was all about concentrating wealth at the top, removing regulations anywhere you could and keeping wages low. they promised us eventually the clouds would burst. they did not. our economy nearly did. we need to return to the economics that actually work. we have so concentrated wealth and power in the hands of so few that it is literally taking opportunity out of the homes and wallets and the neighborhoods of the many. the great bruce springsteen once asked is a dream alive if it does not come true, or is it something worse? we have better choices to make. there are only two paths forward, and only one of them is good. one path is a sensible rebalancing based on the common good we share and our concern for one another in building an economy that works for all of us

and the other path is pitchforks or stones or rocks. more of them in the hands of more and more unemployed young men. i vote for a sensible losti vote for a sensible rebalancing. we are a great and generous people. if you have any doubt where america is heading, talk to our young people. you really need among them denying that climate change is real or that the government to do a thing about it. you rarely meet young people who want to discriminate against gay couples. our future can be better but we need to act like americans again and together we well, together we must and together as americans, you and i are going to give our children a better future that all american kids deserve. i need your help, thank you. [applause] [chanting o'malley] thank you, god bless.

>> does he need a microphone? >> governor, thank you so much for being here. i am a retired educator with over 40 years of experience. my question is this. i appreciate your position on early childhood education, pre-k. my question would be, the you have thoughts on how to fund it? as a school board member, we struggle with resources to be able to a conflict some of the mandates -- to be able to accomplish some of the mandates. gov. o'malley: in our state, we realize that the building of the best public schools in america was not a matter of doing less, it was a matter of doing more. i believe that true leadership is leadership that forges a new consensus in order to get things done. unlike what just happened in

iowa, when i was governor through eight years of recession, we actually increased school funding at 37% -- by 37% in the state of maryland. [applause] we saw the return right away. i believe the federal government needs to play a greater role and i think we can play that role in expanding pre-k and encouraging other states to do it. this is a shared responsibility, it is not just be better on government, it is your state as well. in our state, we passed an -- a progressive income tax. we gave our kids the best public schools in america five years in a row. you get what you pay for. >> governor o'malley, i am excited to hear you talk about early childhood education like that. here in iowa, even if our governor does not know it, we really do care about it. people around the world are a

lot like us, they want a better future for their kids. i had an opportunity to hear secretary clinton mention an initiative on providing nutrition and fun for free k around the world -- for pre-k around the world. would you also working to an initiative if you were to become president to give people around the world and opportunity for education? gov. o'malley: the question was about making the investment that we need to in sustainable development the world over. i gave a talk, you can check this out online. i gave a talk about america's role in the world. i believe our role in the world is to lead by example. the rise of a global middle class is in the best interest of our prosperity and security as a people.

there are other ways to do it besides waiting to weep -- until we are back in two a military corner. we need a new policy of engagement with like-minded people. we need a new strategy that identifies threats before they arise and works with other nations to defuse those threats. we need to dial up diplomacy and we need to dial-up sustainable development. we are the leaders in that and that will make our planet safer and a better place for our kids. [applause] >> governor o'malley, i think secretary clinton and senator sanders -- [inaudible] [laughter] i think it is time to talk about your generation being in charge

and i think you ought to make a stronger point out of it. gov. o'malley: talking about my generation. every election is about the future and usually in the democratic party, what happens in iowa is after you get a chance to meet everybody, usually -- you usually will down the field. in a democratic party that has a pull toward the future, that has -- that inns up being a choice between the inevitable frontrunner and the voice of a new generation that most of the country has not heard of. i have been a 25 of your beautiful 99 counties and i intend to go to the rest of them before this campaign is over and that is our theme. it is about new leadership, a new perspective. our world has changed. his is not the cold war -- the this is not the cold war or vietnam. >> could you go into more detail about your energy plan?

how you plan to create sustainable energy? gov. o'malley: how do we get to a 100% lean electric grid by 2050? let me give you a couple factoids. here in iowa, you're already making it happen. 15 years ago, this was not true but today it is. 30% of iowa electricity comes from clean iowa wind. [applause] that is in a short. of time. the great thing about those big plays is they are to big -- they are too big to import from china so we make them right here. the governor of hawaii just set a goal of moving hawaii to a 100% clean electric grid. the governor of california has set a goal of moving to a 50%

clean electric grid. it will require new technology and submit generation nuclear, it will require new battery technology and probably some we have never heard of. in the meantime, with wind, with solar, with designing smarter buildings, that zero homes that produce more energy than they use, we can move to a 100% clean electric grid and just in the nick of time. some of the things we do like the renewable portfolio standards have to constantly go up and not down. that is true of the renewable fuel standard as well. when he to go up so we developed a the next generation that can make our economy go.

>> we want to thank you for the work you did in 2014 in iowa. i want to ask you -- [inaudible] gov. o'malley: the question in essence is this, and in fact this is one of the goals that i have unveiled today in the 15 strategicals for our country increase financial security for every household and get earnings to go back up instead of flatlining. a big part of it is to cut, by at least half, the gap between what men are paid and what women are paid. presidential leadership is important. [applause] there are lots of things that we have done, and other measures, but we are not done. any more than your grandmother was done in securing the vote.

we have to keep moving as a people. did only way we secure a better future with more opportunity for our kids is to care enough about one another now to do the things necessary to include more people in the political and economic life of the country. that is our genius and formula. that is what we need to return to doing. i thank you so much for coming out. [applause] [chanting o'malley!] >> he's a very good and decent

man. i have a tremendous amount of back for him. >> to you think it is a problem senator sanders is the self glared socialist? candidacymake his

viable? >> i think it might be a problem long-term for senator sanders. believe the democratic party has a tradition of pragmatic solutions. i am a lifelong democrat. i believe deeply in the principles of our party. that is why i choose to be a democrat, not just in presidential years but every year of my life. thef you were to become nominee, do you think you could win? >> i am not answering hypothetical questions. problem for a senator sanders? candidate on a

soapbox. don't ask me questions if they require follow-up. >> there is agricultural runoff hurting our waters, rivers, and lakes. they are too polluted. there has been a huge agricultural runoff problem . you until thee administrationr to put the process rules into action which has already been rescinded? >> my friend, you are misinformed.

i was working on that from day one. persuaded five of the states , actually taking action on the land. among them best management practices on farms including crops going from 100,000 acres a year to 420 5000 acres. big upgrades to water treatment plants. it wasn't popular, but it made our rivers cleaner. ofo a halt to the sort development that was being done. this was one we did our very lineto get over the goal in my short time as governor.

there were a lot of things we weren't able to accomplish, but it wasn't for lack of trying. the epa still monitors these cleanup efforts. we actually reduce the flow of , nitrogen by17% 12% intophosphorus by the chesapeake bay, which i believe for the biggest reductions so far, but i hope they will be bigger in the future. guys.you,

>> i am asking you just recently -- briefly. >> if you look over 23 years of public service in a diverse youe and a diverse city, will see them taking action to include more people more fully in the economic life of our city. whether that was the things we increasingually minority and women business participation, but the investments we made in historically black colleges and

universities. understanding we have wrought. -- brought. we cut in half hour juvenile homicide rate. they get put in foster care. that is my life. >> thank you. >> i believe it is a constitutional right to vote. >> there we go. >> all right, guys.

>> good to see you again. thanks for shaking my head. thanks a lot. she is a teacher. >> thank you. >> great job today. congratulations on raising a great daughter.

>> 1, 2, 3. >> thank you, governor. see you tomorrow night. >> how have you been? >> good. how have you been. i love what you said. i'm getting there. >> where did we meet each other first? i only had to say yes. >> i am very excited to meet you. >> you talked to my son on the phone.

thank you. do you want to get the picture? that would be great. >> thank you. good to meet you. another person named martin. good to meet you. >> working with the community and some of the outreach. >> whatever is on the city

council. i found somebody today who is halogen my credentials. -- challenging my credentials. how quickly the world moves. thank you for coming out. >> good. how are you doing? >> where are you going? >> to the left.

>> where are we going? i apologize for the comment. you say things in one context that is heard by people differently. that is one contest. people are trying to make the point. commuting --or communicating that.

>> we will be quick.

>> might be the next president of the united states. >> what's your name? >> has his twin brother behind us. >> my youngest brothers are twins. it is a lot of fun. thank you. >> where are we going? >> what are some of the points in your plan that speaks to the

needs of -- >> there are many. look what you all have done. renewable energy is certainly a part of what our nation needs do. to make college debt-free and possible for all of our families. to be ready for a skill, for a career that is out there. in this world of ours. each one of the points in this plan relates to our nation and therefore touches directly. >> do you think being the youngest democrat on the field will be to your advantage? to ditch shate yourself? -- differentiate yourself? gov. o'malley: i do believe i bring a perspective of a new generation to this race. think the world has changed and i believe that when our times change, the problems change, new approaches and new eaders help us solve them.

>> what you going to do next? gov. o'malley: i haven't done the iowa craft beers yet. are you buying? >> maybe next time. gov. o'malley: i might try that. thank you. >> i appreciate you taking the time to talk to me. welcome to iowa. gov. o'malley: thank you, i like your under armour hat. > thank you. gov. o'malley: where are we going? what is your name? how old are you? >> i am eight. gov. o'malley: you are a big eight.

i might try some of the craft eer or the cheese curds. > i'm bob from des moines. >> nice to meet you, what do you do? >> i have a restaurant. i want to wish you luck, i have been watching you and i wish you a lot of luck. >> it is going well. people are so hungry for a new leadership. thank you. >> i'm an exchange student going to france this year. >> bonjour! >> would you encourage the united states to do an exchange or host other countries?

>> sure. we didn't do much of that while i was in college. think it is cool. we live on a very connected planet and i think a deeper understanding leads to better action. i think it is important to understand each other and that american kids have a perspective on the world. > thank you. ov. o'malley: thank you. we're going to do a live bit for tv. that was my daughter. > behind you and your son.

> mine were $15. gov. o'malley: why does the lapel sticker not stick? that is a philosophical question of our time. maybe it means it is not actually sticky. maybe it is humid and not ticky. >> did you see the giant turbine? watching over the fair. gov. o'malley: yeah, that is ool. >> so we're going well? -- where? is that the original famous but

-- bud tent? i'm just asking. >> how are you doing? gov. o'malley: how are you doing, man? thank you for saying hi. here are we going? what is your name? >> craig. >> where did you get your t-shirt? where are we going? how have you been? >> he waved back at you. >> good to meet you. where are you guys from? >> cedar rapids.

>> love cedar rapids. we just opened an thraufs. -- office there. here are we going now? whistling and humming] >> our live coverage is on c-span. c-span radio and c-span.org as the candidates walk the fairgrounds and speak at the des moines register candidate's soapbox. here is the schedule. this morning, republican jeb bush. starting at noon saturday. republican rick santorum at noon followed by lincoln chafee and bernie sanders at 3:00.

sunday afternoon, republicans en carson at 5:00 and george pitaki. taking you on the road to the white house. >> secretary of state john kerry will be in cuba this morning to help raise the u.s. flag over the new u.s. embassy in havana. they are reopening their embassies in their respective capitals for the first time in half a century. we'll have live coverage on -span 2. >> next, jack ma, the founder and executive of "basketballography" spoke about his -- alibaba. he spoke earlier at the economic club of new york. [applause] i am so honored.

i never expected so many people to come to listen to my talk. i felt so important sitting g there. how many of you have used alibaba's services? how many of you have never been to china? never been to china. thank you very much. well, 20 years ago, i came to america. my first trip was to seattle. i learned so much about america.

america is not what i learned from the books. in seattle, i found the internet. i came back and told my friends that i am going to open a company called internet. i invited 24 of my friends and headed to our discussion, and finally we had a vote. 23 of them against me. forget about it, there is no such network called the internet. don't do it. only one person said, i trust you. i don't know what it is, but if you want to try, try it. i was 30 years old. with not knowing anything about , without knowing anything about business, i started my first company with my wife and a schoolmate. $1000 to start the

business. it was so difficult. i was a blind man writing on the back of blind tigers. ing on the back of blind tigers. for the first three years, life was really bad. borrow to bother -- $3000 from a bank, it took me three years. said that jack is telling a lie because there is no such network called the internet in 1996. one day, china was connected to the internet from shanghai. i invited 10 friends to my apartment. to show them that i was not telling a lie. there is a network all the internet.

we waited three and a half hours to download the first picture. i told him that in 10 years it would work. at least it was true that i was not telling a lie. help our small business to sell online. nobody wanted to sell because nobody wanted to buy. the first week, we had seven employees and we bought and sold ourselves. the second week, somebody started to buy on our website. thingstwo rooms full of that we bought. since 1995-1999, we go nowhere our business. nothing was ready. i invited 18 friends of

mine to my apartment. we decided to do it again. we called it ellie bala.com, and --ple said why allie bob -- we used it because it's easy to spell and easy to remember. we have so many small business and small business it is so difficult for them to survive if we can use internet technology to help small business, it will .e fantastic

we should help the small guys to save costs, because small business know how to save costs. business is helping small business to make money online. we want to make the company last for 100 years. -- 102 years. why 102 years? because we were born in 1999. 102 will cross three centuries. don't say were successful no matter how much money we make. matter how much we achieve. .e want to live 102 years we have another 86 years to go.

when i heard this club is 100 eight years old, i was surprised and shocked. today, nobody believe that alibaba could survive. ipo, they said you are e-commerce, alibaba. we are different. the difference between us and amazon is we do not buy and sell , but we help small business to buy and sell. we have 10 million small businesses on our site buying and selling every day. we do not deliver our packages ourselves. than 2 million people to help us deliver 13 million packages a day. we do not have warehouses, but we manage warehouses for other

small and medium-size companies. we don't have our own inventories. but we do have more than 350 shopon buyers to t every day on our site. our revenue last year was 390 billion u.s. dollars. this year, we will be bigger than walmart globally. managed, that size million -- 2.3.3 million people. amazon is a shopping center. you go there and buy things. future --, it the picture you see like this, it's different.

people are surprised. [laughter] here, e-commerce becomes a lifestyle. young people use it to exchange i guess, communicate -- to exchange ideas, communicate. it's a lifestyle. this is how the internet e-commerce is changing china. what we are proud of is not how much we sell. yes, we are proud. we will sell one trillion u.s. dollars in five years. this is my goal. we think we will possibly make it. we are proud of that, but we are more proud because we provide 14 million jobs for china. we created the jobs in the countryside. we created jobs for women, over 51% of the power sellers on the

internet are women. we can feel proud of that. people say, what next? what is the future? you are everywhere. sellinghe buying and online is created by our company. our future is that we have to future -- to globalize our business. globalize the infrastructure of e-commerce. why internet e-commerce? why it grows faster in china than the usa? the infrastructure of commerce here.na was not like you have all the shops offline, walmart, kmart, but in china, so e-commerce in the u.s. is a desert. it is a comment to the main business.

in china, it is the main course. we create the infrastructure. if we globalize our infrastructure, the payment, all to sell world --rywhere, help glover global consumers to buy everywhere. in 10 years, we will help to billion consumers in the world to shop online. anywhere in the world, you are shopping online and within 72 hours you will receive the product. anywhere in china, a shop online and you will receive the product within 24 hours. globalization is focused on helping small business. helping them to do is this in the most efficient way, and we think that we will help another

10 million businesses on our e-commerce platform. themll empower them, give traffic, give them a payment system so they can do business anywhere easily and quickly. have 40 prisons -- 40% of business outside of china. today we have only 2%. america?our play in are you going to come win and invade america? when are you going to compete with amazon or ebay? shall greatthat we respect for ebay and amazon, but the opportunity and the strategy for us is helping small business in america to sell their products to china. , the middle class for

china is almost the same as the american population. in 10 years, it will be more than 500 million chinese people will be middle class. the demand for middle-class, good products, good service, so powerful, so strong, and i think china today cannot afford the good products, good service with the terrible air we have. i don't think china will be able to do that. focused oneen exporting for the last 20 years. i think the next 20 years that china should be focused on importing, learn to buy, spent the money, by a lot of things globally. buy a lot of things globally.

you should use the internet, go to china. past 20 years, they companies all over china, but it is the great opportunity for the use of e-commerce for small business to go to america. we have helped a lot of american farmers sell things to china. -- the american ambassador to china asked us to sell the cherries in seattle. farmers took the order, pickup up the cherries, ship them to china. 80,000 farmers, 160,000 tons of cherries, and last year 300 tons of cherries. the year is what about. we also had alaska seafood to

help sell lobsters. 10 years they cannot sell it. we have a lot of american using our sitees to sell. -- soldo, they saved 600 tons of nuts on our site, 6.5 million dollars. if we can help sell lobsters and haveies, why we cannot these small and media sized companies to china using our system. so this is what i want. they,er 11, the singles we make that a shopping day. day, we sold that 9.7 billion u.s. dollars.

minutes, we had 24 million people. this year, the number was scary. we need more american products to china. hungry 100 million people coming to buy every day. come here to compete. we come here to bring the small business. in 10-20 years, by anywhere, sell anywhere. this is how the internet is .oing to change the power of changes so powerful. have a factory and the first

world war because of the strength of the arms to the second revolution is the energy, companies, and second world war. data,ime, internet, the and i think we have a new business called platform. and the third world work is going to happen, and this war is not between nations. this war will work together against disease, poverty, climate change, and i believe this is our future, the human being, the nation together. rely on the young people using computers, data to solve the problems, society problems, and this is what i am passionate about. it is not about the money. it is about the dreams. it is the dreams that you believe that change the world.

today is difficult, and tomorrow is much more difficult, but the day after tomorrow is beautiful. -- most peopleli die tomorrow evening. thank you very much. thank you very much, jack, for those uplifting remarks. i feel good. we have tom of the new york ,tock exchange and gwen cofounder of silver lake partners. i understand that they are an investor in alibaba. if you have a question, you can e-mail them.

tom, your first question. >> good afternoon, jack. welcome back to new york. it was riveting as usual. you mentioned that your talk is not about money. societalving a dialogue about income inequality in this country, and people who amass great fortunes can be vilified irrespective whether or not the activities they gazed thatamass those forces fortunes have created a social good. when i think about you, you clearly a master great personal fortune, as well as employees and investors. at the same time, you created directly or indirectly 15 lifted anbs and entire swath of china up and given them a better quality of life.

what you say to people who say, jack, you're too wealthy. you have a master to greater fortune? jack: thank you, tom. myn i graduated in 1988, first job was $10 a month. for three years, and every time i collect the money, i work hard for another month to buy a bicycle. today, i don't have time to spend the money. if you have less than $1 million, you are the happiest person in the world. worry,lion, you start to the violation, where to buy stocks in this. [applause] [laughter] believe that you can

manage the money better than others. you manage the money for the others. i think the money i have got today is a responsibility, the trust of people. the day when i started the business. i asked my wife if you want your husband to be the richest person or respected of business people. she said, respective business people, because we will never be rich. [laughter] today, i never thought this money belong to me. if i believe this money belong to me, i have a problem. not last long if i believe this is the money and my pocket, this is the money i ,pend on behalf of the society

and i spend it in my way, in our efficient,an do most better than governments, better than other people. to me, it is one of the resources i have. it is a trust i should do better. american business has long complained about counterfeit products in china. you have had your share of that problem. can you explain to us how you are doing that? jack: ok. when i come here and go to europe, i always have a problem about counterfeit issues. business model, we do not buy or sell. we help 10 million small business. have one billion product listings on our site. people buy fake products on our site.

they complain us. ago, iber three years talked to the minister of commerce in china. he said, let's work together and fight against the fake products. i say, yes, let's do it. after closing more than 10,000 shops every week, more than 2000 people full-time working for , andcounterfeit products 5700 people volunteering to do that. three years ago, over 3000 people came to our office to demonstrate. they are so powerful. it's the war against the criminals. they said everybody got alibaba to demonstrate.

they will pay the air ticket fare, pay for the hotel rooms, day if you goery against, because they are the fake product owners. and wrote ary letter to my employees and these guys. i will shut down the company we -- and this guy opened a funeral for me for four days. take it will never back. four years have passed. over in the real world, 100,000 transactions concerned with counterfeit products. 860,000, only one

complaint. one? -- why? i got a lot of personal threats. it is the war, a very lonely war. i feel upset. we have to fight it together. there are three things that counterfeit,ncer, intellectual property, and the credit system. it will destroy our business. i promise that we would do anything against it to china was not the owner because a lot of people produce and sell. today, more and more chinese companies care about the brand, care about internet properties. it is so that

difficult to solve the problem. today, we have the most unique technologies and we want to work here with you guys, american and european brands. let's work together and fight against them. that's working together. i got a lot of death threats from these guys. the police do not understand this. they have to report that somebody is filing -- selling they went inside realize they were wrong. so this is the war. we are getting somewhere. i have the confidence with the

internet and young people and the commitment and with your support and help, we will win the war. jack, you have expertly navigated the political situation in china as well as china-u.s. political tension over the years. as you look out over the next 5-10 years, what are your concerns with respect to either the political situation within china or the relationship between china and the u.s.? run, iell, in the long am pretty confident with the relationship. remember the u.s. ambassador to china. he asked me what i think about china-u.s. relations? how many people know about the ?hinese religions religion is

christian. you have to find a competitor, good or not. chinese religion, the buddhism is that human insight how to understand your heart, how to make your heart big enough to embrace others. how to commune with nature. confucius is how to work in society in a disciplined way. we don't need to have a competitor. your competitor is yourself. that is our philosophy. if china sticks to its own philosophy and religion, we will have no problem at all. u.s. and china should work together and find some things that we can fight together, the cancer, the

disease, the poverty, and the air, the climate change. if we are working the projects on that together, u.s. and china other companies will follow. well.k i know america so when i came, not the what i learned from the books. you go to china a lot. you know that china is not what you think. manytunately, i saw so chinese experts here that only go once a year or less than that. they become the experts.

now in the world, among the top of courset companies, we can do better. the communication. communication, make the young people understand each other. this can make the world better. i am not a push -- not a politician. i speak like businesspeople. i understand my customer. i understand my competitor. the business world is not the other people. you win. even if the other people die, you may not win. you should learn to work with your competitor, learn from the competitor, focusing on the customer, focus on the future, focus on the on people. this is what i believe all time. politics, it may be the same. i don't know.

moderator: hugh described in your remarks how different your company is from ebay and how uniquely designed it is or was for success in china. as an investor in the company, many people complain to me that the chinese government does not allow u.s. participants to be successful in chinese markets a cousin it is not a level playing field. how do you address that concern? well, first, there are a lot of successful american companies in china. we do not see a lot of successful chinese companies in america. business, you all have the patience. you will have to prepare for the future. oracle, they are in china because they have been there for 10, 15 years. internet, if you want to conquer china, if you want to win china, internet is the speed. if you want to win china or when

the market by speed, you will never win. you have to think about in 10 or 20 years, how can i make china different? how can i make the company better? how can i make customers better? free is not a business model third i agree. can go back toy china. if we lose, we can go nowhere. we have to create unique value for china users. i think, yes, there are still some problems between china government and maybe some usa business. there are also problems with china companies and the u.s. government. if you think about 10 to 15 if you think about a blind tiger, intended 20 years,

suffered everything, made mistakes, change yourself, business will come. i have confidence with that. bet a lot0 years, i of u.s. companies will be successful in china because you cannot stop it. you cannot stop internet. only stop it with people using the internet the wrong way. for those of us in the room who want to start a business in 2015 and grow it in a decade to $240 million in market cap -- [laughter] can you give us some advice on how you maintain the culture and the spirit of the company as you said 18m -- i think you 9 tohe apartment in 199

4000 now? learned so much from american business. i learned from the ge, microsoft, and ibm, walmart. especially the value system, the mission, the value. people, we talk about mission. in the government, we talk about that. i remember 10 years ago, when he comes -- when i come to america build alibaba built value system, -- we alibaba by the value system. in china, talking about value, talking about vision, that's impossible. i said welcome to china someday. spend three days in my company.

the day he left, he said, jack, i know you are crazy, but i found about a hundred people who are crazy company. [laughter] you are crazy. they think people outside are crazy. -- people who are crazy never think they are crazy. they think people outside are crazy. [laughter] we tell them first that this is what we believe. we want to help small business. this is our value. this is our mission. if you don't agree, leave. if you join and you are still not happy, you can still leave. but if you join, you have to follow the rules we have. have 50,000 to people in five years. havingwas talking about a free is a month ago, 30,000

people were already big enough. our goal is, in five years, in the year 2019, we will reach one trillion u.s. dollars >> but i want less than 50,000 people in the company. because the fewer people we have, the more jobs we can create for the others. the more people we have, the less jobs we can create for the others. that is my philosophy. they.ock dropped 4% that i think this is traditional thinking. we should create a culture that 15 or 20 years later, what kind of culture we should have. now human beings are moving from i.t. to data technology. it is so different.

i.t. is so powerful. dt is to make others powerful. i.t. is to making sure you know something that other people don't know. dt is to make sure other people know. it is transparent, how to be more creative. three years 10 or later, the company is making sure that other people, your employees, your customers are more powerful than you are. so we are creating some new things so that every time we have young people, we know we value our culture. but we know, if we can understand young people better, we can create a new culture. my grandfather learned the world by newspaper. he trusted everything the newspaper said. and my father also listen to the radio and what the radio said

and watched tv. , my daughter, they think internet. i want to get involved in it. bethe new generation will born and think and breathe the internet. different.e will be this makes me happy everyday. think about how we can have a better organization, a better culture. train those young people. rely on those young people. making sure it is their future. their future will be our future. their hope will be our hope. all companies are different. we have 33% of the senior management who are women. we have 49% of employees who are women. in normal business, you don't have that many women. leaders.

women make us the user-friendliness. women make a big difference. so i'm excited. how to make the future better but also because i know the future culture of the company will shoot -- will be surely better than today. >> a question from the u.s. financial markets. why did you decide to go public and why in the united states? mr. ma: people ask me this and, and if i had another life, i would keep my company private. [laughter] i do it not for myself. i do it for the shareholders, customers, employees. they need it. i don't need it. ipo.is tough before the

now it is much worse. [laughter] know, able to help more people. and when we ipo, the company is more transparent. it is not only are people watch us. the global watch us. include us. we may not like the criticism. but you have to get used to it. you have to nurse it. you have to hear. every time i see some new -- some rumors here in america, i understand. it is a great opportunity first. learn us. no us. -- know us. and we are helping more people using our services and that we we can be better. but why america? we were rejected by hong kong. [laughter] we had a partnership system.

i had 57% of shares, close to 60 set -- 60% of shares. i gave every founder shares. and today, more than 70% of the alipayes have shares in and alibaba. and my shares and that is less than 7%. i am proud. i can show the prosperity together with our young people. this is the best time of their lives to join the company. you should give them return. company, souge influential in china. the founders put together less than 10%. and i don't want in the future wek ma will get out or die make a lot of mistakes.

and i don't want to say jack ma died and the company is in trouble. we have been looking for successors. you want kids, you should have kids when you are young. i started looking for a successor when i was 40 years old. now i am 51, training young people. so we note keeping the culture is the key. i like the american system of doing business, but i don't really like your current independent director system too much. the board is not like directors. it is like lawyers making decisions. they are the ones making the final call. let me check my lawyers. they agree? yeah, they agree. [laughter] many companies are going that way. i know alibaba will go that way if we do not change today. we should find people that have the same passion, mission, and

values. so we extend the partnership. the partners are the young people, the young generation. keepshould make sure to the culture of the company, keep the mission of the company, helping small business, helping consumers. , jackng kong guys think ma came from it -- came for a change. yeah. what did jack do? and we came to america. we are so lucky and so thankful. play $5 billion, think $25 i really billion, that is not the money we raised. that is the trust, the wish on the hope we raised in america. i will use the money better, in a way that can help more and more small businesses. not only china. alibaba was founded in china,

but it was created for the world . that is why we call the name some other chinese character that you never know. [laughter] -- you may not like investors, you may not like because you don't know us. in five or 10 years, our people are working day and night and always our philosophy is customer number one, price number two, and shareholder number three. we know that we take care of the customer better if we take care of the employees better. and we know that the shareholders will be better. we respect and we are thankful. that is what we are all about. thank you. [applause]

>> on the next "washington katzal," margo sanger will let us know about whether health care insurance actually cuts health care costs. then, sharon epperson on the 80th anniversary of social security. the foster care system with the any akc foundation -- annie e casie foundation. this sunday night on "q&a." institute for policy studies ennis., phyllis b

>> who is isis and what are their origins? why are they so violent? all of those questions are important. i address them in the book. and someore important, ways because we can do something about it, is what is the u.s. policy regarding isis? can we go to war against terrorism? are we doing the war wrong or is it wrong to say there should be a war against terrorism at all? those of the questions that in some ways are the most important and that will be the most useful. etsunday night at 8:00 p.m. and pacific. a panel talks about the political, economic and social applications of russia hosting the 2018 fifa soccer world cup. they also look at allegations of cooperate -- corruption. george washington university

hosted this 90 minute event. >> good morning, everybody. i want to welcome you and start off by thinking george washington university for hosting the event. on behalf of the center for global interests, i am mike purcell. i will be very brief so we can get to what turns out to be a fantastic set of speakers. the intent is to kick off a project that we thought up in anticipation of the 2018 world cup in russia. we're starting with the premise that everything is connected. that sport is not disconnected from history and politics. if you do not agree with that,

it is not up for debate today. you will have to live with it. additionally, the intent of the today and the program going forward, which will include additional publications and collaborations, is to give you the opportunity to view the social political economic issues through the filter of sport. tohave all been invited russia in 2018, effectively. as we were talking before we kicked off, these are rough times for u.s.-russia relations. hard times for russian people, increasingly isolated in many respects. rt of good to happen. the debate over whether russia should host the cup is effectively over. the world cup qualifying draw took place in c petersburg. if you are a -- in saint petersburg. if you are a soccer fan, it is over.

howan have a discussion on the cup was awarded and the story behind that, but that train has left the station so to speak. i'm going to now introduces the speakers briefly. we are fortunate. everybody we wanted to come to this and talk agreed to it. so i appreciate you coming. i think you will be happy with it. so mainly to my left, professor marlee leroux, assistant director of the institute for russian and eurasian and dependent studies. -- independent studies. on research focuses nationalism and that works very well for what we are going to do here today. described aswas the title was totally awesome. player, aantastic

two-time acc player of the year at uva, which is an honor she shares with mia hamm. she is also a fan favorite. those of you who know her know why. she is also very articulate and an energetic advocate for gender equality in sports. we are happy to have you here. she is respected as an athlete importantly. at the end of the table to professor lisa dealt in writing. she has been a professor here at georgetown from us to quarter of a century. i think it's good. george washington. >> i am a george washington student myself so i am ashamed. she is an expert in mega sports. her research falls along the lines of sports tourism and

management must specifically on space affairs -- on spectators, how they interact with the event. finally, we have manuel vest. what is interesting to me is he is doing his dissertation on football in the soviet space. he did a fantastic job putting together a website. i found the website and started reading it and said let me call him and see if we can do this together. he has flown down here from victoria, canada. we are going to work together for the next three years. ultimately, we hope to be spectators together somewhere over there. will moderateuel today? then we will save time for

questions and answers towards the end of the session. mauel: thanks. thank you for having us today. i think that this is a really fantastic event to sort of just highlight some of the issues that will be with us for the next three years as russia gears up, not just to host the world cup, but what will prove to be a pivotal year in russia in 2018 seeks ton -- as putin be reelected for another term. myself, i did my dissertation on the transition of football, commented some to capitalism. i looked at the period from 1987 to 214. i would have liked to go further

but i couldn't because it is a. history paper. you have to stop at some point. but what it made me realize was that there are many issues going on right now that are very fascinating that do not fit into a phd dissertation. some of these issues you are familiar with and will have seen those issues. having013, we have been conflict in ukraine, which was made. off by the events commentatorsome saying that we are in the state of a cold war, which is a comparison i don't like very much. but what i think is that we can learn a lot from what is going on in football and what is exley going on in russia right now. that,are certain things when you look at the way football is structured, the way

football operates, that it reflects things going on elsewhere in society. i give you a few examples. when you're a meeting kicked iden -- when euro mad kicked off, in an economic base, we had the sanctions on russia which affected the ruble last christmas immensely. that ruble crisis had a deep impact on the way football is being played right now in the , as the rublee --shed, players and kosher and coaches and specialists playing in russia all got paid and dollars.

as a prism on how the rest of society and the rest of the economy sort of deals with this issue. another thing that has come a very recently is the fact that they russian football union has and hasbio capello replaced them with a russian coach. the way that comes about shows us the way russia deals with the kind of problems that come into the state apparatus to reform there are tough time reforms in the football system. what i really want to say is that football gives us this really unique opportunity to understand some of these issues and gives us a wide audience. when you look at how many football fans there are around thanorld, it is a lot more people who follow daily politics. so what football is for me and

what football grad is for me, it is a prism, a window into russia, reallyow the entire region, operates. isunderstand a region that widely misunderstood. thank you. to --hat, i give you over lisa: thank you. toave had five opportunities visit russia serving in 1988 so i have seen quite a bit of change over those years. my last experience was in sochi during the winter olympic games. 17 consecutive olympic

games, sochi ranks very high. it was extremely well-organized. it was a beautiful city. the people were great. the volunteers were super. and despite what everybody may press,ad in the mac and -- in the american press, i think the games went off fine. i'm not talking about the politics behind it and the money spent. i am just saying about the games itself. and i think they are going to do a great job as well with the world cup because they know how to organize. a crisis leading up to situation, but during the games, during the tournament, it will be fine. theard the same thing about 1980 games, that they were one of the best. i was not at those. but i just wanted to put that all into perspective. financials, that is another situation. andave heard the reports

actually some of my contacts who work for the organizing committee did confirm that, of that $50 billion a year that was thrown out for the winter olympic games, about half of that was probably not really spent on the venues. but you also have to put into perspective into that $25 billion that was officially spent. that was to build a city. that wasn't for the lipid games. so -- that was a for the olympic games. so about $5 billion of the $25 billion -- i am just going to say that is the real figure -- was on organizing the games. the rest was to build of the train system, the hotels, the rose, everything else. i am using the winter olympic games to get perspective. because when we go to the world cup and the figures right now are about $12 billion. they cut half $1 billion out

recently because of the financial situation. but you can't blame all of that money on the world cup. a lot of it has to do with the national government that decided to build 12 stadiums versus the minimum of eight stadiums. fifa has a minimum of eight stadiums. most countries, once they get the world cup can't figure out who to leave out. they want to please the whole country. ok,nstead of just saying, we are going to go with the ones that we already have and build ,hree extras, they have decided well, we can't leave that one out because that is politically important. and that when we need for this reason. so they chose to spend all this additional money on stadiums. build the after you stadiums, you have to have all the effort structure as well. because the sponsors and the

officials all need nice hotels to stay in in these areas where the stadiums are. and the spectators. so in some of these instances, i have never been to many of these cities that these stadiums are going to be built. but i can imagine that they don't have all the tourist we do have in as moscow and st. petersburg. so that is where this extra money goes to. putting on the tournament itself is about between $600 million and a billion dollars. just the local organizing committee. and that money is actually paid by fifa money. other $11 billion that goes into the infrastructure. and half of that is being paid by the federal government of russia.

now, in russia, it is a little bit different because the other half comes from sponsors and other private citizens. but from what i learned in sochi, many of those private companies that sponsor were actually government-backed. get a little bit -- unlike in the united states or germany or others, where you have true commercial entities, i find that many of these private companies have some government support in the back. is, what iat happens again learned, and correct me if i'm wrong here, is that many of those hotels were built in sochi and maybe this will happen for world cup. maybe of those hotels were built based on loans guaranteed by the federal government. so if they default on those loans, because those hotels are not being filled up and they are not making revenue, who is really paying that?

it's the federal government. so although it is a privately , ited hotel they are saying ultimately may end up as a banked hotel or venue. so just kind of try to understand. i can give you the figures that i have gathered. but, you know, how much is really private versus federally supported and federally backed is a different situation. these hard figures here, i also want to bring up that there is a lot of intangible benefits that are rarely discussed. the russian citizens, there are 50,000 volunteers that participated in the so chill a bit games. part of my said -- part of my research is to view spectators

as volunteers. a lot of volunteers that i spoke to, and these are in bars and other random places, so i do not think they were politically motivated statements that these volunteers were making. they said it was one of their best experiences of their lives. what they did was brought young russians from across russia, not just in the sochi region. and they trained them and brought them in. so volunteering is a new kind of activity that hasn't been introduced in the society before. i think it was a great opportunity. it is hard to put a price tag on it. so like the mastercard, it's priceless. i want everybody to consider certain intangibles, also the education they received. so service quality, most people, from what i understand, they

haven't had their chance to really understand quality service. olympicrough an experience or world cup, they get a letter training on service. also on media and commercialism. i think these are rather intangibles. lisa: -- manuel: thank you, lisa. i want to handover the -- ussion to marlene: thank you. i want to discuss the political situation.

is really a different way for russia to position itself. domestically, things have been changing a lot. they bid was made also between eventore the anti-putin before 2013. what seems to me very interesting is, if we look at the international aspect of that, during the last 10 years, russia has been really successful and promoting kind of russia -- this one will be the first time where russia has to display self power after the ukrainian crisis. we will see how it works or how it doesn't work.

of uncharted territory where they will be going. probably at that time, they couldn't even imagine the situation would be like that five years after they made the bid. they will probably have to face -- notukrainian situation is resolved. there will have to be discussions going on. they will also have to manage street violence, something relatively usually in russia. russian law enforcement is good in managing this situation. an aspect that will be given that publicity for the way russia handles this kind of tension. it will be interesting to see

does this- how russia in such an intense political context. and in the years to come how russia manages this incredible opportunity to promote itself abroad. all these kind of megaprojects are really putin projects. you really have a highly centralized dynamic going on for all these big megaprojects. it is really centralized around putin and all his associates to make sure all the processes are going well. the second point i want to make, domestically, russia changed a lot also. it will be the year of putin reelection. there will be an intense political atmosphere in russia.

managing election is something very important for the political legitimacy. it has to be successful. you cannot show and display the success or the popularity of the leader. that will also be a moment where putin will also have to be sure all the oligarchs are well around him and to be sure that works. and a couple of all our debts oligarchs are personally involved in managing and financing some element of the world cup. that may be some moment where we will see some tension. so all these elements will be the political weight important. critically will be a element for the russian authorities is to make sure that they will not give out a public being ae of the cup

useless and crazy spending at a time of economic crisis. it is becoming more difficult. came at a time when the crisis was not indivisible. and the difference is that sochi was centralized. it was a huge project for the region. it was highly centralized. it is more difficult to manage this kind of narrative, the public spending made for the world cup useless or useful for the population because we have the economic crisis now and the russian authorities themselves don't know how it will be next year and the year after. --you just kind of slow down if it is a structural economic crisis, it will be difficult to manage the political impact. it's not in one place.

it is in several cities. they makes that centralized mechanism to help control the way the money is spent more difficult to do because it will be decentralized in many cities. for thell be important russian authorities to be sure you don't have a huge scandal issues, but also to be sure that there is not a big scandal of corruption in some of the cities that are receiving this stuff or that you have a big -- all the selected cities will get their own stadium. but they will have hotels, roads and improvements, railways. not all of them will get the world package. so you will have to manage a local discontent. all these elements make up the political aspects of the preparation of the cup very sensitive.

just to conclude, i think what is really important is russia managing its image abroad, -- and avoiding scandal at a time of economic crisis and also being sure that russia is able to avoid showing publicly economic deficiencies or administrative disruption elegies that will suddenly -- administrative dysfunctionality that will suddenly come up and lose credibility and visibility. so i will stop here. loril: we will go on with and some of the social issues of the world cup. lisa: it is a pleasure to be here. thank you. i am not a next for it on russia at all so i don't know if i have much to say. but i do know, within the leading environment, we can often feel as if you are in a

bubble. whether it is leading up to a competition or if you are in the competition,, whether it is the only bexar the world cup, so to speak. my positionome in as an athlete, it is always important to maintain the awareness of what was going on outside of the athletic environment. today, as we get into some of the questions on stuff, i will be able to give some insight on what it is like for an athlete. socially, whether it is racism or most specifically to me the whileissues, participating in a world event like the world cup. so thank you. manuel: grade. we will continue with the moderated question-and-answer session. i am going to start with you, lisa. what can you tell us about the negotiation process with regard to agreements with

infrastructure requirements, taurus travels, risen, etc., just your past expenses. lisa: as a mentioned before, it was up to -- they had a minimum eight stadiums. 30,000 is the minimum number of seats in a stadium. with those minimums, it was up to the local organizing committee, the loc, to determine how many stadiums they wanted to build and having they were. not much negotiations there. they set minimums and russia to go a little bit above those minimums. and terms of the requirements, there is a certain number of hotel rooms that the organizing committee has to secure for a minimum amount of money. most were those, already secure before they bid. they had promised, ok, these hotels will be for fifa and this

is the price that they are going to be at. and there is an escalation clause over the years. so all of these points are already well laid out in the host contract. there is not so much negotiation. in terms of the spectators, fifa x numberl, we'd like of hotels, but they don't really care about spectators. this is really a tv-made event. a billion -- i forget the numbers -- 10 billion come i think, people watch the world cup. and only 200,000 show up to it. so really, spectators, good luck. and that is what really got me involved in doing research on spectators. why do they come? how long do they stay? where are they staying? how much are they spending?

i have some students in the room here who have actually gone with me on some of my trips and have been out there bank collecting data on these spectators. whether it is home stays or in hostels. most of the spectators that are not on corporate packages kind of go on the backpack style. they just find a place because they are true fans and they will stay wherever they can. manuel: just to follow-up on because ofuick -- the ruble crisis, russia decided to downsize to of the stadiums -- two of the stadiums. how does this work? why do people not suggest cut these stadiums altogether? they are already four over the requirement. what kind of negotiation process goes on when this kind of stuff happens? lisa: i can tell you in brazil,

fifa continually told brazil you don't need to be in 12 stadiums. you really need to be innate. the country -- you need to be in eight. the country is too large. i'm sure they said the same thing to russia. but it's their money. they are spending it. so i'm going to refer back to athletes. how many are broke after they are playing? their agents tell them, put money aside, don't spend this money. but in the end, it is the country's own money. and if they want to spend it, they are going to spend it. manuel: it is an interesting comparison. it's like serving alcohol to someone who is an alcoholic. lisa: they are using it as a showcase and they are also using it for political reasons. so putin may want this region to be happy and to vote for him. marlene: if i may join in that

discussion -- fifa is not the one deciding what is a domestic discussion going on between the ridge and now it is and the regional elites. and the oligarchs who are influencing the local governments. it is politically so important for creating the unity between the different regions.

the headquarters for brazil 2014 -- i thought it was strange for sochi, the headquarters were in

moscow. cue,will take this for a moscowthe questions is whate center of it all, haveof of affect does this ? megaevent, what do you think does an event like this mean to russia? >> it means a lot for every country, i think we should be that what thinking happens in russia is specific. clearly, the fact that he kind

of marginalization on russia is visible on the way that the russian media is talking to their own population. feltould feel how people misunderstood, you could see that the political authorities would try to get the support for we want toopulation show the legitimacy of russia to be recognized. the service done after sochi, there is a general consensus among the population for economic dynamism and russia. for telling pushing

a population that everything needs to be an economic success. the population thinks that russia will be recognized ofernationally into the kind financial benefits for each city will be visible. you have pressure in each of these cities, you can see how it will improve the well-being of the population .rea >> the next question is for lori , what is it like to be an event like the world cup?

points withple of the infrastructure, etc., what does it mean for the athlete coming to make country like russia? how do you think that affects the infrastructure on the ground? your innk any time in an international competition it give an opportunity to bridge cultural differences. i think it depends on the athletes. i have had -- you know, in germany, we didn't have many issues. it was a spectacular event. canada put on a wonderful world cup for the women. so specifically for russia in 2018, i know i have had some teammates play