party committee live in the russian capital with twenty four hours a day top stories now activists in bahrain face a continued crackdown as government forces keep up the pressure on peaceful protesters appealing for democracy. european atlantic security is a myth that must become reality star words of russian president dmitry medvedev speaking in moscow also warned that nato should not live in the past. an american soldier accused of a massacre of afghan civilians is to face seventeen counts of murder in the u.s. the taliban val's revenge saying it has no faith in american justice. because of

headlines for you this hour i'll be back with more three and half an hour from now in the meantime we cross to washington for capital account with lauren lister. 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 as we try to figure out how to deal with global problems like this not to mention others like avoiding a financial crisis redux 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 account. so today we saw u.s. president barack obama give a speech in 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 the global problem of energy depletion that is at the root of this song 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 that 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 him 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 efficiencies that are associated with globalized trade and capital movement without compromising stability there's a reason. i think this is the key question that 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 a sharing of ideas a sharing of education of knowledge has been absolutely vital but this hyper connectivity and it's increasing in intensity and was that leads to the propagation

of systemic risks and we saw in the financial crisis and first of the big twenty first century crises it will not be the last so the question is how do we benefit from quite the connectivity how do we benefit from coming together without being more vulnerable to the system because 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 what it will make it work for her i think in every dimension and wants needs to see the connection between this these different dimensions there are things that can be done for example on trade how do you build trade policies that will allow a food free of 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 all farmers in finance how does one gradually lead to couple account liberalisation 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 or an 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. . this these institutions the cops the players i'm afraid will see connectivity as more risk than an opportunity but it starts. i'm going to do risk. nationalism and protectionism right and this brings me to 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 accountability how do you have global

institutions kept accountable when many countries can't keep their own governments accountable just look at greece 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 it comes ability and it's vitally important that citizens are informed if they exercise their democratic rights and they get the governments that they vote for or don't vote for so that is the system of accountability that's the best you know yeah 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 but respond to the shareholders' interests therefore they need to be led by the best person in the global open search they need to have boards of governors who represent the people around the world so there needs to be a fairer a sharing and not like the ones that currently exist in the i.m.f.

and 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 big government to their shareholders representatives and ensure better things to do and the most important thing we need is a quicker process of learning so evaluation impact analysis one of the problems in greece of course was that they were failing to point out of the maastricht treaty with failing to follow the european union rules no one knew and no one did anything that didn't think about it so quick adjustment to failure is also going. you know professor gold and just kind of play the devil's advocate one thing that ad critics would say is come on this sounds like a new world order where you have based on elected officials at 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 who decides. 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 global stability for global growth and inclusive globalization is going to have to be some give as well as some take 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 we might not always agree with their outcomes but at least we know what the hell they were arrived at at least we know we're in front of them and of course the other mazing thing that's happening is that is now the power of the internet so business mass social media movements we saw in certain things like recent copyright legislation in the us it actually was a completely new sort of process in this case in closing down and 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 now because we've seen situations where the natural 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 see that our leaders are constantly countering upon market where technocrats are put in place to

put forward what markets wanted so in the case that i had how do you see that working. well i think it's vitally important that the legislature and individuals like the treasury as you see in the fed in the case of the u.s. and their counterparts around 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 lawbreaking 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 lobby group is vitally important as well countries ensuring that the global regulator is joining 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 and in many explanations for the financial crisis but amongst the most significant of this

race to the bottom the absolute withdrawal 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 fire line just to let you know but i want to ask which because you bring up the internet and 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 redundancies 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 do you create redundancy i guess the question. 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 is one of 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 around lehman brothers would be taken very

differently so we need to know what share for example of the roots 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 it 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. for example i'll have more wood and gold and still ahead though first came the i pod then there was the i phone and i pad so what's next for apple forget the dividends we'll give you our three tents on an i.v. the first your closing market numbers. the

thank them back to capital account while we are on globalization let's talk about

global financial institutions because love him or hate him 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 me to 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 website you're looking at the forget. larry campaign this is from public citizen an 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 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.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 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 ask professor golden as we get up to this deadline to nominate the president of the world bank why hasn't there been more movement on this issue. i think that there hasn't 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 and they also have to think about what they preach in many other forums both the european union and the u.s. of course in 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 culprits 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 cause is that we can't guarantee that we're going to get the best possible candidates these institutions face immense challenges they stream important for the world's worst cases many great challenges and it's vitally important that we get the best person for the job i think neither you or opinion or the us would be so presumptuous to assume that the best candidate would be from the eve of those two events that might well be that in a competitive search us or european union citizen would emerge as the best come to the kind of 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 are those two are clamoring for a competitive search when the citizens of the world are doing it this is the right thing to do i think the institutions lose the gypsum mysie 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 golden you said if there's not this broader search for that candidate at the institutions of risk losing legitimacy my question you see for example india reportedly has plans to put forward the idea for a bank of brecht's nations the development bank of developing nations going 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 and supposedly talking about this at their summit at the end of the month the bric summit are these nations is this an example this ended up being nations are already moving away from these traditional western led global institutions. well i strongly welcome the idea of this regional new bank and partner looking at in south africa the development bank of southern africa it 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 across them and sharing capital and expertise across them is a great idea. to think of course is that regional banks like the african development bank american bank the asian development bank the european bank for reconstruction 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 able to grapple with the scale the number of countries the number of regions all the different expertise that are required for the global issues so i think while they are competition for these institutions in very specific areas like infrastructure finance with countries that are not able to deal with the failed states they also are not able to deal with the

big common problems we face the issues of the global commons like climate change like the management of systemic risk the reason is true sions need to be complementary and the key question of course for the global institutions is can they live up to the global expectation if they are only going to meet regional expectations then they will become i think increasingly irrelevant as they go forward very having a warning at a country meeting a good line for their nominations for the world bank president that was in golden former world bank v.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 stand in 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. 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 you know the fact apple's already serving as it did as a digital bank branch for many of its i phone and i pad users earlier this month apple filed a patent for an eye wall it 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 so direct 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 why do you think they don't know what to do with her cash and the banking system. so it would make sense for apple to create a banking arm but i'd rather have my my money. which has a huge power flow massive amounts of capital that out of bankrupt 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 but not pins 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 the no one you can't this is like this is like the nations this in europe you know the scorpions in a bottle introducing 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 where you're going to live you're creating

a monster i think that 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 debt running around blowing up the global economy fair enough shannon. for this i think is probably going to fail so they probably will. i don't think. it's a little too much to be consolidated into one company or banking your phone your at 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 in zimbabwe you might have to watch your back again a 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 subdued at gun or knife point even with a live 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 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 such as one thing i've been worried about this for a while that is true. i mean i know that women can actually create children with artificially inseminating each other with no semen and turning about that i think is more of a trend this is maybe for the lower classes that are trying to get their hands on the trying to afford the. less obsolete coming out and that's my concern because

women are increasingly thinking over the roles of men and now you're seeing that they're actually literally attacking men we have another story of a woman in australia rebecca other 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 show the men taking their sperm so we're responsible we have a look that's all we have ok there's what's left i want to argue with you there but lest we conflate this issue as a major one and confuse headlines we're making this a big issue if you look at this cat ok and then bob way it was three women or something that they found to be guilty of desert that had been charged with that there are three thousand rapes of women in zimbabwe but no one's doing their. eggs this is all that we have or what are we going to do about this this is going to tell you the real issue here is not the rape it's the sperm that we should be concerned about if we don't want to study can so why do 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 deep trouble i don't apply your figure role has had a problem for as an irishman and i think anybody morning here where you think i mean honestly isn't there a. sperm that does get rid of and i do is that's so true i know and i always thought that it was wasted but this is obviously there's obviously a demand for outstrip supply and i'm i'm worried i'm worried i this is because i'm scared and i think every man out there should be scared this is a warning call i find everywhere i know going from dmitri to do all of our male viewers all chatting and i just enjoy being on the rising tide of useful gezer of the market edirne a bull market sperm in a bear market where and women are in a bull market that's it that's 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 with today it includes why the federal reserve's loose monetary policy did not cause the housing

bubble oh yeah ok we've got a reality check for you mr bernanke until then don't forget to follow me on twitter out lauren lyster get back at you tube dot com slash capital accounts and from everyone here have a great night. if .

i'm. coming.