>>this week on world business... >>as global demand for oil resurges, kazakhstan looks to ramp up daily production from its huge untapped reserves >>that's why we're trying to distribute to all directions. because this is important for the sustainable development of our country and the sustainable development of our oil industry as well. >>making a play for the luxury car market at one of the toughest times. gm takes on some of the mostestablished brands in the business. >>cadillac now has products that are very competitive with those from such european carmakers likebmw, mercedes-benz and jaguar >>and in a unique position to make a difference, 1st ladies from around the world meet in malaysia to forge

a decent future for their countries children. >>as individuals having the privilege of prominence we have the opportunity to direct public attention to critical and urgent matters >>hello and welcome. i'm raya abirached and this is world business, your weekly insight into the global business trends shaping our lives. this year opec turned 50 and for its member countries the last few years have been a turbulent time, with massive swings in prices and demand. now as the world emerges from recession, thirst for oil is once again on the rise, providing great opportunities for countries with huge untapped reserves. countries like the central asian nation of kazakhstan.

>>reporter: you're looking at the world's largest industrial project. this is the kashagan oil field in the caspian sea in kazakhstan... considered the world's largest discovery in the last 30 years. >>challenges abound: shallow water, extreme weather, toxic sulfur levels and complicated logistics... as there is no access to the open sea. >>to tap into the precious black gold here - estimated reserves top 9 billion barrels - kazakhstan teamed up with partners including shell, total, exxonmobil, conocophillips and eni. >>massimov: the total investment is above $160 billion. the most developped technology is used

to develop this project. because, it's not an easy project as i mentioned. but i think the cooperation between investors and the government of kazakhstan bringing up new technologies will resolve the issue and we'll have a success story. >>reporter: after many delays... the field is now scheduled to go online by 2012... a critical deliverable if kazakhstan wants to fulfill its promise to double oil production to 3 million barrels a day in the next decade. >>kulibayev: for this moment we have a strategy to have plateaued at that level: 3 million barrels. we will achieve that in the next decade. and we have resources to be on the plateau for 40, 50 years. >>reporter:

this new well at the alibek mosa oil field will play its part in kazakhstan's future. it's one of 112 drilling sites at the field... and it'll take 3 months to reach the oil... 3,600 meters deep. >>sager: kazakhstan is the new energy frontier. the so-called elephant oil fields of tengiz and kashagan on the caspian sea have put kazakhstan in the top league of countries with proven oil reserves... nearly40 billion barrels. >>reporter: that's about half the reserves of russia... kazakhstan's neighbor to the north. >>russia's threat to cut off oil supplies to europe in 2008 left lasting impressions... putting its reputation as a reliable energy partner at risk. kazakhstan has been filling that void. >>kulibayev: kazakhstan is a reliable partner for the moment and will be a reliable partner for the future. >>reporter:

for the last few years the fashion has been to talk about bric countries: brazil, russia, india and china... but kazakhstan's elevated energy status has earned it a spot among the new grouping of brink countries. >>west: the brink countries are the countries where production is going to be rising substantially: brazil, russia, iraq, nigeria and kazakhstan. but of those five countries, kazakhstan is unique in that it'sthe only one that is landlocked. it's the only one that doesn't have beachfront property and so thechallenge will be how to get it out. >>reporter: kazakhstan is in the process of addressing this challenge. a network of pipelines is crisscrossing the country... to russia, across the caspian sea to azerbaijan and turkey, and to china... which is hungry for energy. the first stage of a massive 10,000 kilometer gas pipeline becomes operational by the end

of 2010. >>massimov: that's why we're trying to distribute to all directions. because this is important for the sustainable development of our country and for the sustainable development of our oil industry as well. >>sager: you have used your energy windfall very wisely, creating massive cash reserves which came in handy during the recession. what is the current status of the oil fund and what are the next levels of whatyou want to do with it? >>massimov: during the recession we made the decision to take $10 billion from this fund to fight against recession and i think by 2010 we proved one more time that our policy was right because we overcame the recession. for the time being we are coming back, we are not using the fund anymore. we're keeping thereserves and are preparing for the next world crisis. >>reporter: at the crossroads between east and west... kazakhstan is well

positioned to ride out the next world crisis. >>gusenbauer: what will be important is to establish the area - and mainly kazakhstan - as the economic bridge between eminently growing areas. you have the vicinity to western china, you have the vicinity to russia, you have enormous natural resources and this, therefore, let' say is the key place to go. >>reporter: bringing the country a step closer towards its strategy of becoming a fully developed nation by 2030. >>the last few years have been tough for the global car industry, especially for those us firms thathad to go cap in hand to the government to stay afloat. yet, despite the downturn and an increasingly competitive market, general motors has taken the unusual step

of targeting the luxury sector. >>reporter: the glitz and glamour of the paris motor show was almost enough to make the recession a distant memory. at the start of the year luxury car sales were down 15 percent, with super expensive brands-like bentley, maybach and rolls royce-dropping by almost 40 percent. but despite the woes in some partsof europe, luxury car sales are once again picking up. >>robertson: we are confident that as we come out of this year that we will see some momentum, and looking into 2011 we think that will gradually increase as well. >>reporter: with that in mind american auto makers - in particular general motors - are reaching for the stars.gm's flagship marque-cadillac-among the top-selling luxury brands in the us for years-is taking on german luxury car makers on their own turf. >>schubert: cadillac has been and is an american icon and that is a real asset for europe. the new products we have

launched are getting very good press reports and also the consumer reaction is absolutely top. just take the cts-v series, which can take it up with the bnw 5-series and the mercedes e63 amg. >>reporter: it seems to be working, at least in the us - in august sales of the cadillac cts series were up 83 percent on the same month a year ago. but the european and us markets are worlds apart, success domestically does not guarantee results abroad. yet despite a long held reputation for flabby cars in theus mould, some experts were impressed: >>stevenson: cadillac now has products that are very competitive with those from such european carmakers as bmw, mercedes-benz and jaguar. >>reporter: gm's big domestic rivals are following suit. after being forced to sell-off aston martin, jaguar, land rover and volvo during the recession, ford is ploughing resources into its remaining premium

brand, the lincoln with a view to taking it global in the next four to five years. >>reporter: however gm, ford and chrysler still face overwhelming competition from german and asian manufacturers, in a market that is becoming increasingly tough and not one established brands will relinquish lightly. >>weber: it is always important that we h >>reporter: setting the standards means that speed and comfort will have to go hand in hand with efficiency and environmental cleanliness. >>zetsche: well, i think it is great to have a platform to show the world, there are rising confidence and growth patterns in the auto industry as well. >>reporter: but of course the real prize is asia, where massive economic growth, especially in china, is drivingdemand. it's clear cadillac sees its re-launch in europe as a stepping stone towards wealthy customers in emerging markets. >>schubert:

we know that russia, the middle east, and asia are looking at what is happening in europe. so, if you are in europe and european buyers chose you, that is very important to the other markets. so - europe is kind of a base for the other markets. >>reporter: there is improvement across the board. producers who started the year with very conservative profit targets are revising upwards, margins have returned to nearly pre crisis rates and volumes are expected to continue rising over the next decade although perhaps at a slightly slower rate. >>johnson: the projection is that by 2020 there will be 8 million cars sold in the premium segment. so there islots of room for us to be competitive there and to get our fair share of the total volume. >>reporter: and a major part of that volume will come from china now the world's largest auto market. but tapping this huge opportunity will take work as they need to appeal to a younger breed of buyer. owners of luxury cars in china tend to be half the age

of their western counterparts. the winner in the battle for market share among western brands will be the one that most appeals to the far east . >>still to come on world business... >>the importance of education for the development of nations. first ladies from across the world meet to push investment in development programmes for children >>and the america's cup is embracing new formats to become more tv friendly and attract a larger fanbase. >>a new tack... and the rest in just a moment on world business... >>around the world over a hundred million children receive no education, while many more talented but poor children fail to realise their potential due

to lack of investment in their future. to address these and other issues concerning the education and welfare of children, the first lady of malaysia rosmah mansor, this week hosted an unusual summit of 14 first ladies from across asia, africa, andsouth america. our southeast asian correspondent rian maelzer filed this report. >>reporter: first ladies are now no longer content to walk three paces behind their husbands, or even merely to stand at their sides. they are now determined to step forward and be counted on issues close to their hearts. >>and to make sure their influence is felt on the world stage and that they can effect real change, the first ladies are beginning to organize themselves in a cohesive way. >>banda: i think when we come to summits like this one we all have one voice. i think one voice will carry abigger weight than a single first

lady talking about educating a child especially from a tender age, so if we come together as one voice i think it will carry a bigger voice. >>reporter: the theme of this inaugural summit was "a child today, a leader tomorrow," with a strong focus on providing adequate education to boost children's opportunities for a decent life....and to contributeto their countries' development. >>koroma: this summit is all about preparing children for the future. the children of sierra leone have been deprived, they have suffered so i am bringing them hope. we are preparing them for leadership, and proper leadership. >>lorna golding: i brought a message of change to the conference: tenacity, believe in what they're saying, believingin what they are doing. and get it done.

>>reporter: the summit was the brainchild of malaysia's first lady. >>mansor: as first ladies i believe we are strategically placed to be social advocates for community initiatives in the areas of leadership, education, empowerment and social development. as individuals havingthe privilege of prominence we have the opportunity to direct public attention to critical and urgent matters >>reporter: in his address at the conference opening, first lady rosmah husband spoke of how the role of a firstlady can complement that of a prime minister or president. >>razak: this role as the voice of social conscience speaking for those who are less privileged or those who have somehow fallen through the cracks in the system and have been forgotten and neglected by society dovetails nicely with the more political and governmental role of heads of government.

>>reporter: that has clearly happened here in malaysia. rosmah pushed for the government to launch an initiativein collaboration with johns hopkins university of the united states. it has seen the creation of 500 early childhood education centres targeting children from rural areas and the urban poor. >>reporter: the initiative is now being expanded to create centres for academically and musically gifted children as well. that fits neatly with the malaysian prime minister's goal of creating a more highly skilled work force and stemming the brain drain in order to make the country's economy more competitive. >>mansor: we have to start now. we cannot delay any more. otherwise our neighbouring countries will overtake us and they will take away

our gifted children and our gifted children are really our important asset. >>reporter: malaysia is currently working on major overhaul of its education system. but in many ways is a model for developing countries. it has free, universal education through secondary school and enjoys high levels of literacy. >>banda: first of all i have to identify the things that are working here in malaysia and compare them to ourcultures in zambia so that i can relate what's happening here and also in zambia, and also make it work there. because our lifestyles are similar, so i think what's working here could work in zambiaas well. >>reporter: girls are not marginalized in malaysia's education system, with many going on to university, but they actually form a majority. that's not the case in many of the countries represented at the summit. >>guebuza:

the empowerment of girls is really important because educating a woman means giving an education to a nation because she is the person who will be in contact with the children every day, building the future of the nation. >>reporter: after three days of formal and informal discussions, the first ladies and ministers from some 30 countries hammered out a joint declaration. it commits the first ladies to work with governments, business, ngos and the media to mobilise resources to improve children's future prospects in education, and safeguard their welfare in their homes and in their communities. they intend to take their declaration to the united nations to push for support and action. >>koroma: they will listen to us. we are agents of change. we are between the united nations and our people.we are the voice of the people. we are a voice of the voiceless. so we are agents and influencersof change. >>mansor:

i have been so impressed with the level of discussion, the sincerity of your commitment and the quality of the outcomes. >>reporter: malaysia has offered to host the summit again in two years time, looking to make this a regular fixture -- to ensure that first ladies from the developing world have their voices heard, not only by their husbands, but by the world. >>the america's cup is sports oldest trophy and since it was first contested in 1851, has produced some truly epic yacht races. but in the most recent regatta, the proud competition descended into near farce. now the cup's holders are determined to restore its reputation and at the same time, attract a whole new audience... >>reporter: cowes week... august 2010. there were boats. lots and lots of boats >>warner: this cowes week we've got

close to 900 boats racing. the event attracts between 100-13000 visitors who want to come, watch the boats racing, get close to the action... >>reporter: and this year... those visitors saw two america's cup boats... the current cup holders... bmw oracle, and britain's team origin... recreating the very first america's cup race >>jong: back in 1851... the yacht america went around the isle of wight in 10 hours, defeating a fleet of british boats. they were bigger boats that these ones. in the ensuing 159 years the cup's been up for grabs 37 times. australia has won it once. new zealand has won it twice. switzerland has won it twice. the rest of the time, it's remained in american hands. >>reporter: and at cowes... while the year may have changed... the result was the same... chalk up another one for the americans... in an event some saw as a renaissance

for the america's cup itself... >>mills: today we've been racing to i guess send a message out to the world that the americas cup is back on track. >>reporter: it needs to be. in february, following a tedious and distasteful 30 month court battle, bmw oracle took sports oldest trophy off swiss holders alinghi... in 2 barely publicized races... fought in mismatched 90ft multihulls... >>coutts: nobody enjoyed you know what happened with the cup last time where it was trapped in the courts and we were back to the legal arguments and so forth... >>mills: when any sport has a dispute it affects the popularity amongst the public, the general public. it affects interest from the media. it affects it commercially from sponsors. so this was not a good period in the history of the america's cup. >>reporter: despite that... the future looks... surprisingly similar to february's regatta... because in 2013, the america's

cup will be fought in wing sailed catamarans... >>reporter: at 72ft long with top speeds of over 30 knots... the new class is designed to be fast... spectacular... and for its 11 man crew... a genuine challenge... >>coutts: well, it wants to be athletic. it wants to be demanding for the crew. i think in recent times we've had a lot of people on board standing around for example giving advice that haven't been played muchof a physical role in the boat and i think we've got to make this more focused towards younger people more athletic... more challenging for the teams to race. >>ainslie: they need to be the most impressive boats on the planet. that's what the americas cup has always been about. it's about the size and the power of the boats and they need to be really hard to sail. >>reporter: the new boats will also be able to sail in a wide range of conditions, to avoid race

delays and cancellations... poison to tv schedulers. design parameters are tight, to ensure the yachts are evenly matched. the races themselves will be shorter... >>ainslie: you know shortening the courses will make, bring the racing closer and more exciting. we've seen that here in the last couple of days we've done relatively short course racing and it's been phenomenally close. >>reporter: meanwhile in a location yet to be decided, an independent organizing committee will hopefully discourage legal battles, restrictions will be placed on team spending and the competition itself will be redesigned to be more tv and fan friendly... >>coutts: we wanna simplify the rules, simplify the format and make it much more comprehensible for the average television viewer. >>reporter: the trials have already begun... >>coutts: we're investing quite heavily in technology. superimposing the graphics directly onto the televisionimages. we've already started

a process where we're experimenting with different camera positions quite extensively and sound... microphoning all of the crew which is going to be a new thing for the teams. certainly have to change their language style a little bit. >>reporter: of course reaching for a wider audience always brings the risk of oversimplifying a highly technicaland skilful, albeit rather arcane event... >>ainslie: we can't go away from the quality of the racing just to try and make it a tv friendly sport. >>coutts: i think formula1 is a good comparison you know and we don't need to dumb it down at all. we need to just do a better job of explaining it and make it more compelling and more understandable for the viewer. >>reporter: it would be almost impossible to make it less compelling than this year's america's cup. only 39 tv channels

showed the contest. in comparison the football world cup pulled in over 150. for sponsors especially it was a bust... but organizers are confident that low water mark is behind them... >>coutts: there's a lot of work to do and i think the sponsors we've spoken to about some of the changes we'vemade are very excited. >>reporter: but not everyone's excited. sir keith mills has now dropped his team origin challenge altogether. meanwhile serious doubts exist as to whether catamarans can actually produce exciting match racing... >>ainslie: i think in match racing you need to be sailing in a monohull. i think multihulls are too fast the speed differences are too big... the boats are never really as close as they would be in a monohull. >>reporter: but the man who's won the cup 4 times is confident the changes are just what's needed to pull off what might be his toughest challenge yet... winning back the fans, media, and sponsors affection

for the america's cup... >>coutts: you're not lying awake in a cold sweat every night. no. i'm excited about what is happening. >>that's it for this week's world business. thanks for watching. we'll see you again at the same time next week.