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tv   Key Capitol Hill Hearings  CSPAN  April 1, 2014 12:00pm-1:01pm EDT

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couple of minutes and then recess until 2:00. legislate of work starts today with several bills including a couple dealing with ukraine and sanctions against russia and funding for voice of america and radio free europe to increase its broadcasting in southern ukraine and crimea, both starting at 6:30. the senate passed both of those bills last week but did not include the imf language in the loan bill. now live to the house floor here on c-span. house will be in order. the chair lays before the house a communication from the speaker. the clerk: the speaker's room, washington, d.c., april 1, 2014. i hereby appoint the honorable virginia foxx to act as speaker pro tempore on this day. signed, john a. boehner, speaker of the house of representatives.
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the speaker pro tempore: pursuant to the order of the house of january 7, 2014, the chair will now recognize members from lists submitted by the majority and minority leaders for morning hour ebate. the chair will alternate recognition between the parties with each party limited to one hour and each member other than the majority and minority leaders and the minority whip but in to five minutes, no event shall debate continue beyond 1:50 p.m. the chair recognizes the gentleman from new jersey, mr. lance, for five minutes. i thank you very much, madam speaker. i rise today to honor the distinguished public service of the honorable brendan t. byrne, the 47th governor of new jersey, who today celebrates his 90th birthday. he's lived longer than any governor in the history of our
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state. governor byrne was born on orange, 924, in west essex county, and currently lives in the short hills section of essex county in the congressional district i have the honor of serving. he was graduated from west orange high school in 1942 and served during world war ii in the army air corps where he advanced to the rank of lieutenant and was awarded the distinguished flying cross and four air medals. one of his fingers was frostbitten as a result of the conditions during his heroic air service over germany late in the war. governor byrne was graduated from princeton university in 1949, majoring in public and international affairs. our first governor to receive an undergraduate degree from princeton since woodrow wilson
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in 1879, 70 years earlier. governor byrne received his law degree from harvard university in 1951. in the 1950's, as a young man, he served as a close aide to governor robert b. minor who appointed him essex county prosecutor in 1959. he was reappointed in 1964 and named him president of the state board of public utilities in 1968. respected by both political parties, he was appointed by republican governor william t. cahill to our superior court in 1970. he was overwhelmingly elected governor in 1973 and re-elected in an uphill political campaign in 1977. during his tenure, the pine lands protection act became law and casino hotel development
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began in atlantic city. impeccablely honest, he served as our governor with great distinction. his dry wit is a joy to hear and deeply appreciated by countless new jerseyans. he was honored to have -- new jerseyians. he was honored to have him as a professor in the early 1980's and recall fondly his superb teaching skills and generosity of spirit and time. as the class met weekly, the historic governor's residence in princeton, built by richard stockton, a signer of the declaration of independence. governor byrne is a wonderful father and grandfather, teacher and mentor, colleague and friend. his dynamic and vivacious wife, many yrne is known to
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for her significant charitable activities. they are an integral part of the fabric of new jersey. on his 90th birthday, i congratulate governor brendan t. byrne and wish him many years ahead of good health and happiness. madam speaker, i yield back the balance of my time. the speaker pro tempore: the gentleman yields back. the chair recognizes the gentleman from north carolina, mr. holding, for five minutes. r. holding: madam speaker, last year we mourned the loss of a true servant of our community, garland scott tucker jr. garland dedicated his life to sharing his love of christ and family life and business and in his community, garland was grounded and guided by his faith. garland was born in raleigh in 1919. after graduated from u.n.c.
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chapel hill, he joined the family business, tucker furniture, and moved the next year to manage the eastern north carolina stores. he eventually became president of the company, a position he would hold until his retirement in 1985. in 1954, garland joined the board of directors at bbnt bank and served as chairman from 1979 to 1987. during that time bbnt would grow from a community bank into a major player throughout the southeast. but beyond a very successful business career, garland was a true family man. he married jean barnes wilson in 1946 and over the course of their 67-year marriage they raised four children, garland iii, edwin, sarah and macon who in turn blessed garland with 15 grandchildren and three great grandchildren. garland's life was marked by his commitment to sharing his
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faith with others and serving those in need. the primary focus of his civic engagement with his support of gideon's international and the salvation army. through both organizations he was able to improve his local community and the world at large. garland searched gideon's international in a number of different capacities, spanning local, national and international involvement with their mission. and his -- in his time he served as one of three members of their finance committee and also one of 20 members of the international cabinet which serves as the governing body for the entire organization. at the peak of his responsibilities, garland was responsible for the distribution of bibles across 41 countries, including countries in europe, south america, the caribbean and the near east. at the local level, garland was engaged and active member of the salvation army. while wilson resident, he served as chairman of the salvation army board of directors for several years and served on the board in raleigh
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when he moved back to raleigh in 1996. his time spent volunteering for the salvation army was so meaningful that in 2012 he was honored with one of the -- their highest honors, the william booth award, named for the army's founder, the award is given to those who have made an international impact, the betterment of humanity. garland's faith guided him each and every day to follow christ's example and help those around the world who is in need. he dedicated his 94 years to making a mark here, nationally and internationally and enriching the lives all he met and all those across the world who was impacted by his work. madam speaker, i yield back. the speaker pro tempore: the gentleman yields back. the chair recognizes the gentleman from north carolina, mr. jones, for five minutes. mr. jones: madam speaker, thank you very much. last week at a hearing of the armed services committee, we
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listened to the concerns of army secretary john mchugh and chief of staff of the army, ray odierno. they appeared before the committee to tell us the rious problems in the u.s. army, specifically the budget. i asked questions of funding being cut from the army. why do we continue to spend billions of dollars in afghanistan when the money could be going to support our service members? as i did last week, i would like to read a short paragraph from the world affairs journal article and the title is "money pit: the monstrous failure of u.s. aid to afghanistan." the article states that in 2012, the united states budgeted $11.2 billion for afghan military training with another $5.8 billion for 2013.
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the article goes on to say that in afghanistan a big problem is illiteracy. almost three years ago when lieutenant general william b. caldwell iv took command of the nato training mission, he noted that overall literacy among afghan military and police stood at about 14%. how about illiterate policemen trying to read a license plate, the general asked? how can a soldier fill out a form, read an equipment manual? and he goes on and on. and i quote, now even though these concerns have been on the table for years, the special inspector general for afghan reconstruction said in last summer's report, literacy rate of afghan security forces as a whole is only 11%. again, i want to repeat that in 2012, the united states budgeted $11.2 billion for afghan military training with
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another $5.8 billion for 2013. madam speaker, for the united states to continue funding these afghan security forces would be a mistake. it would put our service members' lives in danger and would waste the american taxpayers' hard-earned tax dollars. why are we in congress not putting a stop to this abuse, especially considering this money flows freely overseas with little to no accountability? last friday i had the privilege of speaking to around 100 people at an event in my district, and truly almost everyone agreed with me that spending money we do not have in afghanistan is a waste. every nation that has tried to govern afghanistan has failed and this is no exception. it is my hope, along with my colleague, jim mcgovern, who has continually worked with me on this issue, that the house leadership will allow debate on this failed policy in afghanistan this spring or
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summer. we need to take the money that we are spending overseas and we need it to benefit our own security forces and the problems facing the american people here at home. when i look at the bridges, the potholes, the education and other needs in america and we are cutting those programs, why do we continue to borrow billions of dollars from foreign governments to prop up the afghan leadership? it is nothing but a failed policy. in closing, madam speaker, i ask god to please bless our men and women in uniform, to please bless the families of our men and women in uniform and i continue to ask god to continue to bless america and i yield back the balance of my time. the speaker pro tempore: the chair recognizes the gentleman from pennsylvania, mr. thompson, for five minutes. mr. thompson: thank you, madam speaker. madam speaker, today marks the legal deadline of registration for the affordable care act,
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properlyly known as obamacare -- properly known as obamacare. h.h.s. secretary kathleen sebelius testified before a house ways and means committee. when asked, are you going to delay enrollment beyond march 31? she definitively answered, no, sir. well, madam speaker, april fools. millions of americans are finding obamacare today to be a very expensive and harmful april fools prank. one of knows individuals is sandra, a constituent from clinton county which is located in the fifth district of pennsylvania. sandra emailed the following just this past friday and said, quote, i was just on the marketplace and can't believe the prices. i am also wrong about obamacare including eye and dental, i see it does not. i thought it was better than what i found privately. not to my surprise. even with the tax credit, it's
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going to cost us just as much. it seems they doubled the price on there to eat up the tax credits. this whole thing has us so upset. we only make between $30,000 and $40,000 a year and our health insurance is going to go from $320 a month for both of us to doubling, at the least. we will pay more and get less coverage and pay way more out of pocket. how does our president think that this is helping us, the working poor? this is a class we never hear anyone talk about. we hear about the poor, the middle class and the wealthy, but not the working poor. we're the ones that make too much to get a handout, not that we want one, but not enough to really make ends meet due to our poor economy and rapidly prizing inflation. honestly -- rising inflation. honesty, it would be better for to quit my job, with my
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thyroid disease and arthritis, i would get pennsylvania medical assistance. how sad is it there our president has put the working poor in that option? i could honestly just cry not knowing how we will be able to pay for this health care penalty. we had what we needed and could afford. now, we can't afford it, even with the government help, and we have less coverage for higher premiums. how does this make any sense? ugh. thanks for the rant, end of quote. madam speaker, americans deserve solutions to ensure access to affordable, quality health care that they determine that they need. as for obamacare, there are far too many winners and mostly losers like sandra and her family. so it is fitting and accurate on this april 1 date that obamacare, april fools, and i yield back the balance of my time. . the speaker pro tempore: the chair lays before the house a
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communication. the clerk: the honorable the speaker, house of representatives, sir. pursuant to the permission granted in clause 2-h of rule 2 of the rules of the u.s. house of representatives, the clerk received the following message from the secretary of the senate on april 1, 2014, at 8:58 a.m. that the senate passed senate 2183. that the senate passed without amendment, h.r. 4302. appointments, united states commission on international religious freedom. with best wishes i am, signed sincerely, karen l. haas. the speaker pro tempore: the chair lays before the house a communication. kwloip the honorable the speaker, house of representatives. -- the clerk: the honorable the speakers, house of representatives, sir. pursuant to permission granted in clause 2-h of rule 2 of the u.s. house of representatives, the clrk received the following message from the secretary of the senate on april 1, 2014, at 9:52 a.m. that the senate agreed to senate
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resolution 407. with best wishes i am, signed sincerely, karen l. haas. the speaker pro tempore: the chair lays before the house the following enrolled bill. 4302, an act to amend the social security act to extend medicare payments to physicians and other provisions of the medicare and medicaid programs, and for other purposes. the speaker pro tempore: pursuant to sclause 12-a of rule 1, the chair declares the house in recess until 2:00 p.m. to >> and they come back at 2:00 p.m. for short speeches. then at 4:00 begin work on several bills, including two dealing with ukraine, russia sanctions and funding for voice of america/free radio europe, to increase broadcasting in ukraine and crimea. meanwhile, congressman paul
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ryan released the g.o.p. budget today. "politico" writes that it would shave federal spending by $5 trillion by offering several changes, ending government ownership of fannie mae and freddie mac. ranking member chris van hollen released a statement saying in part, this reckless -- >> by the way, chairman ryan's budget is linked on our website. you can read it at looking at our live coverage, general motors c.e.o. mary barr testifies before the house
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energy and commerce committee this afternoon. it's the first of several days of testimony on capitol hill about the recall of over four million g.m. vehicles over ignition problems. that hearing this afternoon at 2:00 p.m. eastern, it's on c-span3. and ahead of ms. barra's testimony we're asking you via facebook -- we continue to nvite your comments at >> during this month, c-span is pleased to present our winning entries in this year's student cam video documentary competition. student cam is c-span's annual competition that encourages middle and high school students to think critically about issues. students were asked to create their documentary based on the question -- what's the most important issue the u.s. congress should consider in 2014?
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they believe congress should consider the issue global warming. >> the overwhelming judgment of science tells us that climate change is real, that human activities are fueling that change and we must take action to avoid the most devastating consequences of climate change. >> global warming, climate change, this problem goes by many names, but one thing is certain -- has further -- it is hurting our planet. >> so the changes happening in the polar region seem to be quite far away. you might wonder whether they have an affect on us here in the united states and actually they do. the first thing is the state of alaska is part of that, above
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the arctic circle. so there are many citizens of the united states who actually live in the arctic region. but more than that, the changes that are happening in the polar regions are actually transferred to the rest of the world. >> and as the changes become more obvious, awareness increases. but unless action is taken, the problem will only worsen. unfortunately, not everyone believes there is a problem to fix. >> the percentage of democrats convinced of global climate change went from 83% in march up to 87% amid the high heat and drought of the summer of 2012. and even among republicans, the number of believers who acknowledge that climate change 53%.eal went from 45% to the party whose hallmark in congress is denial of climate change -- >> and there's many people in
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congress, particularly republicans, who think we don't have the luxury right now with the economy the way it is to kind of close down coal-fired power plants that are still working and that are keeping, you know, they heat our schools or cool our schools, depending the time of the year. they keep the lights on and they think that's more important because that is what people need right now. >> but global warming is an issue that desperately needs to be addressed. rising sea levels will affect the united states as well as every other country in the world. >> over the last 100 years, the sea level has risen by by 20 centimeters, and we expect it to actually ack sill rate over the next 100 years. so sea level rise may continue to rise by about 40 centimeters to 60 centimeters. that will primarily impact coastal regions so the coastal areas around the united states could be impacted by sea level
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rise. >> so if you go out around the chesapeake bay you find that communities are flooding, farmers are finding that saltwater is intruding on their fields a row or two a year. so the other one is going to be extreme weather. it's more drenching rains that's being seen on all the continents of the world. you evaporate more moisture, put more water vapor in the atmosphere and that's the energy that drives storms. so when you get rain occurring, you get these flooding rains and they can cause a lot of problems. > so the sea level rise, there's been an acceleration of sea level rise in the last decades and there are a number of reasons why this is happening. the first one is the world is getting warmer. as we warm up the atmosphere we warm the ocean and as we warm the ocean it actually expands. >> when you talk about climate change, the global climate is changing so it starts with the
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globe and works down. but when you talk about impacts, it usually occurs and starts at a local level. so it's, how's it going to affect you or your community or your state or your region? and so each region around the country is different. so in the 1990's we did the first assessment, sort of scientific report of impacts around the united states. we divided the united states into 20 different regions and we held workshops in those regions and we had them each think about what's the most important issues were. it turned out the one that was common among all of them was water. what's going to happen with water resources? it was different what was going to happen to water in the pacific northwest where it's very wet or down in texas along the rio grande basin where it's very dry. dry area, they're concerned about not having enough water, and if it's very wet you say,
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is it going to rain instead of snow? >> other people are saying, no we need to worry about because it's obviously a global problem. then the flip side is if we do something here in silver sprink, maryland, that's another thing but global warming by its nature is global so that includes china, it includes india and other major countries that have increasing levels of pollution and development and so even if we do something here it may not be enough to help globally. >> the world has suffered many effects of climate change, especially sea level rise. this animated sequence would ice melted. he >> an increase in sea level rise where the melting of the greenland ice is contory butting to sea levels going up so it will have an impact
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around all the coastlines of the united states. >> it can be disastrous. congress needs to address this issue immediately. if we delay any longer, there may not be enough of the world to save. >> to watch all of the winning videos and to learn more about our competition, go to and click on student cam and tell us what you think of the issues these students want congress to consider. post your comment on student cam's facebook page or tweet us using studentcam. >> jim young kim announced today ending extreme poverty by 2030. it is to increase the world bank loans by $300 billion over the next decade. he spoke at the council of foreign relations in washington.
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>> good morning. thank y'all for coming. it's a packed house. welcome to today's council on foreign relations meeting and also welcome to our new york participants who are joining us via video conference. this is the 14th installment of the david morris lectures series. it honors lawyers, public servants and internationalist who is have been an active -- honoring a lawyer, public servant and internationalist who is an active councilmember for nearly 30 years. our guest today, president of the world bank, dr. jim yong kim. he's going to speak, some opening remarks. i'll chat with him a little bit and then we'll have about a half an hour of q&a. thanks so much for coming. dr. kim. >> good morning, everybody. thank you, michelle, and also thanks to our host, the council on foreign relations.
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i'm very honored to be here giving the david a. morris lecture. i want to talk today about some fundamental issues in global development and the world bank groups' role in helping countries and the private sector meet the greatest challenges in development. you know, for a very long time the rich have known to some extent and certainly to a much greater extent in recent years the rich have known how the poor around the world live. but what's new in today's world is that the best kept secret from the poor, namely how the rich live, is now out. to village television, to the internet, hand held instruments which are rapidly increasing the number the poor possess, lifestyle of the rich and middle class about which the earlier had foggy ideas are transmitted in full color to their homes every day and that has made all the difference.
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the political turbulence we're seeing all around the world is very approximate causes, but a lot of it's fundamentally rooted in this one new feature of today's world. the question that nearly everyone that lives in the developing world is asking themselves is how can they and their children have the economic opportunities that so many others in the world enjoy? everyone knows how everyone else lives. tom friedman has referred to this group of people as the virtual middle class. last year when i traveled to president morales to a bolivian village 14,000 feet above sea level to play soccer, of all things, villagers snapped pictures of us on their smartphones upon our arrival. when i visited a neighborhood in india, the poorest state in india, with also the highest number of poor people, a state of a population of 200 million people, i found indians watching korean soap operas on their smartphones. it's not a great mystery then
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why everyone wants more opportunities for themselves and especially for their children. we live in an unequal world. the gaps between the rich and the poor are as obvious here in washington, d.c., as in any capital in the world. yet, those excluded from economic progress remain largely invisible to many of us in the rich world. in the words of pope francis, and i quote, that homeless people freeze to death in the street is not news. but a drop in the stock market is a tragedy, end quote. while we in the rich world may be blind to the suffering of the poor, the poor throughout the world are very much aware of how the rich live and they have shown that they're willing to take action. we cannot remain voluntarily blind to the impact of economic choices in the poor and vulnerable. not only because of the immoral argument that treating your neighborhood -- moral argument that treating your neighbor with dignity is the right thing to do, but when growth includes
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women, the young and the poor, we all benefit and inequality hurts everyone. women's low participation creates a loss of 28% in the iddle east and north africa. a contract between people and their government -- this also, as we know, builds stronger economies. if we raised women's employment to the levels of men, for instance, average income would rise by 19% in south asia and 14% in latin america. just a year ago, the governors of the world bank group endorsed two new goals for our institution. the first that we will commit our energies to end extreme poverty by 2030 and the second, that we will work to boost shared prosperity. on extreme poverty, what we mean is people living on less than $1.25 a day. less than the coins that many of us empty from our pockets
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each night. yet, more than a billion people in the world live on less than that each day. the second goal about shared prosperity, of course, is a focus on the income growth of the bottom 40%. but we know that even if countries grow at the same rates as over the last 20 years, if the income distribution remains the same, world poverty will fall to only about 7.7% in 2010. and that's the percentage of all the people in the world, not just the developing world living in poverty. from a rate of 17.7%. again, this is the entire globe that were living in extreme poverty in 2010. in the past 20 years, the world was able to lift roughly 35 million people out of poverty every year. but if we're going to reach our goal of ending extreme poverty by 2030, we need to help 50 million people raise themselves out of poverty every year. we also know now that the fundamental problems of the world today affect not millions but billions of us.
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nearly two billion people lack access to energy. an estimated 2.5 billion people plaque access to financial services, and all of us, all seven billion of us, face an impending disaster from climate change if we do not act today with a plan equal to the challenge. martin luther king once said the arc of the universe is very long but it bends towards justice. today we must ask ourselves whether we, like dr. king did in his life, doing all we can to forcefully bend the arc of history towards justice, toward helping lift more than a billion people out of the devastation of extreme poverty. i'm now just 21 months into my tenure as president of the world bank group, and i ask myself this question, are we doing enough every single day? just three months after i started, we defined ourselves as a solutions bank that will marshal our vast reserves of evidence and knowledge and apply them to local problems.
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a year into my job, the board endorsed our twin genalsd just six months ago the board endorsed our strategy, aligning our operations to meet the goals. since then we've made substantial manges and we're -- changes and we're well on our way to becoming a solutions bank as we envisioned to help clients tackle the toughest challenge to meet the twin goals. you know, i feel very fortunate to work in an institution that has so much intellectual depth. nearly 1,000 economists and 2,000 ph.d.'s. and those ph.d.'s have at least 4,000 opinions of -- points of view on any given issue on any day. and in my time at the world bank group, as you can imagine i've had no shortage of pointed advice from my staff. but their passion and insight remind me on a daily basis that our people care deeply about their mission. we recently took a survey of staff and one result was especially encouraging. 90% said they were proud to
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work at the world bank group. now our responsibility is to take all that experience, talent and knowledge and make it user friendly to any country or company that needs it. we need to work differently in order to reflect one of the indisputable new realities of the world -- governments and companies can turn to many places for financing and for knowledge. our comparative advantage has to be so clear that companies, countries and other partners will seek us out for the best, downthe ground experience and advice available. we will now work much more cohesively so the staff and the bank can work in the public sector, staff that work in the private sector and staff who provide risk insurance and guarantees will bring their collective experience together to better serve our clients. we've also created what we call global practices which will become communities of experts in 14 areas such as water, health, finance, agriculture
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and energy. in the next few days we'll be announcing the heads of these practices. imagine what it would be like if i were naming one of you in the room as a senior director of our water practice. you'd be responsible for designing investments in water and sanitation so that girls, for example, aren't walking miles every morning to the nearest river for cooking and cleaning instead of going to school. soon you'd have around 200 water experts on your team. you and your management team would look across water-related projects in the world and deploy the 200 experts to bangladesh, peru, angola, for instance, making choices to move holders of particular knowledge for specific -- particular knowledge to address specific problems in a particular country. your task, more than anything else, would be to deliver solutions. you'd be expected to find the best approaches to water and sanitation that will help millions of poor people lift themselves out of poverty. in my opinion, you and your 200 experts would have the best
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jobs in the world in your field. our entire leadership at the world bank group, including the heads of global practices, will be responsible for spreading knowledge and scaling up successful programs. what we've called at the world bank group a science of delivery. delivery is about ensuring that the intended results reach the intended beneficiaries at or near expected cost. in order to deliver a scale, we need to cure ate knowledge, ack sell at problem solving, deal with complex systems, measure effectiveness throughout all of the projects that we work on. if we can deliver on our problem -- on our promises, we can are have a transformational impact in the world. the world developments far outweighs the needs to address them. we can do so much more. in order to meet the increased demand we're expecting as we get better at delivering knowledge and solutions to our clients, we've also
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strengthened our financial capacity to scale up revenue and stretch our capital. i'm pleased to announce today that with the support of our board we now have the capacity to nearly double our annual lending to middle-income countries, from $15 billion to as much as $28 billion a year. this means that the world bank's lending capacity or the amount of loans we carry on our balance sheet will increase by $100 billion in the next decade to roughly $300 billion. this is in addition to the largest replenishment in the fund for the poorest with grants and loans that we received just in december. at the same time we're also increasing our direct support for the private sector. mega is planning to increase its guarantees by nearly 50% over the next four years. i.f.c. expects it will double its portfolio in the next decade to $90 billion. in 10 years we believe the annual commitment will increase to $26 billion a year. taking as a whole, the world
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bank group's annual commitment which today is around $45 billion to $50 billion is expected to grow to more than $70 billion in the coming years. this increased financial firepower represents unprecedented growth for the world bank group. we are now in position to mobilize and leverage in total hundreds of billions of dollars annually in the years ahead. now, as a matter of integrity, we needed to look inside our institution and identify savings. at almost every large organization can become more efficient and we announced a goal of saving $400 million in the next four years and we'll give details of the majority of the savings which we will of course reinvest in countries. i believe very strongly that we had to get leaner before we got bigger. so in the coming years what will we be doing? we'll follow the evidence and we will be bold. the fact is that 2/3 of the world's extreme poor are
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concentrated in just five countries. india, china, nigeria, bangladesh and the democratic republican of congo. if you add another five minutes, indonesia, pakistan, tanzania, east yobia and kenya it will have 30% of the extreme poor. expect us to focus on these countries but we will not ignore the others. we will have a strategy that ensures that no country is left behind as we end extreme poverty by 2030. so how will we be bold? in china last week we launched a report on the future of china cities. this report included the work of more than 100 world bank staff and has spurred china to make policy decisions that address crit company development and urban -- critical development and urbanization challenges, lug pollution, land rights for farmers -- including pollution, land rights for farmers. it will improve the lives of its citizens. we hope that these lessons from
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china will be beneficial to cities around the world. a second example is the work on the hydroelect trick project. our board approved -- elect trick project. our board approved the world's largest -- potentially the world's largest hydropower site could generate more than 40 giga watts of power which is equal to half of all the installed capacity of all the subsaharan africa today. moreover, it could potentially prevent the emission of eight billion tons of carbon over 30 years if coal was used to generate the same amount of power. we need this power desperately in africa. today, the combined energy use age of the billion people who live in the en-- reussage of the billion people who live in usage of the billion people who live in the
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entire continent is equal to those who live in china. a third example of our being bold in our work is supporting conditional cash transfer programs. these programs provide monthly programs to poor families if, for example, they send their children to school or go to the doctor for a checkup. the results have been astounding. before conditional cash transfer programs, school attendants by poor children in parts of cambodia was 60%. today after the program started nearly 90% of children attend school. in tanzania, along with the country leaders, we extended the cash transfer program which was started in 2010 for 20,000 households. by the middle of next year, we estimate it will reach one million households, covering five million to six million of the country's poorest people. this is what we mean by identifying successful programs, working with partners and taking transformational
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solutions to scale. this is the path we're taking in order to serve our countries better. the world bank group is committed to working in more effective ways with key partners and stakeholders, cluding those in civil society and we need committed political leaders. most importantly, we need to unite people around the world in a global movement to end poverty. as a physician, health activist and later health policymaker, i had the privilege of being part of the international hiv-aids movement that emerged in the 1990's. the aids fight is a story of vast human suffering but it's also one of history's most inspiring examples of successful global mobilization to reach shared goals. when the treatment appeared in the late 1990's, they reached across borders to have an aids movement. he 200-fold expansion in
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treating aids patients over the last decade is the fruit of this movement. millions of lives have been saved and millions of children still have a mother and a father. social movements can produce results -- excuse me -- social movements can produce results even in the face of problems that appear insurmountable. we need to take the lessons from such efforts and apply them to a movement around today's great challenges. ending poverty, boosting shared prosperity and ensuring that our economic progress does not irreparablely compromise our children's future because of climate change. last fall i had the opportunity to discuss these issues with pope francis. when i described our commitment to build global movement to end poverty by 2030 the pope answered simply, count on me. with leaders like pope francis, a global movement to end poverty in our lifetime is
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possible. all parts of our global society must unite to translate the vision of a more just, sustainable economy into the resolute action that will be our legacy to the future. in global institutions, governments, companies and communities around the world, people have began to work to make this real. to all these people, to all of you i say we'll stand with you. thank you. [applause] >> inspiring. great to have you. so we just heard a lot about the very lofty and wonderful goals you have and i want to drill down on one example. because ultimately the world bank is a financing mechanism, right? >> right. >> let's talk about the hydroelect trick plant in the democratic republic of congo. tell me about the decision
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process there? what is the money used for exactly, etc.? >> so the initial $73 million is really for planning. but the numbers -- and i think this happens to most people who take a look at the geography, the potential, the numbers. hydroelect trick power has been controversial for a very long ime but in this particular geographically lowcation with very little environmental damage with relatively little displacement, you could generate up to 40 gigawatts of capacity. that's half of what they have in sub-saharan africa. will be three cents of kilo watt. e pay 10 cents to 20 cents per kilowatt. n africa they pay 75 cents per kilowatt. they have -- >> despite the high costs. >> then if you add the cost of
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transmission, well, you know, chinese companies tell us they can build transmission lines as far as a couple thousand kilometers for an additional two cents, three cents per kilo watt an hour so we are talking about extremely cheap energy. if it's just the cheap energy you'd have to look at it but it's not just that. it's so much cleaner. so over a 30-year period, the ube emissions from a hide -- o-2 emissions from a ydroelectric would be less than a coal powered power plant. how do you reach the aspirations of our people, the aspirations the people have for themselves with regards to energy? you don't need coal, you don't need high row electric, you don't -- hydroelectric, you don't need that, you need solar and wind. it's not possible with
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intermittent power so the question you have to ask yourself, are you serious about two things? the first is, are you serious about working with african countries and people to help them reach their aspirations? and the answer for us is yes. the second is, are you serious about climate change? and if you are it's a two fer as we say. >> the kilo watt hour if it were coal? >> it would be higher. it would actually be higher. >> ultimately, what happens when the plant is constructed? are people going to have to pay for it? how far does the planning go? >> this would be a source of income for the democratic republic of congo and you have to build the -- >> the consumers would pay for it. >> and they've already signed an agreement with south africa. south africa is ready -- they're beginning to get serious about agreeing to actually pay for the electricity. now, the thing is in five years, 10 years, 15 year 20 years, we absolutely know for
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sure that africa will need that power so the question is, which path do we go down? do we go down this path that would avoid nuclear, coal, and provide this kind of power which could be clean as you can imagine or do we go in other directions or do we turn away? for me, what we're saying, look, this is going to be hard. we know this is hard. there is a lot of instability in that region. but there are other projects in the world in which we've been able to build sort of a governance structure around something that's very important. the suez canal is one. there are others where we said this project is so important that we'll protect it from local politics. >> very difficult to do. >> that's not going to be easy. that's not going to be easy, but the question is, is it worth it? and for me, something that would provide half the power that sub-saharan africa have and take carbon out of the air
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is really important to explore. >> it's cheaper than fossil fuels but in a lot of places you don't have that choice. you go to brazil and people are angry that their gas price is high because of ethanol. where do you balance where the poor in the world want electricity, they want cars and the developed world will say, it will cause emissions, how do you balance them? >> for us we're trying to say, look, there will be different solutions in different areas so are there places where solar and wind-based microgrids and minigrids make sense? absolutely. villages in india. there are villages in africa. >> will you fund a coal plant? >> you know, our board has been very clear about this in that we would only do it in the most special circumstances. and so, you know, there are circumstances out there where there's just no other option. right now, i mean, we haven't signed any agreements on funding coal while i've been president. but you have to balance the
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need for power with climate change. and so if you look at the coal power plants that we would consider, kosovo, maybe smaller ones, the impact on co-2 emissions as a whole will be minuscule compared to what's happening now in the united states, china, everywhere else. would we do it? if it came to the point where there were absolutely no other potential choices for building base load which is what we're talking about. not for intermittent power. then i think we would have to consider it because people have a right to energy. >> the world is awash in liquidity right now. there's a lot of cheap money in the world. frontier funds -- do you know what a frontier fund? it basically means investing in places like africa, bangladesh, etc. they're getting investment dollars in a way they have never before. do you co-invest with them? do you even have a role?
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>> we were just at the g-20 meeting. i didn't attend but our chief financial officer attended. for the last three or four g-20 meetings, the topic is we need more funding for infrastructure in developing countries. so the world is awash in liquidity, that's true, but it's really not going to fund those projects na are critical for economic depofmente. >> so is your role go where the private sector will not go? >> we'll try to go where the private sector fears to go and then lessen their fears going there. if you get a sense of the scale, every year the official development assistance, foreign aid is about $125 billion a year. so africa alone has about $100 billion a year in infrastructure needs. if you look at the bricks country, this is africa other than south africa if you throw in south africa and the bricks countries themselves have about $1 trillion a year in infrastructure needs. so foreign assistance is a tiny piece of it. what we now know is that as i
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said, everybody wants to join the global middle class. in order to meet those aspirations we are going to have to invest in infrastructure. there's no way that foreign assistance or even the bank, we're at $50 billion a year, is going to be able to meet that need. what we're really trying to do is structure deals so we lessen the sense of risk, that we make clear what the returns are going to be and then we crowd in, as it were, private sector funders. and right now there are a lot of private equity firms, black rock, others who are making the investment. what they're telling us is they don't just have the personnel to be able to give them a sense of what the risk is. >> you need real -- >> how do you do that? we have folks. we have the 1,000 economists and 2,000 ph.d.'s that will give you a very, very fine grain analysis of what risk really is. >> wasn't clear, how are you
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able to double your lending capacity? are you getting more money or is the board approving more leverage? >> both. we're going -- the board is approving more leverage. we're not -- let me put it this way. we are not getting a capital increase. in other words, we're stretching our balance sheet as much as we possibly can. and we have increased the single borrow limit. some of our biggest countries, india, china, brazil, are getting close to their single borrower limit. we've done o what is increase the price. this was a difficult negotiation, but they have agreed to pay a higher price for this extension of their ability to borrow. >> interest rate. >> so it's about $ >> -- >> so it's about -- >> good. >> and we have a very healthy equity loan ratio. 28%. so the question for us is, how low can we get in terms of
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equity to loan ratio? >> this is the equivalent to l.t.v. you're way underwater. >> talking about 10%, 12% equity to loan. some banks were so leveraged. we were at 28%. we have an extremely healthy balance sheet. the question for us is how low can we go in terms of equity to loan ratio? in terms of it we could increase the volume of our lending. for us it was a matter of being more creative with the resources we have. >> every dollar you're lending ou're lending out 10 times, 12 times? i don't mean to put you on the sport. i never considered it for the world. i think of fannie and freddie. >> why do we do it this way? we have the best a.a.a. credit rating in the world. the reason we keach such a healthy loan ratio is because
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it's been argued we make risky loans. we loan to places nobody else will go. we just made a commitment to ukraine and we were the first ones to make a commitment of $3 billion. there is risk in what we do. you do have to keep a very healthy equity to loan ratio in being able to ensure you won't default or get in trouble. the question is how halty -- healthy does it need to be? we can go less than 28% equity to loan ratio and still have a very good institution and not get in trouble. >> do you care about getting paid back? >> of course we do. here's why. when we talk about our market rate loans, the loans we provide to india, china and other places, it's about 50 basis points. >> cheap.
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>> we borrow minus 25 basis points, something like that. so the spreads just are not that great. we think when we provide a loan at those rates, it's part of the responsibility of those countries to us as an institution to make sure we get paid back. >> let's take questions from the audience. and we'll take some from new york as well. gentleman right here in the front. there's a microphone coming over. >> president kim, i'm very excited to hear about the discussion with regard to inga and the potential that the world bank sees with regard to it. has there by coordination as it relates to the u.s. government and the power africa initiative with regard to leveraging the capability that the bank or power africa on the other side may have as it relates to inga given d.r.c. is not one of the countries related to power africa? >> we are in active
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negotiations. i know that many people in the u.s. government are very interested in inga. there hasn't been a decision yet about whether it would be part of power africa. it's not. it's not right now, as you said. i think the u.s. is going to be critically important partner. not only in the sense of government participation, but there are a lot of great companies in the united states that actually make the technology that we need for the grand inga. you know, this is difficult. when it's going to take the world bank, we're already working -- the first grant we're making to d.r. congo has been matched by -- not fully but partially matched. so it will be african bank, world african bank, part of the government of the united states, we hope -- we're not sure yet. the government of china has shown great interest in this particular project. and i would like to think of this as a potential great --
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potentially great opportunity for these institutions to work together around something that will be so important, not only for african people, but for the planet. and so this is a -- this is a rare opportunity that we have now. there's no question that it's going to be difficult. as china, the united states, all the different multilateral development banks, usaid, they are interested in this particular project, if we can get this group together i really do think we can make it work. >> right here in the front, again, and then we'll move to the middle and the back. >> world resources institute. i was surprised you didn't address climate change more directly in your presentation. it's obviously global. it's obviously a threat multiplier and obviously the impacts are greatest on the poor and the poorest of the poor. i wonder if you could talk more about how the bank has embraced that set of issues. >> you know, i've talked about it so much that i decided not to talk about it this much in this particular speech. when i -- when i arrived at the
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world bank -- did i see harold in the group? so harold is one of my heroes and he was right there helping us begin that fight against hiv-aids, and the reason i point to harold is that when i came onboard, i asked the people who are working on climate change, i said, do you have a plan that equals to the challenge? and they said, well, what do you mean? i said, let's take one example. let's take hiv-aids. so when harold was head of n.i.h., they mounted a campaign the likes we have not seen before so we discovered people living with the virus in 1981 and n.i.h. made massive investments in be h.i.v. research. . there are two kinds of people in the world, people who are researching aids now and people who will be researching in the future. they moved huge amounts of funding in t


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