think that's going to be working in the favor. >> because they all own some of these enterprises? >> oh, yes, because one of the that when municipal governments have been under to fulfill their mandate, their go-to move has either been to take real estate and sell it to developers or you know, a local company which they own all or of to build some something,ure or do some of which is not commercial. so i think they'll definitely be pressure. >> let me turn you to the u.s. the is it that you think u.s. should do, either business

or government, to maximize the chances of successful reform in them but alsoit benefit us and the rest of the world? started off with the that to achieve the important things we want to globally in terms of the economic objectives we have and environmental objectives, we want china to succeed with these reforms. now, many people don't agree with me, and there are some today that always thought that what was good for china economically are beginning to question it because the relationship is becoming more complex. thanlly believe now more ever we need to, because there's the of the detentions in national security area and the

foreign policy area, it's really important to thicken that relationship. that wequite important have complementary policies. would say are,i first, a bilateral investment trading. step back even further, we have a lot of shared interests. some things where we've got differences. and we need to figure out how to differences. we're going to be competing in certain areas and other areas we we can't lete out, that preclude cooperation where it benefits both of us. and having shared interests is themnough unless you turn into complementary policies. so i look at the bilateral and i look atde if china identifies where there is not market access, that is going to

andto the transparency predict ability of the investment process. narrow those areas, rather than carving out big parts of their economy that srnt subject to competition, that's going to be really good for them of helping them have a more efficient economy and build stronger companies. the u.s. needs to negotiate hard, but recognize big step forward and take a reasonable approach on trabs is. '-- transition. and i believe that a bilateral willtment treaty significantly increase u.s. investment this china because increase trust and understanding, and i actually investmentng cross on an international treaty basis a large extent away or help insulate pretty the cycle for the ups and

tensions between beijing and washington. so i think we should welcome chinese investment to this country. then of course in the environmental area, i think this most people understand, i mean part of the reason why the paul son so hard, sustain able economic policies in china and the u.s., and sustainable urbanization is one of our thrusts, because the next million people, it's hard to get your mind around that going to the cities is going to drive global not only economic outcomes but environmental outcomes. we -- it's very important, i happen to

of the climate is sort overriding social and economic issue of our day. what i believe. and i don't think there's we can do in toughs by our self to solve this problem. worked with a number of developing countries, i think the chinese leadership gets this to a greater extent than any other major developing country i can find. and i think there's a huge opportunity as the two biggest emitters of carbon, the two users of energy, for us to work together and cooperate. fit, noe's a natural one innovates like we do, right. got our major silicon valleyur all the financial, legal infrastructure we have. out and test new technologist quicker and has a

faster growing energy market than the chinese. but what are we doing, we're exporting coal to them and slapping big quotas on when they panels sell us solar cheap. so there's a lot of policies that are hard to explain unless you look at politics. but there's i think a lot of cooperation. >> i think we can turn to questions. we have about maybe 10 minutes. a lot of people here, so tell us mo you are and remember that a question end question mark. can we have a mic over here? the mic isn't working. >> [indiscernible] we have difficulties narrowing

the gap. do you think that ability will help benefit china for them to have potential future trade negotiations or does this agreement -- what kind of impact will this agreement have on china? >> you are referring to the transpacific partnership. the question is are the chinese threatened by this or -- >> i happen to believe it is very important dealing with china to be -- for us to be strong economically. to be strong diplomatically and

strong militarily. and it is particularly important to be strong economically, diplomatically, militarily in asia. number two, i see the tpp is very important, top priority because it is focused on economic integration. it is looking at behind the borders and some of the other restraints -- moving the other restraints the competition. i think if we get a high quality tpp, i would be surprise if the chinese don't want to become part of it. i think we should welcome the chinese. i think they would benefit and we would all benefit. that is my view and i think we are starting to hear them talk more openly about being part of it. that is something else that would drive reform and be quite helpful.

>> do you think the chinese attitude is that the u.s. has to choose between china and japan, particularly militarily or do the except we could be allies and partners with both? >> they look more broadly when it comes to that. very broadly, they absolutely accept we should -- our relationship should be based on mutual respect and there will be differences. and that those differences should be managed and preclude cooperation. this u.s.-japan, chinese-japan conflict and tension is quite disturbing because i think the two forces that are in conflict with each other, you see it in the pacific, one is need for economic growth which china and japan needs and all of asia needs will all benefit from it.

what is in conflict is that, putting that in jeopardy are the political tensions. to me, that is disturbing. it is just really, really important that we have great communication. the u.s. government keeps pushing. we have to have political level, senior level, right down to the boat captain so you don't have a conflict. i think that is very important. there is a lot of history there. there is a lot of sentiment and nationalistic sentiment in both

countries. i wouldn't underestimate the significance of it. when i talked to some of my most -- to some friends in china, people that have gone to u.s. schools, people that have had admired our system in our country and that raise that issue, they talk about the history and we were allies in world war ii. we don't get it. the fact is we have a defense treaty with japan. they are an important ally. we have individual disputes, but we don't take sides. we try to be neutral. this tension is something i worry about.

it is a concern. >> in the back. >> my name is doug. recently, the treasury issued advisory to china to not let its declining currency values get back into play when there is concern about unemployment. many independent economists say it is pretty clear to me only when they have a market

determined currency are they going to have really globally competitive capital markets, they are going to have an economy that is where the market is playing a decisive role. are they going to be able to move up the chain and do all the things they want to do to rebalance the economy? i am not the only one that thinks that. you can do two things. you can keep intervening in the currency market or you can speed up moving to a process of market determined currency. if you keep intervening, you're going to keep accumulating foreign exchange reserves. -you are going to be funding the structural deficits in the u.s. and japan. you are not going to be rebalancing your economy. or you can move the had and do things for your economy.

so, i clearly think that they need to take action. this is always a hot button issue in washington, d.c. one of the reasons why -- when i am outside of washington, i don't talk as much about that because it is easier to understand. i don't -- i am not downplay the importance of currency, but i think even more important are the structural issues that lead to imbalances. the structural issues cause them to over save and the issues that -- we cannot blame the chinese for the fact that we borrow too much as a government and as a people. we have policies. >> david must be doing well. it's coming.

>> thank you. you mentioned political reform. the evolution is needed. this comes at a time when china is cracking down on the flow of information, internet, media, people who even agitate in favor of government policy could find themselves in jail. is this undermining the need for diversity, transparency, working against the economic policy? >> i am an american and i love our political system. i think that i would like to see -- i think it is important that they move through something that is more open and more inclusive. what you have seen is -- you have seen the administration, at the same time they have put out

a whole set of reforms which are badly needed. they have also said we are going to deal with a number of hot button issues like the one child policy, labor reeducation camps, they have focused on the major issues of food, water, air, corruption. they have done that at the same time that they have cracked down on those things. so, they have -- i say they are dealing with issues that the people care most about today. again, i don't think that is a winning formula. i think over time they won't be as successful as they are going to be a less they have a more