also follow me on twitter at liz well we'll see you right back here and a half hour limitation is. going to take three lives large agree the major legree live free. lives we've launched a live video for your media project free media gogarty dot com. good afternoon and welcome to capital account i'm lauren lyster here in washington d.c. these are your 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 because 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. well the white house has until six pm tomorrow to get its nomination and 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 i pod or i pad what about an account at your i bank we'll talk about what apple is doing to join the battle against the too big to fail banks let's get to today's capital accounts .

so today we saw u.s. president barack obama give a speech valid to support domestic oil production their ears 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 a message solutions he's putting forward there but in reality there may be the 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 now 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 but 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 in gold and he's director of the oxford martin school at oxford university where they look for these kind 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 efficiency is good are associated with globalized trade and capital movement without compromising stability there's a reason. i think this is the key question that this is a vital for the future of globalization and source the question of 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 capital the sharing of ideas the sharing of education of knowledge has been absolutely vital but there's hyper connectivity and it's increasing in intensity it was the 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 connectivity how do we benefit from coming together without being more vulnerable to the systemic shocks which also come from the us 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 how does one make it work for development i think in every dimension i once need to see the connection between us these different dimensions there are things that can be done for example on 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 outrageous subsidies in agriculture in other areas while allowing opportunities for farmers in finance how does one gradually lead to couple or can't realize they should not overnight and how does and also prevent appreciation as is happening for example in prison or chile these are things that we understand how to deal with that 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 that 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 hypothermic somebody is more risk than opportunity it's not slimy and we're going to do risk of

nationalism and protectionism and this brings me to you to the question of accountability you're calling for 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 kept accountable when many countries can't keep their own governments accountable just look at greece the 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 vitally important as citizens are informed if 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 that'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 the global open search they need to have wards of governors who represent the people around the world so there needs to be a fairer a sharing not like the ones that currently exist in the home half of the world bank but a fair a sharing of representation to reflect 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 their shareholders representatives and ensure that everything is doing and the most important thing we need is a quicker process of learning so evaluation and impact analysis one of the problems in greece of course was that they were failing to by the maastricht treaty with failing to follow the european union rules and no one knew and no one did anything that did anything about it some more quick adjustment to faith is also vital but

you know professor golden just kind of play the devil's advocate one thing that critics would say is come on this sounds like a new world order where you have these on elected officials at higher level making decisions that they're 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 sides 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 from this process so as we as we recognize that increasingly we are interdependent we have to accept that this interdependency 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 lex and officials representation there we might not always agree with their outcomes but at least we know what how they were arrived at least we know from this that and of course the other mazing thing that's happening is that is now the power of the internet so there is this 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 for a few days lead to a change in legislation so this increasingly will happen at the global level to

what about the case and finance that because we've seen situations where financial markets are more powerful than government they end up having their interests taken care of and look after you can't just look at the european crisis to save that world leaders are constantly countering a bond market where technocrats are put in place to put forward what markets wanted so in the case that i now how do you see that working. well i think it's partly what's in the legislation that the individuals like the treasury see in the fed in the case of us in the world as well as the i.m.f. of course really have a technical capacity to understand what's going on we also need to constrain lobbying it's been 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 and 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. the taking away of much constraint finance so there are many explanations for the financial crisis but amongst the most significant of this race to the bottom i mean absolute rule of regulation from some critical variance 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 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 you get up in the actual 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 going. well this number of things are you know one of them is we need

to. we need to know where the critical moments are we also need to do this in other areas by the way like traffic control important supply chains but we need to know what the critical notes on. the financial crisis i think. the decisions that were taken around the brothers were going to take a very different way so we need to know what for example the roof goes through any one institution we need to regulate to ensure that it is too big to fail we need to ensure that we understand we distribute the risks across the system to ensure that is more resilient building redundancy can be done in ways that for example are being done in some instance for example how much the bank balance sheet. hospital have been a supply chain and those sorts of questions can be regulated for if one understands where they. will have more what. i had no first i pod then their

way i want to and i look at the dividend will give you our three on and i'd say the first your closing market. we just put a picture of me when i was like nine years old i just tell the truth. i think. i'll wrap my head and. it was kind of yesterday. i'm very.

just playing. you know sometimes you see a story in the scene so. you think you understand it and then something else hears you saw the part of it and realized everything you saw you don't. charge the things you. see. what drives the world the fear mongering used by politicians who makes decisions to break through that sort of way who can you trust no one who is you who with the global machinery see where are we cutting state controlled capitalism it's called sections when nobody dares to ask

we do our t.v. question more. welcome back to capital account while we are on globalization let's talk about global financial institutions because a lot of 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 the big 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 short list 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 website you're looking out the forget larry campaign this is from publix that if an offense will information there are going to guide it 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 it's titled the world bank is flirting with irrelevance he reminds us of what he calls the scandalous bilateral deal that is always allowed europe to claim the i and the 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 act goes calls i've heard for the last several years as i've reported on this issue calls for the developing

economies to 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 to this deadline to nominate the president of the world bank why hasn't there been more movement on this issue. i think it has been a lot of movement because it suits both the u.s. and the european union not to change the rules and together with japan they 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 also have to think about what they preach in many other forums both the european union and the u.s. of course and many other forms push for transparency for accountability for competitive processes for open processes but certainly what they advise 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 u.s. and europe necessarily at what cost for these institutions moving forward. i think the first cost is that we cannot be guaranteed that we're going to get the best possible candidates business situations face immense challenges makes trini important for the world with the world faces 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 candidate would be from either of those two events that might well be that in a competitive search u.s. and european union citizen would emerge as the best continent but 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 do you know this is the right thing to do i think the institutions lose legitimacy by not applying transparent rules so there's a major question about i think we need the right person and i think it will make institutions more effective if we go about it in the right way and professor called you said if there's not is a 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 bricks nations a development bank of developing nations one being south africa your country of origin i might mention so this is a bank that way by and infrastructure fund development projects even give advice there and supposedly talking about this at their summit at the end of the month of brics summit are these nations is this an example this i'm developing nations are

already moving away from these traditional western led global institutions. well i strongly welcome the idea of this regional new bric bank indeed the partner that they're 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 plan for so these are great institutions the infrastructure banks focusing on many of the similar issues and i think cross them and sharing capital expertise across them is a great idea so the other thing of course is that the regional banks like the african development bank and some merican development bank the asian development bank the european bank for reconstruction the government 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 that can focus on the big global issues facing the world these regional institutions are not going to grapple with the scale of the number of countries the

number of regions where the different expertise sets that are required for the global issues so i think that while they are competition for these institutions in very specific areas like infrastructure finance whatever bric countries 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 global commons like climate change the management of systemic risks the reason it's true she does 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 the deadline for their nominations for the world bank president in gold and former world bank b p 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 meet 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 it. on 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's already serving as good as a digital bank branch for many of its i phone and i had users earlier this month apple filed a patent for an eye 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 he ate he sounded like a dyslexic moment forty three percent of apple 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 i think what they don't know what to do with our cash and banking system. so it would make sense for apple to create a banking arm i do. have my my money. which has a huge carrot flow and massive amounts of capital that a bank or mortgage which is inherently bankrupt every second of every day ok but really this dimitry nearly half of americans own a smart phone i'm sure a lot of those people are i phone users what happens when this becomes the next too big to fail if everyone is on their i phone using their i banking then you have

another problem i think you're worried about the two for them one you can't this is like this is like the nation's things 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 and then we can worry about apple being too big to fail it's way to go right here 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 cesspool of running around blowing up the global economy fair enough then it was my luck with. this i think is probably going to fail so it 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 let's 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 invent 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 and subdued at gun or knife point even with a live eight in one case one might ask what is its name and given its 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 its exact use is not known but it is thought to be used in traditional rituals to bring luck or even. i don't know i improved business so i was wondering you know i've been worried about this for a while that is true. i mean. we know of 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 maybe for the lower classes that are trying to get their hands on sperm it can be before the what i'm telling you something less you calling obsolete coming out and that's my concern because women are increasingly taking over the roles of men and now you're seeing that they're actually literally attacking then we have a new sort of woman in australia rebecca older who literally was was was was charged with rape for breaking and entry and sexually assaulting a man ok all right so this is this is a trend we're going to something that's taking their sperm and we want a response do we have the look it's all we have ok. 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 boy it was three women or something that they found to be guilty of this or that have been charged with that

there are three thousand rapes of women in zimbabwe but no one stealing their. next this is all that we have lauren what are we going to do about this this is one thing to tell you the real issue here is not the rape it's the sperm that's you should be concerned about if we don't live side beacons then i do what we should be ok this is increasingly men are losing their losing jobs they're increasingly coming i mean if they don't even have a role as a father forgive me more they were real the problem i don't i think i'm the planner bigger role has had a problem for as and i'm sure you understand i said what morning and what you think i mean honestly isn't there a. sperm that does get rid of and i do is that's so true there you know what i know and i always thought that it was race that but this is obviously there's obviously a demand for outstrip the supply and i'm i'm worried i'm worried i this is because i'm scared and i think every mother should be scared all right this is a warning call everyone a final warning from dmitri do all of our male viewers call shakin and i just enjoyed being on the rising tide of you still get your butt working enjoyable

markets firms in a bear market we're going to enter in a bull market that's it that's all we have time for we'll leave you on that note thanks so much for watching come back tomorrow because we will speak to legendary investor jim rogers about ben bernanke used 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 bernanke eat until then don't forget to follow me on twitter out lauren lyster get that feedback at you tube dot com slash capital accounts and for everyone here had a great night. in the. news today violence is once again flared up.

these are the images the world has been seeing from the streets of canada. showing corporations rule today. the buddha. download the official policy of location and join a phone i pod touch from the i choose i'm still. life on the go. video on demand on season one the old costs an r.s.s. feeds now in the palm of your. wealthy british.