>> hello, everyone. welcome to the "journal" on dw- tv. i am meggin leigh. >> and i am steve chaid. >> our lead story at this hour, russia is on high alert. s suicide bomb attacks in moscow's main airport kills 35 people and injures 130. ♪ >> crash that is in a state of high alert after a suicide bomber killed 35 people at moscow's main airport. another 130 people were wounded at the bombing at the doh note -- the domodedovo airport.

the russian president has ordered extra security at all airports and train stations across the country. >> an amateur video taken by cell phone shows the international arrivals hall of moscow's main airport just moments after massive blast tore through the building. fix smoke-filled the hall where russian officials believe a suicide bomber set off the device near the baggage carousels. police cordoned off this part of the airport. but even as survivors were still being evacuated, air-traffic resumed. the russian authorities are keen to show they had the situation well under control. president medvedev immediately went on national television. he pledged to do everything in his power to bring those responsible to justice. >> i offer my sincere condolences to the families of those who died. we have to do everything

possible to prevent further attacks, so i have given orders to increase security in all airports and really stations. >> president medvedev blamed lax security at domodedovo airport for allowing the attack to happen. so far, no one knows who was behind the blast, but the russian media is already speculating that islamic extremists from the caucuses are to blame. they carried out deadly blast in the moscow subway 10 months ago and the mid-air bombing of two passenger jets in 2004, airplanes that took off from this airport. >> earlier, i spoke to andrew osborn in moscow. with authorities calling this a terrorist attack, i asked him who they thought maybe behind it. >> well, as the reporter said, i think that the single suspicion will fall upon the islamist radicals, the islamist terrorists that are in the north

caucuses area of russia. they want to establish sure in -- sharia state in that part of russia. the have been waging a campaign of violence for many years now in an attempt to achieve that. they have been the people who have been carrying out these kind of attacks in russia. we do know that the police are hunting for three men who are from that region, which confirms the theory that they are the people who are behind this. >> tell us more about the airport. why would it be a target? >> well, it has been targeted before. in 2004, two female suicide bombers bribed their ways of two airplanes and then blew the mother. it is a symbol of modern russia. it is a modern airport, the best airport russian has. it is the busiest airport. 50,000 people use it every day. to strike it is to strike a

powerful blow psychologically against russia. it is telling russians that they're not safe and then traveling is not safe in the metro or to take an airplane. >> tell us more about the extra security measures that have been put in place. >> yes, as you would expect, president medvedev has ordered security measures to be stepped up. obviously, at this airport, but also at other airports, in the metro and other transport terminals. i think they will look at why this was allowed to happen. security was already beefed up. but clearly, president medvedev says that protocols were not followed. somebody was not doing their job properly. so i think there will be a search now for culprits amongst the people who were responsible for security at this airport. >> thank you for that update from moscow. governments around the world

have condemned this latest attack. u.s. president barack obama described it as an outrageous. france and germany called the bombing barbaric and cowardly. chancellor angela merkel made this statement earlier. >> the german government condemns this attack in the sharpest terms. we offer our sympathies to the families of those wounded and killed. and of course, any support we can offer the russian government for the investigation. i have already expressed my sympathy to the russian president. >> and we will have more on the moscow airport bombing coming up later on in "journal." palestinian leaders have reacted angrily to claims that they offered israel major territorial concessions at peace talks two years ago. the broadcaster algiers -- algeciras says it obtained transcripts of negotiations. they allegedly agreed to israel keeping large parts of occupied

east jerusalem. the chief palestinian negotiator has dismissed those claims as a pack of lies. >> but israel and the palestinians claim jerusalem as their capital. israel annexed the east of the city of the 1967 war in considered a part of the jewish state. but the palestinians want east jerusalem as the capital of a future independent state. construction of israeli settlements in east jerusalem have been strongly opposed and have prompted violent protests, like these in december. but the leaked transcript prepared to show the palestinian authority and that mahmoud abbas offered major concessions. his chief negotiator is quoted as proposing the biggest tourism in jewish history. at talks in cairo, mahmoud abbas denied the reports. >> we have no secrets. the entire arab world knows this. details of every single negotiation, meeting, and position put forward or being

considered are presented to arab countries. >> the transcripts published by the british newspaper, the guardian, and the broadcaster al jazeera, and leave yet further confusion that president abbas added. >> palestinian leaders have continually argued that israeli settlements in west bank are an obstacle to a peace agreement. that position appeared to be non-negotiable. it is one of the main reasons mideast peace talks stalled. each document suggests that in 2008, palestinian leaders told israel a key part of the settlement there. an offer which goes against the consensus of the region's arab states. >> and staying in the region, officials in iraq say least 12 people have been killed and 150 wounded in a series of explosions in the holy city of the ball up. one blast occurred in a car park filled with buses.

hundreds of thousands of pilgrims are gathering in karbala to mark the anniversary of the death of a central figure in the shia islam. the text and days after a series of bombings near karbala left 45 people dead. the tunisian government could be headed for its second reshuffle in just a week. reports sexting official spokesman say half a dozen ministers could go as early as tuesday, as anti-government protests show no signs of letting up. demonstrators have been out on the streets of tunisia for days demanding the interim government quit. the protesters on all ministers that served in the administration of the deposed president to resign. there are ambitious french plans for the group of 20 nations. steve has that story. >> france will have the spotlight for the entire year. it has ambitious but noble plans. france is taken over the rotating presidency of the g-20 economic powers for two thousand 11. in paris, the country's

president underlined his priorities for the year long term, calling for a tax on international financial transaction and reforms to the international monetary system. he said the new measures would be moral and reduce volatility on international markets. >> pomp and circumstance this morning in front of the president's residence at the palace. the journalists were accompanied by diplomats to hear president sarkozy's ambitious program for the g-8 in g-20. sarkozy has given himself a lot of work to do. he intends to reform the world's exchange rate and introduce a tax on financial institutions. he also hopes to put an end to speculation on more materials and a staple foods. france is hoping for a lot of support on that last issue, giving the state of the food crisis. >> it is a question of morals at a time when people are rioting

because they are hungry. the g-20 country can claim a does not concern us. >> but some economists are doubtful the president sarkozy has the right approach to solving world hunger. >> my targeting evil speculators who can win over voters, but the real question is about the true extent to which to fluctuations in food prices are influenced by the practice of speculation. >> sarkozy has until the end of the g-20 summit in november to show that he can come through with the ambitious plans to announce that the start of france's presidency. >> and rising costs for food stocks remain a hot topic on commodities markets, with wheat prices climbing on monday and prices for cocoa beans rising to 30-year highs, largely as a result of unrest in the ivory coast. there's talk of banning cocoa exports as rival political forces of pfeifer control of the

country. ivory coast is it the world's largest supplier of cocoa. on to the markets. european shares started off with modest gains. for look at how blue chips performed in germany, our correspondent send us the summary of the day's trading action from frankfurt. >> it looked like a poor start into the new trading week, but thanks to the gains at a strip market in new york, the dax quickly recovered at the end of trading. shares of siemens have been the best performers. tomorrow, they will release the earnings report. expectations are very high, but the numbers will be good. traders are convinced. shares have been under pressure. turned into positive territory the end of trading. optimistic talk about our bust your head. >> we can stay in frankfurt for closer look at the market numbers. the dax index finishing a tad higher, 7067. euro stoxx 50 fearing a bit

better, looking in gains of 0.3%, 2979. in new york, the dow jones enjoying a nice rally, up by more than 0.7%, 11,960 points. 12,000, not too far away. the euro trading in the belly of $1.3640. in the wake of the recent dioxins in germany, the european union agriculture ministers have called for title -- tighter controls on animal feed, to these which produce animal feed should be subjected to a tougher safety checks to make sure the cancer causing chemical dioxin does not get into the food chain. the german dioxin scare led to thousands of farms being shut down temporarily after meats and eggs which might have been contaminated were shipped as far away as britain, the czech republic, the netherlands, and poland. >> many consumers are cautious about and german pork,

germany's minister for agriculture is busy in brussels trying to minimize damage to exports. she says germany's doing everything it can to address the problem, but also, europe needs to check current procedures. >> it is mostly the registration requirements for companies to but also the separation of supply chains. dioxin monitoring is a born as well as tightening inspection rules. >> there's pressure because about 20% of agricultural income in germany eric and it does lead the country. most of that is earned by exporting to the eu, so it is a born that the situation stabilizes. the eu leadership seems to support the plan to increase monitoring throughout the region, though there is some skepticism among individual member states. the commission is preparing recommendations to separate the production of industrial facts from those intended for foodstuffs. >> gulf -- as a confident that we will arrive at the conclusion

that we have a solid feet to save the system. >> but higher-quality food means it will become more expensive, says germany's agriculture minister but that means consumers will eventually have to pay more. >> the power deal is causing controversy. here is more. >> the eu and is pakistan signed a deal on monday for more energy cooperation -- and is pakistan signed a deal on monday. but they say that the president of uabekhistan is a dictator. the location is of strategic interest to both the eu and the u.s.. >> the e you welcome to the head of state. but the commission president refused any questions. outside, there were protests against the president. some human rights activists have been freed from jail, but many other prospective the dense remain behind bars.

>> by advising the dictator, the eu has shown and energy issues are more important than protecting human rights in uzbek. >> the eu plans to buy gas supplies from central asia. a few weeks ago, the commission signed a deal with is a by shawn. strategic interest also played a role. nato has a military airbase in is said third -- southern city. >> the country is a partner. like other partners, we are prepared to meet. >> nato's point of view is clear. but other eu countries that karimov is not welcome. they are accused of being tone deaf. >> nobody told them who this was our he did not understand what kind of regime uzbek was. >> there are rarely such ripples

in brussels. >> finally, we have sports news. germany has suffered a setback at the world handled championships in sweden, losing the second game in the main germany got off to a poor start and fell quickly behind, with sundry making it 3-0 with in the first four minutes. but germany managed to find its stride and went into the lead before the end of the first half. but the hungarians managed to regain their domination in the second half, leading germany's prospects for qualifying for the 2012 olympics decidedly bleak. and i will be back in a minute with more on that attack at moscow's main airport, which killed 35 people. that is in our "in depth," which is coming up after a short break, so do not go away. ♪

♪ >> multi-layered, world-renown, fresh, it just like us. dw-tv, quality first. ♪

>> the united nations secretary general says he is appalled. u.s. president barack obama has described it as outrageous. and in july merkel has spoken of her dismay and disgust at what she called a power the terrorist attack on monday afternoon, a suicide bomber walked into the busy arrivals hall of moscow's largest airport in blew himself up. at least 35 people were killed. russian president dmitry medvedev immediately heightened security and transportation hubs across the country and pledged to track down those behind the attack. >> amateur film clips show smoke, debris, and chaos. it is immediately clear how much devastation the latest attack has caused. thousands of passengers were in the terminal when a suicide bomber blew himself up.

dozens of bodies were scattered throughout the arrivals area. the wounded rarest to hospitals by ambulance crews. -- the wounded were rushed to hospital. it happened at around 2:30 p.m. local time. authorities believe it was the work of a suicide bomber carrying an explosive device with the equivalent power of 7 kilograms of tnt. investigators are looking for three other suspects. although there was no immediate claim of responsibility for the bombing. russian media commentators are speculating that it was militants fighting for independence in russia's north caucuses region. islamist militants from the area have staged repeated attacks in moscow in the last few years. russian president dmitry medvedev spoke on television shortly after the blast. he said all the evidence pointed to a terrorist attack. the focus now, he said, was on helping the wounded. but he also said that lax security procedures at the

airport were partly to blame for the loss of life. so far, nothing is known for certain about the nationality of the victims of the bombing. all international flights to domodedovo have been rerouted and security measures have been stepped up at airports and transport hubs around the country. >> the russian capital has frequently been the target of terrorist attacks, often carried out by suicide bombers who want to see an independent islamist state established in russia's north caucuses region. here is a look back at the history of terrorism in moscow over the last few years. >> terrorism in moscow, seems that the city's residents know only too well. this city has repeatedly been the target of attacks in recent years. in most cases, a chechen terrorist groups ever claimed responsibility or have been blamed by russian authorities. just 10 months ago, march 2010, the were blasted into the moscow

subway stations. 39 passengers were killed in the attacks, more than 70 wounded. the suicide bombers struck during the morning rush hour. it is believed the attackers were so-called black widows, women from the north caucuses. six years earlier, february 2004, another attack on the moscow subway. a bomb blast killed 40 people and wounded more than 100. here, too, moscow police suspected a suicide bomber from chechnya. and the attack put -- to place in the morning rush hour. and there was a similar attack in august of the same year, when a young woman blue result of, killing nine others. an islamic terrorist group supported by chechen militants claimed responsibility. in july to a dozen three, two female suicide bombers killed 14 people house at an open-air concert. there were stopped at a security check on their way in.

police say their plan had been to blow themselves up in the middle of the audience of 20,000 people. most of the spectators had no idea of the drama that was unfolding just a few hundred meters away. authorities allowed the concert to go ahead to avoid mass panic that could have led to even more deaths. in december of the same year, two female suicide bombers, again believed to be from chechnya, blew themselves up in front of the national lecture an adult, killing at least five people. police believe there are original target was the russian parliament. their attack was intended to highlight allegations of human- rights violations in chechnya. but perhaps the most horrific attack of all in moscow came in october of 2002. more than 40 chechen terrorists stormed the musical theater and it took 850 people their hostage. after a siege lasting two and a

half days, russian commandos used force to end the standoff after pumping gas into the building with the intention of neutralizing the terrorists. they were all killed, but 129 hostages died as well. and in september of 1999, two apartment blocks or blown up by in moscow, killing more than 200 people. authorities played chechen rebels, but there were rumors that the russian sigrid's servicemen have been involved to provide the kremlin with the justification in needed to send the army back into chechnya. now a new bombing and more people killed. the attack at moscow's airport is just the latest in a long line of terrorist tragedies in the russian capital. >> for more, we're joined by ann affairs. he has been following events in russia for many years. thank you very much for being with us.

this is a seemingly never-ending series of attacks. what would you say the russian government is doing wrong in its efforts to combat terrorism? >> well, i think there's some details which you can always debate, like concrete measures around airports or metro stations. as president medvedev said, the corruption in the security apparatus, but at the end of the day, i think the russian society is very well connected today with the rest of the world. we have globalization going on everywhere. there is no quick fix for these kind of things. if there is a small group with people really want to create headlocks, they can do it. and there are other opportunities, unfortunately. >> moscow has always taken a hard line against terrorist and separatist groups in the caucuses. does it have any other options? >> none to talk about. once there is terrorism, you

have to be very decisive, and you have to take part measures. at the same time, you have to find some equilibrium. the whole area of the northern caucuses are destabilized to some extent and cultural and ethnic conflicts. there have to be searches for political conciliation said. >> do you think this latest attack will have repercussions on russian politics? the country is gearing up for elections. >> as you could imagine, there is an ongoing debate between different concepts of how to provide stability. the prime minister, mr. putin, the former president, is in favor of something strict. what we see today is proof that it is not achievable.

president medvedev wants to keep a guarantee stability, and wilson have to keep -- think about different ways of modernization in the economy. we also have to talk about the northern caucuses. i think president medvedev may have more advantages. >> briefly, what effect do these attacks have on the people of moscow? how do they deal with them? >> well, probably, you have to say that they're kind of used to that. because we have seen before how many attacks of this kind have happened in the last 15 years. there's some degree of that. the middle class, sooner or later, will say that we have to keep searching for more productive political solutions to put an end to this kind of thing. >> thank you very much for joining us. with that, we wrap up the "journal" at this hour.

i am meggin leigh. thank you for joining us. stay tuned. captioned by the national captioning institute --www.ncicap.org-- ♪ ♪

>>this week on world business... >>the green tech industry was key to the us recovery plans, but has politics stalled progress? >>we're losing the advantage. china's momentum on clean technology is a lot higher than america's right now. >>the crucial role the private sector must play in helping the arab world prosper. >>job creation is a real challenge in the coming years. >>and is the west using the need to control carbon emissions to artificially hold back growth in emerging markets? >>you can't tell me that india should produce less pollution per capita than say singapore, is that a joke.

>>hello and welcome. i'm raya abirached and this is world business, your weekly insight into the global business trends shaping our lives. when he came to power, one of barrack obama's hopes was to put federal measures in place to decrease carbon emissions in the united states. it hasn't happened, and given the democrats poor showing in the midterm elections...isn't going to in the near future. and that's got america's cleantech industry worried. >>reporter: in the united states...the sun is still shining...the wind turbines still spinning...but a federal climate bill designed to gradually reduce carbon emissions has ground to a halt...bad news for those in the cleantech business... >>wilder: that would have been a great policy lever to establish a price on carbon throughout the united states. >>preston: green policy is hurting the us...

>>hochschild: if you look at the solar markets around the world they correlate most closely to policy. germany has40% less sunlight than the us and sold 8 times more solar power last year >>reporter: cleantech entrepreneur saul griffith is working on a multitude of projects...ranging from electric bikes to power generating kites. he's also not sure how long america will lead the way in creating such remarkable technologies... >>griffith: we are losing brains to other parts of the world and we're losing the advantage. china's momentum onclean technology is a lot higher than america's right now.

>>wilder: turning to new markets is definitely going on and of course the number one growth market for cleantech right now is china. >>reporter: in 2009 china spent around $34b on clean technology...almost double the united states...in the second quarter of 2010 it spent $10b on wind technology alone, half the global total...and it now has 3 of the world's top 10 solar companies... >>hochschild: they've gone form manufacturing 5% of the world's solar panels 5 years ago to over 50% today, projected to be close to 70% next year. >>reporter: the us accounted for just over 60% of global cleantech venture capital investment worldwide in 2009.however, that was down from over 70% just one year earlier... >>floyd: venture capitals are going to be placing their dollars maybe in companies that aren't headquartered in the us, again, where there is stable and favourable policy.

>>jong: here in the united states the cleantech industry views current national legislation as not only being weak, but also inconsistent. and that is a huge problem, because it means the future of federal policy is as murky as the view behind me... >>preston: when you have uncertainties in the drivers on the regulatory side, it creates a high level of risk in an area that you don't necessarily have a lot of control over.... >>horton: stability of policy is far more important than very attractive policy in a lot of ways because it isthe volatility that really hurts from a business planning standpoint. >>reporter: biofuel company propel fuel has 20 stations scattered across washington state and california. placing its pumps alongside existing gas stations is crucial for keeping infrastructure costs down...and operating largely in california is crucial for staying in business... >>horton: great policy environment here. california has always showed real leadership, in addition we've got alot of venture capital funds...a lot

of access to capital here in the state. >>since 2006 california has collected about a third of global cleantech venture capital, close to $12b....all state legislation demands that one third of its energy come from clean technology by 2020......and right across the nation...cleantech is now largely being driven by state, rather than federal policy. >>floyd: half the states in the country have what's called a renewable electricity standard. which is a very strong market driver. it says the states are committed to getting 20, 25% of their energy from renewables by a certain time frame. >>reporter: last year the us exported around $8b worth of cleantech products, compared to $23b for china and $20billion for germany. as a percentage of gdp, the usa ranks 19th in the world for selling clean techproducts...so industry insiders are now trying to convince washington that cleantech can provide real

jobs and serious income... >>wilder: i think that perhaps the industry hasn't made that case effectively enough. >>hochschild: for every one of these jobs for people behind me making the solar panels...there's 7 created downstream....in the installation and maintenance and other suppliers that are needed. >>but one major problem cleantech faces is the long lead time before either jobs or income are generated.... >>preston: it's not necessarily going to create jobs tomorrow...it's going to create long term jobs in the next5, 10, 20 years. >>griffith: it's large sums of money on companies where you don't really know that you have an outcome for often a decade or even more. >>reporter: another problem is that cleantech industries often involve high infrastructure costs. it's why government subsidies are so vital...but those subsidies can make the industry look inherently weak... >>wilder: it's been a common perception of this industry but in fact

that it's true of the energy industry entirely. so whether you're talking about coal, natural gas, oil certainly nuclear. they all depend heavily on government policies. >>preston: this is no different than when we in this country were trying to do highways in the transportation era and trying to do other things where there are precedents set that the government has stepped in and really been the primary source of the funding to create these massive infrastructures. >>reporter: with a republican majority in the house of representatives there won't be any action for at least 2 years on any federal climate policy in the united states...2 years of inaction, the cleantech sectorbelieves the nation may ultimately come to regret... >>floyd: if it's not addressed immediately we are going to lose a lead. >>preston: it's just like telecommunications. everybody else is on 4g and this country still trying to figure out

what 3g is...the same thing is going to happen in the energy area. >>horton: because of the lack of policies i do think the us is going to start falling behind. >>the middle east may be awash with mineral wealth, but many of the region's economies lack strengthand need to move away from relying on hydrocarbons. historically governments have been the driving force behind diversification, but in the years to come the private sector could play a much bigger role. >>reporter: a lot's changed since the last arab economic summit two years ago. a new realisation is now dawning on leaders meeting in egypt: that stability in the arab world will only come through a vibrant and prosperous economy. >>mubarak: we have realised that the priority of economic cooperation and development is no longer just about improving

the lives of our people. but it has become an issue of our future, survival, self-determination and a necessity for arab national security. >>moussa: the issues causing the revolution in tunisia are not far from the issue of this summit, which is economic and social development >>reporter: leaders met for the first time since the public revolt in tunisia with oil rich gulf states spearheading a $2 billion fund to help create jobs and bolster weaker economies. >>rachid: if you don't have stability, you don't have investment, if you don't have investment you don't have jobs. it is a vicious circle. so stability is very key and egypt is fortunate that it has stability in one of the most unstable regions in the world for 30 years despite the fact that we had terrorismcoming and we have a lot of events around us that have been very

difficult but egypt has been an island of stability. >>naqvi: there are reasons why the unrest and upheaval in tunisia happened i think that economic disparity ispart of it and i think that the more governments recognise and realise that the youth need to be productively channelled, opportunities need to be created for them. >>reporter: 100 million new jobs are needed by 2025 -.it's not only a race against time for the arab world, but a fight against potential unrest if people can't find work. >>shobokshi: employment, employment, employment obviously it is a big issue. it is the big dinosaur in the room that everyone has to deal with. it is affecting obviously a lot of the economic climates and obviously political as well. >>saleh: job creation is a real challenge in the coming years. growing the investments between the arab countries is again top of our agenda. >>reporter: that's why arab leaders listened intently to the demands of the region's business elite -- speaking

in unison for the first time ever as the arab business initiative. >>mallawany: having the arab companies under an umbrella that can voice their opinions that can at give a recommendation to the policymakers, the leaders is of importance. in the era coming the private sector is going to be playing a very important role. >>reporter: and with an estimated $500 billion in investments -- 30 of the arab world's largest companies are now acting together with significant clout. >>rachid: they do actually demand liberalisation of markets, they want to have better and freer movement for people, for goods, for money. they want a better environment for investment, they want guarantees against government decisions as well as any level of corruption at any level that will hurt their investment.

>>easen: this initiative is inspired by the chief executive's council in europe and is the first of its kind in the arab world. the idea isie voice when it comes to lobbying arab governments from the gulf states to the maghreb. >>reporter: and lobby they did in this red sea resort - demanding more support for smes or small to medium enterprises, the backbone of many arab economies. >>reporter: another rallying call for the arab business initiative: slashing youth unemployment - now seen as a potential flashpoint in the years ahead. >>sawiris: it will derive importance if the leaders and the presidents and the rulers understand the importanceof the private sector to establish jobs and create opportunities for the young arab youth that is coming out now that is lacking jobs, that is lacking opportunities. >>rachid: governments have the will; they have the political will to make it

happen. they don't know how to doit. they don't know how to do it. they don't know how to get the money. they don't know how to get the projects done, and that's where i think the benefit of having regional companies and private sector sitting and taking the initiative together with the governments. >>reporter: certainly events in tunisia, spurred on by economic strife and unemployment raises many questions for the region's leaders and their need for stability. >>reporter: the good thing is that they may have already found the answers - they're coming straight out of the boardrooms, offices and shop-floors across the arab world. >>still to come on world business... >>can golf help greece out of its financial hole? the country may only have 6 courses at the moment,but is looking to drive development forward. >>the indian motor industry is at full throttle, but many environmentalists think this could be a disaster for the planet.

>>the right route forward? and the rest in just a moment on world business... >>as the economies of developing countries strengthen and living standards rise, so too do carbon emissions and pollution and the great challenge is in balancing the two. however there is an increasing feeling among many in emerging markets, that green arguments are being used as a form of eco imperialism by a stagnating western world to maintain its dominance over developing countries. >>reporter: in downtown bangalore a hindu priest performs a ritual blessing known as a puja to protect a parade of new cars. every day the queue of cars grows longer as increasing numbers of india's booming middle class take to the roads.

>>ghosh: india's relationship with the car really started i would imagine with the maharajas because they were the first people that sort of imported cars from england, much later from the us. rolls royce usedto be the maharajas car so the love affair with cars really started with the maharajas. and like all luxury products in the world it sort of seeped down. >>reporter: a mercedes costs between sixty five and five hundred and fifty thousand us dollars. in a country where an estimated 300 million people live on less than a dollar a day. yet this dealership in the punjab still sells several hundred cars a year >>ghosh: if you look at the bottom of the pyramid cars are basically instruments of mobility but layered on top of that it still is signal to the fact that i am doing well in life, recognise me by the car thati drive. so why would you for example want to drive a 600 series mercedes benz at 4km per hour

in the city like bangalore, basically to allow people to look at you and say wow. >>jain: i would say as far as the comfort, the silence, the convenience and the safety and other factors which persuaded me to buy one. so not only one i have three now but i love driving an e class the most.when you are driving and when you are riding the comfort you get and the performance of the car is such that you feel that you are different from others. >>reporter: but spiralling demand for all forms of motor vehicles means the country's roads especially in majorcities, are clogged with cars and motorbikes. last year alone 9 million two wheelers were sold in india and nearly 2 million cars. >>many motorcyclists also want to upgrade to a car as it's a much safer way to travel

on the country's treacherous roads. >>the barrier has always been cost. >>reporter: but industrial giant tata has opened up a whole new market with its small car, the nano, costing around 3300 us dollars. >>but some question the logic of what india is doing. >>sauven: india is a country where you've got 1.2 / 1.4 billion people or whatever it is. you've got huge megacities, you are not really going to be able to transport people around those cities in private carsit's just physically not possible i mean apart from the environmental consequences of it. so what you really want to do is to design and put in place a really good infrastructure for mass transit systems and i think that would be actually a much better investment and a much better industry for india to develop than go down the route of the private car. >>reporter: the plans for the new car attracted immediate media criticism in the west which questioned its environmental impact and claiming that

they could prove to be a trigger for environmental headaches across the globe. >>reporter: for men such as rahul bajaj there is more than a whiff of hypocrisy from the west - having created their own their own wealth during a period of heavily polluting industrial expansion - they're now criticising the developing world's desire for growth. >>bajaj: per capita we produce pollution which is not even one tenth of what the us produces. and our prime minister made a commitment that india will not produce pollution per capita which will exceed ever that of the united states and that's what matters. you can't tell me in totality that india should produce less pollution than say singapore, is that a joke. so yes in totality because we are over billion people and china is over a billion people and we are growing which they did for a hundred years, so we do produce the pollution as they did. >>toulmin: i think that what we have to do is help them see that by following the same path

as us we collectively stand to lose a lot because it will generate too many greenhouse gases for the atmosphere to be able to cope. >>reporter: the problem is that traditional petrol and diesel driven vehicles have now become hugely important economically to india and other developing economies. >>ghosh: if you look at the entire automobile industry it is probably one of the biggest industries, it is one of the biggest employers, it is the biggest guzzler of resources, it is the biggest employer in terms of talent, in terms of engineering. so automobile is an important industry for any growing or developed economy. >>reporter: bajaj autos makes virtually all the familiar yellow topped auto-rickshaws on india's roads. their chairman claims that the developing world can't afford not to go for growth, and that it's now time for the richer world to put its money where its environmental mouth is and share its new and cleaner technologies with the emerging markets.

>>bajaj: without growth you will have nothing else that why we say poverty is the biggest polluter, do you want me to go to stone age? we don't want charity, india has never wanted charity and we don't need charity. but the developed world, they want a clean world, then they must give technologies to the emerging markets especially those who are growing very fast, anybody in fact who needs it on comparative, reasonable terms. that's where the funding has to come from - not money but technology. >>chang: the developing countries are the victims and not the perpetrators of this problem and the rich countries should accept that the developing countries have the right to develop and have a decent standard of living; >>reporter: the carbon emissions created by the west, fuelled huge leaps in living standards, from the industrial revolution onwards. now as the emerging world develops and demands equality, should it too be given a hundred and fifty years of leeway? >>tourism is vital

for the greek economy, with 18 million visitors generating 15 percent of gdp. traditionally tourists have been attracted by the beautiful islands and rich history. but now greece is taking a swing at moving up the value chain with golf... >>reporter: think greece and you think clear skies, blue seas and stunning buildings. but some greek investors want to get tourists to look beyond the traditional. >>criticos: tourism is one of the most if not the most competitive business in the world... all countries are fighting to attract people who have valid transport documents and some money to spend for their vacation. >>reporter: as foreigners watch the changing of the guard outside the greek parliament enjoying the summer sun, inside officials feel the heat as they work to secure the survival of the economy. the cost of visiting greece has spiralled without the country offering anything new - until now.... getting

out of the rough times may involve getting some visitors into the rough. >>tsanis: definitely greece needs to realise that you know it s to redefine its urism product. sun and sea, the good greek suand sea, un, ou go inthatis golf means redefin resort development but henvestoh

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