The White House

Office of the Vice President

Readout of the Vice President's Call with Ukrainian Prime Minister Arseniy Yatsenyuk

Vice President Joe Biden spoke today with Ukrainian Prime Minister Arseniy Yatsenyuk about Ukraine’s economic reforms, the situation in the east, the investigation into the MH-17 tragedy, and U.S. bilateral assistance to Ukraine. Prime Minister Yatsenyuk underscored Ukraine’s commitment to advancing economic reforms in keeping with its IMF agreement. The two leaders discussed Russia’s continued support for the separatists in eastern Ukraine following the shootdown of MH-17, and the humanitarian tragedies in those communities that have fallen victim to separatist violence and looting. The Prime Minister and the Vice President discussed the reconstruction needs in eastern Ukraine, and the Vice President shared U.S. plans to provide almost $7 million in assistance to respond to immediate needs in the newly liberated areas in the east, which includes $1 million in new support. This includes contributions to the International Committee of the Red Cross and the UNHCR to support efforts to restore access to potable water and provide medical treatment, as well as funding to support small infrastructure and rebuilding projects in these communities. 

The White House

Office of the Press Secretary

Press Briefing by Press Secretary Josh Earnest and Deputy National Security Advisor Tony Blinken, 7/28/2014

James S. Brady Press Briefing Room

**Please see below for a correction marked with an asterisk.

1:10 P.M. EDT

MR. EARNEST:  Good afternoon, everybody.  Hope you all enjoyed your weekend.  It’s nice to see you on this Monday afternoon.

We are starting pretty close to on time today, which is a nice, new trend, hopefully that we’ll be able to continue.  The reason for that is I have alongside with me here today the President’s Deputy National Security Advisor, Tony Blinken, who is going to talk to you about a telephone call that the President convened with some of our allies in Europe today. 

I know that over the last couple of weeks you guys have had a lot of questions about what the President is doing in terms of leading the international community’s response to the downing of the Malaysian Airlines jetliner a couple of weeks ago now.  There have also been, obviously, a series of coordinated efforts to increase international pressure on Russia for the actions that they have taken in Ukraine.

So Tony is here to give you a detailed readout of that telephone conversation that the President convened today and answer any questions you may have about our ongoing efforts to coordinate the imposition of economic costs on the Russian regime.  He probably only has 10 or 15 minutes here, so we'll go through that part of it relatively quickly and then I’ll be around to answer remaining questions you may have.

But I would encourage you, as you're thinking about the questions you want to ask Tony, to focus on the Russia and Ukraine situation.  I know that there are a lot of newsy developments in Gaza as well, so he can take one or two of those before departing.  But we have to limit this to 10 or 15 minutes. 

So with that, I present Tony Blinken.

MR. BLINKEN:  Josh, thank you. 

Good afternoon.  Let me start by giving you a readout of the President’s videoconference with Prime Minister Cameron of the United Kingdom, President Hollande of France, Chancellor Merkel of Germany, and Prime Minister Renzi of Italy.  I should add that Chancellor Merkel was actually on the phone; the others were on a videoconference.

The primary focus of the conversation today was to talk about Ukraine, and they discussed next steps concerning the crisis there, but also efforts to achieve a cease-fire in Gaza, and the situations in Iraq and Libya.

On Ukraine, they stressed the continued need for unrestricted access to the shoot-down site of Malaysia Air Flight 17 to allow for the recovery of the victims’ remains and for international investigators to proceed with their efforts.  They agreed on the importance of coordinated sanctions measures on Russia for its continued transfer of arms, equipment and fighters into eastern Ukraine, including since the crash, and to press Russia to end its efforts to destabilize the country and instead choose a diplomatic path for resolving the crisis. 

Concerning Gaza, the President noted that Israel has the right to take action to defend itself.  The leaders agreed on the need for an immediate, unconditional humanitarian cease-fire, noting shared concern about the risk of further escalation and the loss of more innocent life.

On Iraq, they discussed the security challenges, welcomed developments in the political process, and urged the swift completion of government coordination and hopefully an inclusive government that results from that.

And then, with respect to Libya, they agreed on the need for an immediate cease-fire among the militias of Tripoli, calling for the seating of the newly elected Council of Representatives, and underscoring support for the U.N. in seeking a resolution to the conflict.  They condemned any use of violence to attack civilians, intimidate officials, or disrupt the political process.

Having said that, let me just spend a few minutes if I can on Ukraine to put this in context.  This was, I think by our count, about the 50th call or videoconference the President has had with his European counterparts since the beginning of this crisis.  And ever since Russia’s illegal annexation of Crimea and its campaign to destabilize Ukraine, the President has led the international effort to isolate Russia for its actions in Ukraine, to support Ukraine itself, and to reassure our allies.

This effort has produced major strategic gains.  We’ve created space for Ukraine to hold successful presidential elections despite Russian efforts to disrupt them.  And that’s produced the strongest leadership Ukraine has seen since the end of the Cold War.  We’ve created space for Ukraine to sign an association agreement with the European Union despite Russian efforts to prevent that.  And recall that the former President Yanukovich’s last-minute about-face on signing that association agreement is exactly what precipitated this crisis in the first place.  And we’ve forged a robust financial support package for Ukraine led by the IMF.

None of these things just happened.  They were the result of a major, sustained effort by the President to lead the international community.

All of that said, the challenge to Ukraine remains acute.  Ukrainian forces are right now making major gains to regain sovereignty in the east, but at the same time, Russia is doubling down on its own efforts to support the separatists and destabilize the country.  Indeed, it is cynically using all of the attention focused on the crash of MH17 as a cover and distraction for its own efforts.  It’s increased the provision of heavy weaponry across the border.  We’ve seen convoys of tanks, multiple rocket launchers, artillery and armored vehicles.  There’s evidence it’s preparing to deliver even more powerful multiple rocket launchers. 

It is firing from positions inside of Russia into Ukraine -- something that we documented this weekend.  And we’ve seen a significant re-buildup of Russian forces along the border, potentially positioning Russia for a so-called humanitarian or peacekeeping intervention in Ukraine.

So there’s urgency to arresting these developments, to ending the efforts to destabilize Ukraine.  And the urgency is this:  First, everything we’re seeing is a real drag on the Ukrainian economy.  The military expenditures that Ukraine has to make are a drag, and the fact that Luhansk and Donetsk, which represent 15 percent of Ukrainian GDP and about 25 percent of its manufacturing exports, are basically taken out of the Ukrainian economy equation is also a drag on the economy.

Second, the longer this goes on there’s the risk of further outrageous actions by the separatists or by Russia that deepen the international crisis.  So there’s a need to take further action now to convince Russia to change course and cease its efforts to destabilize Ukraine. 

On the call, the European leaders clearly shared this assessment and a determination to act.  We expect the European Union to take significant additional steps this week, including in key sectors of the Russian economy.  In turn, and in full coordination with Europe, the United States will implement additional measures itself.

Our purpose here, again, is not to punish Russia, but to make clear that it must cease its support for the separatists and stop destabilizing Ukraine.

Let me just finish by putting this in a larger context.  Everything we've seen as a result of Russia’s actions and the actions that the President has led in the international community over these many months has turned what is happening in Ukraine into a strategic loser for Russia.  First, we've seen a dramatic impact on the Russian economy by the sanctions that the United States, Europeans and others have taken. 

These are acknowledged by the Russian Finance Minister and, indeed, the Deputy Prime Minister, even Putin himself.  Sberbank, the largest bank in Russia and a proxy for the larger economy, a month ago, in announcing a steep decline in profits, said, “In particular, recent events in Ukraine significantly impacted the dynamics of the Russian economy.”

We've seen the financial markets go up and down, the ruble hitting lows, the Central Bank has had to spend $37 billion to defend the ruble, about 8 percent of its foreign exchange holdings.  The result is higher borrowing costs and a decrease in the value of Russian savings. 

Capital flight -- $70 billion in the first half of this year, more than all of 2013 combined.  And projections for the entire year put it at between $100 billion and $200 billion. 

Foreign investment is drying up.  Investors are looking for stability; they’re looking at countries that keep their international commitments; they’re looking at countries that have connected to the international economy.  On all three counts, Russia is giving them great pause.  The credit rating for Russia was cut to just above the junk level; financing yields are frozen; Russian companies are not issuing bonds to raise capital. And as we've seen overall, Russia is heading for economic contraction, not growth, a significant reversal from just a few months ago.

Let me add as well, there’s talk that Russia has “won Crimea.”  But the fact of the matter is what’s happened is it's lost Ukraine.  Ukraine is more united in a Western orientation than ever before and has a much greater sense of national identity.  We've produced, as I mentioned before, the space for elections and the signing of the association agreement with the European Union. 

Crimea itself is becoming a dead weight on the Russian economy -- $7 billion a year at least in budget and pension support; $50 to $60 billion required over the next several years for critical infrastructure.  And Russians themselves are asking why this money is being spent in Crimea and not in Russia.  There’s downward pressure on defense spending; there’s downward pressure on discretionary spending as a result of this.

We've seen the actions in Ukraine reenergize NATO.  There’s a deeper commitment to Article 5.  NATO itself, it now has a virtual regular presence, a continuous air, land and sea presence on the territory adjacent to Russia.  And we'll see what happens at the NATO summit, but there’s at least the prospect now for reversing the downward trend in defense spending.

We've seen on energy reform a jolt to the Europeans to take real steps to decrease dependence, to diversify supply, to upgrade infrastructure, to develop new sources.

And then, finally, I would say this:  For the Russians and for President Putin, power equals a combination of geopolitical influence and economic strength to provide for the Russian people.  There was a recent survey in Russia -- the top two priorities of the Russian people were evenly split:  international influence and creating the conditions for individual prosperity.  As a result of Russia’s actions in Ukraine and as a result of the leadership we've exerted, both of those are in jeopardy.  And so is President Putin’s compact with his own people.

There is a way out:  Integrate Russia with the international economy, diversify away from fossil fuels, and play by the rules. That is still on offer.  That is still a possibility.  We would like nothing better than to resolve this crisis in Ukraine diplomatically.  And that's now up to President Putin.

Q    Thank you very much for this update.  Could you also update us on the U.S. response to the criticism that Senator Kerry has come under in Israel after his attempts to implement a cease-fire there?  Is that damaging to the U.S.-Israel relationship?

MR. BLINKEN:  Let me say this about Secretary Kerry:  Israel has no better friend, no stronger defender.  No one has done more to help Israel achieve a secure and lasting peace.  He has been tireless in his efforts.  And I think that Israel and many countries and friends around the world recognizes exactly that.

Q    Has the President raised this in his call with the Prime Minister yesterday?  Or have U.S. officials been complaining about the criticism to counterparts in Israel?

MR. BLINKEN:  No.  Look, what you see, I think, unfortunately on a regular basis, are people leaking things that are either misinformed or attempting to misinform.  And in particular, with regard to criticism that was levied by undisclosed sources about the proposal for a cease-fire, the proposal that was criticized was not a U.S. proposal, it was a draft to illicit comments from the Israelis.  It was basically a discussion paper based on the original Egyptian initiative.  Virtually every element that unidentified sources complained about was in the initial Egyptian proposal and agreed to by Israel 10 days before.

In that, there was no mention of the need for disarmament. The document underscored the need for discussion between Israel and Palestinian factions.  It called for the opening of border crossings.  It did not make mention of tunnels.  All of this, again, in the Egyptian proposal that the Israelis had accepted and unfortunately Hamas did not.  The document also reflected the strong view that we have that demilitarization as well as reconstruction in Gaza are critical agenda items for any negotiations that follow a cease-fire.

So the bottom line on this is that what was leaked, unfortunately, was I think an effort to misinform or was just misinformed.

Q    The sanctions that we've seen so far have been fairly targeted against Russia.  Would you describe the sweeping nature of what you're talking about later this week being coordinated between Europe and the United States?

MR. BLINKEN:  I don't want to get ahead of where the Europeans are or where we are, and we'll see that in the days to come.  But what we know is this:  The Europeans made clear last week that they were prepared to act in key sectors of the Russian economy, including the financial sector, the arms sector, the energy sector.  And so I think you can anticipate actions in those areas.  Similarly, they’re looking to broaden criteria by which they can sanction people or entities.  And I think one of the things they’re looking at is to bring in some of the cronies of President Putin. 

So we've already seen with the sanctions to date, as I went through a few moments ago, a very serious impact on the Russian economy.  And indeed, it's the sanctions themselves and then the climate of tremendous uncertainty they create, even with the prospect of more sanctions, that has led to capital flight, investment drying up and the growth projections going down to basically zero.

Q    And when you talk about this force that's building up  -- the Russians are building up, are they preparing a Russian invasion of Ukraine?

MR. BLINKEN:  One of the things that we believe Russia has been trying to do is, for example, to get the Ukrainians to take some action that they can then use as “justification” for some kind of intervention -- so-called humanitarian intervention, or so-called peacekeeping intervention.  So that's one of the things that we think is in the potential Russian playbook.

The other thing they’re doing, most significantly, is increasing the supply of heavy equipment, weapons and fighters to the separatists across the border.  And this is well documented in what we've seen; it's well documented in social media.

Q    In talking about that buildup and the heavier artillery, are we talking about more surface-to-air missile capability?

MR. BLINKEN:  We are talking about multi-rocket launchers -- that's one of the things we're seeing -- artillery pieces, tanks, armored vehicles, and the concerns, as I said at the outset, about increasingly heavy weaponry.  And I think there’s a reason for this, and the reason is that on the battlefield itself the Ukrainians are doing very well against the separatists in trying to regain the sovereignty of their entire country.  So Russia’s proxies are right now on the losing end of the fight.  And that's why we think Russia is doubling down.

Q    Do you think there are still Buk missile launchers within Ukraine at this point?

MR. BLINKEN:  We believe that there are SA-11s that are still within Ukraine, including potentially in separatists’ hands.

Q    A two-parter.  How did you arrive at $37 billion spent to defend the ruble?  And second, are there any other security things you're looking at besides rocket launchers and tanks and heavy equipment? 

MR. BLINKEN:  I think the $37 billion has actually been fairly well documented in the financial press and by other statements that have been made.  We can get you the backup for that.

And in terms of the military equipment that the Russians are providing, again, those are the main elements, but there are certainly other things that are going in.  But in terms of heavy weaponry, those are the critical elements.

Q    You’ve been talking about actions that have been taken this week by the EU and U.S.  I want to go back to something that Josh said from the podium Friday about Russia and Putin were culpable for the downing of Flight 17.  Is there a chance, is there a possibility that Putin could be charged in the International Crimes Court with war crimes, by any chance, with all of this that's going on right now?

MR. BLINKEN:  When it comes to Russian culpability, I think the record is clear.  The Russians have been directly supporting the separatists with the provision of weapons.  We believe that the SA-11 that was used to shoot down the Malaysian airliner came from Russia.  We don't know who was operating it.  We believe the weapon itself came from Russia.  The three top leading separatist leaders are all Russian nationals.  So it's clear that Russia has a significant influence over the separatists and could, if it so desired, get them to cease and desist.

So, in that sense, there is a clear and ongoing culpability by Russia for events in eastern Ukraine and for a failure to de-escalate the situation, and indeed, for the context in which all of this is happening, including the shoot-down of the airliner.

In terms of pointing to exactly who pulled the trigger, that we don't know yet and we'll see if we can develop that information.  But the bottom line is this:  Through its ongoing support and increasing support for the separatists, Russia bears responsibility for everything that's going on in eastern Ukraine.

Q    So you’re saying technically he could be brought before the International Crimes Court?

MR. BLINKEN:  Look, I don't want to get ahead of anything.  Again, the main point is to emphasize that Russia bears responsibility and has the ability to actually de-escalate this crisis by moving it onto a diplomatic track.  That is what we’d most like to see.

Q    I don't know if you’re aware of reports that just came now that Gaza Central Hospital has been hit, and 10 more dead Palestinian children.  You said that the United States is Israel’s best friend, which I tend to agree with you.  You also provide them with $3 billion a year, and you give them the Iron Dome that saved countless lives.  How come you don't have any leverage over Israel to extract a humanitarian cease-fire that would last for seven days?  Does that mean that you basically have no influence over them, or that just Israel doesn't care?

MR. BLINKEN:  First, I haven’t seen those specific reports. Second, the record is clear:  Israel has repeatedly accepted cease-fires that Hamas has rejected.  So the bottom line on that is clear.

Let me say more generally, no country can abide rockets raining down on its people or terrorists tunneling underground to kill or kidnap its people.  We have consistently and repeatedly defended Israel’s right to defend itself.  Hamas intentionally targets civilians.  And indeed, Iron Dome, thankfully, is there and has protected many of those civilians.  And it uses the Palestinian people as human shields, wrapping them around its weapons and strategic sites. 

In contrast, Israeli policy is to avoid civilian casualties. Indeed, it holds itself to the highest standards to take every precaution to avoid those casualties.  But the fact is, despite its efforts, the civilian suffering in Gaza is great and growing every day.  So the practical reality is that it is difficult for Israel to meet its own high standards.  Civilian casualties are increasing.  It’s especially heartbreaking to see children suffering in this crisis.

This is a problem we have grappled with in Iraq and then in Afghanistan because we, too, hold ourselves to these standards.  It’s incredibly difficult to sustain them.  But I think this underscores the urgency of getting an unconditional, immediate, humanitarian cease-fire.

Q    -- said yesterday -- just a quick a follow-up -- that he wants Gaza demilitarized.  What does that mean in terms of a long-term strategy or a peace negotiation or now as we talk in the next week or so?

MR. BLINKEN:  As I said, we support an immediate, unconditional, humanitarian pause leading, we hope, to a sustainable cease-fire.  We also believe that any process to resolve the crisis in Gaza in a lasting and meaningful way must also lead to the disarmament of terrorist groups.  And what we intend to do is to work closely with Israel, regional partners and the international community to achieve this goal.
MR. EARNEST:  Ann, I’ll give you the last one, then we’ll let Tony go.

Q    Thank you very much.  On Russia, if all the impact of all of these sanctions and all the threat of sanctions are as dire as you’ve described, why hasn’t Putin blinked?

MR. BLINKEN:  He has to make a strategic decision.  And you’re exactly right, he hasn’t made it yet.  We’ve seen him on a regular basis pull back tactically, say the right things in public while he’s doing the wrong things behind the scenes.  So he’s clearly sensitive to the pressure that's being exerted.  But it’s precisely because we’ve not yet seen a strategic turn from Putin that we believe it’s absolutely essential to take additional measures.  And that's what the Europeans and the United States intend to do this week.

MR. EARNEST:  Thank you, Tony.

MR. BLINKEN:  Thanks, Josh.  Thank you.

Q    Thank you, Tony.

MR. EARNEST:  All right before we move on to other topics, I do want to do one thing at the top.  And I believe we have a slide that goes along with this -- there it is.  Today we got some very good news about Medicare’s financial future.  In the President’s first year in office in 2009, Medicare, Medicaid and Social Security trustees projected the Hospital Insurance Trust Fund would not be able to pay its bills in 2017, just three years from now.  Today’s new date is 2030 -- 13 years later than that projection in 2009, an improvement that is thanks in part to the reforms of the Affordable Care Act, such as efforts to reduce hospital spending on preventable readmissions.  And today’s date, you’ll note, is actually even four years later than was projected just last year.

A couple other relevant statistics that are included in the report:  Furthermore, per-capita growth, or the amount spent per Medicare beneficiary has slowed dramatically in recent years, falling to one-third of what it was, and to nearly zero last year -- helping to restrain overall growth in Medicare spending even as millions of baby boomers enter the program. 

In addition, the trustees project that the Medicare Part B premium will not increase, which would make 2015 the second year in a row that premiums in Medicare stay flat.

While today’s report focuses on Medicare, it reflects broader trends in the health care system toward much slower growth in costs, a trend that has continued into 2014.  Over the 50 months since enactment of the Affordable Care Act, health care prices have risen at a slower rate than over any comparable period in 50 years. 

So that is a report that is being released as we speak, and so there will obviously be some more details included in that report later today when you get a chance to review it.

So with that, Nedra, do you have any additional questions today?

Q    I do.  Can you give us your response to the VA deal?  Does the President think it does enough to solve the problem with the health care system?

MR. EARNEST:  Well, Nedra, this compromise has been announced between House Republicans and the chair of the Senate Veterans Committee.  We certainly welcome that announcement.  There are a couple of reasons based on published reports that we’re encouraged by that compromise.

The first is, as you even heard me mention on Friday, there are much-needed reforms that need to be implemented into the Veterans Administration.  The President and others have called for those important management reforms to be implemented, and again, based on press reports, the indications of those reforms are that many of them are included in this bill.

The second thing -- and this is really important -- on July 16th, Acting Secretary Sloan Gibson called for Congress to provide VA the additional resources necessary to deliver timely, high-quality care to veterans through a strengthened VA system while also temporarily using care in the community to help ensure veterans can get the care they need when they need it.

When he asked for those additional resources to address some very specific concerns that he had laid out, that was something that had previously not been part of the debate as it relates to this VA reform package.  So the inclusion of these additional resources at the strong urging of the Acting Secretary is a positive step in the right direction, and something that we think will be very important to the success of some of the reforms that are contemplated by this bill.

In addition, this proposal for on a temporary, as-needed basis to allow some veterans to get some access to care in the community is also the kind of thing that could address the immediate need that many veterans have, but by adding these additional resources over the long term, we feel like those are benefits and care that can be provided through the VA.

So the details of this compromise have yet to be unveiled, so I don’t want to get ahead of the announcement that is planned for Capitol Hill later today.  But the early reports are positive.

Steve.

Q    Josh, Susan Rice was on MSNBC a while ago.  She talked about a grave and deepening concern at the civilian casualties in Gaza.  What exactly would you like the Israelis to do?  Are you calling on them to call off the offensive?

MR. EARNEST:  Well, Steve, we have said many times -- I think Tony just had the opportunity to say that we defend Israel’s right to defend themselves.  In fact, you could make a case, and many Israeli political leaders do, that they have a responsibility to make sure that they’re taking steps militarily to account for the safety of civilians on the Israeli side of the border.  This is, after all, the Israeli population that elected them, and they are in the best position to determine what steps are necessary to protect their citizens.  That is their right.

At the same time, Israel leaders often say that they have in place very high standards to ensure the safety and well-being of civilians on the other side of the border, as well.  That stands in stark contrast to the strategy that is deployed by Hamas and other extremist groups in Gaza that are intentionally targeting civilians on the other side of the border.  They are also intentionally using civilians on their side of the border to try to essentially shield their equipment and their personnel from Israeli military activities.  So there is a stark contrast in the approach that’s taken by the Israelis and taken by Hamas and other extremist groups. 

That said, as I mentioned, Israel and their political leaders often talk about the high standards that they put in place for their military operations to ensure the safety and well-being of civilians -- innocent civilians on the Palestinian side of the border.  Based on published reports, it’s apparent that there is more that they should do to live up to those standards that they have set.  And that is something that we routinely encourage them to do, while defending their right to defend themselves.  The President reiterated that in his phone call with Prime Minister Netanyahu yesterday.

Michelle.

Q    For months, we’ve been talking about increasing sanctions against Russia, and sort of the ultimate would be these sweeping sectoral sanctions.  So can you explain why that hasn’t happened now?  Why is this not the time to go that far, and still do these kind of slow, incremental building sanctions?

MR. EARNEST:  I would say that the sanctions regime that the President rolled out about a week and a half ago, the day before the downing of the Malaysian Airlines jetliner, did take a step in that very direction.  These were sectoral sanctions that were aimed at specific entities in the defense, financial and energy sectors. 

There was an indication from our European partners that they were taking the preliminary steps necessary to implement similar sanctions in their own right, but those steps have not yet been taken by the Europeans.  That is something that was discussed by the President and his counterparts in Western Europe earlier today, as Tony mentioned.

So there have been some steps that the United States has taken to put in place and impose economic costs against President Putin and the Russian regime.  Tony detailed the economic impact that those sanctions were having.  But as Ann rightly pointed out in her question, it is true that the costs have not yet led to the kind of strategic re-evaluation that we would like to see the Russians undertake.  That is why the international community is actively considering imposing additional costs by having the Europeans increase the amount of sanctions that they have currently levied.  It’s also why the United States is considering additional steps that we could take that would pose additional economic costs on Russia and on President Putin.

Q    Well, so the question was really -- I mean, we all know that it’s sort of these very precise, let’s pick this bank or that bank; it’s not on the entire Russian banking system.  Do you think there’s still any leverage left in doing it that way?

MR. EARNEST:  I’m certainly not an expert in terms of the way that these tools are deployed.  But it is our view that there is additional leverage that can be gained.  That is certainly why they’re being contemplated both by leaders in Western Europe, but also by those who do have an expertise in this field in this country. 

As Tony documented, there are a number of economic consequences that Russia has already had to bear in terms of the outflow of private capital, in terms of the downward revisions in their economic projections.  We’ve also seen Russia expend significant sums of money to try to shore up the strength of their own currency.

So there are a number of steps that Russia has taken, and a number of outside evaluators who have reviewed the situation to confirm our suspicion that the economic costs have taken a toll on the Russian economy but they have not yet led President Putin to re-evaluate his strategy in Ukraine.  And that ultimately is our goal.

Bob.

Q    Josh, a quick follow-up on the VA bill.  Is $10 billion enough?  They’ve unveiled it up on the Hill, so is $10 billion enough to take care of the system with its deep, deep troubles right now?

MR. EARNEST:  Well, we’re still evaluating the specifics and details of their package, so I don’t want to get -- I don’t want to say any more than I already have.  But in the next couple of days, we may be in a position to comment on that a little further.

Cheryl.

Q    Thanks, Josh.  The House and Senate are very divided on the border supplemental right now.  If they can’t come to agreement by the end of the week, what is the practical effect?  Can you wait until September?

MR. EARNEST:  Cheryl, I would refer you to the individual agencies for the impact that Congress’s failure to pass the supplemental appropriations request would have on their ability to perform the functions that they are required to perform. 

We are hopeful that Congress will take the kind of action that is required.  Both Democrats and Republicans have spoken quite publicly about their concerns about the situation at the border.  This administration has been really clear about what we feel like we need in terms of resources to deal with the influx that we saw of those who were apprehended at the border earlier this summer.

So there’s a detailed package that we’ve put forward.  As I mentioned last week, the Speaker, at a news conference at the end of the week, said that he was still discussing this matter with members of his own caucus.  That was a pretty disappointing development in the part of this administration.  We put forward a detailed package -- I happened to bring it with me right here -- it includes very detailed numbers about what we feel is necessary.

I noticed that the new Republican Whip was on one of the Sunday shows yesterday and noted that the administration was asking for a -- what he described as a blank check.  It makes me think he’s not sure -- that he doesn’t know what a blank check is.  We’ve actually been very specific about the numbers that we feel are necessary to deal with this problem and to address the range of concerns that many people have raised about those who have been apprehended at the border.

So we hope that there will be prompt congressional action on this that is in line with their rhetoric on this issue.

Q    Can I follow on that?

MR. EARNEST:  Sure, Wendell, go ahead.

Q    Why isn’t the change in the 2008 law on non-contiguous migrants’ deportation part of that package?  The President had indicated that he supported a change and his advisors say that changing that law would be necessary to send the kids at least from Guatemala, Honduras and El Salvador back as rapidly as those from Canada and Mexico.  So why is that not a part of that package?

MR. EARNEST:  Well, you would have to talk to members of Congress about how they want to put this all together.  What we believe is most important is ensuring that the federal government has the resources necessary to address the range of challenges that are posed by this situation.  Remember, it includes some additional security at the border in the form of surveillance equipment.  It also includes the ability of the federal government to open and operate additional detention centers so that we can detain those individuals who have been apprehended at the border.  It includes some funding for HHS that would allow them to evaluate the basic health needs of those individuals who have been apprehended, both to meet their humanitarian needs, but also to ensure the safety of the broader communities in which they're detained.

It also includes funding that would allow these repatriation flights to take place so that we could more quickly return those individuals that have been apprehended here to their home countries.  It also, of course, includes additional resources to ensure that those who are apprehended at the border receive the due process to which they're entitled.  So this means hiring new judges and prosecutors and asylum officials to ensure that that can take place.

Q    But notwithstanding Democrat and Republican differences over the amount of funding, the Republicans say in order to approve some, they're going to need to change that 2008 law.  Does the President support that?

MR. EARNEST:  Well, it is unfortunate that you would see them take an absolutist position on this.  We certainly do support Congress taking the necessary steps to give the Secretary of Homeland Security the flexibility he needs and the discretion that he can use to more efficiently and effectively enforce the law.  That is a priority of this administration.

But we should not allow the debate around what should be included in that language to hold up something that everybody agrees is necessary, which is additional resources that can be used by the federal government to meet the basic humanitarian needs of those individuals who are apprehended, but also provide funding that can be used to more quickly return those who are found by the courts to not have a legal basis for remaining in the country.

Chris.

Q    Thanks, Josh.  Some members of the Republican Whip team on that have suggested that they’ve gotten surprising support for what is a much smaller check than the one that the White House is asking for, and the $2.7 billion being put forth by the Senate is getting some pushback from Democrats like Joe Manchin, Mary Landrieu and doesn't seem to have a lot of support on the Republican side.  And you also have a situation where Congress is in session for three and a half days this week.  So with the clock ticking, what do you see as the prognosis and what happens if none of this goes through?

MR. EARNEST:  Well, there are those here in town and probably those of you here in this room that have a little bit more experience in evaluating congressional action than I do.  So I will leave that analysis and prognostication to the experts.  I’ll simply observe that this administration three weeks ago today put forward a very detailed request before Congress, and asking for those additional resources to address a problem that I think to a person every single member of Congress agreed existed. And what we have seen in Congress is a lot of talk, particularly from Republicans, but not a lot of willingness to act.  And that is rather unfortunate.

And we are hopeful that in the pivotal week that remains before Congress departs Washington for the traditional five-week recess that they’ll take the important steps that are necessary to ensure the federal government has the resources to deal with a problem that, again, I think every single member of Congress agrees exists.

Q    Can I also ask you about a Reuters’ report that just came out?  I don't have any more details than this, that Netanyahu says Israel “must be prepared for protracted Gaza campaign.”  And I wonder if it’s possible that there could be a military victory for Israel, but a loss for them in both the political realm and the court of public opinion.  Can I get your reaction to that statement by Benjamin Netanyahu?

MR. EARNEST:  Well, it’s hard to react to a statement that occurred while I was standing up here.  But let me say that it is the position of the United States that it is in the best interests of people on both sides of the border for a cease-fire to take effect.  And the reason for that is pretty simple, that as long as the violence continues across the border, there are going to be innocent civilians in harm’s way.  And having those innocent civilians face that extreme danger has already had terribly tragic consequences for both the Israeli people and the Palestinian people.  And that's why we want to see that cease-fire put in place. 

There will be an opportunity once that cease-fire is in place for us to have discussions around the kinds of concerns that have legitimately been raised by the Israelis, in particular about Hamas’ repeated willingness to use tunnels and to fire rockets aimed squarely at doing harm to innocent civilians.

So it is the priority of this administration for a cease-fire to be put in place.  That is why you’ve seen Secretary Kerry doggedly pursue diplomacy to protect the lives of innocent civilians on both sides of that border.

Q    Moving on --

MR. EARNEST:  Sure, Ann.

Q    What are the two or three, maybe three or four absolute necessities that the President thinks Congress has to get done by the end of this week?  Would he ask them to delay their recess?  And would he ever consider skipping Kansas City?

MR. EARNEST:  Well, as we always say with the President’s travel, his trip to my hometown notwithstanding -- (laughter) -- as is always the case with the President’s travel, if there is a critically important function of the presidency that cannot be performed from the road, the President will not hesitate to change his schedule in order to fulfill those functions.  So I do not anticipate that anything that's happening in Congress would require that at this point.  But if something does emerge, something unexpected does emerge, I’m sure that is something that the President would consider.

Q    Will he ask Congress to delay its break?

MR. EARNEST:  Well, I’ll let him speak to that.  If he decides that that's what they should do, then he will say so.  At this point it’s the responsibility of the leaders in Congress to determine their own schedule.

There’s no doubt that there’s a lot of important work that needs to get done this week.  That includes continuing to follow through on these VA reforms on which an agreement was announced over the weekend.  So hopefully that can move forward without any delay or incident.

We certainly would like to see a step taken in terms of passing the supplemental appropriations request that this administration put forward several weeks ago to ensure that the administration has the resources necessary to deal with the problem at the border.

That being said, we could certainly address many of the problems at the border if Congress -- if the House were to take action on comprehensive immigration reform legislation that's already passed the Senate.  The Senate did their work more than a year ago.  Just by taking one simple vote, the House of Representatives could approve that legislation.  The President would sign it.  That would do more to improve our economy, create jobs and reduce the deficit than so many other things that Congress is debating right now.

I think what is the source of particular disappointment on this end of Pennsylvania Avenue, and I think of people in both parties across the country is to see that Congress -- House Republicans in particular -- are using this very valuable time to debate a piece of legislation that would allow House Republicans to file a taxpayer-funded lawsuit against the President of the United States.  I certainly don't think that rises to the level of a priority that so many of these other things Congress is ignoring right now. 

Let’s move around a little bit.  Leslie.

Q    Thanks, Josh.  With Secretary Kerry unable to get a cease-fire during his trip, and the President talking to Prime Minister Netanyahu last night in what sounded like pretty blunt terms -- what are the next steps for the White House?  And do you -- to follow up on a previous question, do you believe that there is any leverage left for the United States with Israel?

MR. EARNEST:  Well, the United States remains deeply engaged in this effort.  Secretary Kerry has been leading that effort over the last week in terms of the dogged diplomacy that he’s been pursuing.  He’s been meeting with his counterparts not just in Israel and among the leaders of the Palestinian people, but also with his counterparts in Egypt and Qatar and Turkey and the Arab League, the U.N.  He’s been deeply engaged in these conversations in pursuit of a multilateral, international effort to try to bring both sides together and reinstate the terms of the 2012 cease-fire, to try to get those civilians who right now are in harm’s way into a safer position.  That's been the focal point of our efforts, and we remain engaged in it. 

In terms of our relationship with Israel, the United States remains a strong ally of the nation of Israel.  American leaders say that; Israeli leaders say the same thing.  The best evidence that I have of that is the assistance that the United States has provided to the Israeli government to construct the Iron Dome system that right now is, thankfully, protecting so many Israeli civilians from these rockets that Hamas is firing.  So that relationship remains strong. 

And the reason that Secretary Kerry remains so committed to this effort is that -- or at least is in part that we believe it is clearly in the interest of Israel’s long-term security for this cease-fire [violence]* to be brought to an end, and for negotiations between the Palestinian leaders and Israeli leaders to get started in terms of trying to eventually down the line reach this broader, two-state solution.

Roger.

Q    I want to go back to what Tony was saying about the sanctions and the outlook for them.  Is that -- if I understood it correctly, the EU is going to go first with their sanctions and probably -- or possibly this week, is that correct?

MR. EARNEST:  I don't know that he was in a position to talk about the sequencing of the announcement.  But I do think that he committed to our expectation that we would see Europe act before the end of the week.

Q    Would the U.S. act before the end of the week?

MR. EARNEST:  Our position is that the options like that remain on the table, that the United States is prepared to impose additional costs on Russia for their destabilizing activities in Ukraine.  I’m not in a position to confirm for you whether any decisions have been made about carrying out that action or what those actions might look like.   As we’ve talked before, it would be a strategically unwise thing to do to talk about the details of those sanctions before they're implemented. But I am in a position to confirm that those kinds of options remain on the table when it comes to the United States.

Q    One final -- would the U.S. concentrate on any particular sector?

MR. EARNEST:  Well, if we have additional sanctions to announce, then we will be able to get into those kinds of details.  But at this point, it would be preliminary for me to do so.

Q    Josh?

MR. EARNEST:  Goyal. 

Q    Thank you.  Two questions.  One, some people in the Congress want to close down the 84-year-old Export-Import Bank.  And many small businesses are saying that it is helping small businesses export U.S. goods abroad and also creating thousands of jobs in the U.S.  My question is that some people in the Congress are saying that it is helping only the big companies.  What is the President’s action -- or reaction about this bank?  Next month will expire the --

MR. EARNEST:  The President does believe that Congress should take steps to reauthorize the Export-Import Bank.  That's not just the view of this administration and many Democrats and Republicans on Capitol Hill, it’s also the view of organizations like the National Association of Manufacturers and the Chamber of Commerce.  Those are two organizations that don't often agree with the President when it comes to some aspects of American economic policy.

But that is an area where this administration agrees that the Export-Import Bank plays a positive role in creating jobs and creating opportunities for American businesses to succeed by opening up markets around the world.

Q    Second question -- oh, by the way, it has also created jobs between India and U.S. trade.  Second question is that as far as U.S. ambassador to India is concerned, you think U.S. will have an ambassador before Prime Minister Modi visits the White House end of September?  And second, what is happening as far as Mr. Modi’s address to the Congress?  Is White House is supporting it?

MR. EARNEST:  I don't have any personnel announcements at this time, Goyal.  But when we have any updates in terms of appointing an ambassador to India, we’ll let you know.

Q    And address -- U.S. address, Mr. Modi’s address to the U.S. Congress, is White House supporting it, the President?

MR. EARNEST:  I’m not aware of those conversations.

Bill. 

Q    Josh, there was an unusual editorial in The New York Times yesterday, I’m sure you saw, urging the lifting of the prohibition against -- the federal prohibition against marijuana. What is the White House’s position on that?  Would you endorse that?  It’s been there for 44 years.  Maybe too long and time to change it?

MR. EARNEST:  Well, I did read the editorial yesterday, Bill.  The administration’s position on this issue has not changed.  We remain committed to treating drug use as a public health issue, not just a criminal justice problem. 

In light of state laws that legalize the possession of small amounts of marijuana by adults in Colorado and Washington, the Department of Justice issued updated guidance last August to federal prosecutors in all states.  That guidance reiterates that marijuana remains an illegal substance based on the laws that Congress has passed.  But it also recognizes that we have limited enforcement resources, and that those resources are best used to address the most significant threats to our communities.

That was the policy before The New York Times editorial, and it continues to be our policy today.

Q    So does that mean that if other states follow Colorado and Washington, the administration would also give them a green light to go ahead and legalize marijuana without federal interference?

MR. EARNEST:  Well, I’m not sure a green light is the technical term that the Department of Justice has used.  (Laughter.)  But in terms of the guidance that might be offered to those states, I’d refer you to the Department of Justice.

Q    “Blessing” or whatever word you’d want to use.

MR. EARNEST:  The Department of Justice issued guidance like that.  So if there are other states that are contemplating these kinds of steps, you should check with the Department of Justice about that.

Yes, ma’am.

Q    Thank you, Josh.  Yesterday, North Korea military member had announced that North Korea will attack United States, and especially they point to the White House and Canada with using their nuclear missiles.  What is your comment on their threatening like this?

MR. EARNEST:  Well, I have not seen the reports of those specific threats.   I would encourage you to check with my National Security Council colleagues about that.  The United States remains very committed to our alliance with the Republic of Korea, and that alliance allows us to have a strong military-to-military relationship with South Korea to ensure their security.  The United States remains committed as ever to the safety and security of the Republic of Korea.

Q    So you don’t have a strong reaction to them?  Because this is the first time they mentioned the White House and Pentagon specifically.

MR. EARNEST:  Again, I’m not in a position to comment specifically in reaction to those comments because I have not seen them. 

Q    Can I follow on Israel please?

MR. EARNEST:  Let’s move around a little bit.  Zeke. 

Q    Thanks, Josh.  Just with regards to the President’s trip tomorrow, can you give us any reason why is he staying an extra night in your hometown if he’s not doing a fundraiser as you said on Friday?

MR. EARNEST:  At my own personal recommendation.  (Laughter.)  No, look, we’ll have a little bit more about the President’s trip tomorrow.  This will be an opportunity for the President to spend some time in that wonderful community.  He’s going to spend some time talking to individuals who have written him a letter.  You’ve seen on the last couple of trips the President has taken across the country, he’s spent a little extra time in the community to visit with those who have written him letters about the way that individuals in these individual communities are benefiting from some of the policies the President is putting forward and how they could benefit from some of the policies the President is pushing on Congress to implement.  So we’ll have some more detail on that tomorrow.

Q    Tuesday night or Wednesday?

MR. EARNEST:  The President is departing tomorrow.  He’ll remain --

Q    -- the letters segment, when he’s going to visit people, is that going to be --
MR. EARNEST:  I believe he’ll have the opportunity to do that both Tuesday evening, as well as on Wednesday. 

Q    One other real quick, just on Secretary Kerry.  Those leaked conversations or however you want to categorize them, is that jeopardizing the U.S. government’s ability to have candid conversations with the Israeli government?  Or do you envision any sort of lasting impact on sort of the relationship between the Obama administration and the Israeli government as a result of these leaks?

MR. EARNEST:  Well, I think Tony made clear that we were disappointed to read them.  But I do not anticipate that they are going to have much of an impact on the very strong, robust relationship that exists between the United States and our allies in Israel.

Q    And, finally, does Secretary Kerry coming back to the United States and the President conducting that phone call yesterday and the one today, is this a shift -- is the President going to take a more active personal role now that Secretary Kerry’s efforts have at least temporarily failed?  Is the President going to try to use his own convening authority?

MR. EARNEST:  Well, I do anticipate that the President will continue to be in regular touch with Prime Minister Netanyahu.  That has been the case over the last several weeks of this crisis that has been ongoing in Gaza.  And I do anticipate the President will continue to get regularly briefed by his team and will continue to be on the phone with his counterparts in the region who have concerns about the outcome here.  So I do think that the President will continue to be engaged in this. 

In terms of the next steps, those conversations will continue.  But ultimately, as we’ve said in similar circumstances as it relates to situations like this, it’s ultimately the responsibility of the two sides to come together.  What the international community and what the United States can certainly do is use our influence with both sides to press them to come to an agreement that’s in the best interest of their citizens.

As we’ve pointed out many times, we believe that a cease-fire is in the best interest of civilians on both sides of this conflict.  We just need the leaders of both sides to take the kinds of steps that will impose a cease-fire and allow the leaders to sit around the table and try to broker an agreement here.  And that’s what we’re going to continue to be focused on.

Q    But over the last week, Secretary Kerry was the point person in trying to bring those two sides together.  Has that changed this week?  Will the President be trying to bring the two sides to a multilateral agreement together?

MR. EARNEST:  I guess what I would say -- the point that I’m trying to make, Zeke, is that I think there have been a range of officials who have been actively engaged in trying to resolve the situation -- the President, first and foremost among them.  It was, however, the case last week that Secretary Kerry was the most senior U.S. official on the ground in the region trying to roll up his sleeves and broker an agreement between those who were involved in this situation. 

So those efforts will continue, even though Secretary Kerry is not actually in the region.  But if he needs to return, I’m sure that he will not hesitate to hop back on the plane and get back to work.

Chris.

Q    Josh, while you were at the podium, the Supreme Court of Appeals affirmed that Virginia’s ban on same-sex marriage is unconstitutional.  It’s the third federal court appeals ruling and the latest in an unbroken string in rulings against the marriage ban since the Supreme Court ruling against DOMA last year.  Any thoughts on this latest decision and the unanimous string of these decisions against marriage bans?

MR. EARNEST:  Well, Chris, I haven’t -- as you pointed out, the decision was handed down while I was up here, so I have not had an opportunity to talk to anybody on our team who was able to analyze the decision.  But based on the way that you’ve described it, it does sound like the kind of decision that is consistent with the President’s views on this topic.  I think that’s the best I can do. 

All right, guys, we’ll see you tomorrow. 

END
2:04 P.M. EDT

President Obama Awards the 2013 National Medals of Arts and Humanities

Watch on YouTube

This afternoon, the President and the First Lady honored the 2013 National Medals of the Arts and Humanities recipients at the White House. The President told the recipients that their "accomplishments enrich our lives and reveal something about ourselves and our country."

This year's recipients consisted of a diverse array of indidivuals and groups who have done groundbreaking work in the arts and humanities, including architecture, choreography, East Asian Studies, and documentary filmmaking – all of whom have made significant contributions to the human experience.

Related Topics: Inside the White House

The White House

Office of the Press Secretary

President Obama Signs South Dakota Disaster Declaration

The President today declared a major disaster exists in the State of South Dakota and ordered federal aid to supplement state, local, and tribal recovery efforts in the area affected by severe storms, tornadoes, and flooding during the period of June 13-20, 2014.

Federal funding is available to state and eligible tribal and local governments and certain private nonprofit organizations on a cost-sharing basis for emergency work and the repair or replacement of facilities damaged by the severe storms, tornadoes, and flooding in the counties of Butte, Clay, Corson, Dewey, Hanson, Jerauld, Lincoln, Minnehaha, Perkins, Turner, Union, and Ziebach and the Standing Rock Sioux Tribe within Corson County.

Federal funding is also available on a cost-sharing basis for hazard mitigation measures for all counties and Tribes within the state.

W. Craig Fugate, Administrator, Federal Emergency Management Agency (FEMA), Department of Homeland Security, named Gary R. Stanley as the Federal Coordinating Officer for federal recovery operations in the affected area.

FEMA said additional designations may be made at a later date if requested by the state and warranted by the results of further damage assessments.

The White House

Office of the Press Secretary

Presidential Nominations Sent to the Senate

NOMINATIONS SENT TO THE SENATE:

Thomas Frieden, of New York, to be Representative of the United States on the Executive Board of the World Health Organization, vice Nils Maarten Parin Daulaire, resigned.

Perry L. Holloway, of South Carolina, a Career Member of the Senior Foreign Service, Class of Minister-Counselor, to be Ambassador Extraordinary and Plenipotentiary of the United States of America to the Co-operative Republic of Guyana.

Willie E. May, of Maryland, to be Under Secretary of Commerce for Standards and Technology, vice Patrick Gallagher, resigned.      

Therese W. McMillan, of California, to be Federal Transit Administrator, vice Peter M. Rogoff.

Pamela Leora Spratlen, of California, a Career Member of the Senior Foreign Service, Class of Minister-Counselor, to be Ambassador Extraordinary and Plenipotentiary of the United States of America to the Republic of Uzbekistan.

The White House

Office of the Press Secretary

Remarks by the President at the Presentation of the 2013 National Medal of Arts and National Humanities Medal

East Room

3:18 P.M. EDT

THE PRESIDENT:  Hello, everybody.  (Applause.)  Hello!  Hey!  Thank you so much.  Thank you.  Thank you, everybody.  Please have a seat. 

Well, welcome to the White House.  It has been 200 years since Dolley Madison saved the portrait of George Washington that hangs in this room from an advancing British army.  So I guess you could say that the White House has always supported the arts.  (Laughter.)  I’m glad to say that Michelle has never had to save any paintings that I know of from Bo or otherwise.  (Laughter.)  But we do believe in celebrating extraordinarily talented Americans and their achievements in the arts and in the humanities. 

So I want to thank Jane Chu and Bro Adams, the chairs of the National Endowment of the Arts and the National Endowment of the Humanities, for their outstanding work.  And I want to thank members of Congress, including a great champion of the arts, Nancy Pelosi, for joining us this afternoon.  (Applause.)

The late, great Maya Angelou once said, “A bird doesn’t sing because it has an answer, it sings because it has a song.”  Each of the men and women that we honor today has a song -– literally, in some cases.  For others, it’s a talent, or a drive, or a passion that they just had to share with the world.

To our honorees:  Like most creative and brainy people, you did not cultivate your song for accolades or applause.  If there were no medal for your work, I expect you’d still be out there designing buildings and making movies and digging through archives and asking tough questions in interviews.

But we do honor you today -- because your accomplishments have enriched our lives and reveal something about ourselves and about our country.  And we can never take for granted the flash of insight that comes from watching a great documentary or reading a great memoir or novel, or seeing an extraordinary piece of architecture.  We can’t forget the wonder we feel when we stand before an incredible work of art, or the world of memories we find unlocked with a simple movement or a single note.

The moments you help create -– moments of understanding or awe or joy or sorrow -– they add texture to our lives.  They are not incidental to the American experience; they are central to it -- they are essential to it.  So we not only congratulate you this afternoon, we thank you for an extraordinary lifetime of achievement.

I’ll just close by telling a tale of something that took place in this house, back in 1862.  President Lincoln called together a meeting of his Cabinet to present them with the Emancipation Proclamation.  But that was not the first item on his agenda.  This is a little-known story.  Instead, he began reading out loud from a story from the humorist, Artemus Ward.  It was a story called, “High-Handed Outrage at Utica.”  According to one often-repeated account, after he finished a chapter, Lincoln laughed and laughed.  His Cabinet did not.  (Laughter.)  So Lincoln read them another chapter.  (Laughter.)  And they still sat there in stony silence.  Finally, he put the book down, and said, “Gentlemen, why don’t you laugh?  You need this medicine as much as I do.” 

To be clear, I probably will not be trying this in my Cabinet meetings.  (Laughter.)  Certainly not if I’m presenting something like the Emancipation Proclamation.  (Laughter.)  But what Lincoln understood is that the arts and the humanities aren’t just there to be consumed and enjoyed whenever we have a free moment in our lives.  We rely on them constantly.  We need them.  Like medicine, they help us live. 

So, once again, I want to thank tonight’s honorees for creating work that I’m sure would have met President Lincoln’s high standards.  In this complicated world, and in these challenging times, you’ve shared a song with us and enhanced the character of our country, and for that we are extraordinarily grateful.

It is now my privilege to present these medals to each of the recipients after their citation is read. 

So, our outstanding military aides, please.  (Applause.)

MILITARY AIDE:  The National Medal of Arts recipients:

Julia Alvarez.  The 2013 National Medal of Arts to Julia Alvarez -- (applause) -- for her extraordinary storytelling.  In poetry and in prose, Ms. Alvarez explores themes of identity, family and cultural divides.  She illustrates the complexity of navigating two worlds and reveals the human capacity for strength in the face of oppression.  (Applause.)
 
Accepting on behalf of Brooklyn Academy of Music, Karen Brooks Hopkins.  (Applause.)  The 2013 National Medal of Arts to Brooklyn Academy of Music for innovative contributions to the performing and visual arts.  For over 150 years, BAM has showcased the works of both established visionaries and emerging artists who take risks and push boundaries.  (Applause.)
 
Joan Harris.  (Applause.)  The 2013 National Medal of Arts to Joan Harris for supporting creative expression in Chicago and across our country.  Her decades of leadership and generosity have enriched our cultural life and helped countless artists, dancers, singers and musicians bring their talents to center stage.  (Applause.)
 
Bill T. Jones.  (Applause.)  The 2013 National Medal of Arts to Bill T. Jones for his contributions as a dancer and choreographer.  Renowned for provocative performances that blend an eclectic mix of modern and traditional dance, Mr. Jones creates works that challenge us to confront tough subjects and inspire us to greater heights.  (Applause.)
 
John Kander.  (Applause.)  The 2013 National Medal of Arts to John Kander for his contributions as a composer.  For more than half a century, Mr. Kander has enlivened Broadway, television and film through songs that evoke romanticism and wonder, and capture moral dilemmas that persist across generations.  (Applause.)
 
Jeffrey Katzenberg.  (Applause.)  The 2013 National Medal of Arts to Jeffrey Katzenberg for lighting up our screens and opening our hearts through animation and cinema.  Mr. Katzenberg has embraced new technology to develop the art of storytelling and transform the way we experience film.  (Applause.)

Maxine Hong Kingston.  (Applause.)  The 2013 National Medal of Arts to Maxine Hong Kingston for her contributions as a writer.  Her novels and non-fiction have examined how the past influences our present, and her voice has strengthened our understanding of Asian American identity, helping shape our national conversation about culture, gender and race.  (Applause.) 
 
Albert Maysles.  (Applause.)  The 2013 National Medal of Arts to Albert Maysles for rethinking and remaking documentary film in America.  One of the pioneers of direct cinema, he has offered authentic depictions of people and communities across the globe for nearly 60 years.  By capturing raw emotions and representations, his work reflects the unfiltered truths of our shared humanity.  (Applause.) 
 
Linda Ronstadt.  (Applause.)  The 2013 National Medal of Arts to Linda Ronstadt for her one-of-a-kind voice and her decades of remarkable music.  Drawing from a broad range of influences, Ms. Ronstadt defied expectations to conquer American radio waves and help pave the way for generations of women artists.  (Applause.) 
 
Billie Tsien and Tod Williams.  (Applause.)  The 2013 National Medal of Arts to Billie Tsien and Tod Williams for their contributions to architecture and arts education.  Whether public or private, their deliberate and inspired designs have a profound effect on the lives of those who interact with them, and their teaching and spirit of service have inspired young people to pursue their passions.  (Applause.) 
 
James Turrell.  (Applause.)  The 2013 National Medal of Arts to James Turrell for his groundbreaking visual art.  Capturing the powers of light and space, Mr. Turrell builds experiences that force us to question reality, challenging our perceptions not only of art, but also of the world around us.  (Applause.) 

National Humanities Medal Recipients:
 
M. H. Abrams.  (Applause.)  The 2013 National Humanities Medal to M. H. Abrams for broadening the study of literature.  As a scholar, writer and critic, Dr. Abrams has expanded our perception of the romantic tradition and explored the modern concept of artistic self-expression in Western culture, influencing and inspiring generations of students.  (Applause.)
 
Accepting on behalf of American Antiquarian Society, Ellen Dunlap.  (Applause.)  The 2013 National Humanities Medal to American Antiquarian Society for safeguarding the American story. For more than two centuries, the Society has amassed an unparalleled collection of historic American documents, served as a research center for scholars and students alike, and connected generations of Americans to their cultural heritage.  (Applause.)

David Brion Davis.  (Applause.)  The 2013 National Humanities Medal to David Brion Davis for reshaping our understanding of history.  Dr. Davis has shed light on the contradiction of a Union founded on liberty, yet existing half-slave and half-free.  And his examinations of slavery and abolitionism drive us to keep making moral progress in our time.  (Applause.)

William Theodore de Bary.  (Applause.)  The 2013 National Humanities Medal to William Theodore De Bary for enlightening our view of the world.  As a scholar of East Asian Studies, Dr. de Bary has fostered a global conversation based on the common values and experiences shared by all cultures, helping to bridge differences and build trust.  (Applause.)

Darlene Clark Hine.  (Applause.)  The 2013 National Humanities Medal to Darlene Clark Hine for enriching our understanding of the African American experience.  Through prolific scholarship and leadership, Dr. Hine has examined race, class and gender, and has shown how the struggles and successes of African American women have shaped the nation we are today.  (Applause.)

John Paul Jones.  (Applause.)  The 2013 National Humanities Medal to John Paul Jones for honoring nature and indigenous traditions in architecture.  As the creative mind behind diverse and cherished institutions around the world, Mr. Jones has designed spaces worthy of the cultures they reflect, the communities they serve, and the environments they inhabit.  (Applause.)

Stanley Nelson.  (Applause.)  The 2013 National Humanities Medal to Stanley Nelson for documenting the stories of African Americans through film.  By using his camera to tell both well-known and lesser-known narratives, Mr. Nelson has exposed injustices and highlighted triumphs, revealing new depths of our nation’s history.  (Applause.) 

Diane Rehm.  (Applause.)  The 2013 National Humanities Medal to Diane Rehm for illuminating the people and stories behind the headlines.  In probing interviews with everyone from pundits to poets to Presidents, Ms. Rehm’s keen insights and boundless curiosity have deepened our understanding of our culture and ourselves.  (Applause.)

Anne Firor Scott.  (Applause.)  The 2013 National Humanities Medal to Anne Firor Scott for pioneering the study of women in the American South.  Dr. Scott’s exploration of the previously unexamined lives of Southern women of different races, classes and political ideologies has established women’s history as vital to our conception of Southern history.  (Applause.) 

Krista Tippett.  (Applause.)  The 2013 National Humanities Medal to Krista Tippett for thoughtfully delving into the mysteries of human existence.  On the air and in print, Ms. Tippett avoids easy answers, embracing complexity and inviting people of every background to join her conversation about faith, ethics and moral wisdom.  (Applause.)

THE PRESIDENT:  I think now is a good time for everybody to stand up and give these outstanding winners -- or recipients a big round of applause.  (Applause.) 

So congratulations to all of you.  We could not be more appreciative of everything you’ve done.  I was mentioning, as people were coming up, I’ve been personally touched by all sorts of these folks.  I was mentioning to Maxine that when I was first writing my first book and trying to teach myself how to write, “The Woman Warrior” was one of the books I read.  After the book was done, Diane was one of the few interviews that was granted.  (Laughter.)  I told Linda Ronstadt I had a little crush on her back in the day.  (Laughter.)  And I know all of you have been touched similarly by these amazing people.

So we are very grateful to you.  On behalf of Michelle and myself, as we’re taking pictures with the recipients and their families, please continue to enjoy the reception here. 

Thank you very much, everybody.  (Applause.) 

END  
3:43 P.M. EDT

Empowering Africa's Next Generation of Leaders

President Barack Obama delivers remarks and answers questions at the Young African Leaders Initiative town hall

President Barack Obama delivers remarks and answers questions at the Young African Leaders Initiative town hall in Washington, D.C., July 28, 2014. (Official White House Photo by Chuck Kennedy)

President Obama’s town hall today with 500 of Africa’s most promising young leaders provided an inspiring window into what the future holds for Africa, and the world.

The 500 participants in the Washington Fellowship program were selected from nearly 50,000 applicants from across Africa, as part of the President’s Young African Leaders Initiative (YALI). YALI was launched by President Obama in 2010, as part of a long-term investment in the next generation of African leaders. It aims to sharpen their skills, to improve their networks, and to strengthen partnerships between the United States and Africa for years to come.

The President announced during the town hall that the Washington Fellowship was being renamed as the Mandela Washington Fellowship for Young African Leaders, in honor of the former South African President, Nelson Mandela. Mandela Washington Fellows represent the best and brightest from communities across Africa, and fields ranging from education, medicine, law, business, and beyond. These are the young leaders whose skills, passion, and visions for the future, will help shape the fate of their countries and the world. It is in everyone’s best interest to help them prepare with the tools they need to build a healthier, more secure, more prosperous, and more peaceful Africa, which is why President Obama launched YALI in the first place. 

Valerie B. Jarrett is Senior Advisor and Assistant to the President for Intergovernmental Affairs and Public Engagement.
Related Topics: Sub Saharan Africa

Boosting Our Global Competitiveness: It’s Time to Invest in America’s Roads, Rails, and Bridges

When it comes to investing in our infrastructure, the President’s message has been loud and clear: We must upgrade our roads and rails and bridges to grow our economy and create good American jobs. Over the last five decades, U.S. investments in transportation have fallen by nearly 50 percent as a percentage of GDP. So it is not surprising that in the most recent World Economic Forum rankings, the U.S. has fallen from 7th to 18th overall in the quality of our roads in less than a decade.

Earlier this month, we released a report that shows our transportation infrastructure system is in dire need of investment. The data tells an important story: 65 percent of America’s major roads are rated in less than good condition; one in four bridges require significant repair or cannot handle today’s traffic; and 45 percent of Americans lack access to transit.

We know what we need to do – and there are two compelling reasons for doing it right now. First, our global competiveness is directly linked to the strength of our infrastructure – investing in it can serve as a clear source of competitive advantage. Second, these investments will create jobs, help American businesses, and grow our economy. The President has put forth a long-term proposal that would make these investments and pay for them by closing unfair tax loopholes and making commonsense reforms to our business tax system. The President’s GROW AMERICA Act would support millions of jobs and position our economy for lasting growth. 

Jeffrey Zients is Director of the National Economic Council and Assistant to the President for Economic Policy.
Related Topics: Jobs, Economy

The White House

Office of the Press Secretary

President Obama Announces Presidential Delegation to the Kingdom of Belgium to Attend the World War I Centennial Commemoration

President Barack Obama today announced the designation of a Presidential Delegation to the Kingdom of Belgium to attend the World War I Centennial Commemoration in Liege on August 4, 2014.

The Honorable John M. McHugh, Secretary of the Army, will lead the delegation.

Members of the Presidential Delegation:

The Honorable Denise Campbell Bauer, U.S. Ambassador to the Kingdom of Belgium, U.S. Department of State

General Philip M. Breedlove, Commander, U.S. European Command and NATO Supreme Allied Commander Europe

Major General Alfred A. Valenzuela, USA (Ret), Member, World War I Centennial Commission

The White House

Office of the Press Secretary

Remarks by the President in Town Hall with the Washington Fellowship for Young African Leaders

Omni Shoreham Hotel
Washington, D.C.

11:10 A.M. EDT

THE PRESIDENT:  Hello, everybody!  (Applause.)  Hello, everybody.  Thank you.  (Applause.) Thank you so much.  Everybody, please have a seat.  Have a seat.  We're just getting started here.  Well, hello, everybody.  (Applause.)  Welcome to Washington.  I know most of you are visiting our country for the first time.  So on behalf of the American people, welcome to the United States of America.  (Applause.)  We are thrilled to have you here.  And to everybody who’s watching online across Africa, or at watch parties, or following through social media -- you are a part of this, too, and we’re very glad that you’re with us. 

And can everybody please give Faith a big round of applause for the great introduction.  (Applause.)  I have to say Faith didn’t seem very intimidated by the -- (applause) -- she seemed not lacking in confidence.  (Laughter.)  And she’s doing great work in South Africa to empower young people and young entrepreneurs, especially women. 

Now, I’m not here to give a big speech.  The whole idea of a town hall is for me to be able to hear from you.  But first, I want to speak briefly about why I believe so strongly in all of you being here today.

Next week, I’ll host a truly historic event -- the U.S.-Africa Leaders Summit, where nearly 50 Presidents and Prime Ministers attend from just about all of your countries.  It will be the largest gathering any American President has ever hosted with African heads of state and government.  And the summit reflects a principle that has guided my approach to Africa ever since I became President -- that the security and prosperity and justice that we seek in the world cannot be achieved without a strong and prosperous and self-reliant Africa. 

And even as we deal with crises and challenges in other parts of the world that often dominate our headlines, even as we acknowledge the real hardships that so many Africans face every day, we have to make sure that we’re seizing the extraordinary potential of today’s Africa, which is the youngest and fastest-growing of the continents.  

So next week’s summit will focus on how we can continue to build a new model of partnership between America and Africa -- a partnership of equals that focuses on your capacity to expand opportunity and strengthen democracy and promote security and peace.  But this can’t be achieved by government alone.  It demands the active engagement of citizens, especially young people.   

And so that’s why, four years ago, I launched the Young African Leaders Initiative to make sure that we’re tapping into the incredible talent and creativity of young Africans like you. (Applause.)  Since then, we’ve partnered with thousands of young people across the continent -- empowering them with the skills and the training and technology they need to start new businesses, to spark change in their communities, to promote education and health care and good governance. 

And last year in South Africa, at a town hall like this in Soweto -- some of you were there -— I announced the next step, which was the Washington Fellowship for Young African Leaders.  The objective was to give young Africans the opportunity to come to the United States and develop their skills as the next generation of leaders in civil society and business and government. 

And the response was overwhelming.  Across the continent, young men and women set out on a journey.  In remote villages with no phones and Internet, they navigated the back roads, and they traveled by bus and train to reach larger towns and cities
-— just to get an online application for the program.  One young woman from rural Zimbabwe took a five-hour bus ride, then another six-hour bus ride, then another seven-hour bus ride -- a two-day journey -— just to get her interview. 

And ultimately, some 50,000 extraordinary young Africans applied.  And today they’re at the heart of what we’re calling our YALI Network, the online community across Africa that’s sharing their ideas and forging new collaborations to realize the change that they seek.  And I want everybody out there in the YALI Network to know that you’re the foundation of our partnership with Africa’s youth. 

So today, we’re thrilled to welcome you, our Washington Fellows, to an exchange program unlike any other that America has ever had with Africa.  And among your ranks is that young woman from Zimbabwe who endured all those bus rides.  So we want to welcome Abbigal Muleya.  (Applause.)  Where’s Abbigal?  Where’s Abbigal?  Where is she?  There’s Abbigal.  (Applause.)  That's a lot of bus rides.  (Laughter.)   

Now, I do have a first item of business.  As I said, I launched this fellowship in Soweto, not far from the original home of Nelson Mandela.  And the spirit of this program reflects Madiba’s optimism, his idealism, his belief in what he called “the endless heroism of youth.”  And so today, with the blessing of the Mandela family, to whom we’re so grateful, we are proud to announce that the new name of this program is the Mandela Washington Fellowship for Young African Leaders.  (Applause.)  So you’re the first class of Mandela Washington Fellows.  (Applause.)

Now, I know all of you have been busy -- all of you have been busy at some of America’s top colleges and universities.  You’ve been learning how to build a grassroots organization, and how to run a business, and how to manage an institution.  As one of you said, “My brain has been bubbling with all sorts of ideas.”  And I know you’ve also been developing your own ideas for meeting the challenges that we’ll address at next week’s summit.  And I wanted you to know I’ve read some of the recommendations that were produced at each university and college, and I thought they were outstanding pieces of work.  And that’s what I want you to hear today -— your ideas, your vision for Africa.

Here at this summit, you’re going to engage with some of our nation’s leading voices, including someone who I know you can’t wait to see, which is Michelle Obama, because -- (applause.)   But many members of Congress, who are strong supporters of this program, are also here.  Where are the members of Congress?  I know that we’ve got a few.  There you are.  (Applause.)  So some outstanding members of Congress are here.  You’ll get a chance to meet some of them.  And I know some of you are headed off to internships in some of our nation’s leading companies and organizations.  One of you said, “I will take what I’ve learned here and put it into practice back home.”  And that’s the whole idea.

And I want to say, by the way -- I took some pictures with some of the university officials who had hosted all of you, and uniformly they said they could not have been more impressed with all of you, and what a great job you did in engaging and taking advantage of the program.  So, thank you.  (Applause.)

I know you’ve also been experiencing America as well, the places that make us who we are, including my hometown of Chicago. (Applause.)  You’ve experienced some of our traditions, like a block party.  (Laughter.)  You’ve experienced some of our food -- Faith said she ate a lot of Texas barbeque when she was in Austin. 

AUDIENCE MEMBERS:  Wooo!

THE PRESIDENT:  You really liked that barbeque, huh?  (Laughter.)  So you got the whole Longhorn thing going on and all that?  (Laughter.)   

And Americans have been learning from you as well, because every interaction is a chance for Americans to see the Africa that so often is overlooked in the media -- the Africa that is innovative and growing and dynamic.  And a new generation, all of you, on Facebook and Twitter, and creating new ways to connect -- like Yookos and MXit.  I see some of you tweeting this town hall -- (laughter) -- although mostly I see these guys shifting into the seat over and over again so everybody can get a picture.  (Laughter.)  Don’t think I didn’t notice.  (Laughter.)  You all just -- you need to stay in your chairs.  (Laughter.)  Everybody thinks they’re slick.  (Applause.)   

So the point is, our young leaders -- our Young African Leaders initiative is a long-term investment in all of you and in Africa and the future that we can build together.  And today, I want to announce some next steps that I think are important. 

First, given the extraordinary demand for this fellows program, we’re going to double it so that in two years, we’ll welcome a thousand Mandela Washington fellows to the United States every year.  (Applause.)  So that’s good news. 

Second, we’ll do even more to support young entrepreneurs with new grants to help you start a business or a nonprofit, and training thousands of aspiring entrepreneurs in smaller towns and rural areas.  And given the success for our annual Global Entrepreneurship Summit, I can announce that next year’s summit will be hosted for the first time in Sub-Saharan Africa, which I think is going to be terrific.  (Applause.) 

Third, we’re launching a whole new set of tools to empower young African through our YALI network -- new online courses and mentoring, new ways to meet up and network across Africa and around the world, new training sessions and meetings with experts on how to launch startups.  And it all begins today.  And to get started, all you have to do is to go to Yali.state.gov -- Yali.state.gov -- and that will give you information about how you can access all these resources going forward.

And finally, we’re creating new regional leadership centers across Africa.  So we’re joining with American universities, African institutions, and private sector partners like Microsoft and MasterCard Foundation -- we want to thank the two of them; they’re really helping to finance this.  So give Microsoft and MasterCard Foundation a round of applause.  (Applause.)  Starting next year, young Africans can come to these centers to network and access the latest technology, and get training in management and entrepreneurship.  And we’re starting in Senegal, Ghana, South Africa and Kenya.  (Applause.)  And we aim to help tens of thousands of young Africans access the skills and resources they need to put their ideas into action.

So the point of all of this is we believe in you.  I believe in you.  I believe in every one of you who are doing just extraordinary things -- like Adepeuju Jaiyeoba.  (Applause.)  In Nigeria -- there’s Adepeuju.  In Nigeria, she saw a close friend die during childbirth.  She now helps train birth attendants, and delivers kits with sterile supplies, and helping to save the lives of countless mothers and their babies.  So we want to thank Adepeuju.  (Applause.)  We want her to save even more lives. 

Or, to give you another example, Robert Nkwangu from Uganda. (Applause.)  There’s Robert.  So Robert is deaf, but even though he can’t hear, he can see that the stigma and discrimination against people with disabilities must end.  (Applause.)  He’s been their champion.  He’s standing up for the rights in schools and on the job.  (Applause.)  So thank you, Robert.  We want to be your partner in standing up for the universal rights of all people.

I believe in Mame Bousso Ndiaye.  (Applause.)  So in Senegal, she’s taking a stand against the human trafficking that condemns too many women and girls to forced labor and sexual slavery.  She runs an academy that gives them education and skills to find a job and start new lives.  And so, we are so proud of you.  Thank you for the good work that you’re doing.  (Applause.)  We want to help you help these young women and girls to the kind of future of dignity that we want for every woman all across the continent and all around the world. 

And I believe in Hastings Mkandawire.  Where’s Hastings?  (Applause.)  In rural Malawi, he saw towns in darkness, without electricity.  So now he gathers scrap metal, builds generators on his porch, takes them down to the stream for power, delivers electricity so farmers can irrigate their crops and children can study at night.  Hastings, thank you.  (Applause.)  We want to help you power Africa.  (Applause.) 

And everybody here has a story, and we believe in all of you.  We see what’s possible.  And we see the vision that all of you have -- not because of what you’ve seen here in America, but because what you’ve already done back home, what you see in each other and what you see in yourself. 

Sobel Ngom, from Senegal.  (Applause.)  Sobel has a wonderful quote.  He has a wonderful quote.  He said, “Here, I have met Africa, the [Africa] I have always believed in.  She’s beautiful.  She’s young.  She’s full of talent and motivation and ambition.”  And that’s a good description.  (Applause.)  And being here with all of you, and learning together and working together and dreaming together has only strengthened his determination, he says, to realize “my aspirations for my country and my continent.”   

So to Sobel and to all of you, and to everyone across Africa who joins our Young Leaders Initiative, I want to thank you for inspiring us with your talent and your motivation and your ambition.  You’ve got great aspirations for your countries and your continent.  And as you build that brighter future that you imagine, I want to make sure that the United States of America is going to be your friend and partner every step of the way. 

So thank you very much, everybody.  Let’s get a few questions and comments in this town hall.  (Applause.) 

So, okay, I know this is kind of a rowdy crowd.  (Laughter.) First of all, I want everybody to sit down.  Sit down.  Now, I’m not going to be able to call on everybody, so just a couple of rules.  Number one, don’t start standing up and waving or shouting.  Just raise your hand and I will try to select from the audience, and I’ll try to take as many questions as possible.  So let’s keep the questions -- or comments relatively brief, and I will try to give a brief answer -- although if you ask me what are we going to do about ending war, then that may require a longer answer.  So we’ll see how it goes.  So that’s rule number one.

Rule number two, we should have microphones in the audience, and so wait -- when I call on you, wait until the microphone comes.  The attendant will hold it in front of you.  You can answer.  Please introduce yourself, tell us what country you’re from, and ask your question or make your remark.  Number two, just to make sure it’s fair, we’re going to go boy, girl, boy, girl.  (Laughter.)  In fact, you know what -- in fact, we’re going to go girl, boy, girl, boy.  (Laughter.)  That’s what we’re going to do.  Because one of the things we want to teach about Africa is how strong the women are and how we’ve got to empower women.  (Applause.) 
 
All right?  So let’s see who we’re going to call on first.  This young lady right here.  Right here.  So wait until the mic is there.  Here, there’s somebody right behind you who’s got the microphone.  Introduce yourself and -- welcome.
 
Q    Thank you, Mr. President.  I’m from South Africa.  And my question is, previously Nelson Mandela had inspired the foundation of the South Africa Fund for Enterprises.  It has run for two decades, and it has since been stopped.  Is there any chance to develop another fund for enterprises in Africa?

THE PRESIDENT:  Well, it’s a great question.  One of the things that’s been interesting in not only some of the platforms that you developed at your universities, but also during my trips to Africa is the degree to which young Africans are less interested in aid and more interested in how can they create opportunity through business and entrepreneurship and trade.  Not to say that we do not need to deal with very serious challenges in terms of poverty.  We need to make sure that we are continuing to work on behalf of the least of these.  But what I think everybody recognizes is that if you want sustained development and sustained opportunity and sustained self-determination, then the key is to own what is produced, and to be able to create jobs and opportunity organically and indigenously, and then be able to meet the world on equal terms.
 
So part of the challenge in entrepreneurship is financing.  And for so many individuals across the continent, it’s just very difficult to get that initial startup money.  And the truth is, is that in many communities around Africa it’s not that you need so much, but you need something, that little seed capital.
 
And so what we’d like to do is to work with programs that are already existing, to find out where are the gaps in terms of financing, and then to make sure that we are utilizing the resources that we have in the most intelligent way possible to target young entrepreneurs to create small- and medium-sized businesses all across the continent that hopefully grow into large businesses.  And if we’re supplementing that kind of financing with the training and networking that may be available through YALI, then we could see the blossoming of all kinds of entrepreneurial activities all across the continent that eventually grow into larger businesses.

And so we are very interested in this.  This will be a primary focus of the summit that we have with the African leaders next week -- how do we make sure that financing is available, and, by the way, how do we make sure that the financing does not just go to those who are already at the top; how do we make sure that it filters down.  You shouldn’t have to be the son of somebody or the daughter of somebody -- (applause) -- you should be able to get -- if you’ve got a good idea, you should be able to test that idea and be judged on your own merits.

And that's where I think we can help bypass what oftentimes is in, sadly, too many countries a system in which you have to know somebody in order to be able to finance your ideas.

One thing I do want to say, though -- keep in mind, even in the United States, if you're starting a business, it's always hard getting financing.  So there are a lot of U.S. entrepreneurs and small business people, when they’re starting off, they’re borrowing from their brothers and their sisters, and begging and scratching and taking credit cards and they’re running up debt.  Inherently, there is risk involved.  And so I don't want to give you anybody the illusion who is out there starting a business or wanting to launch a business that it's going to be easy.  It will not be.

But there are ways where we can make a difference.  And oftentimes, particularly in rural areas of Africa, you don't need a lot of capital to get started, right?  So you may be able -- if you buy one piece of equipment that can increase yields for a whole bunch of farmers in that community, and then the additional profits that they make now allows you to buy two pieces of equipment, and then four, and then eight, you can grow fairly rapidly because the baseline of capital in that community may be relatively low.  So you don't necessarily have huge barriers of entry.  You just have to make sure that you have that initial capital.

But of course, in communities like that, even a small amount of capital can be hard to come by.  And that's why making sure that this is a top priority of our efforts is something that we'll really emphasize.  Okay?

All right, let’s see -- it's a gentleman’s turn.  I'm going to call on this guy just because he’s so tall.  (Laughter.)  I always like -- I like height.  (Laughter.)  There you go.  All right, go ahead.

Q    Thank you, Mr. President.  I'm from Senegal.  President Obama is the first President of the United States of Africa.  (Applause.)  I would like to know can you share the two important issues you will discuss as the first President of the United Nation of Africa?

THE PRESIDENT:  I'm sorry, I'm the first African American President of the United States.  I wasn’t sure of -- heads of state?  What are the top two issues that I'm going to be discussing when we're in the summit tomorrow?

Q    If Africa becomes the United States of Africa --

THE PRESIDENT:  Oh, I see.

Q    -- and you get the chance to meet the first president.

THE PRESIDENT:  I see, okay.  All right, so this is sort of like a -- it's kind of an intellectual exercise.  If I were to discuss -- no, no, now I understand your question.

Q    It's clear?

THE PRESIDENT:  It’s an interesting question.  The idea is if somehow Africa unified into a United States of Africa, what would be something that I would say to him or her --

Q    Yes.  (Laughter.) 

THE PRESIDENT:  You know, I think the thing that I would emphasize first and foremost is the issue of governance.  Now, sometimes this is an issue that raises some sensitivities because I think people feel like who’s the United States to tell us how to govern.  We have different systems.  We have different traditions.  What may work for the United States may not work for us.  Oh, and by the way, the United States, we don't see that Congress is always cooperating so well and your system is not perfect. 

I understand all that.  So let’s acknowledge all that.  What I will say is this, that regardless of the resources a country possesses, regardless of how talented the people are, if you do not have a basic system of rule of law, of respect for civil rights and human rights, if you do not give people a credible, legitimate way to work through the political process to express their aspirations, if you don't respect basic freedom of speech and freedom of assembly, if there are not laws in place in which everybody is equal under the law so that there’s not one set of rules for the well-connected and another set of rules for ordinary people, if you do not have an economic system that is transparent and accountable so that people trust that if they work hard they will be rewarded for their work and corruption is rooted out -- if you don't have those basic mechanisms, it is very rare for a country to succeed.

I will go further than that:  That country will not succeed over the long term.  It may succeed over the short term because it may have natural resources that it can extract, and it can generate enough money to then distribute and create patronage networks.  But over time, that country will decline. 

And if you look at examples around the world, you’ll have a country like Singapore which has nothing -- it’s a small, tiny, city-state with not a lot of -- it has no real natural resources, and yet it’s taken off.  And you have other countries, which I won’t mention -- (laughter) -- that have incredible resources, but because there’s not a basic system of rule of law that people have confidence in, it never takes off and businesses never take root.

And so what I would emphasize is governance as a starting point.  It’s not alone sufficient.  You then also have to have over time infrastructure.  And you also have to have an education system that's in place.  And there are all kinds of other elements that are necessary.  But if you don't have the basic premise that ordinary citizens can succeed based on their individual efforts, that they don't have to pay a bribe in order to start a business or even get a telephone, that they won’t be shaken down when they're driving down the street because the police officers aren’t getting paid enough, and this is the accepted way to supplement their income -- if you don't have those things in place, then over time there’s no trust in the society.  People don't have confidence that things are working the way that they should.  And so then everybody starts trying to figure out, okay, what’s my angle?  How am I going to get my thing?  And it creates a culture in which you can’t really take off. 

Look, you’re never going to eliminate 100 percent of corruption.  Here in the United States, occasionally we have to throw people in jail for taking money for contracts or having done favors for politicians.  All that’s true.  But the difference here in the United States -- and it’s true in many of the more developed, industrialized countries -- is that’s more the aberration rather than the norm.

I mean, the truth is here in the United States, if you want to start a business, you go ahead and you file papers, you can incorporate.  You might have to pay a fee of $50 or $100 or whatever it ends up being, and that’s it.  You’ve got your business.  Now, the business might not be making any money at that point, you still got to do a whole bunch of stuff to succeed -- but the point is, is that basically rule of law is observed.  That’s the norm.  That’s what happens 95 percent of the time. 

And that’s I think where you have to start.  And that’s where young people I think have to have high expectations for their leadership.  And don’t be fooled by this notion that, well, we have a different way, an African way.  Well, no.  (Laughter.) The African way is not that you suddenly have a -- you’ve been in office and then, suddenly, you have a Swiss bank account of $2 billion.  That’s not the African way.  (Applause.) 

And part of rule of law, by the way, is also that leaders eventually give up power over time.  It doesn’t have to be the same way all the time.  But if you have entrenched leadership forever, then what happens over time is it just -- you don’t get new ideas and new blood.  And it is inevitable I think sometimes that rule of law becomes less and less observed because people start being more concerned, about keeping their positions than doing the right thing. 

Okay, great question, even though it took me a while to understand it.  (Laughter.)

So it’s a young lady’s turn.  Let me make sure that I’m not restricting myself to -- how about that young lady right there.  Yes, you.  (Laughter.)  Hold on a second, the microphone is coming.

Q    Good morning, Mr. President.  I’m from Botswana.  I just wanted to find out how committed is the U.S. to assisting Africa in closing gender inequalities, which are contributing to gender-based violence, which it threatens the achievement of many Millennium Development goals, such as access to universal education, eradicating HIV and AIDS.

THE PRESIDENT:  Well, listen, you will not find anybody more committed than I am to this issue, and let me tell you why. 

First of all, I was mentioning earlier, if you look comparatively at countries around the world, what societies succeed, which ones don’t, one of the single-best measures of whether a country succeeds or not is how it treats its women.  (Applause.)  And if you think about it, it makes sense, because, first of all, women are half your population.  So if you have a team -- we just finished the World Cup, right -- if you have a soccer team -- what you all call a football team -- and you go out and the other side has a full team and you send out half your team, how are you going to do?  You will not do as well.

If you are not empowering half of your population that means you have half as few possible scientists, half as few possible engineers.  You are crippling your own development unnecessarily. So that’s point number one.

Point number two is if you educate and empower and respect a mother, then you are educating the children, right?  So with a man, you educate him, yeah, it’s okay.  (Laughter.)  A woman, you educate her, and suddenly you’ve got an entire village, an entire region, an entire country suddenly is becoming educated. 

So this is an absolute priority for us.  And we’ll be discussing this with the heads of state and government that we see next week.  And we’ve seen some progress on some fronts, but this is where sometimes traditions can get in the way. 

And as many of you know, my father was from Kenya, and -- (applause) -- that’s the Kenyan contingent.  (Laughter.)  But I think what applies to Kenya is true and applies to many of the countries in Africa -- and this is not unique to Africa, we see this in other parts of the world -- some of the old ways of gender relations might have made sense in a particular setting.  So in Kenya, for example, in the Luo tribe, polygamy existed.  It was based on the idea that women had their own compounds, they had their own land, and so they were empowered in that area to be self-sufficient.  And then urbanization happened; suddenly the men may be traveling to the city and suddenly there is another family in the city and the women who were left back in the villages may not be empowered in the same way.  So what worked then might not work today -- in fact, does not work today.  And if you seek to -- if you try to duplicate traditions that were based on an entirely different economy and an entirely different society and entirely different expectations, well, that’s going to break down.  It’s not going to work. 

So as a continent, you have to update and create new traditions.  And that’s where young people come in.  You don’t have to accept what’s the old ways of doing things.  You can respect the past and respect traditions while while recognizing they have to be adapted to a new age. 

Now, I have to say there are some traditions that just have to be gotten rid of and there’s no excuse for them.  Female genital mutilation -- I’m sorry, I don’t consider that a tradition worth hanging on to.  (Applause.)  I think that’s a tradition that is barbaric and should be eliminated.  Violence towards women -- I don’t care for that tradition.  I’m not interested in it.  It needs to be eliminated.  (Applause.)

So part of the task is to find what traditions are worth hanging on to and what traditions you got to get rid of.  I mean, there was a tradition in medicine that if you were sick, they would bleed you.  That’s a bad tradition.  And we discovered, let’s try other things -- like medicine.  (Laughter.)  So we don’t have to cling on to things that just don’t work.  And subjugating women does not work, and the society will fail as a consequence.  (Applause.)

So everything we do, every program that we have -- any education program that we have, any health program that we have, any small business or economic development program that we have, we will write into it a gender equality component to it.  This is not just going to be some side note.  This will be part of everything that we do.
 
And the last point I’m going to make -- in order for this to be successful, all the men here have to be just as committed to empowering women as the women are.  (Applause.)  That’s important.  So don’t think that this is just a job for women, to worry about women’s issues.  The men have to worry about it.  And if you’re a strong man, you should not feel threatened by strong women.  (Applause.)
 
All right.  So we’ve got gentleman’s turn.  This gentleman in this bright tie right here.  Go ahead.

Q    Thank you, Your Excellency.  I’m coming from Kenya.

THE PRESIDENT:  Hey, habari?

Q    Mzuri sana.  (Applause.)  Asante sana (Swahili) opportunity.

Africa is losing her people to starvation and diseases, which are otherwise curable.  And this is largely because our governments are establishing very huge debts to the G8 countries. As a global leader in the family of nations, when will the U.S. lead the other G8 countries in forgiving Africa these debts so that our governments can be in a position to deliver and provide essential services, like social, health care, and the infrastructural development services to our people?  (Applause.) Thank you.

THE PRESIDENT:  Thank you.  Well, let me make a couple of points on this.  First of all, I think it’s important to recognize on issues of health the significant progress that has been made -- because I think sometimes we are so properly focused on the challenges that we forget to remind ourselves how far we’ve come. And when you know how far you’ve come, it gives you confidence about how much further you can go.
 
So over the last 20 years, HIV occurrence has been cut in half in Africa -- half.  Tuberculosis and malaria deaths have been reduced by 40 percent and 30 percent respectively; 50 percent fewer women die giving birth; 50 million children’s lives have been spared.  And most importantly, now what we’re doing is not just providing assistance through programs like PEPFAR, but we’re also empowering governments themselves to begin to set up public health infrastructure and networks, and training nurses and clinicians and specialists so that it becomes self-sufficient.  So we’re making progress.

Now, I think there is a legitimate discussion to be had around debt forgiveness.  And in meetings with what now is the G7, I just want to let you know -- (laughter) -- but that's a whole other topic that -- (laughter) -- we don't want to get too far afield -- I think there’s genuine openness to how can we help make sure that countries are not saddled with debts that may have been squandered by past leaders, but now hamstrung countries -- are making countries unable to get out from under the yoke of those debts.

The only thing I will do, though, is I will challenge the notion that the primary reason that there’s been a failure of service delivery is because of onerous debt imposed by the West. Let me say something that may be somewhat controversial.  And I’m older than all of you -- that I know.  (Laughter.)  By definition, if you’re my age you’re not supposed to be in this program.  (Laughter.)  You lied about your age.  (Laughter.)  When I was a college student, issues of dependency and terms of trade and the legacy of colonialism, those were all topics of great, fervent discussion.  And there is no doubt that, dating back to the colonial era, you can trace many of the problems that have plagued the continent -- whether it’s how lines were drawn without regard to natural boundaries and tribal and ethnic relationships; whether you look at all the resources that were extracted and the wealth that was extracted without any real return to the nature of trade as it developed in the ‘60s and the ‘70s, so that value was never actually produced in country, but was sent somewhere else.  There are all kinds of legitimate arguments you can look at in terms of history that impeded African development. 

But at some point, we have to stop looking somewhere else for solutions, and you have to start looking for solutions, internally.  And as powerful as history is and you need to know that history, at some point, you have to look to the future and say, okay, we didn't get a good deal then, but let’s make sure that we’re not making excuses for not going forward. 

And the truth is, is that there’s not a single country in Africa -- and by the way, this is true for the United States as well -- that with the resources it had could not be doing better. So there are a lot of countries that are generating a lot of wealth.  I’m not going to name any, but you can guess.  This is a well-educated crowd.  There are a lot of countries that are generating a lot of income, have a lot of natural resources, but aren’t putting that money back into villages to educate children. There are a lot of countries where the leaders have a lot of resources, but the money is not going back to provide health clinics for young mothers.

So, yes, I think it’s important for Western countries and advanced countries to look at past practices -- if loans have been made to countries that weren’t put into productive enterprises by those leaders at that time, those leaders may be long gone but countries are still unable to dig themselves out from under those debts -- can we strategically in pin-point fashion find ways to assist and provide some relief.  That’s a legitimate discussion.  But do not think that that is the main impediment at this point to why we have not seen greater progress in many countries, because there’s enough resources there in-country, even if debts are being serviced, to do better than we’re doing in many cases. 

Okay, so it’s a young lady’s turn.  I haven’t gotten anybody way back in the back there.  So how about that young lady right there with the glasses. 

Q    Thank you, Mr. President.  My name is Zu (ph). 

THE PRESIDENT:  Zu? (ph).  I like that name.

Q    Yes, from Madagascar.

THE PRESIDENT:  From?

Q    Madagascar. 

THE PRESIDENT:  Madagascar. 

Q    It’s a great honor for me, Mr. President, to thank you on behalf of the Malagasy people to reintegrate Madagascar last month in the AGOA.  And my question is, at it will end on 2015, we want to have your confirmation right here what will happen after 2015.  We all know that the AGOA was a great way to decrease youth unemployment in our country, so what will happen after this, the end?  Thank you, Mr. President.

THE PRESIDENT:  So AGOA, for those of you -- I think everybody here is probably aware -- this is one of the primary tools we have to promote trade between the United States and many African countries.  It’s set to expire.  There’s a negotiation process taking place as we speak.  More progress will be made next week.  I think that we’ve learned some lessons about what works and what doesn’t through the first stage of AGOA.  In some cases, what we’ve discovered is, is that many countries can’t -- even if they have no tariff barriers that they’re experiencing, they still have problems in terms of getting their goods to market.  And so part of what we’re trying to do is to find ways in which we can lower some of the other barriers to export for African countries -- not just the tariffs issue, but how can we make sure that there is greater transportation networks; how can we make sure that trade financing is in place; what are the other mechanisms that may inhibit exports from African countries.  So that’s the first thing.

On a separate track, part of what we’re also trying to figure out is how can we promote inter-African trade.  Because so often -- and this does relate to a legacy of the past and colonialism -- you have strong infrastructure to send flowers from Kenya to Paris, but it’s very hard to send tea from Kenya down to Tanzania -- much closer, but the infrastructure is not built.  And so part of what we have to do is to try to find ways to integrate Africa. 

Much of that is a question of infrastructure.  Some of it has to do with coordinating regulatory systems between countries. We’re embarking on some experiments starting in East Africa to see if we can get Uganda, Kenya, Tanzania -- see, you guys know all of them.  (Laughter.)  We’re starting to work with these countries to see can we get some blocks of effective trading taking place.

Because, look, obviously there’s going to be a certain market for certain goods -- I mentioned flowers from Kenya.  The market -- that’s primarily going to be in some of the wealthier countries.  But there are going to be some goods that it’s going to be much easier to sell.  If I’m a Kenyan businessman, it’s going to be easier for me to sell my goods to a Tanzanian or a Ugandan than it is for me to try to compete with Nike or Apple in the United States.  Right? 

And historically, when you look at how trade develops -- if you look at Asia, for example, which obviously has grown extraordinarily fast -- a huge volume of that trade is within the region first, and then over time that becomes a launching pad from which to trade globally.

So this is an area where I think we can also provide some assistance and help.  But just to answer directly your question, we are very strongly committed to making sure that AGOA is reauthorized.  And obviously, we’ve got a bunch of members of Congress here who care about this deeply, as well.

How much time do we have, by the way?  I just want to make sure -- he said, one hour.  (Laughter.)  Okay, I think we’ve got time for two more questions. 

AUDIENCE:  Awww --

THE PRESIDENT:  Well, I’m sorry, but -- (laughter.)  So it’s a gentleman’s turn.  Let me see -- this gentleman in the white right here.  That guy right there.  Hold on one second, let’s get a microphone on him. 

Q    Hi, I’m from Liberia.  It is a pleasure meeting you, Mr. President.  My question has to do with the issue of antitrust law.  You will be meeting our leaders next week.  Will you discuss the issue of antitrust law that will protect young entrepreneurs in Africa?  If not, are you willing to include it on your agenda, please, to solve our problems back home?  Thank you.

THE PRESIDENT:  Well, obviously, each country is different, and I’ll be honest with you, I’m not familiar with the antitrust laws in every country.  But what I would certainly commit to do is to talk about antitrust in the broader context of what I said at the beginning after maybe the first question, and that is the issue of rule of law and how it interacts with the economy.

If you have monopolies or collusion between a few companies that create artificial barriers to new entrants, then economic theory will tell you that invariably that is inefficient.  It means consumers are going to pay more for worse products.  It means those companies can concentrate more and more wealth without actually improving what they produce.  And over time, the economy stagnates. 

And here in the United States we had a history of huge, big, corporations controlling huge sectors of the economy.  And over time, we put in laws to break up those monopolies and to create laws to guard against artificial monopolies that prevented competition. 

So antitrust is one element of a broader set of laws and principles that every country should be adopting with the basic notion that, look, if you’re successful -- if you are a company like Apple that innovated, or a company like Microsoft that came up with a new concept -- you should be able to get big and you should be able to be successful, and those who founded it, like Bill Gates, should be wealthy.  But what you also want to make sure of is the next generation -- the Googles or the Facebooks -- that they can be successful, too, in that space.  And that means that you have to make sure that those who got there first aren’t closing the door behind them, which all too often I think happens in many countries, not just in African countries.
 
So you make an excellent point, and we’ll make sure that that’s incorporated into the broader discussion.

Okay, this young lady right here.  Yes, because she looks so nice.  (Laughter.)
 
Q    Thank you very much.  I’m from Kenyan.

THE PRESIDENT:  We got a Maasai sister right here.  (Laughter.)  That’s it.  Go ahead.

Q    Thank you for this great initiative for the young people, and thank you for believing in the young people.
 
The upcoming summit of the Presidents, I know you’re going to ask them on engagement of the young people back in our countries.  And my concern will be, how will you be able to engage them to commit to their promises?  Because I know they’re going to promise you that.  Thank you.  (Applause.)
 
THE PRESIDENT:  All right, don’t get carried away here.  (Laughter.)  Well, look, part of what we’ve done here by building this YALI network that we’re going to be doubling over the next couple of years is we’re going directly to the young people and creating these networks and these opportunities.  And what we’re already seeing, I think, is many countries are excited by this.  They’re saying, you know what, this is something that can be an empowering tool for us, so let’s take advantage of it.

There are going to be some that may feel somewhat threatened by it -- there’s no doubt about that.  But the good thing is we will be creating this network -- there are a whole bunch of people who are following this online, who are following it on social media.  We’ll have these regional centers.  You will help to make sure that some of these promises are observed, because the whole continent of young people is going to be paying attention, and we’ll be able to see which countries are really embracing this opportunity to get new young people involved, and which ones are ignoring its promise.

And so I will say to every one of these leaders, you need to take advantage of the most important resource you have, and that’s the amazing youth in these countries.  (Applause.)  But you’re going to have to also help to hold them accountable collectively across countries, and that’s part of why this network can be so important.

So I know this is sad, but I have to go.

AUDIENCE:  Awww --

THE PRESIDENT:  I have other work to do.  (Laughter.)  The good news is you’ve got all these really amazing people who are still going to be meeting with you and talking with you.  And, most importantly, what an amazing opportunity it is for all of you to get to know each other, and to talk and to compare ideas and share concepts going forward.

The main message I want to leave you with is that, in the same way I’m inspired by you, you should be inspired by each other; that Africa has enormous challenges -- the world has enormous challenges, but I tell the young people that intern in the White House -- and I usually meet with them at the end of their internship after six months -- I always tell them, despite all the bad news that you read about or you see on television, despite all the terrible things that happen in places around the world, if you had to choose a time in world history in which to be born, and you didn’t know who you were or what your status or position would be, you’d choose today.  Because for all the difficulties, the world has made progress and Africa is making progress.  And it’s growing.  And there are fewer conflicts and there’s less war.  And there’s more opportunity, and there’s greater democracy, and there’s greater observance of human rights.
 
And progress sometimes can be slow, and it can be frustrating.  And sometimes, you take two steps forward, and then you take one step back.  But the great thing about being young is you are not bound by the past, and you can shape the future.  And if all of you work hard and work together, and remain confident in your possibilities, and aren’t deterred when you suffer a setback, but you get back up, and you dust yourself off, and you go back at it, I have no doubt that you’re going to leave behind for the next generation and the generation after that an Africa that is strong and vibrant and prosperous, and is ascendant on the world stage. 

So I can't wait to see what all of you do.  Good luck.  (Applause.)

END
12:14 P.M. EDT