the great innovation of the world bank was that countries gave us capital. good credit rating, so our credit rating is aaa, but one of the strongest aaa's in the world. what we have been able to do is, whatever equity we have come up -- but equity we have, we use that to go to the capital markets and borrow at a low rate and pass that on to member countries. david: what is the difference with the imf? dr. kim: the imf gives them a short-term infusion that is paid back in a short period of time, cash related to policy changes. we do things like help countries build roads. we provide loans for roads. on the private sector side, we give loans to private sector companies working in poor countries. we have another part of the organization that literally invented political risk insurance. there is a much broader range of things we do, but of course we are much smaller than the imf. david: you focus on developing markets. developing markets have so much capital from private equity firms and sovereign wealth funds, is there a need for the world bank anymore? dr. kim

. >> you let a protest against the world bank. you guys said the world bank should be shut down. do you have any regrets? >> i'm very glad we lost that argument. >> take your time. >> people would not recognize me if my time was -- leave it this way. >> i don't consider myself a journalist. nobody us would consider myself a journalist. i began to take on the label of being an interviewer even though i have a day job of running a private equity firm. how do you define leadership? what makes somebody text? -- tick? >> you cbecame preesident of dartmouth in 2009. you are there for a couple of years. you're trained as a medical doctor and a social anthropologist. you have no finance background. all of a sudden, somebody says would you like to be the president of the world bank? what would make you think that that would be a job that you would be qualified for? why would you want to leave the academic setting that you spend much of your life in? >> it is a question that a lot of people asking the finance world when i was nominated. we had always known in all of my years working in dev

is there a real need for the world bank anymore? dr.k they need our capital, but they need our advice, and they certainly need the capital in the form we can provide it. in a middle income country, if we can provide them a 25-30 year loan at 2.5% or 3%, there are not many middle income countries that can go to the capital markets themselves and get a loan. and they will also not get one where we come in and say, we will give you this loan, whether for a particular project, or we we give it right to the government budget, but then the government has to make policy changes. there are are few organizations that will come to them and say we will not charge you and try to get the after work. we are coming in and will give you the benefit of our experience and the experience of our client countries all over the world. we will give you 10 experiences in this world and how this problem that you are trying to solve was solved. and we will bring the people who know those cases, and as part of the loan, we will provide that to you for free. not a

so the great innovation of the world bank was that countries gave us capital. so there's paid-in capital. we have a very, very good credit rating. rating is triple a but probably one of the strongest in the world. what we've been able to do is whatever equity we have, we use it to go to the capital markets and then borrow at a very low ate and then pass that on to our client our client countries. >> what's the difference between the world bank and the imf? >> what the imf does is comes in, in a situation where a country is in trouble, gives them a short-term infusion that is paid back in a relatively short period of time. it's really cash related to policy changes. we actually do things like help countries build roads. e provide specific loans for roads. the private sector side, we give loans directly to private-sector companies who are working in poor countries. we have another part of the organization that literally invented political risk insurance. there's a much broader range of things that we do at the world bank, but of course we're much smaller than the

the great innovation of the world bank was that countries gave us capital. a very good credit rating, so our credit rating is aaa, but one of the strongest aaa's in the world. whatever equity we have come up we go to the capital markets and borrow at a low rate and pass that on to member countries. david: what is the difference with the imf? dr. kim: the imf gives them a short-term infusion that is paid back in a short period of time, cash related to policy changes. we do things like help countries build roads. we provide loans for roads. on the private sector side, we give loans to private sector companies working in poor countries. we have another part of the organization that literally invented political risk insurance. we are much smaller than the imf. david: you focus on developing markets. developing markets have so much capital from private equity firms and sovereign wealth funds, is there a need for the world bank anymore? dr. kim: i don't think they need our capital, but they need our advice, and they need to capital in the form they can provide it.

is there a real need for the world bank anymore? dr.think they need our capital, but they need our advice, and they certainly need the capital in the form we can provide it. in a middle income country, if we can provide them a 25-30 year loan at 2.5% or 3%, there are not many middle income countries that can go to the capital markets themselves and get a loan. and they will also not get one where we come in and say, we will give you this loan, whether for a particular project, or we give it right to the government budget, but then the government has to make policy changes. there are are few organizations that will come to them and say we will not charge you and try to get the after work. we are coming in and will give you the benefit of our experience and the experience of our client countries all over the world. we will give you 10 experiences in this world and how this problem that you are trying to solve was solved. and we will bring the people who know those cases, and as part of the loan, we will provide that to you for free. not a

kim thank you very , very much for what you have done for the world bank. dr. hank you, david. [applause] ♪ julie: coming up on "bloomberg best," the stories that shaped the week in business around the world. e.m. mayhem. currencies sink and economies stagger in nations around the world. >> too little, too late, unfortunately, is the story of this emerging market crisis. >> i just despise this word "contagion." julie: testimony times two. a court candidate and some tech titans answer questions on capitol hill. >> to believe that this problem of manipulation and misuse of these platforms is even close to addressed is fundamentally false. >> mob rule is how senator patrick leahy described the setting here on capitol hill. julie: amazon's market cap touches a trillion. citigroup restructurs

you lead a protest against the world bank. he said the world bank should be shut down. do you have regrets? >> i am lost we are -- glad we lost that argument. >> a journalist. i began to take on the life of being an interviewer even though i have a day job. define leadership? what is it that makes him a tick. he became the president in 2009. he was there for a couple years and you are trained as a medical doctor and a social and deposit just -- anthropologist. you have no finance background. somebody says would you like to be the president of the world bank? what would make you think that would be a job you would be qualified for and why would you want to leave the academic setting you spent your life and? -- in? askedis a question people when i was nominated. we had always known in all my years working in development that the world bank was the most important institution for people who wanted to help poor countries develop. you came to the interview with president obama and he was asking me the same question. he said to me, why sent i nominate you and not a actual econ

and while you were in peru you led a protest against the world bank. ct, you said the world should be shut down. do you have any reyes about that? knowwant everyone here to i'm very glad we lost that argument and we did. at that time, what we were the world bankt gdpp was too focused on growth and that the kinds of investments it was making was focused enough on things like health and education and this was -- this was an argument int was -- that was going on development economics. >> you were an expert initially on tuberculosis. been working on drug-resistance tuberculosis and done a lot of work on getting the global health community to change its it and then when i went to the world health organization it was the same thing. overwhelming consensus, like hiv physicianse in the world were saying impossible to treat hiv in developing countries. there were 25 million people in theca living with hiv and global health community was about to issue a death sentence 25 million people living with hiv in africa so that was what i did. >> so you leave the world h

you must be a european to become the head of the world bank he must be an american and asians which make up the vast majority of the world's population and we have the most dynamic economies in the world today don't qualify to run the i.m.f. and the world bank that's a sign of resistance to the idea that they now have to share power system numbers and supremacy well i think it's a combination it's you know the western mind is a very troubled mind and that's why they vote for populist leaders like donald from or watching for extreme right parties in europe because they in their minds are very troubled they know. their era of domination is coming to an end by they cannot accept it psychologically they cannot accept it emotionally and therefore they're resisting it and that's why they're confused so my book is an effort to help them understand how they can adjust and adapt to a new world and actually create a better world in the process and just in terms of keeping the leaders are i just in terms of accepting the world as it is and multipolar well i actually in my book has the west last to

the world bank the world trade organization are western gifts to the world so the west should be strengthening for example w.t. you know the united states is undermining the w.t. you very unwisely by the third m word of course is one that surprises the west's i advised the west to be machiavellian. to come clean it's order interests so for example europe europe's problem is that africa's population which used to be half that of europe is now double that of europe by twenty one hundred would be ten times the size of europe so europe should focus on africa. and who can help europe never china so europe is going to work with china instead of opposing china because america is china if you don't mind we're going to go through all three of those adams step by step that will start with trump. you mentioned w t o he wants to pull america out of the w here he was skeptical of their concessions from the very beginning when he became president if that actually happens if america is out of there are going to zation what would that mean for w t o and for the global economy here actually i have some good ne

saysf a sudden, summit he would you like to be the president of the world bank.uld make you think that would be a job you would be qualified for and why would you want to leave the academic setting? jim: it is a question that a lot of people in the financial world asked when i was nominated. known in all of my years working in development that the world bank was the most important institution for people who wanted to help poor countries develop. i came to the interview with president obama and he asked me exactly the same question. he literally said, why should i nominate you and not an economist? pitch, when i made the probably the most important pitch of my life. i said, the first question i asked was have you read your mother's phd dissertation? he looked at me and said, yes. i said i am an anthropologist like her and i have not been in the finance world but i have been doing development work for most of my adult life. i can tell you how it is working on the ground. he looked at me and said i get that. david: was he surprised you read his mother's phd piece? j

but, the world bank also warned at the pace of poverty reduction has slowed. the world bank has a goal of reducing the poverty rate to 3% by the year 2030. >>> president trump flew to north carolina today where he toured the damage from hurricane florence. he assessed the response and promised to help those displaced. re >> hurricane fe was one of the most powerful storms ever to hit the carolina one of the most powerful and devastating storms ho our country. to the families who are lost loved ones america grievous with you. and our hearts break for you. god bless y. >> the president also predicted a costly cleanup. wh wh is under wayh a focus on getting back into homes and businesses back up and rning. seema mody is in hard hit newbern, north carolina, for us tonight. >> reporter: the hurricane has passed but the flooding and d wateage is wreaking havoc across the carolinas. here in newbern, population of 30,000, over 4,000 been damaged or destroyed. >> i don't have flood oem -- oem owners insurance, we're on our way. >> som h people lostes completely. and i

david: here once led a protest against the world bank and said the world bank should be maybe shut downany regrets? dr. kim: i want everyone here to now i am glad we lost that , argument. [laughter] >> would you fix your tie, please? david: well, people wouldn't recognize me if my tie was fixed, but ok.

the main lobby group for the bank is a former labor premier of insulin. -- of queensland. kathleen: the same thing happens all over the worldlike a lot of banks have an influence on politicians. so, you put that on the table. figure that this stranglehold of the big four on australia will ever be broken? david: i think there are two things. threat longer-term. with australian world commissions where there is something buried into the interim report that the final report comes -- becomes a bigger issue. he concentrates on distribution. i think this is an underestimated thing for banks that they have a stranglehold on distribution through their large branch networks. through the fact that a lot of products are sold by brokers. i think he is focusing heavily on that. i think that could be a real damage for the australian banks and sector because the big four higherend to have margins. they tend to have more expensive products them smaller competition. but they take market share. distribution is at the heart of that. there is that focus on enforcement. i am skeptical whether that will be as strong as it is likely to be. we have

that turkey needs to take very important steps cutting back spending is the nub of the mongo the world bank and central bank and seen as key to driving down inflation as well as addressing the turkey's ongoing tensions with the united states so dorian we see the turkish economy in turmoil we see prices soaring how are people coping. while things are really very tough here indeed these dramatic fall in the last month that is now fueling inflation the prices of imported goods are going through the roof even in politics even food prices are now starting to rise the world inflation is on the minds that on the lips of minds of everybody in the country and also the fear all of this impending recession which most people expected to hit turkish economy that means rising unemployment and more poverty i mean concerns going forward i think the reason awareness even despite what the central bank has done turkey is facing some very tough times ahead. correspondent dorian jones reporting from istanbul dorian thank you. the european central bank continues to scale back its economic stimulus from october o

to have this process work in such a way that the major banks of the world can all benefit from having money renderedded cheap and fromming from having these s that the banks create. if it was just the fed that helped the u.s. banks in the fall of 2008 and the spring of 2009 and going onward, it wouldn't have been enough money. it would not have been enough to have our interest rates renderedded 0%, so banks receiving money from the fed at nothing and receiving interests they were getting from the treasury department and receiving the subsidy of a total $4.5 trillion to continue to do what they were doing. that actually wasn't enough. it wasn't enough philosophically or ideologically, it just wasn't enough financially. and so what the fed had to do from the beginning of the financial crisis was insure that the other major central banks -- particularly in the g7 -- could be on the same page. and as a result, all the central banks ultimately -- the european central bank, the bank of japan, the bank of england -- had to render all of their interest rates 0% or negative and also eng

banks, what must you think of european banks and what kind of risk with that pose for the global financial worldhink you have some potentially very serious issues in europe when banks are selling at half of their book value or less that is telling you , something about the underlying health of those institutions. when we don't recognize that in assessing their soundness, i think we make a serious mistake. i think there continues to be risk of what years ago was called a doom loop in europe where banks or holders of government debt and if the banks get called into question, that reduces demand for the government debt which raises its yield and makes the bank situation less healthy which makes the government debt harder to rollover. i don't think we've taken those off the table. >> i think legacy today is in part one of more caution. less on the part of corporations with their borrowing practices. secondly you have seen much better risk management in the regulated banks in the banking system is certainly more stable. but i don't think fundamentally the problems of the economy that were building in

worst of the financial crisis but do you think it was better to go through all this to get the world's banks back into shape or at least improved as far as the comparison goes with ten years ago but it was definitely a watershed moment and it was a warning signal for all the other banks that come in the countries will not save every bank and that we have to change this and right now they have perhaps five or six or seven percent. on the on the on the balance but it's not enough they need much more if you go from the private person to a bank you need twenty thirty percent but those who deal with the money you have to five or six percent this is not enough and in the next crisis this will be rude awakening for everybody and there are no solutions that we can change this right now at the politicians the politicians are not aware of that and not capable to change this rude awakening the world's listening and not sleeping thank you very much for joining us where we welcome. boeing expects to sell more planes in china the american aircraft maker says it will hand over more than seven and a half th

entirely responsible for debt increase and in african countries rather we see also money coming from world bank or britain which institutions as well so they're cut it out of the money is coming to africa from different sources the question is where is this money going and if as long as the money is used for productive means i think it's a good a good development that we are seeing currently in africa i examined the missi that now imagine your alarm clock going off turning on your lights opening the curtains brewing your coffee that's automation to make your morning less stressful for many of us it might be a vision of the future but at the international consumer electronics fair currently underway here in berlin the smart home has already arrived for even the klutzy of cook can chill out and it's kitchen camera checks what's in the fridge and projects recipe suggestions onto the countertop like how to make the perfect roast the stove opens automatically taking things from their. table keeps the chocolate brownies warm and gooey till it's time for dessert. it's a kitchen that takes cullen airy

the potential of the block chain in the banking world is huge. it could make expensive financial supervisory bodies obsolete. if the banks were to cut out the middlemen they could save billions but the technology is still in its infancy. block chain. block chain as such can't yet provide the capacity for the rapid transfer of the millions of payments made every day. replete with plans for you. this is tim is however already making some aspects of banking easy and fun. chain is a lot more than just better corners bitcoin is a crypto currency it's very well known and right now it's very popular blog chains can also be used in many many other areas and banks can use them in their lending business or in their trade finance business are big banks around the world are researching block chain technology because they want to keep up with its development they have meticulously interested in block chains where they have sole access and can call the shots nobody has been on a committee and i believe that we'll see commercial solutions that will involve total

we have an alternative source of capital to the world bank and all the other institutions that used to. there are concerns about the size of the debt and the terms of the debt. and for any lender they are going to have cove na nts, lender they are going to have covenants, terms for whatever they extend to africa, and it is africa's prerogative to accept the terms or not. the amount itself, if you look at the numbers, is not extraordinary. it is 120 billion over the last 15— 18 years, and if you look at countries such as ethiopia or ghana, ghana has $4 billion in outstanding debt, sorrow, $25 billion in outstanding debt, and less tha n $25 billion in outstanding debt, and less than $4 billion of that is from china, while ethiopian has $29 billion outstanding debt and $12 billion outstanding debt and $12 billion is from china, so there is still head space as far as debt is concerned. and that gives china a lot of control in the meantime while other countries are looking to africa, the united states looking to get a piece of the action, the uk, theresa may was there, and other european le

you lead a protest against the world bank. he said the world bank should be shut down.ve regrets? >> i am lost we are -- glad we lost that argument.

general assembly kicking off in new york this week joining know talk about this, world bank ceo kristalinaeing here. >> is thank you. >> where do you think this is going? >> so far the world has had a good year and this good year has been driven by the tax cuts in the united states, by japan swinging and by stimulus in china so the countries are doing their bit to keep the world economy going. we have seen a trade dispute undermining confidence and of course this is not healthy for years to come. we know there from many decades of experience that trade is good for growth and jobs. it is good for the poorer households so people have to understand the value of the world is to stick to open economy. so far, the erosion of confidence has been less profound than we feared but we should not expect that to stay sound and good forever. >> what is what you feared >> what we feared was that when you get into a trade dispute, trade will trim down rapidly that didn't happen we had good first two quarters in terms of global trade exceeding the rate of growth now what we see is that investors and consum

world. come to do business on september fifteenth two thousand and eight as the fourth biggest investment bank in the world filed for bankruptcy the event sent everyone from spanish property owners to american investors running for cover of the most needed impact was felt by lehman brothers employees twenty five thousand of them found themselves out of work overnight the bank was a giant but not too big to fail lehman had become so deeply involved in mortgage origination that it had effectively become a real estate hedge fund disguised as an investment bank washington wasn't willing to save the bank lehman brothers remains the largest bankruptcy filing in u.s. history. so here's a look now back at the events that led to the worst global financial crisis since world war two. mortgages seemingly for anybody who wanted one. many u.s. banks seemed willing to lend to anyone regardless of whether they had the means to repay those loans things came to a head in the spring of two thousand and seven when record numbers of people defaulted on those loans. at the beginning of april new century a real est

consequences while the bank managers responsible got off practically scot free the taxpayers were left to foot the bill anger fueled the rise of radical political parties in countries all over the world and no surprise bad political decisions seem to have caused this crisis as our washington correspondent claire richardson found out. it's been ten years since the collapse of the investment bank lehman brothers and the subsequent recession that wiped out savings cost millions of jobs and ruined lives. lawrence m. ball is a professor of economics at johns hopkins university he says the federal reserve could have decided to save lehman brothers and potentially avoided some of the dire consequences of the recession that followed. in his new book paul says the lehman bankruptcy and the ensuing global financial crisis of two thousand days were the result of a bad decision ben bernanke he is one of the key players here as federal reserve chair he didn't want to extend any bailout loans to lehman. the other fed officials of the tie have very clearly and repeatedly given an explanation about a rescue being illegal the reason being that they say leave and did not have enough collateral for the

would be like to have a well paying high flying banking career all that money but i never think of it ending all packed up in a cardboard box for all the world to see images like this one made the rounds as lehman brothers bank is scurried out of the new york offices lugging their belongings suddenly unemployed and left to look for a job in an economic downturn not an easy task. louis sanchez thinks about the collapse of lehman brothers his former employers practically every day. to philly was. where is this going to end. it looks like. like the end of the world financially and the regular people out there doesn't know how bad things are. sanchez still has his old lehman's id card. the implications for chris christie us to be fueling the who are the whole world economy and he was banks like lehman and door to goldman and all the years issuing paper that allow cheap. crappy door for growth. some chose shrugs off his sprained on a sports injury just a minor setback. nowadays he self employed analyzing financial data streams and writing algorithms that come for example particularly the faults. the analyst shows us some fine footage from back th

. >> you once led a protest against the world bank.said the world bank should be maybe shut down. douff any regrets? >> i'm very glad we lost that argument. >> people wouldn't recognize me if my tie was fixed. all right.

and then to engage with different partners, whether it is the chinese, the world bank, on how to go about building these projects. rishaad: coming up, forging africa's future. >> the past was all about aid. aid give us aid, the debt syndrome. ome. ♪ >> i don't think the easy thing is somebody cheated us. we made a bad deal but we must take responsibility for it. rishaad: welcome back to "belt and road." china's trade super highway. come to markets like this in nairobi to get the best deals they can. ultimately, nobody is forced to buy. many have accused the government of not haggling hard enough with beijing. >> it is clearly not a one-way street. it is profitable for the chinese firms. they will make handsome profits. no doubt. the ethics of it, they made the best deal they could get. we should be asking tougher questions of our own demonstrators and governors. how could you let me conclude a deal such as this? rishaad: kenyan companies want to make handsome profits. but some sectors are frustrated. >> we export a lot of our products to the european market. the chinese market is untapped

thousand nine hundred five only an elite group of blacks have benefited from economic empowerment the world bank says south africa is one of the most unequal countries in the world with poverty persistently high among black south africans. the trade union federation cosatu says it will fight any resistance to transforming the economy. for the good of us and for later and have this very same people who were previously beneficiaries of droppers of us and them lamenting about the policies are just trying to redress the imbalance of the past is beyond mr vs and within an organisation like solidarity is a very strong it's lucullus leaders of the solidarity trade union say the share scheme will only worsen divisions between workers and the union says if sasol executives don't change their minds complaints will be made to solve africa's human rights commission and the united nations for me to al-jazeera sikandar south africa . india's supreme court has ruled that gay sex is not a crime. l g b t campaigners celebrated as the landmark judgment was delivered it strikes down a colonial era law which made h

what's clear is that some of the world's most banks is scrambling to catch the cryptocurrency wave among them german based. it's hired experts in the area to try to figure out how to retain business in a world where it would no longer act as a middleman likely to get my went to meet one of them in london. tonya bedford is known as mrs krypto she works in london for dacha bank kind of as its guide to the future scouting out emerging technologies. the chain has the potential to give back to customers control of their data she says block chain creates transparency it's a form of distributed ledger technology that she's looking into ways that can be deployed at the bank has lurched from crisis to crisis for years and daily needs to win back trust business. we need to do better demonstrate we're looking ahead attract customers and focus on serving them. than. i would be banging it out in the bank is like a big ship that has to change direction and. of course there's an agile little tug in front and that's us we test new things. and if they prove their worth they'll be implemented in the rest

save the world save the bank god. you know you did was around eight hundred fifty billion dollars or perhaps four times the annual budget of britain's public health care system was poured into the accounts of city of london banks only later was malfeasance identified lloyd blankfein of goldman sachs who used to be the boss of governor of the bank of england mark carney was accused of misleading congress do you think boyd blankfein was lying or was he telling the truth that. well he was not being straight with his clients in a lot of ways and we showed that in his bipartisan report and he wasn't being straight with the congress when he said that there was no massive bet against goldman's clients sums all wall street down the city of london for what they were long before the fifteenth of september twenty eighth and it wasn't just socialist politicians like germany call business or coming those who worked in the banks themselves saw it coming and when they told their superiors they were sacked joining me now is paul moor

father of the nation want to shake on the main committed to fulfilling our people's aspirations the world bank records nice bangladesh as a middle income country into into fifteen of these that forty three third largest economy in the ward in terms of nominal g.d.p. ours are gap between them has increased from us dollar five forty three in two thousand and sixteen to us dollar seventeen fifty two in twenty eighteen we have achieved every g.d.p. growth rate of seven point eight six per cent inflation has decreased by five point four percent poverty rate has dropped from forty one point five percent in two thousand and six to twenty one point four percent in eighteen during the same period extreme poverty has decreased from twenty four percent to eleven point three percent. our foreign experience was us dollars seven point five billion in two thousand and eight two thousand and nine fiscal year. into a t eighteen it too grew up to even dollar thirty two why.