and we are far below the oecd average talking about fiscal deficit. so that is the lesson we learn from the past, from the past mexican crisis, in the '70s, in the '80s, in the '90s. we need to preserve fiscal deficit under control. and actually, we are reducing even more the fiscal deficit in the country. i'm talking about public debt. you can see the nafrnlg oecd -- i made a mistake a few minutes ago. but the average is 62.5% of gdp. mexico has 32% of gdp. we are in good shape in macroeconomic stability, in public finances. that is a very important point on infrastructure in the country. on average we're spending like 3% of gdp, which is actually very close to the average of oecd countries. in the oecd the average investment in infrastructure is 3.4% of gdp. we increase the investment in mexico from 3% to 5% of gdp a year, which implies to invest roughly more than $50 billion a year in infrastructure in mexico, public and private. and with that we are increasing in a very important manner the capabilities of the country and the competitiveness of th

the oecd and the imf predict the oecd and the imf predict our leaders of the industrialized world over the next two years. taking the next steps canadians appreciate the fact that our country is outperforming our peers. they also understand that the global economy remains fragile. they know that our traditional trading partners face serious long-term economic challenges. in addition, canadians are aware that our country faces challenges of its own. we need to promote innovation more effectively, to keep creating good-quality jobs. we need to plan for the rapid aging of our population, to secure our long-term prosperity. many canadians are concerned about whether they will have enough money for their retirement. they wonder whether our social programs will be there when they need them. they ask whether there will be good jobs and a higher quality of life for themselves and for their children. in response to these concerns, there are some who would raise taxes, increase government spending, and shun new trading opportunities. these short-sighted, irresponsible, and dangerous policies wou

in the oecd, the average investment in infrastructure is 3.4% of gdp. we increase the investment in mexico from 3% to almost 5% of gdp a year, which implies to invest roughly like more than $50 billion a year in infrastructure in mexico, public and private. and with that, we are increasing in a very important manner the capabilities of the country and the competitiveness of the industry. let me tell you, for instance, this figure that is to january, but probably we are building or rebuilding almost 20,000 kilometers of highways, country roads and roads in mexico. which is more than the whole railroads, highways or country roads built in the last administrations combined. probably we will increase, because we are expecting to finish my administration with 22,000 kilometers of new highways or rebuilding highways and roads, which is the highest effort in infrastructure in several decades in mexico. but it is not only highways. for instance, in some cases in terms of airports, some new airports we are building in sonora or rebuilding others in the country.

that's the oecd, not me. and the united kingdom, another country a few weeks ago this committee was debating they are somehow stealing our ipos, they have a 42% higher tax burden than the united states. greece has a tax burden of 25% higher than the united states. even turkey's tax burden is higher. the only two countries that have a lower tax burden than ours are chile and mexico on this list. so i'd like to submit that for the record. i ask this mr. secretary because we heard if europe is somehow doing a good job dealing with their issues, and all they are doing is one side of the ledger which is the austerity measure which is fine, am i wrong to think that the u.s. made significant cuts in the last years through budgets? >> yes. congress reached agreement last summer to cut more than $1 trillion in spending over the next 10 years and if you look at what cbo said for example about what the impact of the president's proposed policies they would reduce our deficits dramatic where where the debt would stop goi

oecd is like 52.5% of gdp.exico has now 32% of gdp in public debt by the last year. so we are in good shape. in macro and public finance. that is a very important point. investing in infrastructure in the country. on average, we were spending like 3% of gdp, which is actually very close to the average of oecd countries but in the oecd, the average investment in infrastructure is 3.4% of gdp. we increased the end of the month in mexico from 3% to almost 5% of gdp, which implies to invest roughly like more than $50 billion a year in infrastructure in mexico. outlook and private. .. >> we will increase because we are expecting to finish my administration with 22,000 kilometers of new highways or rebuilding highways and roads which is the highest effort in infrastructure in several decades in mexico. but it is not only highways. for instance, some cases in terms of airports, some new airports we are building in the cortez or sonora or rebuilding others in the country. and the same, for instance, in the terms of hea

currently the oecd is examining the issue of state-owned enterprises and competitive neutrality. while the united states is looking to advance new disciplines on state-owned enterprises in the context of the transpacific partnership. more broadly, we mist continue to monitor and take action to combat china's trade distorting industrial policiepolicies. whether that be with respect to china's policy of indigenous innovation or the plethora of five-year plans now being issued by china's economic planners. and, of course, our efforts regarding china's export restraints are well known and have been quite successful thus far, which we hope and expect will continue into the future. finally and on a much broader note, the work that we're doing at the wto and the specific initiatives i've touched on today, all ultimately come back to a core truth. the wto and the potential it holds for producing market expanding trade liberalization is fundamental to creating conditions for strong global growth and job creation. while the existence of a positive link between trade growth and jobs may be

oecd secretary-general garria met with azumi in tokyo. garria encouraged government leaders to push through their plan to double the consumption tax from 5% to 10% by 2015. and he urged them to take other measures to reduce public debt. azumi said government leaders will raise income and other taxes. they need those revenues to rebuild areas hit last year by the earthquake and tsunami. he said raising taxes will enable them to implement the projects without issues more bonds. azumi said the added revenues will also be used to cover the ever increasing costs of social security. >>> now we bring you the weekly report from south korea. our reporter in seoul sue choi filed the following stories. >> last week the bank of korea lowered its economic growth outlook for this year. it said gdp will expand 3.5%. that's down 0.2% from its previous forecast released in december. i spoke with an expert about the central bank's latest forecast and its background. the bank of korea has lowered its gdp growth forecast for this year to 3.5%. what's the mai

unfortunately, germany landed in it 10th among 15 of the european oecd countries. >> but the german government has increased development aid for the third year in a row. that, despite europe's ongoing debt crisis. >> the space shuttle discovery has taken its final flight, but it was actually the passenger on another flight. >> discovery hitched a ride on an asset jumbo jet from florida to washington, d.c. the u.s. retired its space shuttles last year. it has begun working on a new generation of shuttles to carry astronauts even deeper into space. discovery will spend the rest of today's amazing visitors at the smithsonian air and space museum. that is all for now. but first, an update on a soccer. >> let's bring you up to speed in the final months of the first halfb firstayern still dominating -- bayern still dominating, up 1-0. >> keep watching dw. we have a lot more news and information coming up for you. >> we will see you again soon. do not forget to check out our website for more -- dw.de. ♪ captioned by the national captioning institute --www.ncicap.org-- ♪ ♪

we are looking closely with the oecd has done in terms of guidelines. it's still a bit of a work in progress. >> i appreciate your efforts to work with industry to try to find a rule that can be workable and feasible and certainly, you know, the conversation we're having previously related to just that regulatory uncertainty. this is another thing that affects privacy and industry's ability to create jobs and grow in this country. so these rules frustrate and effect sometimes very negatively some of our folks that we're asking to grow and be great companies. anything you can do to resolve these in a way that actually sometimes you know these companies look at these rules and just say i can't implement this. this is just infeasible. your response might be congress needs to give us new direction. the law was written very prescriptively. maybe congress does need to take another look at that. in some cases it's just an i'm possiblity for some of these companies way down the chain with a very minimal amount to try to track this way back to the point of origi

you have the familiarity, is this a time where there could be debt restructuring within the older oecd countries to add to aggregate demand in the u.s. and could this expand beyond foreclosure so there could be now that the financial sector has had a boost so that the middle class in the oecd could have its own boost in thank you. >> all right. >> i think tin terrible restructuring, yeah. >> yes. i don't compare the g-8 and the g-20. i think they have different memberships. they serve different purposes but i can tell you, you know, my very clear recollection of decisive moment in 2008. fall 2008, you a actual -- autumn when the question arose, should it be the g-8? should it be somebody, the u.n.? who is going to be able to deal with a global crisis of that natured where financial interconnections brought the entire economy to the brink? and it was obvious that it had to be the g-20. it was obvious because it had to have as many economies around the table and as much of the gdp so they could be as good and solid as heavy a solution when a decision was made to organize stimulus package

i worked on this at the oecd, which then became part of the significantlets commission. but i think it would be great if in rio the governments would decide to adopt or at least a timetable to get some key indicators to measure progress and we get away from this gdp as the only indicator of economic development. thank you. >> all right. >> let's start with nina's good question because i think it goes back to the first question as well. you know, the door is opening in a very happy way, i think, on people thinking about what is the new economics? the current system isn't working for us. you know, we're undervaluing or devaluating the environment, the gap between rich and poor is growing. you know, the whole litany. and this system just is not working. the u.n. just had a major conference last week on, you know, sponsored by the government of bhutan. you were probably there. saying what do we mean by a gross happiness index? and how does that relate to the overuse of resources, what was being said in london two weeks before by the ecologists that were meeting there? you kn

that's why we developed tough, new oecd rules to finance aircraft exports. here's the problem.se things take time. wto complaints are important, they can take up to five years to complete. that oecd aircraft deal, we opened negotiations in 2009, we inked the deal in 2011, it won't take effect until 2013. then there are the trade deals. agreements with south korea, colombia and panama were all signed into law by president obama this fall, and they're going -- but they took years to negotiate. negotiations on panama and colombia began in 2004. i'm going to put that in perspective. my chief of staff, kevin varney and his wife betsy, have a beautiful 13-year-old daughter, julia. [laughter] this is what she looks like today. everyone meet julia. she's in school. here's what she looked like when the panama negotiations began. [laughter] in the time it took to get this deal done, julia journeyed from childhood to adolescence. [laughter] in the same time export finance exploded around the world. so here's the takeaway. the rest of the world is not going to stand down while the united s

>> well, if you look at the oecd numbers, they say we're close to 40% of gdp, they're a little bit highernment figures or about 37%. that's obviously not that far from say germany, which is in the low 40s and then, of course, the next stage up is countries like germany, france, and greece. >> simon, i want to reform the tax code. i want to flatten the rates and get rid of the unnecessary deductions and loopholes. i don't want to support higher spending because i want us to outgrow europe. >> look, larry, i think you're absolutely right to push for a tax reform and tax expenditures are a big problem. and with regard to spending is out of control, i think i heard dan just criticize medicare part "d" which is unfunded mandate created by the bush administration. he's right, that's unconscionable additional entitlement. but here's the point about spending. here's the point about spending, larry. hold on one second. aging society, you've got to factor that into your projections. >> all right. >> the high-end reforms on -- >> i want flat tax rates and eliminate spending big time. simon johnson,

we spend more money per school, we spend triple what we spent 50 years ago, we spend more than any oecd country with less results. the problem is you have a 19th century model that worked when we tried to convert a pas troll nation into an industrialized nation and hasn't changed since. there are better models now in our charter schools. we have 22 charter schools here in l.a., inner city l.a. areas that you probably wouldn't drive into at night where 8,500 students, the kids are spending two-thirds of their time online, they're all reduced lunch kids, one-third. with the teacher they're learning easily two or three times -- >> so you're saying the kids at the charter schools you're helping to back who are online more than they're being taught directly are showing greater results and higher test scores? >> yes. >> teachers are not obsolete. >> oh, no. teachers are important. $60 million has been spent on technology and education with nothing to show for it. what we're doing is integrating and leveraging the teacher with 21st century tools. >> yep. >> productivity is enough of the educat

in fact, the united states, according to the oecd, the u.s.has the most progressive tax system in the industrialized world. turn this one on its side. this is a chart that measures progressiveity. greater prossivity is in this -- great prossiveity is in this direction. this ranks all the countries in the oecd, all the countries in the world that have less progressivity than the united states does, which means that higher-income americans pay a greater share of income taxes and taxes generally than in any other country in the world. but again we're told this is not enough. clearly, there's something else going on here. here's what concerns me the most. the real consequences of this so-called buffett rule, this tax increase, is that it is meant to be a tax on investment returns. it's a tax on capital gains and dividends. it's a tax that would upend decades of established law with respect to the differentiation that we have put in place with respect to dividend income versus wage income. and it disregards the very sound reasons why we have create

is this at a time where there could be debt restructuring within the older oecd countries to add to aggregate demand in the u.s., and could this expand beyond foreclosure, so the middle class could have its own boost? thank you. >> ok. >> the restriction was also internal restructuring, right? >> yes. i do not want to compare the g-8 and g-20. i think they have different memberships at that serve different purposes, but i can tell you my clear recollection of a decisive moment in 2008, the fall of 2008, autumn, others would say, when the question arose, should be the g- 8, someone else, the u.n.? who will deal with a global crisis of that nature where financial interconnectedness brought the tire economy to the brink? it was obvious that it had to be the g-20 because it has to have as many economies around the table and as much of the gdp, so they could be as good, as solid, and as heavy a solution when the decision was made to organize stimulus packages. so, i see high virtues in the g- 20 or any institution that encompasses a large membership. solutions can no longer be dictated by a narrow

is this a time where there could be some debt restructuring within the older oecd countries to add to aggregate demand in the u.s.? and could this expand beyond just for closure so there could be that at the financial areas had a boost so that the middle-class and the oecd could have its own boost? thank you. >> already. we will take these three. >> it is also entering the restructuring of the right quick >> i don't want to compare the g8 and the g20. they have different memberships come and serve different, but i can tell you, you know, made very clear recollection of the decided moment in 2008 -- 42,008, when the question arose, should it be the g8, should it be somebody else? should it be the u.n.? who should be what to do with the global crisis at the nature come or financial interconnections actually brought the entire economy to the brink's? and it was obvious that it had to be the g20. it's obvious because it had to have as many economies around the table and if much of the gdp said they could be as good and a solid when a decision was made to organize stimulus packages. so i s

. >> this suggested the oecd forecast of recession in the uk is wrong, doesn't it? i know a lot would depend on the services side. >> well, yeah. i think it's too early to say that it's all clear. it's a little bit more resilient, but still at fairly low levels of activity and you've got a number of conflicting signals. so i think what you can say is that the worst fears about the economy, about the debt of the recession, is probably likely to be unfounded. both for the uk and for the euro area. but you're looking at negative growth or very low growth for the coming quarters, i think, question, still. >> sterling's just hit a session high, fur month high, sorry, against the dollar as a result of this, 1.6047. where does leave the further qe debate? there are still meets of the mpc still wanting a bigger program. >> yeah, i don't think that's we'll get a decision on that this week. i think it's more likely to come in may and you are call is that we've seen the last bit of the qe program in the uk. we're not going to get anything further. saying that if there is a dow

. >> the oecd today released a report that say the advanced economies are facing 40 years of austerityhat's going to stick in our prediction is that governments, politicians will find it easier to treat the cancer of death with a chemotherapy of inflation than any other mek him. mechanism. >> which is the best chapter? >> matthew writes all the jokes. >> i'll read his chapters then. >> all right. we'll leave it there. thanks so much to michael green. still to come, spain's debt troubles seem far from over as the country's banks increase their borrowing from the ecb to the highest ever level in march. we're live in madrid with the latest. >>> let's start in the united states. take a look at the u.s. futures, see how we're setting up for trade on wall street. does look like it will be a lower open, dow down by nearly 42, nasdaq by nearly 11 and the s&p 500 down by 5.7. at this point seeing the china gdf figure weighing on the markets. ross, i do want to point out, it is friday the 13th, but the markets don't typically get spooked. it is the second of three fridays 13th here in the united

oecd is ten percentage points lower than the united states.you look at a country like france, for example, where their research and development tax credit now is six times more generous now. so they put in place these kinds of incentives. a program we are big fans of, or a country, i should say, is germany. they've been able to compete against the chinese, and there are a number of different reasons, but two of them, they have a great apprenticeship program. they take workers and train them in partnership with colleges, community college and companies, and they have a wonderful system of 59 centers that are cofunded two-thirds by industry and a third by the government located at or near universities that work with particularly middle-sized companies like the type of company mr. lubrano is with. and those have had success as well. countries can, high-wage countries can be successful. >> thank you. mr. lubrano, you testify in support of trade agreements because we carry trade surpluses with the countries where we have trade agreements in place.

we should bear in mind that the current integrated tax rate is 58%, the fourth highest among oecd nations it's bad enough america has the highest combined tax rate among developed economies. some supporters of the buffett tax would like us to have the highest tax on investment income as well. simply put, the buffett tax is a solution in search of a problem. wealthy americans are already paying a huge share of income taxes. for that small minority of wealthier americans such as warren buffett who feel compelled to pay higher taxes i propose we make it easier to do so. last october i introduced the buffett rule act of 2010 which currently has 40 cosponsors here in the united states senate. my legislation would create a box on the federal tax form that individuals are businesses could check if they wished to donate additional dollars to the federal government for debt reduction. we should make it as easy as possible for those who want to pay higher taxes to voluntarily make those payments but let's not impose a new tax on entrepreneurs around small business owners who believe they can spend

complicated, but the reality is that every other country in the world, all the members of the so-called oecdries, that's 34 countries, every owoone of t has cut its corporate tax rate part of a worldwide wave of lower rates that have changed the complexion of the international economy and made it so that by one measure, the u.s. has lost about 25% of its leadership among the top 500 corporations in the world. >> two questions. one, when you say that the average effective rate in other countries is in the low 20s or even high teens, therefore if we were to lower our rates to name your number, 25%, does that -- how far does that ultimately move the needle and when you say that we've lost our leadership 25%, are we losing 25% of business has actually gone abroad to take advantage of these tax rates? >> of the top 500 corporations in the world, the number in the u.s. has fallen by about a quarter in the last decade. and meanwhile you're right, it's a competitive world. 30 years ago when there were a billion people in china and we can't ha didn't have to compete with any of them because they were

is this at a time where there could be debt restructuring within the older oecd countries to end to aggregate demand in the u.s., -- add to aggregate demand in the u.s., and could this expand beyond foreclosure, so the middle class could have its own boost? thank you. >> ok. >> the restriction was also internal restructuring, right? >> yes. i do not want to compare the g- 8 and g-20. i think they have different memberships at that serve different purposes, but i can tell you my clear recollection of a decisive moment in 2008, the fall of 2008, autumn, others would say, when the question arose, should be the g-8, someone else, the u.n.? who will deal with a global crisis of that nature where financial interconnectedness brought the tire economy to the brink? it was obvious that it had to be the g-20 because it has to have as many economies around the table and as much of the gdp, so they could be as good, as solid, and as heavy a solution when the decision was made to organize stimulus packages. so, i see high virtues in the g- 20 or any institution that encompasses a large membership. solutio

worries about spain are spreading to other eurozone countries and, david, we actually heard from the oecd saying italy is at risk of contagion. >> last year it was fear of italy contaminating everybody else as their bond yields crossed over the 7% mark. rearly we're not near there, but we do seem to be back to a certain extent. we talked about this yesterday in this this will dynamic where we'll start the market day talking about europe, keeping an eye on the yields. ltro be damned at this point. >> we don't have any growth. we always come back to growth as what the drivers of markets. we have an employment number today, not great. maybe not must have growth in this country. all the austerity that we're hearing, george soros wrote a good piece this morning talking about how there's just no carrot here. you insist on austerity, but you don't do anything puppet masters in germany to make it so that you get rewarded if you do the right thing. and i think italy is -- >> does this tell that you there is no decoupling? before we were all heartened by the earnings and alcoa's earnings were viewe

by and large if you look at oecd numbers, countries have generally kept up what they were doing. but i guess my suggestion on macros to some of the things we said in modernization. take a country like the united kingdom, which has maintained his effort to reach the 7% of gdp under difficult budget circumstances. it's an heroic effort to gas giants, canadians and others have done good work on this. but they need to show value for money. success goes to the results agenda and where some of the things we try to do to have evidence-based learning about what works and doesn't work as a conductor came is interested in will be very important for the future. another point is one reason it is important to try middle income countries into the multilateral institution is about a conservative estimate of the foreign assistance from the emerging borrowers or the emerging countries. there's about $15 million last year. that's about 15% of the total, probably conservative estimate. and recognize part of my view is he's got different sources of funds. you also have investment funds. so the rise

the oecd says the average 2012 corporate tax rate for the 34 developed countries is 25.4%.arlier this year, president obama proposed a corporate tax reform plan that included a 28% top rate. republican presidential hopeful mitt romney has said that he wants to cut the corporate rate to 25%. the big question of course is what you do with a lot of the loopholes that have been used because most corporations are not paying that highest rate here in the united states. >>> speaking of taxes, international trade groups are warning that india prime minister new taxation proposals have led foreign businesses to reconsider their investments. india's federal budget outlining proposals that would allow authorities to make retroactive tax claims andbly in new anti-tax avoidance measures. sichb overseas business groups september a warning and a letter to the prime minister. will is the broadest criticism yet by the overseas business community, but especially when you talk about retroactive taxes that can reach out. makes a lot of people very nervous. >> and it's now time for the global m

we should bear in mind that the current integrated tax rate is 58%, the fourth highest among oecd nations it's bad enough america has the highest combined tax rate among developed economies. some supporters of the buffett tax would like us to have the highest tax on investment income as well. simply put, the buffett tax is a solution in search of a problem. wealthy americans are already paying a huge share of income taxes. for that small minority of wealthier americans such as warren buffett who feel compelled to pay higher taxes i propose we make it easier to do so. last october i introduced the buffett rule act of 2010 which currently has 40 cosponsors here in the united states senate. my legislation would create a box on the federal tax form that individuals are businesses could check if they wished to donate additional dollars to the federal government for debt reduction. we should make it as easy as possible for those who want to pay higher taxes to voluntarily make those payments but let's not impose a new tax on entrepreneurs around small business owners who believe they can spend

i worked on this at the oecd, which then became part of the commission. but i think it would be great if in rio the governments would decide to adopt, or at least a timetable, to get some key indicators to measure progress so we can get away from the gdp as the only indicator of economic development. thank you. >> let's start with mean it's good question because that goes back to the first question as well. the door is opening in a very happy way. i think on april thinking about what's the new economic, the current system isn't working for us. you know, we are undervaluing or evaluating the entire, the gap between rich and poor. a whole litany in a system that is just not working. the u.n. just had a major conference last week on, sponsored by the government, you probably there. and say what do we mean by a growth happiness index? and how does that relate to the overuse of resources, what was being said in london two weeks before by 50 colleges that we will were meeting there. there's kind of a drumbeat going on and there'll be a big new economic institut

all around the world and in different countries and are expressed in the oecd 1985 as the guideline. these fair information practice principles really are the gold standard for privacy protection. we wanted to do two things with this though. number one, we didn't want to base this anymore. number two, that would -- that was actually the first one. number one, we want to make sure that these things are articulated clearly and the rights and expectations that consumers ought to have her there. number two, we want to make sure that these rights, again, based on the fair information practice principles, are tuned to both the challenges and opportunities of the internet environment. but they take advantage of the fact that we are in a more interactive environment, that individuals can exercise control in many cases over their personal information if technologies are defined the right way. but also there is quite a bit of collection of information, quite a bit of information on that we want to encourage. but without creating undue privacy problems. let me talk about the three principles th

that are inactive in the u.s., all around the world in different countries and are expressed in the oecd's 1980 privacy guidelines so these information practice principles really are the gold standard for privacy protection. we wanted to do two things with these pips. number one we didn't want to take this any more. number two, that was three things. number one we wanted to make sure these are accessible and understandable to consumers that they are laid a clear set of rights and expectations that consumers ought to have a number two, we want to make sure that these rights again, based on the fair information practice principle are tuned to both the challenges and the opportunities of the internet environment, that they take advantage of the fact that we are in a much more interactive environment, that individuals can exercise control in many cases over their personal information if technologies are designed the right way, but also obviously there is quite a bit of collection information and quite a bit of flow of information and they want to encourage that, but without creating undue priv

i worked on this at the oecd, which became part of the stiglitz commission. but i think it would be great if in a rio, the government's work to decide to adopt, or at least a timetable to get some key indicator measurement progress and get away from gdp being the only key indicator in economic development. >> let's start with that question. it is a good question, and it goes back to the first question as well. the door is opening, in a very happy way i think, on people thinking about the new economic system and was working for us. we are undervaluing the environment, the gap between the rich and poor is growing. the whole litany. the system is not working. the u.n. just had a major conference last week sponsored by the government of bhutan. you were probably there. what do we mean by a gross have been as index? and does that relate -- happiness index? and does that relate to other things? there is a drumbeat going on. there was -- there will be an economic institute meeting starting in june. can that be done at rio? no, but there will be a lot of side events