>> thi is "cewsnight fundinfor is presentation is made possible byhe freeman fountionf new york,tow vermt, and honolulu. newman's owfoundation. the john d. ancathine t. cartr foundation. and union bank. >> union bank h put i financl stngth to work for a wide nge companies, fm

all businesses to maj corporations what can weo foyou? >> and now, "bbnewsight." >>his week, rebels and loyalist continue tbattle for lia. they areiving freerom gaddafi'sule. >> everytng wl be good. >> how gerny's economic might is crushing the weaker countries. and the long war agnst the taliban bng won >> if it means killing tm, then it's killg th.

>> morthan aeek after nato officially too over actioin lia, t orgization has been blamed of misfiri andilling osen the ground. a stalete appears t b betting in. many in the east of libyare already beginng to see changes. weave bn to see howne family isopi. >> whebeen sd, a few mil hind theront linefibya's r. thr homereamaged or deroyed by rces. the is no elerici or clean water there. but thehave not been forgotn. the r drags on, it grows.

hes volunteerinhis services that has losmost of s regular sff. they left because theyay h troopseliberately target ctors. >> of e fher oone of the famieswe visited needs a cylier. >> hypernsio injuries fm gunfire. >> this is good experience, but it is ao his way of sportg the libyarevotion. as led all h 29 years der gaddafi. the night at any freedom of exprsion a theight of the

opportunities that lib'oil wealth suld ve provided. he is taken ck to meetis family. here ihat remains of on of the government gunthatould ve pounded h homtown into suission. thiday, watching them and willing theprising to succeed. his father an o eineer and himother who owns a scho fe struge like thousand of other middle-cls pents to rae a famil amid the twists and turns of gaddafi's ideoly. >> he said this isor the gun. saidwhy? he sd pple have to buy the

kalashniv. you have n option. they jt took 200. they said you have now a gun i e store. if you sak louder, they wl takeou to jail. all e while, he knewf the gornme'srimeand was hamed of them. >> i wasery s andery angry. are killing innenteople. whenhey hear aboutt, it is a dister.

in thearkest dayof the dictatorship, until aust few weeks ago libyans live in fear of the revolutiona comttees. ooges that triviges, travel edutionhousing. >> theseroupwerellow to wteve they ked. they treated othibya a inferi. noing the revoluonar commite d could be qutioned. >> his dauter isorki with scores of othe vuntes t get thmesge of theewibya out to e re of the world. theyre buildina netv studios and creating new web site. l round, a new ideas.

>> you have to study the green book. >> can't understand anything the green book. no one rds the green bo. but i muststud it toass exam. >> y makyour own bread? anwhile, t revolution is having a negative effct on the shpingasket. ey havrefiedhowshat we almt bare when bya was almost a parh ste. but the foreignil company h haed production. there is smallonth bank ruloan.

>> i have to minize expenses as much ai can. otherwe, w have to live just on the basics. >> evenevolionary lib fightig foits future sotimefinds time to party. down on the beach, they broug me to a cebraon for three babies born to famies that fled the war. everyone he is celebrang their birthday. everythin in the past is do. >> some of them may come true. the idealism is anything to judgby. there is not only enthusiasm re, but also a sensef cic respsibity.

they trieso har for so long to breakndependent >>he econominighare in rtugal as i ireland, greece, andpain wasn't bad enough, they wl raise ieres rates to 1.25%. partly because germany, wse economic oput is greater than those added to gather is going sucan iressive rate and e suess is directly lind theuffering of the wker economy. >> it is aut ruthless efficiency a balced the book is about every other cultural steotype you've com acrs aboueuro. economicsre now confoing horriblyo tse stereypes

it h got bigrobls. over the past two yrs, the ecomyas shrun6%. ireland b11%. portal grew, b is expected to shrin by 1.3% this year. by contrast, nther europe is powering out of ressio germany's enomy grew by 3.7% last year. >> germany has made ielf per coetite. the other econies have n used the good ars to me struural refms they need make. ere is a long-term probm there. in aitioto that, they have theegacy of the financial crisis. >> the key t germany's ccess es here othe factory floors. they areorldamous for

competitiveness, but ty out compete the ve cntrieshat now needo gr. there isne graph that explains europe, its this. th peripheral cntri awarded their workers'ighe pay the cost of productionose. in gmany after new labour laws werentroduced, they remained flat the competitiveness would n be a pblem ithey weren't both togeer in th samcurrency unio th rests a in every w beneficialo geany. >> and joini me disss t strains in t buru's own, t chief economist. firsof all, gmany has

achieved strong groh. it h lower labor cts than anywre els andts eorts arstrg. what is wrong with at? >> wag in germa havbeen stagnt for almost o decades now. all of the sucss has been achieved on the back of gern woers, basically. they have not achved this cces throughisin productivity, but thrgh exercisinguthls pressure on its workers. >> it is democracy. it insists on the low wag, but the rultf thlower wage onomy is a mo prosperous ciety. >> buthis has been achieve with the framework of t eo in order to succeed in competition. germanyas bn vy

successful, far me successful than other countri. >> apart from the ia tt you' dring down laor costs, t think t curncy is dervued? the system thatreves devaatio and curncy chgesncourages all chang to happen to the labour mket. >> the only way germany is doing th is byarin dow the bour force? >>f the combination o austerity and labour mark rerms paid. now, by going down t roaof austerity, an gmany has brought umployment down by 2 million. it ithe gern workers that are reang t befit of germy's austerity progm. the german workersre n having payises and are n

vinghe significant risin drops. >> the probl is, there a two iues to address people tnk sewing down the labour force is tall wrong. ven beyond a ceain siz unionepresentations mandatory. econdly, to say theres no innovation ilear nonsense. whenouook t the high-tech machery,hird i was doomed from the outset. >>. fk if the other countries have med ithe same diction, it actlly implemend an agenda wre se companies ndedpivin on e credit car >> it was mh faster increase.

>> how is this a structural imbalance? >> germany kept wages so far down. it was a higher lel of competitivenes >>ow a you going to resol it? is it psible f gree to stay in the euro? >> the problem starts from loss ofompetitiveness. austerity ino w to improve compitiness. e re way to improve compitivess is to have technology transrs, reflection of t ecomy that allowsor higher productivity. that isot hpening. >> do you think lookihead that it can be resold? >> it is 28%.

would argue tt the chi exportt thmoment ithe yoger generation wi horble ramification in the future. thrule of thumb is th nominal interest gdprowth has to be faster th the percentage of income. >> this can't be managed under current polici. in practice,his llean the fall >> -- mean deflt. >>oes germany need to do mor to hel the countries? >>s dog aot. it might need to do more. it ca'write a blank check.

germany is t example that within the euro, yo c adjt succsful. if these couriesill not accet tha, they m vote against it. what happens? >> it was not popar in gmany five yea ago but it is neceary. >> wt haens? can i point out that t a single euro seen advanced free of charge. this contins, i isore th likely there will be social unrest. it is more an lely tre will be popular demd. it mht leato serious trouble. >> howongou think the bureau re so ave --uroill survive? >> it will surviventact for the normal pt -- thnortrn

part once policians make the argunt we are spending mor money on servicing deb to farmers than we are on edcati our young peoe an investg in th future, people will say forget . >>hankou veryuch, indeed. >> is just a fewonth before it starts limited withdrawals in afghistan after 10 years o war against t taliban. wil last longer thanhe first and condorld wars coined. is it possible that the taliban might be losing? th have fced insurgentout. >> the cingsnd gois are ickeng.

the eturn of british uni has begun and the so-lledighting seas. there are multiple exacti routes. >>achlayer in t orthcomingperation walks through what they wi do on the model of the train puing out oferritory they already feel is surento one of t last pockets of surgency in the distrt. >> there are signicant tax in

this area. lasteek, whad four. >> he feels the insurgency here has turned a corne if that means killing the th th's killing them. i want to fight and defty owinsurgents, not for seone else to fit. or for them retn in due urse. >> whilehe troops ge ready for their operation, that is what haseenappeng on the base where the btish effort s beenocus in attpt toring securityo the local ople. we pushed out on onef t ros tha crisscross the district it prodes plenty of cover fo

guerrillas. staid gun battles are becoming rer her. >>ust downhere, we regularly get oots from wheree ju stood. >> these days, the talk is of extending governce. thchemt has a rang of ugs that is iresse byeveloping wod standards. and theatiee to get them for free. --atien get them for free. x have co sferi fro

pneumonia. during the past yea numbers have increased fivfold. ctor say thats lied to serity. >> ithere is secritynd peacverying progresses including heal outmes. pple el secure, more and more of tm will comeo us for treatment. and ey wl come from great stances. a coberas hgling over th pri of a shoe repair. an peoe thronged. coming toughhe bazaaere, it is radend business, normalitand progress is certainly cong ang. quite aew othe peoe th i

have geted, i te that as a d sign. they eher don't wish t b seen t be ieracting with westerners,rhey y be acvelyot style. -- hosti. the day of theig operation nds. they will hp the tops land if by helicopter, they encounr stiff resiance the brish tri to drum into them. the police is not as upat

out the securit situation as the british. theiview is that onc ty are in, the ghtieason will stt again. >> narcotics a likammunition fo the taliban. they go nd in hand. >> we had to the border -- hed to t bder. we are the to witness the assault of 350 afghan and itish troops. this is not some sor o fre fire zone. the landing is entirely unopposed. the ar many lol people mong throughhe area.

theytart ming through mpounds. me wpons are fnd qckly. but is not a hugeaul. they do noteet with any opposition. the guerrillas heot oered anresiance. one tng i clear. the cal peoe d'trust the afghan police or nt tm ther [unintelligible] >> it quite touchy subjt. you disagr wit the m this issue needs to be resolved.

>> have they turd a rner? i think in securierms, yes. hey have. the reduction of the levels of violence and t appent gree tohichthe insurgency has bee beaten dow all seem to be pretty genuine pnomea. e questiois wt happens wi this period of oprtuny? is it fsibl that afgn govement will take of bere the st les patience? d will the security foes b able as ose western troops stopped tholdn to this aa withhe se skis tt have been shownn th last couple of ars? >> it isime ago. ge resources have beepour.

the btish only ho somof the pronces. in theields andanal the oopsere say they are havin the effecthey nted at last. >> that is all f thiweek. odbye. funding for th prentation isade ssible by the freeman foundation of w yo, stowe, veont, and honolulu. nean's own foundation. the john. ancatherine t. macarthur foundation and "roadside attraions >> he has been shot. you're charged witconspiracy to kill abrahalincn. >> 150 yearsfter t civ war began ces t story of what really happened when it was over. >>y mother is innocent from robert redford.

you liar. >> based on actl events. he conspirator." >> "c newsight