WEBVTT

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[sil.]

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[sil.]

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[sil.]

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[sil.]

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[sil.]

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[sil.]

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Yeah. Sure.

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Hi, my name is Mark Mobius.

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I am president of Templeton
Emerging Markets.

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We manage the largest Emerging Markets
funds in the world. Uh… We now,

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managing over $50, billion
in emerging market funds.

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Right. May have people have
called me an investment guru,

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the father emerging markets, the
\"Bald Eagle,\" I combine these names,

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they define uh… but the reality is that uh…
we\'re just investing. We\'re trying our best

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to do well for our investors
to increase the assets

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we have under management and investments
which will benefit our investors.

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I see, yeah. Uh… Well, uh… you see,
what we\'re gonna probably tell them is

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that there\'s nothing wrong with
having all these restrictions,

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uh… for another manager, in other words
uh… there are some managers, who uh…

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indexing the portfolio and uh…

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that those managers would be
best qualified to use for such,

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you know, such, portfolio but
if they put restrictions like

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they\'re not using us in the right way, if
you know what I mean. You know what I mean?

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[sil.]

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We are here in Singapore.

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We pay a very low tax.

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Why? Because the Singapore government
wants to attract people like us,

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money managers, investment managers to the city.
Because they want to become a financial center,

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global financial center, so we
are able to pay very little tax

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and in some cases no tax at all.
And of course,

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our employees pay taxes and
when we\'re (inaudible)

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uh… we are hiring people to come in.

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So, indirectly the government benefits from people
who are working here and paying taxes on their

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individual incomes. Globalization
has a very bad connotation,

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but actually globalization
has proven to be very good,

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for all countries around the world,
because, it lowers the total cost of goods

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and services. If you have a
competitive market on a global basis,

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it lowest cost for everyone and
keeps inflation under control.

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So we think that this globalization
trend is generally very, very good,

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and of course, in our field, we are
now investing in emerging markets

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and we are helping the pensions in the
west, in the developed countries,

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because we\'re earning money in the
emerging markets and moving it back

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to the west, it\'s quite
possible that your pension fund

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is invested in one of our
funds because pension manages

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also want to have a diversity of
opportunities around the world.

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[sil.]

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[sil.]

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[non-English narration]

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[sil.]

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[sil.]

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[sil.]

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[sil.]

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My name is Sujatha Raaju. I have completed
commerce studies from the Madras University.

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We are here in Chennai, one of
the biggest cities in India.

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It was formally known as Madras.
It is populated

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with 8 million people. One third of
the population lead a life like this.

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That is, they live on the
banks of the rivers.

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Some of them live even a much poorer
life, living on the pavements.

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[sil.]

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[sil.]

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[sil.]

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[sil.]

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Fortunately not, up to now.

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I try to take into account our

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employees\' social situation.

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[sil.]

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Just a think, that\'s (inaudible)

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.

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This is the best. This is the best, because we do not have move
the factory. Exactly! May have all the infrastructure, we can…

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All infrastructure including canteen…

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Not cheap anymore. No, it\'s not cheap anymore. No, it\'s not cheap…
We… we should buy it. Thinking, they are not given… We should buy,

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we should buy as quickly
because it will be (inaudible)

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more expensive later on.

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It\'s true. The point is that since we he knows that we\'re
showing interest, by the time immediately… (inaudible)

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.

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Okay, by then, you, where you can tell him, we have the option to go
elsewhere. Okay. We\'ll call them and… Then… I mean, it\'s all bargaining.

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You have the option to go elsewhere.

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[sil.]

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Indians pay their taxes. Taxes
are collected by the government

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in form of sales tax, revenue
tax, water tax, electricity tax,

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property tax and so many other taxes,
that are collected by the government.

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But this revenue is given to foreign
investors in the form of grants.

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And the government lacks the money to take
care of the social welfare of the people.

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[sil.]

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I don\'t know what these
guys are telling them.

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Uh… I think maybe as who would
be the person to talk them?

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No, I mean, uh…

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on their side. I don\'t think an investor
should be responsible for ethics

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or the pollution or whatever of the company

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which is invested. And what? That
not his job, his job to invest

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and make money for his clients. Yeah.

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Shall we give him a ring, you think? When we talk about
emerging markets, we\'re really talking about growth.

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Growth is what we\'re all about.
That\'s the reason why we

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got into emerging markets in the first place. And
it\'s panned out just like we expected 20 years ago.

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When the eye of sea saw that the
use of the word emerging markets.

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It was called under developed countries,

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the poor, the world, the south,
et cetera, et cetera, et cetera.

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Then someone, he had the bright idea of going
into an emerging markets started really nice,

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uh… and, you know fast growing and, of
course, that\'s exactly what happens.

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Flourishing economic growth has nothing
to do with the people or the society.

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Economic growth is only for the politician,

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for the investor and for the
middleman who plays between them.

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10 years ago, in a middle class
family, if the income of the family

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was around 10000, they were able to
save at least 2000 to 3000 rupees.

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But those days are gone. Today,
even if they earn 20000,

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they are not able to save a single penny.
There is a lot of foreign culture

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inside India and people are
getting accustomed to it,

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following all the ways to imitate the Western
culture. But poverty has not been eradicated.

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There are still poor people.
This can be eradicated only,

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if there is a good
political system in India.

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[sil.]

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[sil.]

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There was a famous saying that

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the best time to eye when
this blood on streets

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and I add to the saying is
that even if it\'s your own

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because uh… usually when
there\'s born revolution

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and political problems, economic
problem, prices of stocks go down

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and those people that born at the
bottom, uh… made a lot of money.

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[sil.]

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[sil.]

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[non-English narration]

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[sil.]

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[sil.]

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The city of London

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is the financial quarter of London. It
holds the largest accumulation of banks

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anywhere in the world. And since the 1980s,

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it has purposely gone out of its way
to attract banks from all continents.

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In the 1970s, the British government facing

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a crisis of its manufacturing
industry that set out to make

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the city of London the preeminent
financial center. And it did this

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by drastically deregulating

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all the controls over uh… the banks

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and the major financial houses
that operate here. It allowed

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the banks to lend credit in
a very relaxed sort of way.

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It deregulated financial
services generally.

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More importantly, it allowed the banks

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to move many of their operations off
shore to financial centers like Jersey,

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Guernsey, The Isle of Man, and even
further of the field in the Caribbean,

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Cayman and the British Virgin Islands.

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The purpose of this was to allow
British banks to attract capital

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from all over the world into the
city, and keep the city of London

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access to cheap capital.

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[sil.]

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The Washington Consensus
goes back to the 1970s,

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when the International Monetary Fund and
the World Bank set out on this project

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with four key strands of thinking.

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Strand number one was to deregulate
financial markets around the world,

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in other words to allow capital to move
freely from one country to another.

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The second part was to liberalize
trade flows. In other words

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to break down the trade barriers that
have been put in place very carefully

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over many decades by developing countries
to protect their own industries.

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The third strand was to break,

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completely break the hold of the states to
reduce the ability of the states to intervene,

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in other words, bring down tax revenues

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so the states could not intervene
to protect their citizens.

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And the fourth strand was to require
states to privatize their industries.

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And by a large that was done in such a way as to
ensure that as the industries were privatized,

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it was sold at below their real
value to external investors.

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These are the four strands
of political pressure

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coming from the International Monetary Fund and the
World Bank which people call \"Neo liberalism.\"

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[sil.]

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[sil.]

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[sil.]

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[sil.]

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[sil.]

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[]

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[sil.]

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Try to understand us.

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We beg you. You see how tiring the work is.

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If we managed to pay back our
loans, we would be glad.

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[sil.]

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[sil.]

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[sil.]

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[sil.]

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[sil.]

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[music]

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[music]

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[sil.]

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[sil.]

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[sil.]

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[sil.]

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[sil.]

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[sil.]

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[sil.]

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[sil.]

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The picture that people normally

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pank(ph) of a homeless person being
an old, drunk alcoholic of something,

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is something not true. We have people come
into the shelter from domestic violence.

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Houses are burn down, then
poor of a catastrophe

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such as Katrina and then become homeless.
We have people who have PhDs,

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Master\'s degrees and everything else.
People who were lawyers,

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formally doctors that sometime when went wrong in
their lives and they wind up homeless. But overall,

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most of our clients come
from the D.C. area.

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3 south attention! Ladies on the floor.
There are ladies on the floor.

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Gentlemen, dress accordingly.
There are ladies on the floor.

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Ladies on the floor, ladies on the floor.
Please dress appropriately.

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Ladies on the floor, gentlemen. Please close the
bathroom doors and dress appropriately, please.

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[sil.]

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Many of them man, older man many of them have
retired, have some type of benefits come in,

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but they don\'t make enough money to live
anywhere. Because the price of living

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in the district is sky rocket it so high, some
people simply cannot afford the apartments

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and houses that they have out here.

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[sil.]

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This organization has been running off

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to donations from the average citizen.
I see the checks

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they come and we didn\'t get
one from the World Bank.

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[sil.]

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You can see the (inaudible)

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side, (inaudible)

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White House with

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all the barricades and
security they have there.

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And, about uh… block up the street,

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we have the World Bank coming up.
And this is where

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I guess they deal with all foreign
countries and money exchange there,

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I…(inaudible)

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. But I really don\'t have the slightest
idea what actually goes on in there.

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And this is the World Bank.

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[sil.]

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I wanna (inaudible)

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, I don\'t wanna (inaudible)

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, I just wanna little…

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[sil.]

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I think is important for all of us to realize that
the World Bank is really a United States Bank.

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And many countries contribute to
the World Bank. Germany, Austria,

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many European countries contribute to the
bank. And there are stockholders in the bank,

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they\'re theoretically owners in the World Bank. The fact
of the matter is the United States controls the bank.

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[sil.]

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I\'m John Perkins, I am a U.S. citizen,

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born in the United States raised in the
United States, I\'m a former economic hit man.

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We work very much like some
of the hit man for the mafia,

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because we\'re looking for a favor later. And
then, Mafia people have done this and gangsters

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have done this for, for ages. We just do
it on a very large level with governments,

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with countries, huge level. And
we\'re much more professional.

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We do this in many ways but
perhaps the most common

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is that economic hit man will identify
a country that has resources,

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our corporations covered like oil
and then we arrange a huge loan

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to that country from the World Bank
or one of its sister organizations.

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But the money never actually goes to the
country, instead it goes to our own corporations

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to build big infrastructure
projects in that country.

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Things that benefit a few very
rich people in that country

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as well as our own co operations, but
don\'t help the majority of the people

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who are too poor, but these people,

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the poor people are left hold a huge debt, and
it\'s so huge that they can\'t possibly repay it.

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But in the process of trying to repay it, they
create a situation where they can\'t afford

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to have good health programs
or educational programs.

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So we cannot make hit man go back in and
we say, \"Listen, give us a lot of money,

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you can\'t pay your debts.\"
So give us a pound of flesh,

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sell your oil real cheap to our oil companies or vote
with us on the next critically United Nations vote,

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send troops in support of our system
place in the world like Iraq,

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and in that way we\'ve really
managed to create this empire.

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Because the fact of the
matter is we write the laws,

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we control the World Bank, we
control the I.M.F., we even control

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the United Nations to a large degree and so we write the
law, so the things economic hit men are not illegal,

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putting countries in huge debt and
then demanding favors in return,

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that\'s not illegal, it should be it isn\'t.

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[sil.]

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For one of the characteristics of an empire
is that it\'s in force as its currency

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on the rest of the world. And we\'ve
really done that with the dollar.

01:02:40.000 --> 01:02:44.999
So in 1971, uh… the e United States

01:02:45.000 --> 01:02:49.999
had a tremendous amount of debt and a lot
of this was a result of the Vietnam War.

01:02:50.000 --> 01:02:54.999
And we were on the gold standard and so, some of these
other countries decided to call in their debts in gold

01:02:55.000 --> 01:02:59.999
because they didn\'t trust the dollar.
Nixon refused to pay in gold,

01:03:00.000 --> 01:03:04.999
in fact, took us off the gold standard because he knew
he couldn\'t pay in gold, we didn\'t have the value.

01:03:05.000 --> 01:03:09.999
And so, very quickly after that
we went on the oil standard

01:03:10.000 --> 01:03:14.999
and I was a large part of that deal
that we struck with Saudi Arabia,

01:03:15.000 --> 01:03:19.999
insisting that OPEC only sell oil in
dollars. And so, suddenly the dollar moves

01:03:20.000 --> 01:03:24.999
from the gold standard to the oil standard which
in many respects is a much more important standard

01:03:25.000 --> 01:03:29.999
because oil is intrinsically more valuable than
gold in this day and age. And so, suddenly

01:03:30.000 --> 01:03:34.999
uh… the world can only buy oil for dollars and
the dollars a very, very important currency.

01:03:35.000 --> 01:03:39.999
Today, the United States once
again is a bankrupt uh… country.

01:03:40.000 --> 01:03:44.999
We have huge amounts of debt and more debt than any
countries ever had in the history of the world before

01:03:45.000 --> 01:03:49.999
and, uh… if some other country
to call that dead end

01:03:50.000 --> 01:03:54.999
in a currency other than the dollar,
we\'d be in very, very serious trouble.

01:03:55.000 --> 01:03:59.999
Right now, they\'re only calling in and
dollars because oil is the big commodity

01:04:00.000 --> 01:04:04.999
and you can only buy oil in
dollars but Saddam Hussein

01:04:05.000 --> 01:04:09.999
threatened to, to sell oil for something other
than dollars, just before he was taken down.

01:04:10.000 --> 01:04:18.000
[sil.]

01:04:40.000 --> 01:04:44.999
Sometimes we can only hit man fail

01:04:45.000 --> 01:04:49.999
to corrupt leaders of other countries
as I found with Omar Torrijos in Panama

01:04:50.000 --> 01:04:54.999
and Jaime Roldós(ph) in Ecuador. It
doesn\'t often happen but when it does

01:04:55.000 --> 01:04:59.999
then the jackals are sent in.
And these are people who

01:05:00.000 --> 01:05:04.999
overthrow governments or assassinate their leaders.
So when I failed with Jaime Roldós in Ecuador

01:05:05.000 --> 01:05:09.999
and Omar Torrijos in Panama, the
jackals went in and assassinated them.

01:05:10.000 --> 01:05:14.999
On the few occasions when neither the
economic hit man nor the jackals

01:05:15.000 --> 01:05:19.999
are successful then and only
then do we send in the military

01:05:20.000 --> 01:05:24.999
and this is because it is exactly
what happened in, in Iraq

01:05:25.000 --> 01:05:29.999
and economic hit men could not corrupt said couldn\'t corrupt Saddam
Hussein. could not bring him around, the jackals couldn\'t take him out

01:05:30.000 --> 01:05:34.999
and so the military was sent in. The first
time we sent the military and in 1991,

01:05:35.000 --> 01:05:39.999
uh… we destroyed his military and figured
that he had been sufficiently chastised

01:05:40.000 --> 01:05:44.999
that now he would come around, and so
during the 90s the economic hit men

01:05:45.000 --> 01:05:49.999
went back in to try to bring Saddam
Hussein around, but he wouldn\'t give in.

01:05:50.000 --> 01:05:54.999
If he had, he\'d still be running the country and we\'d be
selling him jets and tanks and everything else he wanted.

01:05:55.000 --> 01:05:59.999
But he didn\'t give in, the jackals couldn\'t
assassinate him. His security forces were very good

01:06:00.000 --> 01:06:04.999
and he had a lot of look-alike double, so his own security
men didn\'t know whether they were guarding him or a double.

01:06:05.000 --> 01:06:09.999
So neither the economic hit
man nor the jackal succeeded

01:06:10.000 --> 01:06:14.999
the second time with Saddam Hussein and at
that point, we sent in the military again

01:06:15.000 --> 01:06:19.999
and this time we took him out
and the rest is history.

01:06:20.000 --> 01:06:28.000
[sil.]

01:06:40.000 --> 01:06:48.000
[sil.]

01:08:30.000 --> 01:08:35.000
[sil.]

01:10:30.000 --> 01:10:35.000
[sil.]

01:11:05.000 --> 01:11:13.000
[sil.]

01:11:50.000 --> 01:11:58.000
[sil.]

01:13:10.000 --> 01:13:18.000
[sil.]

01:13:45.000 --> 01:13:53.000
[sil.]

01:15:20.000 --> 01:15:24.999
[sil.]

01:15:25.000 --> 01:15:29.999
Imagine a city, a city
design from the beginning.

01:15:30.000 --> 01:15:31.000
A city design for (inaudible)

01:15:31.001 --> 01:15:34.999
, city design not to be changing
the next 50 years. Imagine a place

01:15:35.000 --> 01:15:39.999
where one 124,000 apartments
could live with one million

01:15:40.000 --> 01:15:41.999
(inaudible)

01:15:42.000 --> 01:15:44.999
villas not together but very close.
Imagine an 85000 square meters lake

01:15:45.000 --> 01:15:49.999
including 75,000 square meters of
commercial design on market style,

01:15:50.000 --> 01:15:54.999
big enough to get lost during
minimum two-three days,

01:15:55.000 --> 01:15:59.999
but not a classic city.
Uh… The city we grow

01:16:00.000 --> 01:16:04.999
not around the church as
normally they used to do.

01:16:05.000 --> 01:16:09.999
Uh… They will not grow in several
centuries. They will grow in few years.

01:16:10.000 --> 01:16:14.999
They will grow from uh… basic and
very high design, previously uh…

01:16:15.000 --> 01:16:19.999
previously thought that these optimized
from the begging to be the biggest

01:16:20.000 --> 01:16:24.999
and the more luxuriate resort in Europe.

01:16:25.000 --> 01:16:33.000
[music]

01:17:55.000 --> 01:18:03.000
[music]

01:18:45.000 --> 01:18:53.000
[music]

01:20:10.000 --> 01:20:18.000
[music]

01:21:10.000 --> 01:21:18.000
[sil.]

01:21:35.000 --> 01:21:39.999
We could raise prices 35% in a year.

01:21:40.000 --> 01:21:44.999
And is very easy uh… when you tell you
why because we could, because we can.

01:21:45.000 --> 01:21:53.000
[sil.]

01:22:15.000 --> 01:22:23.000
[sil.]

01:22:45.000 --> 01:22:50.000
[sil.]

01:23:05.000 --> 01:23:10.000
[sil.]

01:23:30.000 --> 01:23:35.000
[sil.]

01:24:25.000 --> 01:24:33.000
[non-English narration]

01:27:00.000 --> 01:27:08.000
[sil.]

01:28:20.000 --> 01:28:28.000
[music]

01:29:55.000 --> 01:30:03.000
[music]

01:30:20.000 --> 01:30:21.000
(inaudible)

01:30:21.001 --> 01:30:24.999
Island to Jersey Airport.
Please remain seated,

01:30:25.000 --> 01:30:29.999
put your seat belts fastened till the aircraft comes to
a complete stop and the seatbelts sign is switched off.

01:30:30.000 --> 01:30:31.999
Please be careful while leaving
your seats (inaudible)

01:30:32.000 --> 01:30:34.999
.

01:30:35.000 --> 01:30:39.999
This is St. Helier. St. Helier
is the capital of Jersey

01:30:40.000 --> 01:30:44.999
and the largest town on the island.

01:30:45.000 --> 01:30:49.999
Although, the island itself very small.
On the right here,

01:30:50.000 --> 01:30:54.999
we see the buildings of the
royal court of Jersey.

01:30:55.000 --> 01:30:59.999
The buildings act both as the seat of
government and as the seat of justice

01:31:00.000 --> 01:31:04.999
for major criminal cases.

01:31:05.000 --> 01:31:09.999
We\'re approaching now some
of the new Headquarters

01:31:10.000 --> 01:31:14.999
of legal firms. Although, Jersey,

01:31:15.000 --> 01:31:19.999
may be regarded as the financial race,

01:31:20.000 --> 01:31:21.999
it\'s (inaudible)

01:31:22.000 --> 01:31:24.999
that financial support,
you need legal advice,

01:31:25.000 --> 01:31:29.999
many of the warehouses have now been
converted into modern banks and offices.

01:31:30.000 --> 01:31:34.999
So that we will have overall,
a complete financial center

01:31:35.000 --> 01:31:39.999
in this new St. Helier. These
all we have over there,

01:31:40.000 --> 01:31:44.999
the headquarters of Credit Suisse as well as
European banks, we have some American banks

01:31:45.000 --> 01:31:49.999
such as Citi Group, who also have a presence
in Jersey. So that is Scottish Bank

01:31:50.000 --> 01:31:54.999
but alongside there we have one
further away the Bank of India.

01:31:55.000 --> 01:31:59.999
So, it show, we not only European and American banks,
but we are looking elsewhere around the world as well.

01:32:00.000 --> 01:32:04.999
This is the offices of Deutsche Bank,
one of the many European banks

01:32:05.000 --> 01:32:09.999
that we have in the island. Deutsche bank like
others have come to the Island because they are

01:32:10.000 --> 01:32:11.000
impressed by the (inaudible)

01:32:11.001 --> 01:32:14.999
we can offer.

01:32:15.000 --> 01:32:19.999
I\'m Terry Le Sueur, the Deputy Chief
Minister, the Island of Jersey,

01:32:20.000 --> 01:32:24.999
and also the Minister for treasury
and resources. For many years,

01:32:25.000 --> 01:32:26.999
Jersey has been known for its
Jersey cow, which has (inaudible)

01:32:27.000 --> 01:32:29.999
, we were very much

01:32:30.000 --> 01:32:34.999
a rural community living on
agriculture and tourism.

01:32:35.000 --> 01:32:39.999
But in the last 50 years, there\'s been a
growth in the financial services industry

01:32:40.000 --> 01:32:44.999
and this came about when someone saw the
opportunity for lending money in Jersey,

01:32:45.000 --> 01:32:49.999
uh… in a way which could be beneficial

01:32:50.000 --> 01:32:54.999
to the rest of the world.

01:32:55.000 --> 01:33:03.000
[sil.]

01:33:05.000 --> 01:33:06.000
(inaudible)

01:33:06.001 --> 01:33:09.999
you can see the Tax Haven
Island of Guernsey,

01:33:10.000 --> 01:33:14.999
on the horizon there. The next island
along is the island of Brecqhou, Herm,

01:33:15.000 --> 01:33:19.999
and then the Island of Sark, which
is also a Tax Haven. And then,

01:33:20.000 --> 01:33:24.999
looking to the east, we have the Island of
Jersey. Which is the island which I came from,

01:33:25.000 --> 01:33:29.999
where I grew up, and when I returned in
1986 to work in the financial center,

01:33:30.000 --> 01:33:34.999
and later to become an economic
advisor to the government here.

01:33:35.000 --> 01:33:39.999
[sil.]

01:33:40.000 --> 01:33:44.999
Jersey currently according
to American estimates

01:33:45.000 --> 01:33:49.999
has something of the order of
$500 billion of personal wealth.

01:33:50.000 --> 01:33:54.999
Now held in banks on the island, uh…

01:33:55.000 --> 01:33:59.999
coming from outside the island and
existing here on deposit accounts

01:34:00.000 --> 01:34:04.999
which are no more than electronic accounts
because the money doesn\'t actually come

01:34:05.000 --> 01:34:09.999
to Jersey at all. It comes through Jersey and then
on into the major financial centers of the world,

01:34:10.000 --> 01:34:14.999
particularly going to what was London.

01:34:15.000 --> 01:34:19.999
What\'s Jersey\'s role in this? Jersey acts

01:34:20.000 --> 01:34:24.999
as what we call a secrecy jurisdiction,
what it does is it provides

01:34:25.000 --> 01:34:29.999
through offshore trusts
and offshore companies

01:34:30.000 --> 01:34:34.999
the ability for people from outside the islands
particularly from Europe but also Africa,

01:34:35.000 --> 01:34:39.999
Latin America and Asia to move their
assets into the world\'s financial markets

01:34:40.000 --> 01:34:44.999
and to hide them, that
is hide the ownership.

01:34:45.000 --> 01:34:49.999
And the ownership is hidden
through the offshore trusts

01:34:50.000 --> 01:34:54.999
and this is one of things the jersey
specializes in trusts are legal entities,

01:34:55.000 --> 01:34:59.999
established in the jurisdiction
like Jersey where the person

01:35:00.000 --> 01:35:04.999
who creates the trust and who
benefits from this trust,

01:35:05.000 --> 01:35:09.999
does not need to disclose their identity at all. In fact,
the only information that is disclosed about trusts

01:35:10.000 --> 01:35:14.999
in most cases is the name of the
trust, and sometimes the lawyers

01:35:15.000 --> 01:35:19.999
who create the trusts. But the real people
behind the trusts are not disclosed

01:35:20.000 --> 01:35:24.999
to anybody at all. And this makes
Jersey her perfect place for

01:35:25.000 --> 01:35:29.999
people who want to hide money.

01:35:30.000 --> 01:35:34.999
[sil.]

01:35:35.000 --> 01:35:39.999
A typical structure for tax
avoidance or tax evasion

01:35:40.000 --> 01:35:44.999
would involve setting up a trust here in Jersey.
The trust would own a company in Luxembourg.

01:35:45.000 --> 01:35:49.999
The company in Luxembourg
would operate a bank account

01:35:50.000 --> 01:35:54.999
which might be in Cayman or it might be in Switzerland
or it might be in London. The point is you have three

01:35:55.000 --> 01:35:59.999
different jurisdictions. The idea is

01:36:00.000 --> 01:36:04.999
to mix and match different jurisdictions
in order to maximize the secrecy

01:36:05.000 --> 01:36:09.999
in order to prevent investigation.

01:36:10.000 --> 01:36:14.999
Is quite simply impossible to discover

01:36:15.000 --> 01:36:19.999
who is behind this trust.

01:36:20.000 --> 01:36:24.999
Who really owns this company? Who
really operates this bank account?

01:36:25.000 --> 01:36:29.999
Now this raises very profound issues

01:36:30.000 --> 01:36:34.999
for contemporary capitalism but isn\'t
the vast majority of global trade

01:36:35.000 --> 01:36:39.999
now goes through tax havens and
the vast majority of that trade

01:36:40.000 --> 01:36:44.999
is passing through these tax
havens not in a physical form,

01:36:45.000 --> 01:36:49.999
but on paper, only on paper.

01:36:50.000 --> 01:36:54.999
And the purpose of this trade going
through tax havens like Jersey

01:36:55.000 --> 01:36:59.999
is to shift capital out of the country
where wealth is being produced

01:37:00.000 --> 01:37:04.999
into the tax havens.

01:37:05.000 --> 01:37:09.999
Jersey does not tax companies uh…
which have no presence in Jersey

01:37:10.000 --> 01:37:14.999
and all we do is provide services
to these companies as indeed to

01:37:15.000 --> 01:37:19.999
many other financial jurisdictions but
Jersey has perhaps more expertise

01:37:20.000 --> 01:37:24.999
and better regulation than most and is built up a
very good reputation for international services,

01:37:25.000 --> 01:37:29.999
and we have a situation now, where
Jersey can hold its head up

01:37:30.000 --> 01:37:34.999
and compete with international center like
Switzerland and Luxembourg and say that we are

01:37:35.000 --> 01:37:39.999
as good or better than they are and we can
provide anything that these people can

01:37:40.000 --> 01:37:44.999
get as well or better.

01:37:45.000 --> 01:37:53.000
[sil.]

01:39:00.000 --> 01:39:04.999
[sil.]

01:39:05.000 --> 01:39:09.999
For the majority of developing countries,
these tax havens are in fact, a catastrophe.

01:39:10.000 --> 01:39:14.999
The reason they\'re catastrophe is because
they enable massive capital flight

01:39:15.000 --> 01:39:19.999
out of developing countries to tax havens. And
in many cases that capital never returns.

01:39:20.000 --> 01:39:24.999
I just to make is that for every dollar

01:39:25.000 --> 01:39:29.999
of aid that flows into Africa at least $10

01:39:30.000 --> 01:39:34.999
flows out under the table.

01:39:35.000 --> 01:39:39.999
One of the things that I found most peculiar
about working in the financial services industry

01:39:40.000 --> 01:39:44.999
was the culture of the workers themselves.

01:39:45.000 --> 01:39:49.999
Many of them are very intelligent people,
indeed, lawyers, accountants, bankers,

01:39:50.000 --> 01:39:54.999
highly trained through universities,
very privileged people. By a large,

01:39:55.000 --> 01:39:59.999
they hate the jobs, the job
are boring, repetitive,

01:40:00.000 --> 01:40:04.999
stupid, but the money is fantastic.
They know

01:40:05.000 --> 01:40:09.999
that the work they do is without worse.

01:40:10.000 --> 01:40:14.999
They don\'t create value in any
economic sense of that term.

01:40:15.000 --> 01:40:19.999
What they do is allow capital

01:40:20.000 --> 01:40:24.999
which is being created in one country to
be accumulated in a different country,

01:40:25.000 --> 01:40:29.999
where it will become concentrated
in the hands of a very small elite

01:40:30.000 --> 01:40:34.999
of the world\'s population. Maybe
no larger than 3% possibly,

01:40:35.000 --> 01:40:39.999
even smaller.

01:40:40.000 --> 01:40:44.999
[sil.]

01:40:45.000 --> 01:40:49.999
It\'s estimated that currently a
$11.5 trillion of private wealth

01:40:50.000 --> 01:40:54.999
is held off shore, managed from offshore

01:40:55.000 --> 01:40:59.999
and avoids tax from offshore. What
does $11.5 trillion look like?

01:41:00.000 --> 01:41:04.999
But to give you some idea
of how big that figure is.

01:41:05.000 --> 01:41:09.999
If that wealth? Was earning
quite a modest rate of return,

01:41:10.000 --> 01:41:14.999
let\'s say 7% and if that income

01:41:15.000 --> 01:41:19.999
was taxed at a very modest rate of
30%, the governments of the world

01:41:20.000 --> 01:41:24.999
would have an additional $250
billion of revenue every year.

01:41:25.000 --> 01:41:29.999
Which they could spend
on alleviating poverty

01:41:30.000 --> 01:41:34.999
and achieving the United
Nations millennium goals.

01:41:35.000 --> 01:41:43.000
[music]

01:42:00.000 --> 01:42:05.000
[sil.]

01:43:15.000 --> 01:43:23.000
[sil.]

01:44:00.000 --> 01:44:05.000
[sil.]