tv World Business PBS June 19, 2011 11:30am-12:00pm PDT
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>>reporter: this week on world business... >>as the world economic forum on the far east enters its 20th year, we look at how far the region has come and what it needs to achieve in the future. >>we are undertaking a number of institutional reforms and the key one is the land reform or the land acquisition law which will provide certainty with respect to pricing and timing. >>reporter: education can make a major difference to the future of people and even countries in the developing world, but getting parents to see the benefits isn't always easy. >>every year we are getting at least 10 times more applications than the number of students that we can take >>reporter: stamping down on the multimillion dollar illegal business of bot-herding >>they can
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command these millions of enslaved machines and most people who are infected with this kind of software who are zombies in this botnet sort of war have no idea that they are infected >>reporter: hello and welcome. i'm raya abirached and this is world business, your weekly insight into the global business trends shaping our lives. 20 years ago after the world economic forum on eastasia kicked off it's now a different place. poverty reduction in the region's been tremendous - from china to asean, countries have seen an economic boon and an improved investment climate -- the question now is how to make that growth more inclusive. >>reporter: it was
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indonesia's first time hosting the world economic forum east asia. and it markedanother boost to the international profile of a country that's a member of the g20 grouping and current chairman of the association of southeast asian nations -- asean. >>the forum's topic -- the new globalism -- and how to maximize opportunities in an increasingly interconnected and interdependent world, as well as to tackle the challenges such as environmental degradation, and food and energy security. >>yudhoyono: "globalism should be inclusive rather than exclusive, it should be pragmatic rather than dogmatic, it should unite rather than divide, it should be directed to addressing common global challenges rather than directed at certain groups of countries." >>reporter:
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asia is poised to provide much of the economic dynamism that will shape and propel this new globalism. and host indonesia looks set to play a central role. >>driven by domestic consumption, the country's economy continued to post solid growth during the global downturn, and currently has the third fastest gdp growth in the g20 now at around 6.5 per cent so far this year. >>it also rose 10 spots this year in the wef's global competitiveness rankings... the biggest jump of any g20 country. >>manwani: without a doubt i believe that indonesia is one of the most underrated economies in the world in terms of its opportunities and potential." >>reporter: multinational giant unilever makes a wide variety of household, personal and food products at eight factories in indonesia. the attractions for manufacturers like unilever
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are clear: a vast population of 240 million, nearly half of them under the age of 30. a middle class growingat a raten a year. and natural resources close at hand. >>manwani: "we have consistently grown over the last decade or more at double digits, in fact strongdouble digits, so it's a fast growing business. it's also a business that has grown competitively,in other words we've not just grown, we've grown market share. and more importantly it's also a very profitable business. so i think from that point of view i would say it's pretty much a jewel business for our company." >>reporter: unilever is set to invest 350 million dollars over the next two years to expand its production. the company sees stability and strong macro-economic management as key attractions. >>maelzer: those factors -- coupled with the government's efforts
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to make it easier to get investments approved - are clearly reaping benefits. the amount of realized foreign direct investment rose from 10.8 billion dollars in 2009, to 16 billion last year, and is expected to top 18 billion dollars in 2011. >>reporter: but it could be more...and it needs to be more if the country is to tackle the biggest complaint of investors....poor infrastructure. >>ichsan: we believe that if infrastructure development is accelerated, i.e if we have more toll roads, more power plants, more modernisation of harbours, then gdp growth can be raised to the full potential of 8-9 per cent, roughly about the same level as china's." >>reporter: that's the kind of growth indonesia will need to meet its goal of becoming one of the world's 10 biggest economies by the year 2025 -- as outlined in a master plan for accelerated growth that the country's president unveiled earlier this month. >>a key part of that plan is
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to foster public-private partnerships to boost infrastructure spending by around 150 billion dollars over the next five years. >>sorensen: "i think it can be achieved and what we need to see is that we get a clear transparent public private partnership scheme going because i don't think it's difficult to getting the finances.its still a challenge and we need more capacity building, in getting the projects to market, to making real good attractive investment proposals ready for the market and then the money will come." >>wirjawan: "we are undertaking a number of institutional reforms which i think will unleash significant value from an infrastructure development standpoint. i think the key one is the land reform orthe land acquisition law which will provide certainty with respect to pricing and timing and that will be very, very good
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for business people who want to undertake infrastructure development projectsin indonesia. >>reporter: indonesia recently inked its first major ppp -- for construction of a coal-fired power plant. >>wirjawan: "i'm quite sure that by delivering one or two i think we'll be a much more credible nation. that credibility i think will entail further trust in indonesia's ability to undertake infrastructure development. when this thing gets going i do believe we can get to the 8 to 9 per cent zone." >>reporter: to reach that growth target and create a diversified economy, indonesia also needs to add more value to its abundant natural resources -- instead of exporting them to other countries who then process them and sell them back to indonesia as finished products. >>reporter: for many people in developing countries, education can make a vast difference to their lives, giving them the chance to get a job and climb out of poverty.
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but in the short term, for the poorest of the poor the cost of sending a child to school may simply be out of reach. we went to bangladesh to find out more. >>reporter: a tiny rural school in one of the most impoverished countries on earth, bangladesh. >>the school is one of around 150 run by british charity muslim aid in villages where children wouldotherwise be unlikely to get schooling. it's helping to plug the gaping holes bangladesh's education system but even so it is not enough... >>rahman: in the one village you will find the 500 children is able to go to the school, but you will find only one primary school where the accommodation is 100 or 200. so still 300 is
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leftover. >>reporter: in an under-developed country like bangladesh, with a vast population of 160 million, the struggle to educate children is desperate. even free schooling is no guarantee that people can afford to let their children go. >>khatum: to run a family when you have got two people working is very hard. i pulled my elder daughter out of school because i need her to help run the household. >>reporter: girls are especially likely to miss out. bangladesh is making progress though, thanks to initiatives like those of the world bank, which effectively pay parents to send - and keep - theirdaughters in school. >>goldstein: if you look at a woman who is 50 years old today in bangladesh, she has less than a 20 per cent chance of having completed primary school. if you look at a 15 year old girl today in bangladesh there's almost a 90 per cent chance that she's completed primary school, >>reporter: even so less than half of girls
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make it to secondary school. >>the islamic development bank helps the government to fund and run this school for girls a couple of hours outside dhaka. >>gani: we went to the homes of poor people, those who are able to eat only if they worked, who hadnever thought of educating their children and explained to them that if the children studied their future would be bright and their children could become engineers or doctors. >>reporter: aid agencies have come up with a system to help parents like shaera avoid to have to make the painful decision between schooling their children and having them work to help support their families. >>they run schools offering flexible hours - allowing children to help their families earn money as well as get an education. >>a curriculum enlivened with story telling, singing and dancing helps entice pupils in - and prevent
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them from dropping out. >>rahman: we took at it as a kind of strategy and motivate the parents as well. we are arranging parents' meeting, we'll do home visits and motivate the parents to send their children to school. >>reporter: but there are gaps at the higher levels too. in an effort to improve the standard of much-needed technical education, muslim countries have set up and now fund the islamic university of technology in dhaka. >>it has about 1000 students, 70 per cent from bangladesh, but also from 25 other countries. >>the competition for places underlines the shortage of this kind of education in bangladesh. >>hossain: every year we are getting at least 10 times more applications than the number of studentsthat we can take and also the applicants are
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among the best students of this country. similarly students who are coming from otherountries we get a lot of applications from them and we can take very few of them. >>reporter: tajul talukder is a bangladeshi research scientist and living proof of the power of education. >>he's looking for natural methods for curbing a disease called rice blast, which devastates rice crops around the world. with a first class education, he now works in malaysia, where a higher salary allows him to live a better life and support his family back home. >>talukder: we are living in the rural areas actually and there are some students studying in the primary school that do not have the good dresses, or shoes and sometimes we buy for them. and some students they cannot afford the examination fee and this is very very high. >>reporter: bangladesh now earns close to 10 billion dollars a year from remittances like this. >>tajul sends money home
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to his village two hours from dhaka. his brother runs a medicine shop in anearby bazaar. >>talukder: "i get the money from there and i've got seven students in the family to give it to. some are in primary, some in high school and one in university. >>reporter: this cousin of tajul's is doing a degree at a university in the northern city of bogra. >>rahmatulla: i want to get a good position like cousin tajul. my aim is to help educate people in my village. i want to help the country, my mum, my dad and my sister and i want to educate them, godwilling. >>reporter: even a basic education can immediately help lift people out of poverty. >>at a higher level, it can create something more -- a virtuous cycle where educated people provide
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wealth, inspiration and real momentum for change, raising the living standards of families, and in time, entire countries. >>still to come on world business... >>the fight back against the criminals that seize control of and manipulate personal computers around the world. >>and ugly scenes in the beautiful game - can fifa recover from a seriously tarnished image. >>reporter: you may not have heard of them, but botnets are already affecting your life. criminals seize control of vast networks of personal computers around the world, by infecting them with malicious software and then use them to distribute huge amounts of spam. but recently the world's most prolific
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source of junk mail has been shut down - and it's a landmark case. >>reporter: spam - we've all received those emails, selling everything from counterfeit software to fake drugs. >>this junk mail comes from infected computers spread across the world. cybercriminals invade people's machines. operate them remotely and secretly. then send out spam through a network of robots - it's called a botnet. >>thompson: "these things are the nuclear weapons of today...single individuals sitting in their mother's basement can now be as powerful as a nation state they can command these millions of enslaved machines and most people who are infected with this kind of software who are zombies in this botnet sort of war have no idea that they are infected." >>reporter: and the botnet threat --
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according to experts - has escalated in the last few years into a global business with spam attacks increasingly motivated by money.>>hall: "we now see organized crime, clearly present in this space in this online space. they are highly organized, highly efficient they use sophisticated tools.>>reporter: scams that only need a few people to buy fake products to make them commercially viable, made possible by the sheer scale of some botnets. >>ford: "spam is a huge element to the counterfeiter. it is how they get in to your household. they can send 100,000 to a million messages just by the click of a button. if they just get a small portion responding to that then they've been successful." >>reporter: it's a global problem that needs a global solution >>seger: "it's a trans-national phenomenon, a transnational crime, where you have the control and command server in one country, where you have many
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thousand computers infected in a multitude of othercountries, where the money mules through whom the money is then transferred may again in further countries and those who have written the script, the software available, the malware available to commit the crime are again in other countries. so this is very much transnational crime >>reporter: recently, one of the world's largest sources of spam took a lethal blow. the rustock botnet -- accounting for nearly half of all global spam - was taken out of operation. >>boscovich: "rustock at any particular point in time was among the most prolific of spam-ts, spewing forth at least at one point up to 30 billion email messages." >>reporter: after months of investigating, the takedown -- as it's called -- occurred after a successful plea at a u.s. district court in seattle. >>computers were seized in seven u.s. cities and the netherlands. the aim:
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to sever the command-and-control computers, stopping them sending orders to their network of infected computers. >>boscovich: we know that botnets are part of that criminal infrastructure they become ubiquitous onthe internet now, but we are showing the bad guys that we are being proactive." >>reporter: this follows other major botnet takedowns including high profile ones such as mariposa and waladec. but rustock was more notorious and complex. >>in this latest case microsoft worked with drugs company pfizer among others -- that's because spamsent out by rustock posed a danger to public health. it was advertising counterfeit drugs. >>pfizer has been campaigning against fake pharmaceuticals with hard hitting adverts highlighting the fact that they can contain pesticides,
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lead-based paint or floor wax. >>rat poison, just one of the dangerous ingredients that may be found in fake medicines purchased from illegal websites. >>ford: "we've found that spam you are generally not going to get authentic product. if it is too good to be true and you are receiving unsolicited email, they are not selling authentic product nine out of ten times and they don't care about your health." >>reporter: the scale of this takedown maybe unprecedented, clearing up the health of million's of people's computers across the world -- but according to experts more needs to be done by the public at large if they're to stop new botnets and the spread of spam. >>lanstein: "it is staying up-to-date with best practices; best practices include having a strong password, running some sort of software or hardware-based firewall; keeping your software up-to-date; keeping your anti-virus up-to-date and current; not clicking on things from people you don't know that are sending them to you."
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>>reporter: sepp blatter has just been re-elected, unopposed to another 4 year term as president of world football's governing body fifa. but his election was preceded by unprecedented infighting, sparked by allegations of corruption within the organisation. these allegations included accusations that certain fifa members had essentially sold their votes to countries bidding to host upcoming worldcups. blatter has denied the organisation is in crisis. but has fifa's image been seriously tarnished, and what effect could this have on the game of football itself? >>reporter: whether the headlines talk of bribery or backhanders, corruption or crisis....over the last few months, the press reports concerning fifa have made grim reading... >>krishnan:it's tragic that we have this situation now and this underscores the need for urgent reforms to set things right. >>reporter: in the short term...the
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negative publicity has seriously effected public perception of fifa's brand quality, reputation and value... >>britton: with fifa what we found when the initial scandal, choose your words, broke was that all of the scores immediately dropped down. >>reporter: fifa's credibility has plunged...but what about its biggest sponsors...? >>britton: we've looked at the brands and their sponsors, so the coca colas and the adidas and so onwho are the paymasters if you will and their brands haven't been touched by this crisis. >>reporter: despite that..5 of fifa's 6 major corporate partners have recently released statements ranging from visa's "the current situation is..not good for the game and we ask that fifa take all necessary steps to resolve the concerns...." to coca cola's "the current allegations..are distressing and bad for the sport. we have every expectation that fifa will resolve this situation...." >>cheliotis: it is slightly surprising that said the nature of the statements...the tone
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of the statements was kind of what you'd expect. brands saying we're slightly concerned... >>reporter: of course, the public has always been far less worried about fifa than its key product...the world cup...a product that accounts for close to 90% of fifa's revenue... >>britton: at the end of the day its football...and we care more about our football than whatever the guys in zurich are doing.... >>reporter: one thing the guys in zurich have been doing particularly well over the last 2 world cups is making money...between 2003 and 2006 fifa made $2.7b. in the following 4 years...$4.2b. >>sponsors account for about a quarter of fifa's revenue....tv around 60%. but even as the money rolls in, some believe the world cup may slowly be losing its allure for players and fans....and ultimately sponsors and broadcasters...thanks to the growing wealth, influence and quality of europe's topclubs... >>scott: you wonder whether or not the world cup...international football
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is paramount in players' minds any more. >>moore: in terms of consistent quality the club game has got better and better particularly with the champions league... >>scott: if you look for instance at a player like lionel messi he gets more than 50 goals in a single season for his club barcelona...his comparative performances in the world cup wer disappointing ..... >>reporter: last year the champion's league generated $1.2b from tv deals alone, and if european fans especially begin to see the world cup as second rate, fifa could be in trouble, given that over half of its tv earnings come from europe. combine that with the fact that clubs are becoming ever unhappier about releasing players for international duty, and eventually the quality of the world cup could be seriously compromised... >>moore: these players are now very expensive commodities and there's increasing resistance to letting players go away for months on end or at least weeks on end and maybe getting injured. and so yes the clubs are getting more and more
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powerful. >>reporter: as always...money is a key issue. last year participating clubs received around 70% of the champions league revenues. meanwhile the 400 clubs that contributed players to the world cup received just 1% of the income the event generated. >>scott: my own personal prediction is there will be a very big conflict between the clubs and the international game in the future and i think that there is only one winner with that and that is the clubs. >>reporter: if a genuine powershift is coming...ironically, fifa's awarding of the 2022 world cup to qatar, a decision shrouded in allegations of bribes and payoffs...could prove a turning point in football's future...>>britton: if the championship stays in qatar and it doesn't put on a good tournament...could that have an impact?...i suspect it could. >>moore: if it does go to qatar in 2022 that could damage the product... when's it going to be played? if
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its in the summer its ludicrous really playing in 50 degrees and ...if they do it in the winter the clubs wont' stand for it and that really could cause a schism. >>reporter: and despite the latest scandal, no one can deny that fifa, under blatter's presidency, has been able to distribute an unprecedented amount of money - $794m over the last 4 years - for football development projects around the world. although in certain areas...exactly where those funds have ended up is debatable... >>krishnan: what is crucial is to ensure that they are being dispersed in ways that are totally transparent and there is full accountability for how those revs are dispersed, allocated and used. >>reporter: in the longer term...while fifa should perhaps be most concerned with the quality of itson-field product, it may not too late to restore its off-field reputation. blatters promise to openthe voting on the hosting of future world cups to all 208 members - rather than just the 24-man executive committee
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