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tv   World Business  PBS  April 3, 2011 11:30am-12:00pm PDT

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>>abirached: this week on world business... >>after the revolution in egypt, the country may be free for now, but what does the future hold? >>my hope is that the egyptian army and the egyptian people will work toward a real û not a fake democracy. >>we speak to india's minister for urban development, kamal nath take on every aspect of the country's economy, from the new delhi metro to the road rollout and the 2g mobile phone scandal. >>every country will have one or two bad stories and that cannot then become the index of measurement of a country's ability to combat corruption.
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>>and the fight back against the criminals that seize control of and manipulate personal computers around the world. >>they can command these millions of enslaved machines and most people who are infected with this kind of software who are zombies in this botnet war have no idea that they are infected >>abirached: hello and welcome. i'm raya abirached and this is world business, your weekly insight into the global business trends shaping our lives. the recent revolution in egypt may have ousted anautocratic and unpopular regime, but many of the problems that led to the uprising still remain. sowhat does the future hold
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for the country? >>reporter: at the start of this year egypt erupted. >> protester : all we want is to work and get bread for our children. we have nothing to do with those who stole the wealth of this country. they can go to hell. we want a new and clean government. >> farmer: there are no job opportunities for young people. you can see young people roaming the streets doing nothing. we need a solution for these youth. >>reporter: after years of poverty, underemployment, political repression and corruption, the facebook generation of egypt ended 30 years of rule by hosni mubarak. >>the military, now in charge, is promising free and fair elections in september, but the future forthe country is uncertain. >>gelb: my hope is that
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the egyptian army and the egyptian people will work towards a real and not a fake democracy, and that means building up the institutions, free press, rule of law and the likethat are necessary for a real democracy, but i'm not betting on it because it's very hard to get from the streets to a real democracy. >>reporter: and there is real fear over who will fill the vacuum created by the ousting of the government. >>bonino: democracy is the kind of system in which it's not simply your friends that win. that's a little bit too easy. democracy is the kind of system that allows people to elect quote unquote wrong leaders we know about it. >>in egypt's last, albeit widely discredited, election opposition parties took only 5% of parliamentary seats. the game has now been thrown wide open. but whatever form the next government takes,
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egypt still faces the same deep rooted economic problems that lead to the uprising. >>rogan: the challenge that any government faces today in the arab world is providing education, health care, jobs, housing. so the people can have a dignity of life to which they aspire. >>reporter: it is a real challenge; the country has serious issues with inequality - cairo may be awash with wealth but nearly 40 percent of egypt's 83 million people live on less than 2 dollars a day. those at the bottom like the zabaleen rubbish collectors struggle both financial and socially. >>ezzat: someone might be passing and sees me carrying a bag of refuse. my car might be in the way.he calls me names garbage zabbal donkey or animal this is what gets to us. we have an argument almost every day about this.
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we can't tolerate this. it's our profession, but we're not the garbage, we just clear it up. >>reporter: life is toughest for the nation's youth. two thirds of the country are under the age of30 and of those 90% are unemployed. >>bonino: the majority of the population in egypt is under 25 and i think the population growth which is typical of many countries but in egypt was a sort of a ticking bomb and i always thought like that even when i was living there because evidently you have already high-level of unemployment plusyou have 1 million new guys that enter the labour market every single year. >>reporter: these young people could be egypt's greatest strength, but often lack skills. the country's largest
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textile manufacturer employs 7000 people and is hungry for workers, but has been forcedinto educating its own people. >>talaat khalifa: this industry is a labour intensive industry and you need to maintain the qualified and well trained labour. we give them the training and we select the best of them so they can work, and whoever not being selected, they work and they've got the talent and now they've got the skills so they can work in different other places. >>reporter: it's clear the education needs investment and the country should be able to fund that. the former government did at least open the country economically. between 2005 and 2010 there was 43billion dollars of fdi. >>even at the height of the global recession gdp grew at 5% annually, although there was little trickle down to the poor. >>el-agar: the old government i think economically was doing
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well and so i hope that new governmentkeeps on the same track. just we need to support each oth and try to put transparency as the main target. >>reporter: egypt has changed. people now demand a better life and management of national income. the future is uncertain but it need not be unstable... >>rogan: i believe the biggest mistake the mubarak government made was to underestimate the sophistication of the egyptian people. they have shown themselves to be dignified, controlled, focused andthey've achieved their objectives and i see no reason why they will stop in that march of progress,i really have the highest hopes for the people of egypt. >>abirached: kamal nath is one of india's most experienced cabinet ministers. in recent years he has served as commerce and industry minister, minister for road transport and highways, and was recently appointed minister for urban development. with that background he tends to have an opinion on every aspect
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of the indian economy. our executive editor alan friean sat down with him in new delhi and began by asking about how india has changed over the last 10 years and what we can expect for thenext decade. >>nath : well india's growth strategy has been right. india's growth strategy has been based on domestic market driven growth. most of all india has emerged as a credible country whether it's an intellectual property, whether it's in the application and implementation of our laws. india's built up of credibility and there is that sense of confidence. we have to ensure that this confidence is sustained. that is a really the story of india growth and i see india continuing on its growth strategy >>friedman: how is urban infrastructure sustaining india's economic growth story? >>nath : india growth has preceded infrastructure and most of all growth has preceded urban infrastructure. so the urban infrastructure deficit is so profound
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and so huge that the investment inurban infrastructure will run into trillions of dollars and with today about 55 per cent of gdp in urban centres and in the next decade 70 r cent of gdp being generated in our urban centres, the challenges enormous. so the next big thing waiting to happen in india is urban infrastructure >>friedman: and how is the government planning to increase connectivity by rail and road between the big cities? >>nath : well, by a larger rail connectivity, by larger road connectivity and road connectivi hasto be looked at integrated. because you cannot have a metro or a highway just ending there. that has got to have a connection into the city, into the urban centres. similarly if you're going to havea metro just end
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at a dead end without connecting any kind connection with road, it's not going toserve the purpose. >>friedman: how has the delhi-metro changed the lives of ordinary people? >>nath : there are people who were not mobile before, people who couldn't go to work. they could get a job but they couldn't go to work because it would take them 2.5-3 hours and it would cost them so much money. now, because of the mobility, businesses are able to get people, people are able to get jobs, the economic activity has had a huge impact so the metro just doesn't provide urban transportation. it generates a huge amount of economic activity. >>friedman: natural disasters like the tsunami and earthquake in japan or other events that we're seeing in the middle east been in your view damaging to india's growth or might there be repercussions
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>>nath : of course japan being such a huge economy with it economy being hit, one's rarely willing to see what happens the impact it will have in its trade with india is just not india's exports, its india's imports. with so much of japanese industry now in stress, there is going to be a problem. the middle east where oil is concerned and where the indian work men are concerned, we had a huge amount of remittances which made good our economic deficit. the huge amount of remittances we got fromindis, indians working in the middle east. now there is that fear and there is that apprehension that people must come back to india so from a remittances point of view we are going to be impacted. >>friedman: what about oil at 100 dollars/barrel >>nath : well oil of course, oil is a huge issue. the three f's -- fuel, food and finance. fuel is right on top today and we are going to have this huge challenge on oil
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because oil then creates thatimbalance in our economic planning. >>friedman: and do the nuclear leaks and the dangers that have occurred in japan affect have impactin india? i see you have a debate going on in india about whether india should continue its nuclear civilian programme or not. >>nath : yes of course it creates a sense of a panic amongst people and nobody wants a nuclear plant in their vicinity. that's it but we're not looking at nuclear plants at the course which could be hit by a tsunami so safety concerns will have to now be relooked at so people are more reassured andeven government is more cautious. >>friedman: and the recent corruption scandals and the telecom mobile phone licenses seem to have made a lot of people international uneasy, thinking that perhaps india was sliding backwards and wasn't cracking down on corruption enough. what's your view? >>nath : well i think one bad story really doesn't mean that it can be generalized
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for india. everycountry will have one or two bad stories and that cannot then become the index of measurement of a country's ability to combat corruption. >>abirached: still to come on world business... >>stamping down on the multimillion dollar illegal business of bot-herding >>in india, yachts are no longer just for the super rich and as professionals start to buy boats a huge market is opening up. >>they're interested in buying the yacht. they're interested in the activity but the point where they have to ask the question of what am i going to do with this yacht? >>on the crest of a wave... and the rest in just a moment on world business.
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>>abirached: you may not have heard of them, but botnets are already affecting your life. criminalsseize control of vast networks of personal computers around the world, by infecting them with malicious software and then use them to distribute huge amounts of spam. but now botnets have taken a big hit. the world's most prolific source of junk mail has been shut down and it's a landmark case. >>reporter: spam -- we've all received those emails, selling everything from counterfeit software to fake drugs. >>this junk mail comes from infected computers spread across the world. cybercriminals invade people's machines. operate them remotely and secretly. then send out spam through a network of robots -- it's called a botnet. >> thompson: these things are the nuclear weapons of today single individuals sitting
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in their mother's basement can now be as powerful as a nation state they can command millions of enslaved machines and most people who are infected with this kind of software who are zombies in this botnet war have no idea that they are infected. >>reporter: and the botnet threat -- according to experts has escalated in the last few years intoa global business with spam attacks increasingly motivated by money. >>hall: we now see organised crime, clearly present in this space in this online space. they are highly organised, highly efficient they use sophisticated tools. they use a full range of technology tools and also a thorough knowledge of human behaviour and human nature to trick people to falling prey to a variety of online scams. >>reporter: scams that only need a few people to buy fake products to make them
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commercially viable, made possible by the sheer scale of some botnets. >>ford: spam is a huge element for the counterfeiter. it is how they get in to your household. theycan send 100,000 to a million messages just by the click a button. if they just get a small proportion responding to that then they've been successful. >>reporter: it's a global problem that needs a global solution >>seger: it's a trans-national phenomenon, a transnational crime, where you have a control and command centre in one country, where you have many thousand computers infected in a multitude of other countries, where the money mules through whom the money is being transferred maybe in other countriesand those who have written the script, the software available, the malware available to commit the crime are again in other countries. so this is very much transnational crime >>reporter: recently, one of the world's largest sources
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of spam took a lethal blow. the rustock botnet -- accounting for nearly half of all global spam -- was taken out of operation. >>boscovich: rustock at any particular point in time was among the most prolific of spam-bots, spewing forth at least at one point up to 30 billion email messages. >>reporter: after months of investigating, the takedown -- as it's called -- occurred after a successful plea at a u.s. district court in seattle. >>computers were seized in seven u.s. cities and the netherlands. the aim: to sever the command-and-control computers, stopping them sending orders to their network of infected computers. >>boscovich: we had a definite impact in really taking this botnet out of circulation and that is areally important thing to show that we can have a definite impact in this space. we know that botnets are part of that criminal infrastructure they become ubiquitous now, but we are showing the bad guys that we are being proactive.
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>>reporter: this follows other major botnet takedowns including high profile ones such as mariposa and waladec. but rustock was more notorious and complex. >>in this latest case microsoft worked with drugs company pfizer among others -- that's because spamsent out by rustock posed a danger to public health. it was advertising counterfeit drugs. >>pfizer has been campaigning against fake pharmaceuticals with hard hitting adverts highlighting the fact that they can contain pesticides, lead-based paint or floor wax. >>ford: we've found that with spam you are not going to get authentic product. if it is too good tobe true and you are receiving
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unsolicited email, they are not selling authentic product nine out often times and they don't care about your health. >>reporter: the scale of this takedown maybe unprecedented, clearing up the health of million's of people's computers across the world -- but according to experts more needs to be done by the public at large if they're to stop new botnets and the spread of spam. >>lanstein: it is staying up-to-date with best practices; best practices include having a strong password, running some sort of software or hardware-based firewall; keeping your software up-to-da; keeping your anti-virus up-to-date and current; not clicking on things from people you don't know that are sending them to you. >>reporter: rustock may be down, but botnets aren't on the way out. that's why the industry is looking at other ways to tackle this form of cybercrime. >>hall: the public health model has some interesting parallels, comparisons we can make with internet health. there is a role citizens can
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take just as they do in the physical world. to be aware and safe and protected in the environments in which they are living their lives. the same goes for the internet, people nd to look to a set of health precautions. they need to find ways to protect the health of their machines. what's going to need to happen is that variety of sectors and segments of people are going to need to come together -- to take a holistic approach to internet health. >>reporter: as the world wide web becomes more lucrative for criminals, there will be an increasingneed to protect people's machines. expect not only more high-profile takedowns -- but some new solutions for smashing cybercrime. >>abirached: over the years, the profile of yacht owners in india has undergone a sea change. with the booming economy, it's no longer just mega rich industrialists, the professional classes are buying too. and with investment bankers, ad professionals and real estate dealers aspiring to owning
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a luxury boat that means big business for the yachting industry. >>reporter: a sunny day in mumbai, and the waters are choc-a-bloc with yachts. the rich in india's financial capital are increasingly buying themselves big toys for the sea. like 33-year old akshay batra... the proud owner of a yacht worth over a quarter of a million dollars. >> batra: at the end of the day, it comes down to value and not price. if you look at things in terms of price, they often don't make sense. it doesn't make sense to buy an apartment in mumbai -- when its so expensive but you have to do it -- it's the value you get out of it. similarly from the boat, if you look at it as a pure price decision, you probably wont do it. but in terms of value, i'd say i've received far more than i've invested, because if i thinkof the time i've spent with my family, bringing up my son, spending quality moments with him on the boat. i think i've received tremendous value. >>reporter: akshay's pride and joy has two cabins, state of the art navigation, and even monogrammed crockery.
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and while he likes putting the boat through its paces, there's also a crew of three on hand. >>this is essential, because most of india's new yacht owners are first-timers without little experience in sailing or handling a yacht. >>dutta: for them, sea is something completely unknown. they're worried how safe it is, they're worried if the engine stops, if they're cruising they get petrified. so they need to know that we know how to take care, to manage in the ocean. >>reporter: such services don't come cheap, costing upwards of 1,300 dollars a month. yet many in mumbai still see the value in having a personal yacht. anil chandhok is here with his daughter aarti to meet anju, whose company distributes many of the world's leading yacht brands in india. >>chandhok: being born and brought up in mumbai, by the sea, i always wondered what it would be to sail. and now that i have a bit of spare time, i thought i'd
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take it up and start the hobby. it's very relaxing, it's great fun to go out on the water, even if it's not far away, just a few kilometresinto the sea, let the wind do all the work for you while you sit back and pointhe boat in the right direction. it's a lot of fun. >>reporter: but there is no large marina in india, and some believe this lack of yachting infrastructure, especially in mumbai and chennai, is hampering the growth of the industry. >>arrol: you can't play golf without golf courses, equally you can't fly aeroplanes without airports, you can't go skiing without ski resorts. boating is very similar, you really need marinas to havea significant boating industry, otherwise where are people going to park their boats? >>reporter: the lack of a marina means getting to the boats is a task in itself, requiring an oftenslippery, dangerous trip to the yacht on a smaller boat. this lack of access also makes maintenancea chore.
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>> batra: it's very difficult to maintain a boat in mumbai. there are no offshore petrol pumps where you can fill fuel, you have to jerrycan them from land, you have to jerrycan your water, you have to carry it in those little boats and then fill it up. that's very inconvenient. >>reporter: that inconvenience didn't seem to put off buyers at the recent mumbai international boat show, but they are starting to ask some tough questions. >>newby: they're interested in buying the yacht, they're interested in the activity, but the point comes when they have to ask the question of, "what am i going to do with this yacht? where am i going to moor it during the monsoon? if i need someone to service it, who's going to be there?"...i think until that happens, and until marinas arrive and all that infrastructure is there, their hobby is limited. >>reporter: still, such is the demand that all the leading yacht makers in the world are eyeing theindian market. italian manufacturer azimut yachts is
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even planning to set up two service points in india to ensure that spare parts reach its customers quickly. >>fanizza: the 3 markets to which all the yacht building industry is looking at is brazil, china and india. so you are among the best 3. we are settling up a warehouse with spare parts in asia to better serve the dealers in asia, to send the parts overnight to all the dealers just to give to a customer a complete service. >>reporter: with the growth in yacht numbers, local governments in india are coming under increasedpressure to build marinas. yet this expense could reap benefits if india establishes itself on the international yachting map. >>arrol: with the marina here as well, we'd be able to host many yachting events, sailin events, international events as well. when you get international racing craft coming in for 3 or 4 days, there's a media circus. and the economic benefit is
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measured in tens or even hundreds of millions of dollars, and the media coverage worldwide is enormous. >>reporter: and while india waits patiently for the wheels of government to move, many in mumbai can already see the future in their harbour. the indian empress is a super yacht owned by tycoon vijaymallya. at over 300 feet, it is almost 10 times the length of akshay's yacht. it's no wonder india's rich aspire to owning their own floating symbol of luxury. >>abirached: that's it for this week's world business. thanks for watching. we'll see you again at the same time next week. 1
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