U.S. Secretary of State Hillary Clinton says the United States supports Greeces efforts to deal with its financial crisis. She adds that Greece has not asked the United States for assistance to get its economy back on track. Clinton made the comments on Monday at a joint press appearance with Greek Prime Minister George Papandreou at the State Department
After meeting with the Greek prime minister, Clinton praised Mr. Papandreou for his efforts to improve his nations economy. Among our most pressing, shared challenges today is the global economic crisis that has thrown people out of work, shuttered businesses, and drained government coffers in both the United States and Greece. I know these are difficult days in Greece. But I want to commend the prime minister for his leadership in tackling the challenge that he confronted upon taking office, she said.
Clinton said the United States supports Greece and the tough economic measures it is taking.
The Greek government has promised to slash its budget deficit from nearly 13 percent of gross domestic product, more than four times the E.U. limit, to less than three percent by 2012
Mr. Papandreou says the Greek government has made very difficult decisions to ensure the economy is viable . . .to make sure that we have put in place the necessary steps so that we can then restructure our economy, make our economy a green economy, one which is also important for attracting investment, developing our tourist industry, developing our agriculture, our services, but also making our society more just and more transparent and more open.
Mr. Papandreou said the United States and the European Union should crack down on financial market speculators, saying they are pushing his nations borrowing costs to unsustainable levels.
Clinton said Greece has not asked the United States for financial assistance, but to work within the G-20 to press for additional regulatory changes in the financial markets.
Analysts say Greeces national debt is risky, and lenders, in turn, can charge higher interest rates. The prime minister said the interest rates Greece pays are double those of Germany, and that these rates make it harder for Athens to pay down its debt and get the economy back on stable footing.
Prime Minister Papandreou recently met with other European leaders. French President Nicolas Sarkozy has promised that eurozone nations, the 16 countries using the euro as their currency, will not let the Greek economy fail.
The Greek prime minister is scheduled to meet with President Barack Obama on Tuesday.
Russia has long been known for being the land of bureaucracy, but lately red tape has taken on a whole new meaning for foreign workers. It is all because of a four-year-old law that is suddenly being enforced.
The line at the central migration office in Moscow is nearly out the door. One can see the anxiety on peoples faces as they approach the window.
Most foreign workers accept that they have a daunting task to obtain a visa and maintain their legal status in Russia. For example, forms must be filled out in triplicate with the proper signatures, and government forms can change on a weekly basis, without notice. Fill out a wrong form and your visa is denied.
Every foreigner must register with the central migration office within three days of arriving in Russia. If they fail to do so, they are issued an exit visa. Furthermore, foreigners with a work visa have to let the migration office know if they are leaving the city they are authorized to work in, failure to do so could result in a fine, arrest or both.
If that is not enough to worry about, a newly enforced, existing law requires foreign workers to get their college diplomas notarized in the country where they received them, and then get a stamp from that countrys foreign ministry.
An official stamp is often used by governments as proof that an important document or a signature is real. It is usual for many countries to require these stamps for things such as medical certificates or legal documents, but not college diplomas.
German Robert Zellner has been working for an international hotel chain in Moscow for nearly three years.
Now, all of a sudden I have to fly to the United States, where I went to college, and get my diploma stamped and double stamped, in order to keep my own job? Who is gonna pay for this? Zellner asked.
Moscow-based political analyst Mascha Lipman of the Carnegie Center, says she thinks the recent enforcement of the obscure law is just the governments way of making it difficult for foreign workers to stay in Russia.
These recent hurdles have to do with historic, traditional Russian xenophobia. Suspicion of people, from abroad, coming to Russia doing something in Russia. This has to do with the Soviet experience. This was a closed country in which people could not leave or come freely, Lipman said.
Zellner agrees and says he feels the government is trying to weed out foreigners.
I was given very little notice that I needed to get this stupid stamp. I mean, I just cannot leave the country and do a stamp run. But I could lose my job if they do not give me enough time, Zellner said.
And, he could face some trouble meeting the requirement. Stamps often take up to eight weeks to get. Scotland native Euan Crawford says he was only given two weeks notice. He is vice president of an accounting firm in Moscow.
It got to the point that the office was considering buying me a degree from a university in eastern Russia, because it was going to be cheaper than getting my degree certificate to the notary and then getting it apostulated, and then getting it to Russia, Crawford said.
Human Rights Watch Moscow office director Allison Gill says the law is being enforced now because Russia does not need foreign experience like it used to.
You know, there was a time in the early 90s when a foreign worker was actually sought out; particularly in business, in consulting and finance. Then as the Russian economy got more on its feet and Russia resurged in all kinds of ways the pendulum swung the other way, Gill said.
Zellner agrees, he says he is regularly reminded his Russian boss prefers to work with her fellow countrymen.
I cannot tell you how many times I have been told that Russia is for Russians and that we are taking their jobs. They do not really want us, Zellner said.
Russian officials say they are not trying to harass foreign workers. They say the diploma certification requirement is a way for foreign workers to prove they are qualified for the job.
There is some suggestion Russian authorities may be easing up a bit on what many analysts say is their unwelcoming stance. President Dmitry Medvedev recently encouraged authorities to be more hospitable to foreign workers, and hinted at easing visa regulations within the next year.
Northrop-Grumman has given up a lengthy effort to win a huge contract to build the next generation of aerial refueling tankers for the U.S. Air Force.
The contract covers nearly 200 planes and is worth tens of billions of dollars over the next two decades.
Northrop had teamed up with Europe-based Airbus to compete for the contract against U.S.-based Boeing, which has been supplying tankers to the U.S. Air Force for decades
Northrop officials said the Pentagon unfairly favored Boeing, but U.S. officials insist the competition was fair. Boeing officials say they are offering a plane that is cheaper to operate and will survive longer in combat than its competition
This hard-fought contest has been underway for years and included fierce legal wrangling and a contracting scandal that saw a Boeing manager and a top Air Force official go to jail.
Members of Congress have also been squabbling over the contract because the Boeing version of the plane would be built in Washington State, while work on the Northrop-Airbus plane would have brought many jobs to Alabama
The contract is for new planes for the complex task of refueling military planes in mid-air. In-flight refueling greatly extends the range of fighters, bombers, and transports, giving some of them the ability to reach targets anywhere in the world.
The job is now performed by the Boeing KC-135, which is based on the 707 airliner, a plane that has been declared obsolete by airlines and retired from commercial service
In other aircraft industry news, the parent company of Airbus, EADS, says it lost about $1.4 billion in the last few months of 2009, a period that saw a profit in the prior year.
EADS is wrestling with delays and problems in the programs that produce the worlds largest commercial plane, the A380, as well as development problems with a new military transport called the A400M.
The A380 is now in commercial service, but the economic downturn has slowed orders. EADS says it has now gotten the A400M program back on track.
U.S. sales of Toyota vehicles declined nearly 9 percent in February, the first full month since the Japanese automaker suspended sales and recalled 8.5 million cars for accelerator problems. Although the concerns about the safety of Toyotas vehicles are likely to benefit Toyotas rivals, analysts say when the dust finally settles, Toyota, the worlds largest automaker is likely to remain just that
Despite one of the largest auto recalls in history, several congressional hearings, and more than 50 accidental deaths linked to sudden acceleration - Toyota still managed to beat sales expectations.
Jessica Caldwell is senior analyst at online auto advisor, Edmunds.com:
The truth of the matter is, theyre still the third largest automaker in terms of volume in the United States, said Jessica Caldwell.
Instead of the double digit declines many were expecting, Toyota sold more than 100,000 vehicles in the U.S. last month, only about nine thousand fewer than for the same period last year.
But with pent-up demand expected to boost worldwide sales in 2010, Toyotas problems have been a boon for rivals.
U.S.-based Ford saw a 43 percent surge in February.
As soon as the news about the recall hit, we saw a lot of interest in Ford, which isnt necessarily a natural competitor for Toyota, she said. I would say that the other two big winners were Honda, obviously, thats Toyotas natural competitor and also Hyundai, the Korean automaker that has done a lot in the past year and has really benefited from Toyotas misstep.
This is as bad as it gets for an auto company, said Clarence Ditlow.
Auto safety expert Clarence Ditlow says Toyotas missteps have been costly because it waited too long to act
Its not a lost cause but its an uphill battle, he said. Toyota has to bat a thousand [be perfect] for the next year.
While many questions remain about the exact cause of the acceleration problems that led to worldwide recalls, Caldwell expects Toyota sales will rebound.
She says the Japanese automaker has already launched an aggressive campaign to regain lost business.
It is also positioning itself to play a larger role in China.
I think everyone is clamoring for dominance in China so I think everyone sees that as really a crucial market, the next big market out there, said Caldwell. So of course whatever happens in China is really going to affect what these automakers do on a global scale.
Total vehicle sales in China soared 45 percent last year, overtaking the U.S. as the worlds biggest auto market.
Although Toyota hopes to expand sales in China to 800,000 vehicles this year, it continues to lag behind the competition.
General Motors, for example, sold nearly two million vehicles in China last year.
Plans for a massive anti-government demonstration later this week have business leaders worried about potential economic damage. Tourism is particularly vulnerable.
Tens of thousands of protesters supporting former Prime Minister Thaksin Shinawatra plan to rally in Bangkok starting Friday in a bid to force the current government to call new elections. The protests are expected to go for several days, and the government has warned of possible violence.
About 30 countries have issued travel advisories warning their citizens visiting or living in Thailand to avoid large gatherings and possible clashes.
Sompob Manarangsan, an economist at Bangkoks Chulalongkorn University, says the travel and banking industries are likely to be the first to suffer if violence breaks out. The first one is tourism. Both domestic tourism and also the tourism from outside the country is going to be highly affected by this kind of situation and then also the financial sector, said Sompob.
In 2009 Thailand received around 14 million tourists contributing about six percent of the economy. Arrivals fell by three percent because of the global economic downturn and Thailands political conflicts.
Anti-government protests last April turned violent, scaring off some potential visitors, and in 2008, another group of protesters overran the main international airport and shut down flights for a week. Hundreds of thousands of foreign visitors were stuck in the country and many more could not make planned trips.
John Koldowski, a spokesman for the Pacific Asia Travel Association, says travelers are already nervous about the political tension. It is going to be tense and unfortunately one of the things thats happened now is that all it takes is to leak the word that something is going to happen and we get this sort of reaction straight up … the shear thought that it might is enough to get people scrambling, he said
The travel industry had been expected to recover this year, but the new protests could change that. No question of that. Its actually been through the ringer several times over the last 12 to 18 months and everyones hoping that this is not yet another turn of the screw so to speak, [Hotel] rates are down, participation levels are down. said Koldowski.
Thailands political scene has been troubled for five years. In 2006, the military ousted Prime Minister Thaksin, who fled the country in 2008 after being convicted of corruption. Before the coup, anti-Thaksin forces, primarily the urban middle- and upper-classes held massive protests. When a pro-Thaksin government was elected in 2007, those forces paralyzed the government for months.
His supporters, mostly rural residents and the urban poor, have protested sporadically over the past year and are demanding elections
Recently, the World Bank said Thailands uncertain political climate is an economic risk and could do long-lasting damage to investment.
The World Bank Institute, the learning arm of the World Bank, has launched an online computer game called EVOKE, designed to get young people involved in finding solutions to urgent problems like hunger, poverty and education. The winners of the 10-week game could be mentored by social innovators and business leaders and win a trip to a conference in Washington D.C.
It is a computer game with worldwide implications - a crash course in changing the world and an urgent call for innovation.
Each week until the middle of May, players are presented with a different world problem that needs to be resolved. Bob Hawkins, at the World Bank Institute in Washington, produced the game
The entire game revolves around this graphic novel, this comic book which occur 10 years into the future, Hawkins explained.
The games story follows a mysterious network of Africas best problem-solvers. Participants can play alone or in groups, interacting with other players. They brainstorm solutions to problems like world hunger, poverty, health and education
The game encourages young people to think about what the challenges are and what they might do individually and collaboratively to address these challenges, he said.
The game was originally designed for university students in Africa. But in the first few days, 8,000 players from around the world -- most from the United States -- signed on.
Hawkins recognizes that of all Africans, only one percent makes it to university and that Internet access is not widespread in some regions.
We have designed the game so that it is compatible with Opera Mini which is a browser that you can use on your cell phones, he said. We mirror the content into Facebook which is a very popular application for students and young people on their mobile phone.
By the end of the game, the top players will be mentored by business leaders and also win a trip to a conference next year in Washington.
This could be the first in a series of games, ferreting out the innovators of the future.
2010 promises to be a busy political year in the United States as Democrats and Republicans battle for control of Congress in the November midterm elections. A recent U.S. Supreme Court decision could have a profound effect on how election campaigns are waged.
The high court ruling in January removed long-standing bans on corporations and labor unions from running television and radio advertisements for or against specific candidates.
Corporations are still prohibited from donating directly to political candidates. But a majority of the Supreme Courts nine justices accepted the argument made by attorney Ted Olson that severe limits on political contributions amount to an unconstitutional limit on free speech. Robust debate about candidates for elective office is the most fundamental value protected by the First Amendments guarantee of free speech, he said.
The ruling was a major victory for conservatives and free speech advocates like attorney Floyd Abrams, a veteran of legal battles over the First Amendment to the U.S. Constitution that guarantees freedom of speech. If you really mean that speech is a good thing, if you really believe that the public ought to have a chance to hear all views and make up their own mind, there is no reason to limit the class or category of people or institutions who may be heard, he said.
A narrow majority on the high court decided that corporations and labor unions have as much right to express themselves through the political campaign process as individual citizens.
But the ruling has many critics who worry that corporations, unions and other special interest groups can now spend as much as they want running ads urging a candidates election or defeat.
This is a conservative Supreme Court decision; it is a Wall Street decision; it is a corporate decision. And I think, over time, the American public is going to be just simply outraged by it, said Bob Edgar, President of Common Cause, an independent government accountability group based in Washington.
Edgar says that unleashing more corporate and labor union spending in political campaigns could intimidate members of Congress from supporting legislation that companies and unions oppose. We need to recognize that money has influenced the debate here in Washington for too long. And my guess is that what you are going to discover over the next several years is that the elected officials in the House [of Representatives] and Senate are going to end up serving special interests even more than they do today, and not the publics interest, he said.
It is concern shared by many Democrats in Congress, including Senator Dick Durbin of Illinois. It will have a big impact on campaigns. It will have a big impact on Congress because it really will increase the pressure that can be put on members of Congress for critical votes. There is pressure already, but the pressure will be increased dramatically knowing that the corporation you say no to in trying to fight off a new tax is the same corporation that can now spend a million dollars to beat you, he said.
Democrats in Congress hope to enact campaign contribution limits that will soften the impact of the Supreme Court decision.
They are pushing for disclosure requirements for corporations and unions that want to run ads, and they want to limit the impact of foreign corporations on U.S. elections. Current laws prohibit foreign companies from buying political ads. But there is concern that foreign companies could make use of their U.S. subsidiaries to take advantage of the Supreme Court ruling
Republicans in Congress generally support the easing of restrictions on what they call political speech.
Senator Bob Bennett expects the ruling will help his opponents in an upcoming Republican primary in Utah. But he says he accepts that. They have promised the works, quote/unquote - television, radio, billboards, mail, the whole thing. I really dont like it, but it is their constitutional right. And there is nothing I want to do to prevent them from doing it, even though it makes my life very unhappy, he said.
The full impact of the Supreme Court decision will likely be felt during this years congressional elections campaign. Analysts say Americans can expect see to even more political ads than usual during the final weeks leading up to Election Day in November.
British Prime Minister Gordon Brown says the countrys economic recovery remains fragile and requires a steady hand to guide it through rough times ahead
It was billed as an important economic address and British Prime Minister Gordon Brown was quick to point out that his government has been on the right track to pull the country out of recession.
But, he warned of rough times ahead.
Although the economy is growing, the recovery is still in its early stages and remains very fragile. There will be many months ahead of conflicting statistics, false hopes and mixed signals, said Brown.
The cornerstone of Mr. Browns policy has been to provide substantial economic stimulus. Recent economic figures indicate Britain is emerging from the recession. But critics say the price is a massive public debt.
Speaking before business leaders in London, Mr. Brown outlined plans to cut the deficit in half during the next four years. He promised details when the governments budget is formally released in two weeks.
But this was largely a political speech. General elections are expected in early May and, until recently, Mr. Brown and his Labor Party trailed the opposition Conservatives in opinion polls. But the gap is narrowing and Labor is back in the running.
That is what Mr. Brown is capitalizing on, says political analyst Patrick Dunleavy of the London School of Economics.
I think it [the speech] was designed to help along a movement in the opinion polls, which has been that people are warming up in their view of the government, he said.
With political jockeying in full swing, candidates know the economy weighs heavily on the minds of voters.
Labor accuses the Conservatives of favoring the wealthy and big business while the Conservatives accuse Labor of hindering investment and running up the deficit that will burden future generations.
But the worrying economic times are helping Labor, says Dunleavy.
The electorate is very cautious, the electorate is worried about the recession continuing and there is a well proven tendency ... for people to hang on to a government they know in a recession, said Dunleavy.
Mr. Brown is wasting no time painting his Conservative Party opponent David Cameron as inexperienced and glib. It is about character, said Mr. Brown.
I believe character is not about telling people what they want to hear, but about telling them what they need to know. ... For better or for worse, with me what you see is what you get, said the prime minister.
And with the campaign heating up there will likely be much more of this.
On the heels of the blockbuster film Avatar, theres a wave of enthusiasm for 3D.
This month, many television manufacturers are rolling out 3D sets. Avatar, the biggest box office success in history, has opened the door for 3-D TV.
The first 3D home entertainment system, according to Panasonic, its manufacturer, was sold to Brad and Ashley Katsuyama in New York for $3,100.
Its supposed to be the ultimate home viewing experience, designed to put you in the game or give you the thrill of 3D in a big theater.
Already, a new Alice in Wonderland in 3D is replacing Avatar at movie theaters in the U.S. And studios are planning to release new 3D movies in the coming months.
Bloombergs media specialist Mike White has analyzed the numbers for the television sets.
The forecasts Ive seen and this is from a research firm called Insight Media, forecast sales to increase from 3.3 million this year to 50 million by 2015. Thats worldwide, he said. So they see this as something people will buy.
Shiro Kitajima is president of a division of the Panasonic Corporation of America. He says the company traveled to the U.S. to find out if American consumers will dig deep into their pockets for 3D sets.
Our survey of 100,000 consumers shows that once they experience 3D they immediately see its value and they say they are willing to pay a premium to have it at home, he said.
Sports programs and movie channels are expected to drive the push for 3D television. ESPN says it will launch ESPN 3D, the first 3D television network, with 85 live sporting events the first year, starting with the 2010 World Cup in June. 20th Century Fox says it will release the 3D version of Ice Age: Dawn of the Dinosaurs on Blu-ray. And DIRECTV, which delivers television programs by satellite, announced it will have 3D channels starting in June.
Lauren Aaronson, an editor at Popular Science Magazine, says a new Blu-ray video player has paved the way for 3D TV.
People have been demonstrating these sets for a long time. But the reason it is coming out now is because of a new standard for Blu-ray players that can show movies in 3D, she stated. Before there was no way in getting that 3D movie into your house and now there is and thats why the sets are coming out now.
And then there are the glasses and keeping track of them, like a TV remote
The way 3D works is, it creates the impression that both of your eyes are seeing a separate image at once, Aaronson explained
For the moment, the 3D sets come with one pair of glasses. Extra ones cost about $150 each. In general, the reaction to 3D has been enthusiastic
Avatar created a new planetary experience. And an earthbound experience in 3D.
India and China may still be considered developing countries, but that has not stopped them from producing some of the worlds richest people.
The annual list of richest people published by the U.S. magazine Forbes says China has 54 billionaires, more than any country outside the United States
And although India has fewer billionaires than China, they are richer. Indian industrialists Mukesh Ambani and Lakshmi Mittal are among the worlds top five richest people.
Forbes named Mexican billionaire Carlos Slim the worlds richest person. The telecommunications mogul boasts a fortune worth $53.5 billion. Microsoft founder, American Bill Gates, is in second place with an estimated $53 billion.
Both India and China doubled the number of billionaires they had a year ago, driven in large part by rebounding stock markets.
Russias super rich also showed signs of recovery from the global economic slump. The number of billionaires in the country nearly doubled to 62.
What motivates us to take on lifes challenges? Is it the lure of money, fame, power? Or is it something else?
In his new book, bestselling author Daniel Pink challenges traditional concepts of what drives us to act -- and shares some surprising scientific explanations for why we do what we do.
The science behind motivation
Pink says theres a big gap between what science knows and what business leaders know about how to motivate a workforce.
Pink says most businesses operate today on the carrot-and-stick system of rewards and punishments. Employees are rewarded for good performance, and penalized for performing badly.
Author Daniel Pink believe a system of rewards and punishments works well for simple, routine jobs.According to Pink, the carrot-and-stick approach usually works well in situations where workers are performing simple, routine tasks, like checking products on an assembly line or packing boxes. But for jobs that require creativity, and deeper, more complex thinking, such as writing or designing, employers need to take a different approach.
What really motivates us?
People in more creative jobs are not as motivated by external factors like cash rewards, according to Pink. They do their job because they like it.
They like the challenge of it, they like the mastery of it, they like the engagement that it brings, they like the creativity that it requires, says Pink.
He calls these intrinsic or internal motivators. An intrinsic motivator says Pink, is doing something for the sake of the activity itself. So you play the banjo because you like to play the banjo, he says.
Click to Listen:
Extrinsic motivator on the other hand, is doing something in order to get a reward. A person might work really hard at their job if they know the person with the most sales will get a $100 gift card.
Autonomy
Pink says intrinsic motivators can be broken down into three components: The first is autonomy; that is, self-direction. The second is mastery, our desire to become better at something that matters, and finally, purpose, to do what we do in service of something larger than ourselves.
Those are really the pathway to high performance on a whole range of things, says Pink, especially on the more creative, conceptual, complex things that more and more people in this country, in the United States, in Western Europe, in Canada, in Australia, in Japan in much of the industrialized world are doing.
Pink goes on to explain the importance of autonomy in situations where people are in restricted environments:
The history of humans of all kinds of societies -- western, eastern, modern, ancient -- is that human beings typically resist control, he says.
Pink says people, like these Iranian protesters in July 2009, follow a natural instinct to resist control and direct their own lives. .So you have people in Iran who are protesting that government even though it puts them in harms way, because they dont want to be controlled. You have a young man who stands in front of a tank in Tiananmen Square. I mean that is, I think, our human nature; human nature is to direct our own lives and to resist control.
Pink believes the greatest things that have happened in human civilization have been the result of people being able to do what they wanted to do:
Most great pieces of art, most great pieces of music, many great architectural triumphs, many great technological innovations, the things that last and endure, are often the product, obviously, of human ingenuity, but also the product of the autonomy that allowed people to be ingenious, he says.
Mastery
Another element of intrinsic motivation, says Pink, is the element of mastery. That is, the desire to get better at things.
He quotes a recent Harvard business school research that shows that the biggest motivator at work - by far - is making progress
The days that people feel most engaged, most motivated, are the days when theyve made some progress in their work, he says.
Pinks believes that one of a managers biggest roles is to help people see their progress, and to recognize and celebrate it. Making progress he says, is one of those things that [make up] the virtuous circle, so that if you make progress one day, youre more likely to be motivated, which makes it more likely that youll make progress the next day.
Purpose
In addition to autonomy and mastery, says Pink, theres a third element of intrinsic motivation, the universal human desire for a sense of purpose.
We tend to work better when we know what were doing matters in some way, he says. Not necessarily matters in some super transcendent eliminate-green-house-gases from the atmosphere way, but can be simply writing a great story that helps people understand their world a little bit better; or creating a product that makes people live their lives a little easier, or creating something that brings beauty to somebodys life.
Daniel Pink believes that as we learn more about the science of human motivation, society will adapt.
I think that what the science shows here is very much in sync with our instincts, he says.
Humans are complex. Theyre different. We have a mix of drives. We do things for silly irrational reasons and we do things because of getting the reward or the punishment, but we also do things for big, transcendent reasons, he says. Thats part of what it is to be human - and now you have a body of science that shows what I think we know in our hearts - and I think thats a pretty good combination.
Pink says todays business managers, facing the increasingly competitive pressures of a global marketplace, may be more inclined than ever before to question traditional attitudes about what motivates, and ultimately fulfills us, as humans.
President Barack Obama has announced a new strategy aimed at boosting U.S. exports, saying his administration will work to level the playing field around the world for U.S. businesses and workers.
Linking Americas economic recovery with its ability to expand exports, the president used a speech to the U.S. Export-Import Bank in Washington to outline a major new initiative to promote American products overseas.
Recalling his pledge in his State of the Union Address to double American exports over the next five years, President Obama called it absolutely necessary to get beyond old debates about the right approach to globalization and trade.
The president said it is more important now than ever for the United States to be able to compete, or it will be left behind by other nations.
If we stand on the sidelines while they go after those customers we will lose out on the chance to create the good jobs our workers need right here at home. That is why standing on the sidelines is not what we intend to do, said the president.
The National Export Initiative seeks to combine U.S. government resources to focus on export promotion and expansion, including a new Export Promotion Cabinet that will bring together the Secretaries of State, Treasury, Agriculture, and Labor, along with the U.S. Trade Representative.
The president named two prominent business leaders to head an advisory committee on international trade called the Presidents Export Council.
President Obama also used his speech to press China on its currency policies, saying action by Beijing to adjust the value of the yuan would contribute to a rebalancing of economies, something the G-20 nations agreed was a necessary response to the global financial crisis:
Everybodys got to re-balance. Countries with external deficits need to save and export more, he said. Countries with external surpluses need to boost consumption and domestic demand. And as Ive said before, China moving to a more market-oriented exchange rate would make an essential contribution to that global rebalancing effort, he added.
The remarks about China come as the Obama administration faces a decision on whether to label China a currency manipulator in a Treasury Department report due out next month, a move that would increase tensions between Washington and Beijing.
Though President Obama pledged to strengthen relations with key partners South Korea, Panama and Colombia he offered no specifics on how the administration will move ahead with free trade agreements with these countries that the U.S. Congress has yet to approve.
He said the U.S. seeks an ambitious and balanced agreement under the Doha round of trade talks, in his words, not just for the sake of any agreement, but for one that enhances market access for American agriculture, goods, and services.
Critics are calling on the Chinese government to overhaul the hukou household registration system. They say it deprives millions of rural migrant workers of vital public services in cities, creating what has been described as Chinas apartheid.
There has been much discussion at the National Peoples Congress this month about changing Chinas household registration system, called the hukou.
The hukou registers Chinese in their place of birth. It essentially binds them to their hometown and means millions of rural migrant workers can not access public services in the cities, such as affordable education for their families.
This has created a wealth gap and a two-tier society. It is also the source of rising resentment, which worries the government.
At the opening of the current National Peoples Congress, Premier Wen Jiabao said the government will reform the system.
Mr. Wen says the government will relax requirements in a step-by-step manner, to gradually ensure that migrant workers receive the same treatment as urban residents.
In Beijing, migrant Xiao Lu is one of the millions listening to the hukou discussion intently.
She and her husband cannot afford schooling and housing for their six-year-old twin boys, who must live with their grandparents in their native, faraway Anhui province
They, like most of the 150 million migrant workers who have left for the cities in search of a better future, see their family only once a year, during Chinese New Year.
Xiao Lu says she can understand the need for the system but thinks if rural and urban hukous were equal she could think about raising her family in the city she now calls home.
She also thinks the hukou causes the gap between rich and poor and believes this is Chinas largest issue
Friction between urban and rural citizens is seen as a threat to social stability.
A growing number of critics have called on the government to reform the system, which has long been viewed as an outdated and economically damaging.
The day before the NPC opened last week, state-controlled newspapers united in an unprecedented editorial calling for reforms to the hukou system, which the Communist government introduced in the 1950s.
Many of the papers have since been punished as hukou reform is a sensitive issue.
Internal critics are not alone, however.
International economists also say the system must be abolished if Chinas modernization is to continue.
In a recent report, the Organization for Economic Cooperation and Development said that unless far-reaching hukou reform is implemented, Chinas stability will be threatened and the economy stunted.
The chief author of the OECD report, Richard Herd, said the system should be scrapped entirely as soon as possible - not by piecemeal reform.
China clearly has to increase the level of urbanization from the current 45 percent of the population to 65 percent over the next 10-15 years to maintain economic growth…. We believe the only way that can be done is for the hukou to be abolished completely. If there is no change to the registration system, a two-tier society will (continue to) be built, he said.
However, some officials and urban residents fear if the system is scrapped, cities like Beijing and Shanghai will be swamped by poor migrants living in shanty towns.
Critics of the system say those fears are overblown.
Geoffery Crothall is with the China Labor Bulletin, an organization in Hong Kong that seeks to defend workers rights in China. He says rural communities are already like shanty towns, which is why migrants seek out the cities.
The main resistance to reform, he says, comes from the authorities desire to keep tabs on people.
What they (the authorities) have to propose is another system of migration management. Other countries can do it without segregating half of the population so China should be able to do it as well, he said.
He says migrant workers will only come into the city if there is work available, not just for free education and other public services.
Significant hukou reforms would represent one of the greatest upheavals in Chinas modernization drive.
It could also be a boon for international business and trade as tens of millions of workers, like Xiao Lu, prosper and become consumers.
The International Air Transport Association says the airline industry is on the road to recovery. Because of a strong year-end showing, IATA now forecasts smaller losses in 2010 of $2.8 billion, compared to its previous forecast of $5.6 billion. IATA has just issued its updated industry financial forecast in Geneva.
The International Air Transport Association, which represents 230 airlines around the world, says the industry is beginning to recover from the worst year in modern aviation history.
It says passengers are returning and traffic growth is expected to be much stronger in 2010. This will translate into a 5.6 percent rise in air travel volumes and a 12 percent rise in air freight.
While this is good news, IATA Director-General Giovanni Bisignani says it is too soon to celebrate. Despite recent gains, he notes demand is still 2.3 percent below pre-crisis level
So, we are moving in the right direction, Bisignani said. The recovery is strong, but we are still in pre-crisis level. So, the impact of this crisis will be two or three years of losses.
IATA says the growth in airline traffic is tied to an improvement in the global economy. Bisignani calls this a two-edged sword. When the economy starts to grow, he says fuel prices go up.
Unfortunately, there is a risk that the fuel goes up faster than the economy and so this creates a problem, Bisignani said. We cannot, in this situation of the economy, still going out from the clouds. It will be difficult to apply fuel surcharge in this weak environment.
IATA expects fuel prices to rise to $79 a barrel, accounting for 26 percent of operating costs.
The report says revenues will rise to $522 billion in 2010. This is $44 billion more than previously forecast. But, it cautions the industry is moving at two different speeds, with some regions doing better than others.
Bisignani says airlines that are turning a profit are those in Asia and Latin America, where economic growth has revived the most. On the other hand, he says carriers in North America and Europe will record the greatest losses
One point eight billion for North America and $2.2 billion losses for Europe, Bisignani said. What are the issues here? One is the GDP. It is moving slower than in other parts of the world. The other issue is the jobless recoveries and continuing economic concerns. All of those actions and those situations will limit traffic growth.
IATA says Middle East carriers are expected to experience demand growth of more than 15 percent this year, but will see losses of $400 million because of low yields.
It says African carriers are likely to lose $100 million in 2010. This is half of the losses experienced in 2009. And, although demand is expected to improve by 7.4 percent, it says this will not be sufficient for profitability. This is because African airlines face strong competition for market share from carriers outside the region.