w taxes | or trying to confiscate it otherwise.
00:12:47.340~00:12:51.367
00:12:54.113~00:12:56.775
00:12:57.083~00:13:00.211
00:13:02.956~00:13:04.184
00:13:22.308~00:13:25.141
00:13:25.378~00:13:29.246
groups
00:13:29.983~00:13:31.314
00:13:31.451~00:13:34.215
00:13:35.321~00:13:37.687
00:13:44.764~00:13:48.825
00:13:49.736~00:13:52.330
00:13:52.906~00:13:55.033
00:13:55.174~00:13:57.904
00:13:58.044~00:13:59.705
00:13:59.846~00:14:01.438
00:14:19.065~00:14:20.862
00:14:21.334~00:14:25.134
University.
00:14:26.639~00:14:31.008
in India.
00:14:31.177~00:14:33.202
00:14:33.780~00:14:36.180
00:14:36.950~00:14:40.681
00:14:41.788~00:14:44.586
00:14:44.724~00:14:47.887
00:14:48.394~00:14:50.021
00:15:12.385~00:15:15.821
00:15:15.955~00:15:18.082
00:15:19.659~00:15:21.650
00:15:22.295~00:15:25.458
00:15:25.698~00:15:27.290
00:15:27.433~00:15:28.900
00:15:29.602~00:15:31.035
00:15:44.384~00:15:47.979
00:15:48.321~00:15:51.119
stock market -
00:15:51.257~00:15:53.885
00:15:54.127~00:15:58.029
00:16:00.867~00:16:02.732
00:16:02.869~00:16:06.532
fourfold size.
00:16:35.501~00:16:37.901
00:16:38.504~00:16:40.472
00:16:40.606~00:16:45.236
00:16:45.978~00:16:48.446
00:16:48.881~00:16:52.180
00:16:52.819~00:16:54.946
00:16:56.756~00:17:00.192
00:17:00.326~00:17:06.094
00:17:06.833~00:17:09.495
00:17:09.635~00:17:11.466
00:17:12.805~00:17:14.363
00:17:16.375~00:17:18.343
00:17:20.079~00:17:22.639
00:17:22.782~00:17:25.774
00:17:29.822~00:17:31.585
00:17:33.092~00:17:35.390
These are the remnants | of the colonial era.
This legal system is | very important for me.
It's an important investment criterion.
We are very satisfied with it.
My name is Mirko Kovats, | I am Austrian.
I built up one of the biggest | Austrian industrial
over the past ten years.
Nobody is calling for the state here.
You have to take care of yourself.
I am always astonished | to hear discussions at home
about the problems we think we have.
They never stop discussing
how to take things away | from people by taxing them.
All that does not count here.
The only thing that counts here | is the economy.
My name is Sujatha Raaju.
I have completed commerce studies | from the Madras
We are here in Chennai, | one of the biggest cities
It was formally known as Madras.
It is populated | with 8 million people.
One third of the population | lead a life like this.
That is, they live | on the banks of the rivers.
Some of them live | even a much poorer life,
living on the pavements.
In Europe students are interested | in sociology.
Everybody wants | to become a teacher.
Here they are studying | engineering.
I ask myself who will be where | in 10 or 20 years.
Will they be richer?
Will we be poorer?
I hope not.
The people | who finance the company are
- as always if you have a company | quoted on the
investors from London, | who manage the money
in pension funds and insurances.
The factory is already too small.
We think about moving and | enlarging it to the
Competition forces us | to take measures
all very unpleasant.
But we are under pressure | from globalization.
We have to compete with people
who get very small wages,
but have to earn their living.
Of course, | working hours will become longer.
I am sure that this overtime | will not be paid.
It is quite simple, | we have to work more.
We have no choice.
Very tidy.
Was this difficult to achieve?
I had to put a lot of effort into it.
But it works, as we see.
I am really astonished.
Are you having any discussions | with labour unions?
00:17:35.528~00:17:37.291 Fortunately not, up to now.
00:17:38.231~00:17:40.893 I try to take into account
00:17:41.033~00:17:43.263 our employees' social situation.
00:17:43.402~00:17:44.664 How much does a welder earn?
00:17:44.804~00:17:49.969 The equivalent of | 200 euros a month on average.
00:17:50.109~00:17:52.077 That's what he earns? | Or what he costs?
00:17:52.211~00:17:53.508 That is what he earns.
00:17:53.646~00:17:55.807 He costs us about 25% more.
00:17:56.182~00:17:57.547 250.
00:17:57.817~00:17:59.409 What about an engineer?
00:17:59.719~00:18:02.313 Around 8-10 times more.
00:18:02.922~00:18:05.152 That makes 2500.
00:18:05.291~00:18:07.953 That is far below Europe,
00:18:08.094~00:18:11.222 but not cheap any more.
00:18:11.364~00:18:16.199 You have to consider | the booming markets in India.
00:18:16.335~00:18:20.738 The price increase | will not only be 3-5%,
00:18:20.873~00:18:23.433 but 10-15% in the next years.
00:18:23.576~00:18:27.103 That's something | to take into account in future.
00:18:27.580~00:18:30.413 That means we have to be efficient.
00:18:30.550~00:18:33.713 We can't afford to be generous.
00:18:33.853~00:18:34.911 The costs will increase.
00:18:35.054~00:18:39.115 I worked in order to minimize | the processes
00:18:39.659~00:18:42.025 and to reduce the additional costs.
00:18:42.228~00:18:45.664 We invested | in half automated production
00:18:46.165~00:18:50.261 in order to reduce the costs | or keep them low.
00:19:27.173~00:19:30.802 We have to buy it at any price.
00:19:30.943~00:19:33.173 It will only become more expensive.
00:19:33.446~00:19:36.142 The prices won't fall.
00:19:55.334~00:19:56.892 Indians pay their taxes.
00:19:57.937~00:20:01.236 Taxes are collected by the government | in form of
sales tax,
00:20:01.374~00:20:04.366 revenue tax, water tax, | electricity tax,
00:20:04.744~00:20:07.269 property tax | and so many other taxes,
00:20:07.413~00:20:09.643 that are collected | by the government.
00:20:09.949~00:20:12.713 But this revenue | is given to foreign investors
00:20:12.852~00:20:14.615 in the form of grants.
00:20:15.121~00:20:17.555 And the government lacks | the money
00:20:17.690~00:20:20.716 to take care of the social welfare | of the people.
00:22:11.137~00:22:15.938 Environmental and social standards | will not change
for a long time.
00:22:16.709~00:22:20.145 The costs to raise these standards
00:22:20.279~00:22:24.648 cannot be paid by countries | like India or China.
00:22:24.784~00:22:27.184 This is reality - like it or not.
00:22:27.820~00:22:29.515 The majority of people are poor.
00:22:30.589~00:22:33.854 And they will stay poor | for a long time.
00:22:34.260~00:22:36.490 They have to stay competitive | at any price.
00:22:36.629~00:22:41.566 Therefore, I think that, except | for soft
declarations of good will
00:22:41.700~00:22:46.137 things won't change much | over the next decades
00:22:46.272~00:22:50.732 because people can't afford it.
00:22:55.147~00:22:57.342 Flourishing economic growth | has nothing to do
00:22:57.483~00:22:59.542 with the people or the society.
00:23:02.588~00:23:06.183 Economic growth is only for | the politician, for the
investor
00:23:06.325~00:23:09.488 and for the middleman | who plays between them.
00:23:10.729~00:23:13.163 10 years ago, | in a middleclass family,
00:23:13.299~00:23:15.733 if the income of the family | was around 10000,
00:23:15.868~00:23:19.531 they were able to save | at least 2000 to 3000
rupees.
00:23:19.672~00:23:21.537 But those days are gone.
00:23:22.508~00:23:24.567 Today, even if they earn 20000,
00:23:24.710~00:23:27.338 they are not able to save | a single penny.
00:23:28.080~00:23:31.379 There is a lot of foreign culture | in India
00:23:31.517~00:23:33.542 and people are getting | accustomed to it,
00:23:33.686~00:23:37.622 following all the ways | to imitate the Western
culture.
00:23:38.124~00:23:40.388 But poverty | has not been eradicated.
00:23:40.526~00:23:42.460 There are still poor people.
00:23:43.028~00:23:44.518 This can be eradicated only,
00:23:44.663~00:23:47.154 if there is a good political system | in India.
00:24:17.329~00:24:18.956 My name is Kalaiselvan.
00:24:19.165~00:24:21.463 I am in the 7th class, | I am 12 years old.
00:24:21.734~00:24:24.294 I have been living in the slum | Gandhinagar since I
was born.
00:24:24.436~00:24:26.961 When I am grown up, | I want to be a lawyer,
00:24:28.174~00:24:31.109 and I want | to fight against corruption.
00:27:11.570~00:27:13.162 My name is Gerhard Schwarz.
00:27:13.305~00:27:16.331 For 14 years, | I have been chief editor
00:27:16.475~00:27:19.410 of the economic section | of Neue Zürcher Zeitung.
00:27:20.279~00:27:25.273 I also teach | at the University of Zurich.
00:27:26.685~00:27:31.816 Besides, I am President
00:27:31.957~00:27:35.449 of the Friedrich August | Hayek-Society.
00:27:35.627~00:27:39.757 Friedrich August von Hayek | was certainly
00:27:39.898~00:27:43.891 the most important liberal economist | of the 20th
century.
00:27:44.203~00:27:46.603 He was born in Austria
00:27:46.739~00:27:50.402 and worked in England, | America and Germany.
00:27:59.651~00:28:03.644 We are on our way from Vevey | on Lake Geneva
00:28:04.123~00:28:06.148 to Mont Pèlerin.
00:28:06.925~00:28:09.792 Meaning "Pilgrim's Mount".
00:28:10.195~00:28:15.098 It is a little village | with some big hotels.
00:28:16.535~00:28:21.768 In 1947 some of the most important
00:28:22.241~00:28:27.110 European and American thinkers | met here
00:28:28.046~00:28:32.449 to reflect upon the future | of the Western World.
00:28:54.873~00:28:59.810 The Mont Pèlerin Society was founded | in this "Hôtel
du Parc".
00:29:01.046~00:29:04.174 The founders'goal was | to organize
00:29:04.316~00:29:06.682 an intellectual network.
00:29:07.386~00:29:10.787 They did not want to make politics,
00:29:10.923~00:29:14.984 but wanted to influence politics | with their ideas.
00:29:15.994~00:29:21.091 The Mont Pèlerin Society | became famous in the
1980s,
00:29:21.233~00:29:23.030 with Ronald Reagan.
00:29:23.869~00:29:27.361 In his government | and in his advisory team,
00:29:27.506~00:29:31.408 there was a great number of members | of the Mont
Pèlerin Society.
00:29:32.911~00:29:37.939 Sometimes 20 or even more members.
00:29:38.283~00:29:43.846 Approximately at the same time | Margaret Thatcher
00:29:45.157~00:29:50.185 drew on Hayek's ideas
00:29:50.329~00:29:53.389 and the ideas of British members
00:29:53.532~00:29:56.763 of the Mont Pèlerin Society.
00:34:10.489~00:34:13.049 Here we are at the entrance | of the Sahel.
00:34:14.392~00:34:16.189 All the soils are ruined.
00:34:17.329~00:34:20.730 There is total erosion, | even ravines.
00:34:21.500~00:34:24.128 This is the result | of the cotton monoculture.
00:34:27.639~00:34:29.004 The cotton is gone,
00:34:29.875~00:34:31.638 the money for the cotton is gone.
00:34:32.577~00:34:36.240 The only thing left is this soil, | where you can't
cultivate anything.
00:34:37.816~00:34:40.785 I am called Yves Delisle.
00:34:42.154~00:34:44.349 I am an agronomist by profession.
00:34:46.625~00:34:50.959 I studied | Development Studies in Geneva.
00:34:55.000~00:35:00.597 I have been working directly | with farmers for about
20 years.
00:35:03.508~00:35:06.875 20 years is quite a long time.
00:35:07.813~00:35:11.340 But up to now, | I have the impression
00:35:11.483~00:35:14.816 that the situation | has not improved.
00:36:00.198~00:36:04.635 These people earn | not even 50 euros a year.
00:36:23.755~00:36:25.586 We are anxious!
00:36:25.924~00:36:28.620 We are fed up.
00:36:28.760~00:36:32.093 Our children cultivate cotton, | but they don't get
anything for it.
00:36:32.230~00:36:34.289 What shall we do?
00:36:34.699~00:36:36.997 We are reduced to doing nothing. | We hope for your
help.
00:36:37.135~00:36:38.693 To improve our lives.
00:36:38.837~00:36:41.567 Go and tell those | who buy the cotton to help us
00:36:41.706~00:36:44.675 to buy the cotton at a fair price.
00:36:44.809~00:36:49.337 So that Burkina and we | get more money.
00:36:50.548~00:36:54.040 Old women like me work the whole | day long under the
sun. For nothing.
00:36:54.853~00:36:56.343 But what can we do?
00:36:56.454~00:36:58.513 Try to understand us.
00:36:59.391~00:37:01.291 We beg you.
00:37:01.893~00:37:03.383 You see how tiring the work is.
00:37:03.528~00:37:06.361 If we managed to pay back | our loans, we would be
glad.
00:37:43.635~00:37:46.433 The quality of cotton is the best | in the world.
00:37:46.905~00:37:49.840 The production costs | are the lowest.
00:37:50.375~00:37:53.606 The cotton is clean, | because all is done by hand.
00:37:55.547~00:37:58.778 Nevertheless, the price is very low | on the world
market.
00:38:54.539~00:38:59.169 Every year, the USA subsidize | their cotton
producers
00:38:59.310~00:39:01.540 with $3 billion.
00:39:02.047~00:39:04.607 If the Americans are liberal, | so be it!
00:39:04.749~00:39:06.683 But why do they subsidize | their cotton producers?
00:39:08.053~00:39:09.520 This isn't liberalism!
00:39:09.654~00:39:11.281 In reality, | they practise protectionism,
00:39:11.423~00:39:13.118 and impose liberalism on us.
00:39:13.825~00:39:14.985 They apply two different standards!
00:39:15.126~00:39:17.560 It is like if you have a football field | and two
teams.
00:39:17.695~00:39:23.031 Team A has the best shoes | and can also use their
hands.
00:39:23.168~00:39:26.729 Team B - and these are the Africans, | and small
countries like us -
00:39:26.871~00:39:30.136 have to play | without shoes or hands.
00:39:30.275~00:39:31.936 Do you consider this | to be normal?
00:39:59.003~00:40:02.769 In the 1980s the World Bank imposed
00:40:02.907~00:40:05.671 restructuring programmes | on Burkina Faso.
00:40:06.177~00:40:08.168 What does this mean for the country?
00:40:09.447~00:40:11.176 Raw materials are exported,
00:40:11.716~00:40:14.014 cotton in the form of raw cotton
00:40:14.152~00:40:15.414 without added value.
00:40:18.823~00:40:22.520 All the World Bank and the investors | are interested
in
00:40:22.660~00:40:26.255
00:40:26.698~00:40:31.101
00:40:32.770~00:40:35.864
cultivate a certain product.
00:40:36.708~00:40:40.041
00:40:40.178~00:40:43.670
00:40:58.796~00:41:01.162
00:41:02.834~00:41:04.699
00:41:04.836~00:41:07.930
00:41:09.507~00:41:14.535
million people - directly.
00:41:14.679~00:41:16.738
00:41:16.881~00:41:21.818
00:41:21.953~00:41:24.387
00:41:24.522~00:41:27.650
lives off cotton.
00:41:29.127~00:41:32.324
00:41:32.964~00:41:35.660
00:41:35.900~00:41:38.130
euros)
00:41:40.405~00:41:42.396
00:41:43.208~00:41:45.836
00:41:45.977~00:41:47.968
00:41:48.580~00:41:51.606
million euros)
00:41:51.749~00:41:54.912
develop our country!
00:41:55.253~00:41:57.414
00:41:57.722~00:41:59.314
00:41:59.624~00:42:02.991
00:42:03.828~00:42:08.060
production today.
00:42:52.277~00:42:57.408
00:42:59.317~00:43:02.013
00:43:02.820~00:43:06.187
00:43:10.061~00:43:11.824
00:43:11.963~00:43:13.863
00:43:16.067~00:43:18.126
00:43:18.269~00:43:21.705
00:43:21.839~00:43:24.103
00:43:24.909~00:43:28.538
00:43:28.680~00:43:31.877
00:43:35.820~00:43:39.449
00:43:40.191~00:43:42.182
00:43:42.327~00:43:44.295
00:43:47.932~00:43:51.368
00:43:55.306~00:43:58.275
00:43:59.210~00:44:03.203
children.
00:44:05.850~00:44:08.785
00:44:09.020~00:44:11.181
00:44:11.322~00:44:13.449
00:47:57.748~00:47:59.375
00:47:59.951~00:48:03.045
debt.
00:48:03.354~00:48:07.347
00:48:07.792~00:48:10.454
00:48:11.662~00:48:16.031
00:48:16.267~00:48:20.033
is sucking raw materials | out of the country.
Cotton, timber, coffee, cacao, gold, | and so on.
In the past, the colonialists forced us | to
Now the World Bank | puts us under pressure
with money to plant cotton.
How can you buy medicine?
You need foreign currency.
The cotton can bring us | this foreign currency.
I told you that cotton makes the living | of two
But if you calculate that in Africa
every person supports | another 15 people,
- multiply by 2 million -
and you quickly realize that | the whole population
If the USA did not subsidize | their cotton,
Burkina Faso would make profits
of at least 80 billion CFA a year. | (122 million
The bilateral aid,
the credits from the EU,
USA and Japan
represent altogether only | 20 billion CFA. (30
You see, we would not need to get | into debt to
The work of the farmers alone | would permit us
to construct schools and roads
in order to give a better future | to our children.
This is the dilemma we are facing | with the cotton
Here you see women | sweeping the soil.
They sell the soil or pebbles
in order to earn | a little bit of money.
According to the | UN development program,
there are only 3 poorer countries.
62% of the population
has less than 1 dollar per day | to live on.
Among these 62%, a large part
is living in destitution.
That is even worse than poverty.
40% of the children | don't go to school.
Out of those | who begin to go to school,
only 1-2% reach university.
Life expectancy here is 42 years.
Speaking about misery, | you have to notice
that the most destitute social group | are women and
Some women go to the quarries.
In that way they can earn
about 50 euro cents per day.
We have many debts.
Every Burkinan born today | is already deeply in
Even those who are born | in 25 years already debts.
If we don't produce cotton
every African living in Burkina
but also those living in Mali, | Benin and other
countries,
00:48:20.738~00:48:23.036 will emigrate to Europe.
00:48:23.641~00:48:27.475 We will have no choice but to go. | We will invade
you, sure enough.
00:48:28.012~00:48:32.449 But if the West doesn't stop | subsidizing their
cotton,
00:48:32.583~00:48:34.312 we will be forced to go.
00:48:34.452~00:48:36.283 If we go,
00:48:36.420~00:48:39.787 they can construct | walls 10 meters high,
00:48:40.658~00:48:42.592 we will nevertheless come to Europe.
00:48:59.343~00:49:04.007 All liberals in the world think | that frontiers
should be open
00:49:04.148~00:49:05.308 for goods,
00:49:06.150~00:49:08.641 money and services.
00:49:09.453~00:49:12.081 It becomes more complicated | if people are
concerned.
00:49:12.823~00:49:15.291 You have to think about
00:49:15.426~00:49:17.724 introducing | membership fees,
00:49:18.663~00:49:22.099 as you demand membership fees | in a club.
00:49:22.466~00:49:25.196 If you become a member | of a tennis club
00:49:25.403~00:49:29.840 you have to pay membership fees,
00:49:29.974~00:49:33.740 not only monthly
00:49:33.878~00:49:36.039 or annual fees like taxes.
00:49:36.180~00:49:40.776 This is because | the predecessors built
00:49:40.918~00:49:43.250 the club house | and prepared the place.
00:49:43.387~00:49:48.347 Otherwise | the newcomer would profit
00:49:48.492~00:49:50.790 from something | he did not contribute to.
00:50:26.030~00:50:27.520 20 years ago,
00:50:28.566~00:50:32.593 the financial groups, | banks and investors
00:50:33.604~00:50:35.697 began to make a grab
00:50:35.840~00:50:40.140 for public goods.
00:50:40.945~00:50:45.473 Goods actually belonging | to the state
00:50:46.917~00:50:50.114 and to the citizens, | who have to regularly
00:50:50.254~00:50:54.156 pay their rent, water rates, etc.
00:50:59.797~00:51:02.129 That is the whole point | of privatization.
00:51:04.769~00:51:09.001 We are sitting in | a public transport tram in
Vienna.
00:51:09.673~00:51:13.871 Every citizen assumes
00:51:14.011~00:51:16.571 that the trams belong | to the City of Vienna.
00:51:17.481~00:51:20.109 But this is not the case.
00:51:21.085~00:51:26.489 This tram belongs | to an American investor.
00:51:32.897~00:51:38.426 Some years ago, the City Council | of Vienna decided
00:51:39.703~00:51:45.608 to sell its trams | to American investors.
00:51:46.877~00:51:49.903 They got a lot of money for them,
00:51:50.047~00:51:51.776 more than $1 billion.
00:51:51.916~00:51:55.010 But the City of Vienna | never received that money.
00:51:55.486~00:51:58.250 Instead, the money was transferred
00:51:58.389~00:52:01.586 to banks in England and elsewhere.
00:52:02.393~00:52:03.792 They took the money
00:52:03.928~00:52:09.230 and for years to come will pay
00:52:09.366~00:52:14.770 periodic leasing instalments | to the American
investor,
00:52:14.905~00:52:18.272 so that the City of Vienna | has the right
00:52:18.409~00:52:19.842 to use the trams.
00:52:21.245~00:52:22.678 Can you imagine that?
00:52:36.894~00:52:40.853 The state is the community | of all people living in
that state.
00:52:40.998~00:52:42.795 We are the state.
00:52:43.100~00:52:45.796 This applies at least | to a democracy.
00:52:46.036~00:52:48.698 In order to organize | a functioning society,
00:52:49.139~00:52:50.663 the state needs public goods:
00:52:51.175~00:52:53.473 Schools, universities,
00:52:53.611~00:52:57.103 public transport, etc.
00:52:57.615~00:52:59.981 In this context, | it is interesting to see
00:53:00.117~00:53:04.144 what is going on | with privatization.
00:53:04.588~00:53:07.819 "Privatization" originates | from the Latin word
"privare"
00:53:07.958~00:53:09.585 which means "to deprive".
00:53:11.528~00:53:13.689 In the process | of privatization,
00:53:13.998~00:53:15.795 public goods | are bought
00:53:17.101~00:53:19.763 by private investors.
00:53:20.404~00:53:23.635 Sometimes they even receive them | as a present.
00:53:24.141~00:53:26.575 This is nothing else
00:53:26.710~00:53:30.202 than depriving society | of public goods.
00:53:30.814~00:53:33.044 You could sum it up as follows:
00:53:33.183~00:53:36.084 Society is deprived of a certain good
00:53:36.220~00:53:41.658 that the private investor | is interested in
00:53:41.792~00:53:43.817 for reasons of profit.
00:54:02.613~00:54:06.947 This strange system called | "cross-border-leasing"
00:54:07.084~00:54:08.949 has been widely applied,
00:54:09.086~00:54:13.352 not only in the case | of the Viennese trams.
00:54:13.657~00:54:17.457 The Austrian Federal Railways
00:54:17.594~00:54:22.190 sold their trains | to American investors.
00:54:23.667~00:54:27.865 The City of Innsbruck | sold its public utilities.
00:54:29.773~00:54:33.402 Since we live in the era | of globalization,
00:54:33.544~00:54:36.274 this didn't only take place in Austria,
00:54:36.413~00:54:39.905 but also in Germany, the Netherlands | and everywhere
in Europe.
00:54:40.517~00:54:44.647 The fact that politicians sanction | a cross-border-
system
00:54:44.788~00:54:49.452 is sometimes due to ignorance.
00:54:50.194~00:54:52.185 Those who understand,
00:54:52.796~00:54:56.527 care only about the very | short period of their
career.
00:54:56.667~00:54:58.862 They are not interested | in what happens after them.
00:54:59.003~00:55:02.996 This short-term attitude,
00:55:03.140~00:55:07.474 the lack of a will to take | responsibility for the
long term
00:55:07.611~00:55:11.775 - knowing it will be up to others | to resolve the
problems later -
00:55:11.915~00:55:15.544 is characteristic | of the neo-liberal era.
00:55:15.786~00:55:17.686 In the neo-liberal era,
00:55:17.821~00:55:21.313 everything is reduced
00:55:22.693~00:55:29.394 to making the highest profits | immediately.
00:55:29.800~00:55:31.734 And this at any price.
01:07:03.760~01:07:06.251 Over the past 10-15 years,
01:07:06.863~01:07:09.559 a dramatic change | in the distribution of incomes
01:07:09.699~01:07:11.496 took place due to globalization.
01:07:12.569~01:07:17.563 Millions of | blue and white collar workers
01:07:17.707~01:07:20.039 had their earnings under pressure.
01:07:20.176~01:07:23.703 They no longer got | the wages they demanded.
01:07:23.847~01:07:29.547 Globalization made them work for less.
01:07:29.986~01:07:34.184 That led to a considerable shift | of incomes
01:07:34.324~01:07:36.451 in favour of capital.
01:07:42.766~01:07:48.170 This huge quantity of money | had to be invested.
01:07:50.440~01:07:55.036 That led to a dramatic abortive | development.
01:07:56.412~01:07:59.040 A new industry emerged:
01:07:59.916~01:08:01.941 Financial services, :
01:08:02.819~01:08:04.548 Investment bankers, :
01:08:04.687~01:08:07.178 Private equity funds, : | Hedge funds.
01:08:09.325~01:08:12.692 This new industry | is a phenomenon:
01:08:12.829~01:08:17.766 It earns piles of money, | not by staking its own
money,
01:08:19.435~01:08:23.269 but by staking foreign money.
01:08:24.607~01:08:27.974 For each dollar and euro | that is invested,
01:08:28.111~01:08:29.840 they get a commission.
01:08:35.685~01:08:39.678 Cologne is in a privileged situation | on the Rhine.
01:08:42.859~01:08:44.724 My name is Anton Schneider.
01:08:45.428~01:08:48.920 I am partner in a small | private equity fund.
01:08:49.132~01:08:53.865 That means | we collect our investors' capital.
01:08:54.003~01:08:57.598 We invest it | together with our money
01:08:57.740~01:09:02.268 in enterprises we restructure | and sell afterwards.
01:09:02.779~01:09:06.715 The private equity industry | is at the centre of
attention,
01:09:06.883~01:09:10.250 because normally | we buy enterprises
01:09:10.453~01:09:13.251 with rather low equity capital.
01:09:13.389~01:09:16.290 The purchase price | is mainly financed by debts.
01:09:17.260~01:09:20.889 These debts are merged | with the enterprise.
01:09:21.097~01:09:24.624 That way, the enterprises | which have been bought,
01:09:24.868~01:09:27.063 have to service huge debts.
01:09:27.637~01:09:31.767 They do not have much money | left for investments.
01:09:32.475~01:09:34.773 That works as long as | the economy is good,
01:09:34.911~01:09:38.745 as long as there are high profits.
01:09:38.882~01:09:41.214 As long as there is | no economic downturn.
01:09:41.351~01:09:44.184 As long as the enterprises
01:09:44.320~01:09:49.815 have made enough | previous investments.
01:09:50.093~01:09:52.493 But in many cases, | it does not work out.
01:09:52.629~01:09:56.759 The purchase prices | have increased incredibly.
01:09:57.467~01:09:59.628 They were financed
01:09:59.769~01:10:02.135 with a huge amount | of outside capital.
01:10:02.305~01:10:04.637 The risk is that the enterprises
01:10:04.774~01:10:06.708 cannot pay back their debts.
01:10:07.911~01:10:10.709 In that case, the banks | must write off the credits.
01:10:10.847~01:10:14.840 The enterprises are fleeced of | their money for
years.
01:10:15.385~01:10:18.354 So they can't do | what they are supposed to do:
01:10:18.488~01:10:21.980 Develop products, invest, | create new jobs.
01:10:22.592~01:10:26.460 That is why | they are called "Locusts".
01:10:26.596~01:10:28.723 Unfortunately, I think | this is precisely the right
term.
01:10:32.902~01:10:36.633 The whole financial system | increased in importance.
01:10:37.006~01:10:39.372 And that happened for 2 reasons:
01:10:40.143~01:10:43.306 First, those who possess the capital | become ever
greedier.
01:10:43.479~01:10:46.243 Second, the managers of the capital
01:10:46.382~01:10:49.180 get commissions.
01:10:49.319~01:10:54.814 The riskier | the investment forms are,
01:10:54.958~01:10:58.450 the more they profit | from the operation.
01:12:20.843~01:12:21.935 Hello.
01:12:23.446~01:12:26.381 Welcome to the El Algarrobico Hotel.
01:12:26.849~01:12:29.545 We are in Spain, in Andalusia,
01:12:29.685~01:12:31.312 in Almeria,
01:12:31.454~01:12:33.513 in the village | of Carboneras.
01:12:33.790~01:12:36.452 The hotel is situated
01:12:36.592~01:12:40.619 in the National Park | of Cabo de Gata
01:12:40.763~01:12:43.891 beginning in the west over there.
01:12:44.333~01:12:49.168 This is an important marine | and terrestrial
reserve.
01:12:53.709~01:12:57.338 We are fighting for the preservation | of the
biosphere,
01:12:57.480~01:13:00.210 of the climate and fresh air,
01:13:00.349~01:13:02.010 and for the preservation | of the species
01:13:02.151~01:13:04.142 living on land and in the sea.
01:13:05.054~01:13:08.751 This hotel is an important project.
01:13:22.004~01:13:24.837 This hotel is the first | of seven hotels
01:13:24.974~01:13:28.910 foreseen for this region.
01:13:29.045~01:13:32.640 In addition to this, | we want to build a golf-course
01:13:32.782~01:13:36.240 and a limited number of flats.
01:13:36.385~01:13:39.582 In the first phase, | we will construct 500 flats.
01:13:39.722~01:13:43.681 Later there will be 1500 flats | and houses.
01:14:01.344~01:14:02.868 My name is Miguel Angel Torres.
01:14:03.613~01:14:06.309 I am a public servant | and can'tographer.
01:14:07.683~01:14:11.278 For 18 years | I have been observing
01:14:11.420~01:14:13.388 the construction of buildings
01:14:13.523~01:14:15.320 on the "Costa del Sol".
01:14:17.693~01:14:19.285 This is the "Parque Victoria".
01:14:19.428~01:14:21.988 They are constructing 4000 flats.
01:14:22.732~01:14:26.828 Mostly, they are built | as capital investments.
01:14:28.137~01:14:31.300 That way the real estate societies,
01:14:31.440~01:14:34.409 enterprises and European banks
01:14:34.544~01:14:37.638 can reckon with an annual profit
01:14:37.780~01:14:41.341 of about 20%.
01:14:41.484~01:14:44.976 A traditional investment in a bank | or at the stock
exchange
01:14:45.121~01:14:47.817 brings a profit of only 5-6%.
01:14:48.624~01:14:52.583 Therefore the buildings here | and on the Spanish
coast
01:14:53.429~01:14:56.830 are not built for living in,
01:14:56.966~01:14:58.661 not even during the holidays.
01:14:58.801~01:15:02.032 They are just built in order | to launch an
investment chain.
01:15:06.042~01:15:07.976 After the whole process,
01:15:08.110~01:15:11.170 we will have thousands
01:15:11.314~01:15:13.407 of empty flats
01:15:13.549~01:15:17.781 which profited people | we don't know
01:15:17.920~01:15:19.717 and who don't even live here.
01:17:06.295~01:17:09.196 If you have a pension fund | at a European bank,
01:17:09.332~01:17:12.495 it is likely that the money is invested
01:17:12.635~01:17:14.262 in one of these housing estates | in Spain.
01:17:14.403~01:17:16.871 These flats, | which are already sold,
01:17:17.006~01:17:19.668 are empty the whole year long.
01:17:21.510~01:17:26.140 Young Spanish people | can't buy these flats.
01:17:27.950~01:17:30.646 The cost of these apartments | are much higher
01:17:30.786~01:17:32.583 than anything they can afford.
01:17:36.759~01:17:38.989 The upkeep of these buildings,
01:17:39.161~01:17:41.061 which are of very poor quality,
01:17:41.230~01:17:43.164 the water and the utilities
01:17:43.299~01:17:45.460 are paid by the Spanish state.
01:17:45.835~01:17:50.636 We have no advantage whatsoever
01:17:50.773~01:17:54.334 from the 800000 flats | built every year in Spain.
01:18:25.040~01:18:28.669 Spain is one of the countries | in the world,
01:18:28.811~01:18:31.279 where the bubble | in the real estate market
01:18:31.414~01:18:36.010 became most apparent | over the past five years.
01:18:37.253~01:18:41.019 A real storm of urbanization,
01:18:41.157~01:18:46.060 a "cement-tsunami" is ruining | the Spanish coasts
and islands.
01:19:31.640~01:19:35.474 Here we can see one | of the housing estates,
01:19:35.611~01:19:38.375 all of them are connected | to golf courses.
01:19:38.848~01:19:42.784 There are hundreds | of such estates in Spain,
01:19:42.918~01:19:46.012 a country where
01:19:46.155~01:19:50.524 only very few people | play golf, a tiny minority.
01:19:52.495~01:19:54.554 How is this possible?
01:19:55.464~01:19:58.922 This is due to the big | foreign investments
01:19:59.068~01:20:02.094 in products of this type.
01:20:02.238~01:20:06.072 The value of these real estate | buildings is higher,
01:20:06.208~01:20:08.199 if they are located | beside a golf course.
01:20:46.782~01:20:50.946 This is absolutely artificial.
01:20:51.820~01:20:54.880 We are creating a green space
01:20:55.090~01:20:56.921 in the midst of the desert.
01:20:57.059~01:20:58.993 To do so, | we need a huge quantity of water.
01:21:00.496~01:21:03.056 A golf course of this type
01:21:03.198~01:21:06.395 consumes the same quantity | of water
01:21:06.535~01:21:09.402 as a town of 20000 inabitants.
01:21:56.518~01:21:59.578 7 of the 11 most important | construction companies
01:21:59.722~01:22:01.690 in the world are Spanish.
01:22:01.824~01:22:06.090 Some of them are linked | to big soccer clubs.
01:22:06.395~01:22:10.593 The biggest Spanish | construction company ACS
01:22:10.733~01:22:14.066 is directed by the former president | of Real Madrid.
01:22:28.817~01:22:31.445 The extent of construction | has reached its limits.
01:22:33.555~01:22:36.285 Of the first kilometre | of the whole Spanish
coastline
01:22:36.425~01:22:39.019 80% is covered with buildings.
01:22:39.161~01:22:42.790 They are beginning to occupy | the last natural
spaces.
01:22:50.272~01:22:51.705 At the moment,
01:22:51.840~01:22:54.502 the construction works | are temporarily halted,
01:22:54.643~01:22:57.874 because our activities | have been reported
01:22:58.013~01:23:00.641 to the authorities | by an ecological group
01:23:00.783~01:23:04.617 claiming that we don't have
01:23:04.753~01:23:07.313 the necessary permits.
01:23:10.259~01:23:12.227 I hope and I wish that the judge,
01:23:12.361~01:23:15.524 after having confirmed the legality | of the
construction,
01:23:15.664~01:23:18.827 will soon allow us | to finish building this hotel,
01:23:18.967~01:23:21.060 for which we already have
01:23:21.203~01:23:25.469 reservations from all over Europe.
01:23:55.471~01:23:59.373 The building sector | recruits its workers
01:23:59.641~01:24:01.632 mainly among immigrants.
01:24:02.478~01:24:07.472 The people coming from | Africa or South America
01:24:07.616~01:24:10.483 work for the lowest wages.
01:24:11.553~01:24:14.488 This way, the people | in the construction sector
01:24:14.623~01:24:17.751 spend their black money
01:24:17.993~01:24:20.461 on paying | their construction workers.
01:26:05.234~01:26:07.259 Why doesn't anybody do something
01:26:07.402~01:26:10.894 about this abortive development | of the financial
system?
01:26:11.707~01:26:13.766 This question is difficult to answer,
01:26:13.909~01:26:17.106 since many are suffering from it,
01:26:17.246~01:26:20.773 including the national economy, | because there is
the risk
01:26:20.916~01:26:23.077 of a new global economic crisis.
01:26:23.218~01:26:25.049 Despite of all this, | nothing is happening.
01:26:25.187~01:26:27.781 Even now, one year | after the financial crisis,
01:26:27.923~01:26:29.618 there aren't any new regulations.
01:26:30.092~01:26:33.255 That way, these financial excesses | are permitted.
01:26:33.395~01:26:35.920 On the contrary, | they allocated public money
01:26:36.098~01:26:40.364 from the bank of issue to the system,
01:26:40.502~01:26:42.697 so that the system won't collapse.
01:26:43.305~01:26:46.604 That means they use | ordinary people's money
01:26:46.742~01:26:48.801 to cover the bets.
01:26:49.878~01:26:53.644 In order to provide a basis | for the gamblers,
01:26:54.249~01:26:56.911 who bleed the system,
01:26:57.986~01:27:02.582 so that their institutes | don't go bankrupt.
01:27:17.339~01:27:19.273 It seems that time after time
01:27:19.408~01:27:23.139 catastrophes overtake humanity.
01:27:23.912~01:27:25.937 After each catastrophe,
01:27:26.081~01:27:28.106 the rules are newly defined
01:27:28.283~01:27:30.012 in order to avoid such catastrophes.
01:27:31.053~01:27:32.520 After the world economic crisis,
01:27:32.654~01:27:35.521 completely new rules for banks | were introduced.
01:27:35.958~01:27:39.086 The whole banking system | was highly regulated,
01:27:39.227~01:27:46.030 to avoid something like | the world economic crisis.
01:27:49.571~01:27:53.507 Over the past years, a new | attitude has become
established,
01:27:53.642~01:27:56.338 purporting that we don't need | to regulate anything,
01:27:56.478~01:27:58.742 because that the market | regulates everything.
01:27:59.614~01:28:02.708 So the public control authorities | have tolerated
01:28:03.285~01:28:07.119 that for the financial system | regulations no longer
exist.
01:28:08.357~01:28:10.825 Everything has been | completely liberalised.
01:28:12.127~01:28:15.062 The sort of financial industry | we have today
01:28:15.197~01:28:18.098 is completely senseless | and directed against
people.
01:28:45.460~01:28:46.791 It's the media
01:28:46.928~01:28:49.260 that choose today's leaders.
01:28:49.398~01:28:51.992 They give thumbs up or down.
01:28:52.934~01:28:55.300 So people are eager | to please the media -
01:28:56.705~01:29:00.641 they try to be in the limelight.
01:29:00.909~01:29:03.844 They are elected less and less
01:29:03.979~01:29:06.345 due to serious political concepts.
01:29:10.986~01:29:12.920 This capacity to please the media
01:29:13.055~01:29:17.788 has become a crucial criterion | for a political
leader,
01:29:18.293~01:29:22.525 although it is the exact opposite | of the qualities
01:29:22.864~01:29:25.332 you need to be | a good political leader.
01:29:25.467~01:29:28.630 So we have | more and more dummies,
01:29:29.838~01:29:33.899 who take crucial political decisions
01:29:34.910~01:29:38.243 and who very quickly | become compliant puppets
01:29:38.380~01:29:41.577 of developments determined | by other people.
01:37:58.012~01:37:59.741 Our opinion | in Switzerland
01:37:59.881~01:38:02.042 is that it is | of the utmost importance
01:38:02.183~01:38:03.582 to protect a persors privacy.
01:38:05.019~01:38:09.251 This protection is part | of a liberal economy.
01:38:09.691~01:38:13.457 This protection | may only be suspended
01:38:13.628~01:38:16.722 in the case | of major legal infractions.
01:38:17.065~01:38:21.866 Tax avoidance is considered | an infraction,
01:38:22.003~01:38:25.632 but not serious enough
01:38:25.940~01:38:28.500 to suspend privacy.
01:38:29.110~01:38:32.978 Neither that of our own citizens, | nor that of
foreign citizens.
01:38:36.050~01:38:39.486 Switzerland would never | exclusively protect
01:38:39.621~01:38:43.682 its own citizens | from tax authorities,
01:38:43.825~01:38:47.090 but on the slightest suspicion
01:38:47.261~01:38:49.092 of tax evasion
01:38:49.230~01:38:51.323 or tax avoidance
01:38:51.466~01:38:57.371 suspend foreign citizens'privacy.
01:42:06.961~01:42:09.987 The Universal Declaration | of Human Rights
stipulates:
01:42:10.631~01:42:15.364 "All human beings are born free | and equal in
dignity and rights."
01:42:16.003~01:42:19.097 If we want to stick to | this humanitarian principle,
01:42:19.240~01:42:23.472 the distribution of wealth | has to be different.
01:42:24.579~01:42:29.073 Distribution should be in favour | of our whole
society,
01:42:29.217~01:42:31.412 and not in favour | of a few individuals.
01:42:31.886~01:42:35.447 Only then can you preserve | the humanitarian
principle.
01:42:36.090~01:42:37.751 If we do not change the system,
01:42:37.892~01:42:42.989 there will be | new selection mechanisms:
01:42:43.798~01:42:46.961 Selection mechanisms | between states,
01:42:47.101~01:42:48.796 between races,
01:42:49.403~01:42:50.961 between religions,
01:42:51.205~01:42:54.402 between people entitled | to use resources
01:42:54.542~01:42:56.169 and those not entitled,
01:42:56.310~01:43:00.144 between valuable people | and those who are not
valuable.
01:43:00.615~01:43:05.211 In this case, the monetary value | of a human being
will prevail,
01:43:06.787~01:43:11.315 and a new barbarian era will begin.
01:43:11.459~01:43:12.824 This is ineluctable.
01:43:22.103~01:43:23.161 In the end,
01:43:24.038~01:43:29.738 the average citizen will pay for it.
01:43:30.912~01:43:33.312 The so-called "little man".
01:43:33.447~01:43:36.007 Or the "little women" - people
01:43:36.150~01:43:41.918 who have no influence whatsoever | on the process,
01:43:42.857~01:43:47.624 unless they get organized,
01:43:48.863~01:43:52.458 unless they find someone | to represent their
interests,
01:43:52.600~01:43:56.661 strong enough to stop this process.
01:44:05.046~01:44:07.514 We are now at the Reichstag,
01:44:07.648~01:44:09.741 the seat of the German Parliament.
01:44:09.884~01:44:11.875 Here we see traces of World War II,
01:44:12.019~01:44:16.547 which ended | with the capture of the Reichstag
01:44:16.691~01:44:18.989 by Russian soldiers,
01:44:19.126~01:44:21.993 who wrote their greetings | to their homeland.
01:44:22.129~01:44:25.223 This should remind us of the fact
01:44:25.366~01:44:30.303 that without a new form | of distribution of wealth,
01:44:31.472~01:44:35.499 without a solution for the question | of the
environment
01:44:36.377~01:44:41.872 by using renewable instead | of non-renewable
resources,
01:44:42.016~01:44:43.745 which will not be sufficient | for all of us,
01:44:44.151~01:44:50.681 all things that ended here | with World War II
01:44:50.825~01:44:53.055 will repeat themselves