it's once again concern that the so-called battle for democracy was a war for black gold all along. and the next we look at the impact the financial difficulties of europe and america will have on that developing economies in our special and. the asson p. downgrade of the united states' economy has raised many questions about whether or not america will continue to be the powerhouse in the global economy and now the international monetary fund predicts that china will actually outpace the united states economy by two thousand and sixteen so how is all of this going to affect the traditional players and what is the impact going to be on the so-called developing world well joining me to help get some answers on all of this is oxford educated economist and the youngest man advert to had a world bank department he's now the chairman of india's planning commission mr monti saying ahluwalia i want to thank you so much for joining me so first of all i

want to ask you is the second wave of the global financial crisis upon us i think what will happen is markets would be disrupted slightly moderate growth prospects for the carbon in the u.s. and maybe in europe but i don't see this as going back to two thousand and eight and so where do we go from here who's going to fix what's going on in the world right now the world needs to. get together to work out what's the transition what's a reasonable transition in a world in which there would be more than one currency and where the traditional reserve currency. of the moment is in the country which doesn't have a very well balanced my crew don't mix attrition and is there a sense in india do you think that perhaps there could be a shift in the world order and that india could be somehow gaining

from what's going on in washington there is certainly a shift going on in the world there's no doubt about that i mean any medium term or long term project suggests that. the pound will go relatively slowly europe may grow a little bit faster than. the us has traditionally been viewed as a very dynamic economy is likely to grow faster than europe but the growth rate in these economies will be much less than the growth rate in the emerging market countries i mean china india brazil so i think over time there is a shift in economic power taking place one is to asia and another way of looking at it is really the rising rate of emerging market countries and i think you're thinking of a world in which there would be a large number of relatively equal economic grouping and you want to global system that can accommodate that if it can't be

a global system which is run only by saying well look this is the center of power and everybody else must adjust and it's been said that europe has dominated the air national monetary fund in your opinion is that part of the problem or the solution i do think that the dominance of the industrialized countries of these two institutions has to change remember that as long as europe and the united states are together they account for almost half the votes in the army or from the world bank so even if you made a voting system they would be able to get their candidates in providing they collaborate with each other but you don't want to system where it's assumed that one organization will be run by one country and the other will always have european and how do you think all of that has affected the euro zone and personally i think the world is going through some very important structural changes and if europe is

showing signs of strain i think it's appropriate that the fund should do what is necessary but it's also appropriate that europe should bear a very large part of the burden. and the cost and that's what's happening because the i.m.f. is working collaboratively with the european central bank on the whole i think stability is very important for all of us and so far what they've done i think is the right thing but looking ahead as new sets of problems arise i mean there's always an issue that the fund must be not dominated by the concerns of any one part of the world to be should be seen to be reflecting global interests and do you personally think that the euro is going to survive the creation of a single currency for europe was a pretty major and a bold and ambitious step i think is generally recognize that if you want to have

a single currency it needs to be backed by a single fiscal authority now since euro zone is different countries they obviously don't have a single fiscal authority but to back a single currency they must have a very shared understanding of who's going to pay the bills if a problem arises that will become a substitute for the single i don't think that's been sufficiently clear i think in the first flush of you know a good feeling about the euro there was an assumption that a lot of benefits that come to european countries from having the same currency but not enough appreciation that there are costs and i think that's now evident so it's a challenge for europe how they're going to handle this trade in future i do feel that they need to be if you like bailed out right now because i don't think it's in anybody's interest to see a major financial collapse about moving ahead how do you stop the same problem

arising ten years from now it is very important for europe to have a very clear rules of behavior how are they going to deal with fiscal crises. i mean what's going to be the role of the european central bank in bailing out governments as. posed to the role of the i.m.f. so i think these are issues that the global community will have to look at and i want to ask you about china obviously china is the number one u.s. to get holder i believe they have around three trillion dollars that you asked that in your opinion can they make the right decision and doing that it is true that the chinese have a very large holding to some extent if the chinese wanted to retain. parity with the dollar which was part of their strategy they would end up holding dollar debt because if they didn't hold dollars then essentially the dollar would depreciate. and the renminbi would have appreciated so to some extent the chinese holding dollar debt the other side of

a quarter of running surpluses but not actually appreciating against the currency that you're running a surplus which now you know that that period gave the world a lot of stability a lot of growth the chinese benefited i guess whether they made the right choice or not depends on whether we now addressed in a soft landing mefford rather than in the highly disruptive and it's in everybody's interests including the chinese of course the adjustment should be a soft landing do you think that dollar is going to survive as a global reserve currency as a major currency absolutely i mean look the united states is going to remain. the dominant country globally it won't be as overwhelmingly dominant as it used to be but then suddenly remain the largest economy certainly for another ten years the fact that the us has three movements in and out of capital will still make it the trendsetter rather than the trying these economies the real issue is in future

would people be willing to hold all there is of dollars as a general rule if you've got four major currencies it doesn't actually make said story of the one. i think the in the past there's always been the assumption that other countries may address but that the u.s. currency become the sort of. stability that i don't think can remain true once you get a lot of other countries which have more or less similar size as the u.s. and in your ideal world who should referee the club or a commie i think there is a lot of consensus around the world that the fund is the international institution that should be looking at these things and if there are governance problems or inadequacies. known representation in adequate amount of the newly

emerging countries then those should be corrected should actually use this as the forum and obviously you know there is a reshaping of the world economy actually if that's happening that's probably going to also cause fundamental political shift as well what do you expect always to be from our point of view the rise of a number of emerging market countries will create a much more balanced sense of the world economy amongst countries that were earlier seen to be dominant it might create a greater awareness that you know they can't unilaterally decide the future of the world and certainly countries that earlier felt that they were not part of the political decision making now feeling part of the political decision making i mean just good democratize asian of the globe which should have positive effects because it will make these countries behave in a more responsible manner and there's been a lot of talk about rating agencies being unaccountable despite their political

influence where you make these agencies more accountable if you could one of the fundamental areas of conflict are the rating agencies rate companies that pay them to rate them so you can generally assume that a company that pays a. rating agency to rate it is hoping to get a good rating so there's a there's an element of conflict of interest if you're getting your money. from the people to whom you're giving a rating. i don't find an easy way of solving this problem but i think transparency transparency in how the ratings are down and the track record is the only way that you're going to be able to solve the problem and the last question i want to ask is you know a lot of people are saying that investors are going to perhaps invest more in the of the merging market if they start to look away from u.s. treasury bonds i mean what's the planning commission it's short term predictions for india in relation to everything that's going on right now the big message

coming out of how the global economy is moving is that the industrialized countries are going to grow more grew more slowly whereas the emerging market countries are going to go faster india's been growing for the last five years at about eight point two percent anybody who's investing and looking around the world if they find one market is growing a little somewhere between eight and a half or nine percent another market is going to grow two and a half percent i mean they would be very well advised to invest in the markets that are growing so we expect on a medium term basis that india will be it already is and will remain preferred destination for foreign investment people look at the global portfolio traditionally they've invested too much money in the industrialized world not having anticipated what the consequences of globalization are going to be so over time i think they should be rebalancing a little more towards the emerging markets and within that i think india would be

a very good bet. well it will certainly be interesting to see how india is affected by all of this i want to thank you so much for taking the time to talk to me thank you. please. move.

down the official ante up location. i pod touch from the. life on the go. see below. on ts minefield costs and feeds now in the palm of your posts question. twenty years ago this country. is so easy to. sleep. each began a journey. where did it take.

the headlines on r.t. nato planes reportedly carried out as strikes on the libyan capital right here the latest pictures of explosions you can see now heavy clashes between rebels and government forces have again resumed in tripoli as both sides continue to claim to have. the upper hand. also doubts the cost of whether a rebel victory would actually leave the libyan people in control of their destiny as experts point to egypt where those who fought for the revolution ended up with a government they did not choose. as fighting in libya still rages on western oil companies have already started circling around the country to once again spot was concerned the so-called battle for democracy was a war for black gold. and a time for sports not with.

hello there good to have you company and this is what is coming up over the next few minutes money talks angie you're on the verge of signing cameron struggles samuel to you to make him the highest paid player in the world. class be russia's rugby star for their final warm up game ahead of the world cup in new zealand. while the hosts make some surprise choices in the thirty man squad for next month's tournament. the first russian premier league club angie are expected to complete the signing of cameroon striker samuel f.c. from into milan today and in the process making the highest paid player in the world but clubs have finally agreed to favor around forty million dollars for the forward that's according to fee for peppino ted hughes help mediate the deal with into getting another six million successful at the russian club and that is set to become the world's highest paid footballer netting after tax over half

a million dollars a week that's nearly thirty million dollars a year or nearly a billion rubles and is expected to sign a three year contract angy were bought by multi-billionaire city man kenny mav in january he's already bought brazilian roberto carlos a more recently russia international caught. another transfer news outlet became a druid have bought strike a random mail falcao from puerto rico the fifty seven million dollars because ambien a direct replacement for sergio who has let it go recently sell to manchester city falcao scored forty one goals in fifty one games from porto including seventeen in the europa league last season. well in england manchester united have kept up their perfect start with a three nil thrashing of tottenham last night spurs were missing locomotor two wasn't in the squad as he continues to be linked to a move to chelsea despite his absence of businesses did hold united and sell the hour mark then danny welbeck broke the deadlock and he then said and this is the

second i'm waiting rooney got the third united now have a maximum six points from two games along with wolves and leaders manchester city in the meantime more pressure has been built on arsenal manager arsene vanga he has received a further two game touchline ban for you a fixed years after breaching a previous ban and that means he will not be in the dugout for the second leg of the gun is champions league qualifier huge in a z tomorrow although arsenal say they will appeal while the second leg of the champions league qualifiers take place tonight at stake a place in the group stages of the tournament cypriot side up well have to overturn a one of deficit against with a crack of buying munich looked to be almost there with it to go to advantage from the first leg against the denominator grabbed all one up from their first leg against malmo a car behind travel to gain spanish villareal could miss out on champions league football if they don't beat contents well then say are almost certain to miss out on domestic football this weekend in the league or plays in spain's top two leagues

are set to strike for a second week in a row it's a dispute over pay around two hundred players are not being paid fully by their cash strapped clubs and are demanding a wage guarantee and the right to break their contracts if they are not paid for three consecutive months a proposal that has been rejected by the league of both parties will hold further meetings today to try to resolve the stalemate. i can understand people want to see football i have been a player until recently and i want to see football to bottom i have to think about the food having time we don't have. that is where the pride. i mean it is a serious situation that has not been solved and i would like to be more optimistic than i am not. in other news the father of chelsea midfielder john obi mikael has been freed after being kidnapped in nigeria michael obi was rescued by police those suspected of that thing him were paraded in front of the media at

a police station in the central nigerian city of jos mr ivy reflected on his ordeal . on the ground. when they. should just. drive. down the rugby world cup is fast approaching and russia hope to bring back their melbourne rebel star adam burns for their final warm up match against gloucester on friday coach nikolai nerdish said he should be fit for the clash and will feature in a team that will pretty much be the one that will face the usa in their world cup on september the fifteenth russia have lost all of their three warm up games in britain so far the latest a hefty forty six nineteen loss to the all sprays when you rush says he's pleased

with his side's progress ahead of their parents had a world cup meanwhile the coach of hosts new zealand believes he's a potent side for the tournament graham henry announced his thirty man squad ahead of their try nations clash with their strayer at the weekend surprise selections included the relatively inexperienced collins the twenty three year old will act as backup flyhalf while city veni city vassie who has missed out and read meeting he felt for the veteran back. you guys are missing out. because they're quality people. but now we're we're we're pleased with the we think it's got a lot of experience and most experience with bricks are the history of the guy producer a good number of young and younger players who i think will get real vitality came and enthusiasm in each and they're mainly on the outside backs another news england cricket captain andrew strauss says his side will continue to work hard after

completing a four nil series whitewash over india after the final test the skipper was all smiles as you would expect he'd just seen this side beat india by an innings and eight runs during the series england took the world number one ranking from their opponents and strauss said the feeling was different the emotion felt when england won the ashes two years ago. well i think i think in two thousand or maybe there's a bit there was a bit more motion because we went into game one all and no one knew how the series going to end up so he could come into a series of this game three in a law abiding we were very motivated by the idea of making a phone though you know we were confident we we felt that we had the ability to to win this final game but we had to dig deep to get in and as i said that's what i'm most proud about is the guys were prepared to do that even when they didn't really have to. but in that bodes well for the future and lastly got times when with football and all the goals in the russian premier league last weekend twenty five net busters in total it is.

totally clueless. please. please. please. please please.

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live. but also brings to an end the spoke for the moment we've got wolf you into asked time when kerry will be hit. mine. would be soon which brightened a few pounds from phones to impressions. who threw stones on t.v. don't. last time the close up team was in awe movie show where the gold rush still gets people hiked up. this time margi goes to

cure old region. where the local government is giving power back to the people. where every orphan will be adopted. her uncles turn their land into a tourist paradox well come to cover asian culture close up on our t.v. .

down the official ante up location to on the phone oh i pod touch from the top still. life on the go. video on demand on t.v.'s my old posts and feeds now with the palm of your. question on the dot com.

nato planes are reportedly carried out as strikes on that the libyan capital you can see the pictures of explosions here on. heavy clashes between rebels and government forces have again resumed in tripoli as both sides can continue their claim to have the upper hand. also dolls are cast over whether a rebel victory would actually leave the libyan people in control of their own destiny experts point to egypt where those who fought for the revolution ended up with a government that they did don't choose. even bit full the fate of tripoli is fields did great oil grab is already beginning as western oil companies start circling around the bottoms torn country concerns that resurface the so-called battle for democracy was rather a war for black gold. and continued fighting in the vicinity have surprised some in the markets off monday's soft drop.