realize that everything you saw you don't. charge is a big issue. good afternoon and welcome to capital account i'm lauren lyster here in washington d.c. these are headlines for march twenty second two thousand and twelve as u.s. president barack obama talks about domestic solutions to high gas prices in reality this may be an issue of global energy depletion so caus we try to figure out how to deal with global problems like this not to mention others like avoiding a financial crisis redux a look at the underbelly of globalization and look for some answers also developing nations will reportedly nominate two candidates to the world bank president c while the white house has until six pm tomorrow to get its nomination and put in who will

go on to be president of this institution a lot of people say it is no mystery don't hold your breath it will be an american we'll talk about why and what cost this could come to the world bank's legitimacy as a global institution meanwhile you may have your i phone maybe your ipod or i pad what about an account at your i bank we'll talk about what apple is doing to join the battle against that too big to fail banks look at today's capital account. so today we saw u.s. president barack obama give a speech he vowed to support domestic oil production there he is he also said this

won't be enough to bring gas prices down talked about global markets now obama appears as though he's trying to deal with high gas prices with domestic solutions he's putting forward there but in reality there may be good global problem of energy depletion that is at the root of this all now this entire argument is made possible by globalization so let's back up a bit because globalization can lead to much greater efficiency and output and build wealth overall but it can also create more instability and one glaring example we focus on a lot on this show is in the financial markets now capital and then move freely from country to country much more so than it used to more so than people can even move more quickly and you can have these hot flows of money flowing in and out of nations that when they go really wrong can result in what we saw for example with the asian financial crisis in the late ninety's hot money flowed in to countries created a bubble in development there was

a panic with the exchange rate money flew out investment collapsed it was a crisis earlier i spoke to in gold and he's director of the oxford martin school at oxford university where they look for these kinds of solutions he's also former vice president of the world bank and author of this book globalization for development meeting new challenges and i asked him in light of everything i just said how can we maintain and grow economic efficiencies that are associated with globalized trade and capital movement without compromising stability because it isn't. i think this is the key question that is a vital for the future of globalization and source of question and these big global institutions need to grapple with head on globalization has delivered more benefits than any other force in history integration connectivity the sharing of capitalist sharing of ideas the sharing of educational knowledge has been absolutely vital at this hyper connectivity and it's increasing in intensity it was

a leads to the propagation of systemic risks and we saw in the financial crisis the first of the big twenty first century crises it will not be the last so the question is how do we benefit from hyper connectivity how do we benefit from coming together without being more vulnerable to the systemic shocks which also come from that this requires wise policies this requires an understanding that globalization needs to be made to work for development which is indeed the title of my most recent book so what it was and make it work for development i think in every dimension and wants needs to see the connection between the these different dimensions there are things that can be done for example one trade how do you build trade policies that will allow for freer flow of goods and services a more even playing field how do you get rid of the not rages subsidies in agriculture in other areas while allowing opportunities for farmers in finance how does one gradually lead to capital account good realisation not overnight and not

as and also prevent appreciation as is happening for example in brazil chile these are things that we understand how to deal with but they require global coordination another key area where we need to work together is for example migration completely unregulated area no global institution responsible for it so by working on the different dimensions building resilience into the system we can manage globalization but this requires again global management it needs someone on institutional capability but is able to manage it and that's part of the big challenge facing the world bank and the i.m.f. . these institutions the props the plates i'm afraid people will see american activities more risk than opportunity. and we do risk. nationalism and protectionism and this brings me to the question of accountability you're calling for a global solutions one thing that people are wary of when you talk about addressing some of these issues globally is that issue of accountability how do you have

global institutions that the accountable when many countries can't keep their own governments accountable just look at greece a country of ten million people you have people out burning athens literally and they still don't have any impact over what parliament is doing. well i think in democratic systems we have to rely on the democracies to deliver accountability it's widely important citizens are informed that they exercise their democratic rights and they get governments that they vote for or don't vote for so that is the system of accountability it's the best we know yet of course at the global level this gets much more complicated because we don't have the same sort of operating system at the global level we need institutions that respond to the shareholders' interests therefore they need to be led by the best person in a global open search they need to have wards of governors who represent people around the world so there needs to be a fairer

a sharing but not like the ones that currently exist in higher math and the world bank in a fair a sharing of representation for reflects the difference interests around the world and of course then we need rapid transmission we need more transparency in institutions we need more ability for people online to see what's happening and to rectify it to be able to get back to their governments to the shareholder representatives and ensure better things and the most important thing we need is a quick a process of learning so evaluation and impact analysis one of the problems in greece of course was that they were failing to find the maastricht treaty they were failing to follow the european union rules and there were new and no one do anything that didn't think about it some more quick adjustment to failure is also vital you know professor golden just kind of play devil's advocate one thing that ad critics would say it's come on this sounds like a new world order where you have these on elected officials at this higher level making decisions that are not directly elected by the countries that they are making decisions for so how do you have global solutions to some of these problems

that don't materially impact individual liberty and sovereignty. i think we all have to accept as global citizens that there will be some degree of decision making at the global level which is not necessarily directly aligned with local and national interests we have to give up some responsibility to ensure global coordination it cannot be for example on issues like climate change where everyone says we just want to keep on putting up as much carbon dioxide as we like and whatever the world of science will ignore them so there needs to be some decision making the same happens in fisheries the same happens on conflict or nuclear proliferation in many areas i think we have to accept that for global stability for global growth and inclusive globalization it is going to have to be some give as well as some take from this process so. as we recognize that

increasingly we are interdependent we have to accept that us into dependency implies some constraints as well as liberties for all of us but ensuring that these institutions are accountable means that we know what's happening but our elected officials are representation we might not always agree with their outcomes but at least we know what the hell they were arrived at at least you know what influence that and of course the other raising thing that's happening is that the is now the power of the internet so this was mass social media movements we saw in certain things like recent copyright legislation in the u.s. it actually was a completely new sort of process in this case the closing down of we could be here for a few days lead to a change in legislation so this increasingly will happen at the global level to level the pace and finance that because we've seen situations where the national markets are more powerful than government they end up having their interests taken care of and look after you can just look at the european crisis to save that world leaders are constantly countering

a bond market where technocrats were put in place to put forward what markets wanted so indicated by now how do you see that working. well i think it's likely courts in the legislature and the jewels like the treasury as you see in the fed in the case of the u.s. and they come across the room the world as well as the i.m.f. of course really have a technical capacity to understand what's going on we will soon need to constrain lobbying quite extraordinary how the growth of lobbying has. happened over the years and how this influences legislation so ensuring that the legislation is developed in the national interest not in the interests of any one sector or lobby group is vitally important as well people countries ensuring that the global regulators join up one of the crucial failures in finance was of course the deregulate the deregulation race to the bottom. but taking away of much constraint finance so that many explanations for the financial crisis but amongst

the most significant of this race to the bottom of the absolute with rule of regulation from some critical areas and we're almost out of time and so i don't want to get caught off by the by the fiber line just to let you know but i want to ask with because you bring up the internet and in technology and globalization in some ways can be compared because you have greater efficiency but also risk of instability and with technology they've created redundancy that's part of the industry so we did with the internet for example there's no way to break that with the financial system how do you do that because of the financial system there is a single point of failure it could be considered too big to fail firms because if they fall that does affect the entire system how you create redundancy i guess the question it's partly. well there's a number of things that need to be one of them is we need to map the financial system we need to know where the critical nodes are we also need to do this in other areas by the way but i traffic control important supply chains we need to know what the critical nodes are if we had done this prior to the financial crisis

i think. the decisions that were taken to run lehman brothers been taken very differently so we need to know what share for example the roof of trades go through any one institution we need to regulate to ensure that no nobody's too big to fail we need to ensure that we understand and we distribute the risks across the system to ensure that is more resilient building redundancy can also be done in ways that for example are being done in some instance for example how much capital has a bank up on its balance sheet how many spare parts should a hospital have in its supply chains those sorts of questions can be regulated for if one understands where the vulnerabilities are. well i have more with me and golden still ahead though first came to i pod then there was the i phone and the i pad so what's next for al forget the dividend will give you our three cents on an i bank the first your closing market numbers.

we just put a picture of me when i was like nine years old i want to tell the truth. i'm a contestant i am a total get of friends that i love driving hip hop is a planned trip. but it was kind of a bit yesterday. i'm very proud of the world without you it's place. oh. you know sometimes you see a story and it seems so silly you think you understand it and then

a glimpse something else hears you some other part of it and realize that everything is ok and you don't know i'm sorry welcome to the big picture. what drives the world the fear mongering used by politicians who makes decisions come to the breakthrough pay for it i think it may who can you trust no one. is you know view with the global machinery see where are we heading. controls happens in school sessions when nobody dares to ask we do r t question more.

welcome back to capital account while we are on globalization let's talk about global financial institutions because love them or hate on the i.m.f. and world bank are what we've got and the world bank is going to get a new leader this summer there are all sorts of reports about who the candidates and the next president will be and the recurring conversation of why is the west always in charge here now you have a lot of talk about the shortlist for the u.s. nominee larry summers has gotten a lot of buzz he's a former obama official of course former clinton treasury secretary and his records on this web site you're looking at the forget larry campaign this is from public citizen essential information they're arguing the guy that advocated for deregulation and other policies that favor wall street and corporate interests is all wrong for the job and there are reports that developing nations will name two candidates the nigerian finance minister and the former colombian finance minister you see them both there now our guest in golden was vice president of the world

bank that was from two thousand and three to two thousand and six he worked there before that too and he's been writing about the importance of this decision in his op ed titled the world bank is flirting with irrelevance he reminds us of what he calls this analyst bilateral deal that is always allow europe to claim the i.m.f. and the u.s. to appoint the head of the world bank but in golden's view with emerging markets now accounting for more than half of the global economy there is no excuse for delaying a global search for the best qualified candidate now. this acros calls i've heard for the last several years that i've reported on this issue calls for the developing economies can be more represented in these international institutions but i'll tell you what it's usually followed by a repeat of the status quo so i asked professor golden as we get up to the deadline to nominate the president of the world bank why hasn't there been more movement on

this issue i think it has made a lot of movement because it suits both the u.s. and the european union not to change the rules together with japan and have a majority of the voting shares still so there's not really the enough of a majority of people to really force a change so i think they have to listen to world opinion they have to think about the legitimacy of the institutions which they sacrificing in this process they would have to think about what they preach in many other forums both the european union and the us of course and many other forms push for transparency for a concept realty for competitive processes for open processes but certainly what vies the developing countries to do is what they advise the corporates to do so they should apply the same standards to these institutions so then the question becomes if they don't have more accountability and open up these institutions in the way you're saying would not serve the us and europe necessarily at what cost

for these institutions moving forward. i think the first cost is that we turn to go and see that we're going to get the best possible candidates these institutions face immense challenges they stream important for the world. the world has many great challenges and it's vitally important that we get the best person for the job i think neither the european union or the u.s. would be so presumptuous to assume that the best time to do it would be from either of those two events that might well be that in a competitive such us european union citizen would emerge as the best confidence that cannot be assumed from the forefront the second thing that of course is lost in the process is legitimacy when all the countries of the world all of those two are clamoring for a competitive search when the citizens of the world argue that this is the right thing to do i think the institutions lose their shirts in the city by not applying

a transparent open rules so there's a major question about i think we need the right person and i think it will make the institutions more effective if we go about it in the right way and professor bolden you said if there's not this broader search for that candidate that the institutions risk losing legitimacy my question you see for example india reportedly has plans to put forward the idea for a bank of breck's nations a development bank of developing nations one being south africa your country of origin i might mention so this is a bank that would find infrastructure fund development projects even give advice there it's supposedly talking about this at their summit at the end of the month of bric summit are these nations is this an example this and developing nations are already moving away from these traditional western led global institutions. well i strongly welcome the idea of this regional new brick bank and partner that i looking at in south africa the development bank of southern africa is the bank that

i was the c.e.o. of and built a regional platform for so these are great institutions the infrastructure banks they focusing on many of the similar issues and i think cross them and sharing capital and expertise across them is a great ideal. other thing of course is that the regional banks like the african development bank the american bank the asian development bank european bank for reconstruction of element also tremendous institutions as are many of the national and others but these are complementary not competitive with the world bank in so far as the world bank is the only global institution i can focus on the big global issues facing the world these regional institutions are not able to grapple with the scale and number of countries the number of regions where the different expertise sets that are required for the global issues so i think while they are competition for these institutions in very specific areas like infrastructure finance within the bric countries they are not able to deal with the failed states

they are also not able to deal with the big common problems we face the issues of the global commons like climate change the management of systemic risks the reason it's true sions need to be complementary and the key question of course for the global institutions is can they live up to the global expectations if they are only going to meet regional expectations then they will become i think increasingly irrelevant as they go forward there you have it a warning at the country meeting that deadline for their nominations for the world bank president in golden former world bank b.p. and he's now director of the oxford martin school at oxford university.

all right before we go let's round things out with loose change i've got to mitterrand shannon here to talk about a nother global issue so first there was i pod then apple came out with this. this is the web. and this. is a. your i phone. so no everyone knows what that is unless you're living under a rock but what could be next could it be and i think here are the facts apple is already serving as the digital bank branch for many of its i phone and i pad users earlier this month apple filed a patent for an eye wallet which allows customers to manage all of their financial accounts and make payments directly on their phone and according to research from the firm kate e a e dyslexic moment forty three percent of alba users said they might stash their cash with the company if it offered banking services so we know apple has

a lot of cash they just announced a dividend but they have a lot more cash than now that was less than half of their cash reserves over three years so what you think what they don't know what to do with her cash and the banking system has no cash so it would make sense for apple to create a banking arm. rather have my my money which has a huge cash flow and massive amounts of capital that out of bankrupt mortgage which is inherently bankrupt every second of every day ok but really this to me three nearly half of americans own a smartphone i'm sure a lot of those people are i phone users what happens when this becomes the next to big to fail if everyone is on their i phone using their i banking then you have another problem but you're worried about the two for them one you can't this is like this is like the nations who's in europe you know the scorpions in a bottle introducing a new predator into this environment and take out some of these too big to fail banks then we can worry about apple being too big to fail that's way too down the

line you're creating a monster i think to fight monsters you have to create another monster and i think at least this will be a well capitalized monster i don't have a lot of capital than a giant. running around blowing up the global economy fair enough shannon with my luck with. this i think is probably going to fail and probably will. i don't think. it's a little too much to be consolidated into one company your banking your phone your music is too much to move on this might be too much for you if you're one of our many male viewers because if you're a male hitchhiker in way you might have to watch your back again of women are reportedly going after this. it appears there is

a black market for sperm however it's kind of ugly because male victims in zimbabwe have reported being drugged so due to gun or knife point even with a live in eight in one case one might ask what is this. and given to the actual stimulant and forced into repeated sex before being dumped on the roadside and the sperm is then sold on the black market evidently it is a hot commodity if exact use is not known but it is to be used in traditional rituals to bring a lot or even. i don't know i improve business is one thing you know i've been worried about this for a while that is true. i mean i know now that women can actually create children with artificially inseminating each other with no semen and what and turning about that i think is part of a trend this is really for the lower classes that are trying to get their hands on sperm to come to be before the were made the right numbers missing something less

you calling obsolete becoming and that's my concern because women are in pursuit taking over the roles of men and now you're seeing that they're actually literally attacking men we have a new story of a woman in australia rebecca elder who literally was was was was tried with rage for breaking an entry and sexually assaulting a man ok all right so this is this is a tragedy we're going to show the men taking their sperm so we were responsible we have a look it's all we have. there's no what's left i don't want to argue with you there but last we conflate this issue as a major one and confuse headlines for making this a big issue if you look at the stats ok and then bob way it was three women or something that they found to be guilty of this or that have been charged with this there are three thousand rapes of women in zimbabwe no one stealing their. eggs this is all that we have or what are we going to do about this this is one kind of tell you the real issue here is not the rape it's the sperm that's he should be concerned about if we don't have time he can fly do what we should be ok this is

increasingly men are losing their losing jobs they're increasingly becoming i mean if they don't even have a role as a father for getting more there were real that probably i don't think i'm the planner figure role has had a problem for as and i certainly understand i had an issue with morning where you think i mean honestly isn't there a plethora of sperm that guys get rid of and i do is this a so true fair you know what i know and i always thought that it was wasted but this is obviously there's obviously a demand for outstrip the supply and i'm what i'm worried i'm worried i this is because i'm scared and i think every man out there should be scared all right this is a warning call i find everywhere of final warning from dimitris you all of our male viewers all check in and i just enjoy being on the rising tide of useful reservoir work imaginable markets firms in a bear market were and women are in a bull market that it is all we have time for believe me on that note thanks so much for watching come back tomorrow because we will speak to legendary investor jim rogers about ben bernanke second lesson for college students that was today it

includes why the federal reserve's lose monetary policy did not cause the housing bubble oh yeah ok we've got a reality check for you mr carnegie until then don't forget to follow me on twitter out lauren lyster give us feedback at you tube dot com slash capital accounts and from everyone here have a great night. wealthy british scientists are. sometimes just. like that. market why not come to find out what's really happening to the global economy with months cause or for a no holds barred look at the global financial headlines tune in to cause

a report. from . more news today violence is once again flared up the flames are the images. from the streets of chatter that. the challenge for asia today. the i. download the official policy of location on the phone on called touch from the i choose our story. the jaunty life on the go. video on demand on t.v.'s mine old costs an r.s.s. feeds now in the palm of your. question. call.