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U.S. Unveils Raft of Sanctions Against North Korea

Aired July 21, 2010 - 16:00:00   ET



HILLARY RODHAM CLINTON, SECRETARY OF STATE: I'm announcing a series of measures to increase our ability to prevent North Korea's proliferation, to halt their illicit activities that help fund their weapons programs and to discourage further provocative actions.


BECKY ANDERSON, HOST: U.S. Secretary of State Hillary Clinton unveils a raft of sanctions against North Korea. It's part of Washington's show of support for Seoul over the sinking of a South Korean warship.

But it all runs the risk of alienating Kim Jong-Il's mighty ally, Beijing.

Tonight, we explore the fight for spheres of influence on the global stage.

On CNN, this is the hour we connect the world.

Well, here on this show, it is all about making sense of the stories that we hear and see every day, how stories in other parts of the world resonate with you and me.

Well, tonight, we are exploring how nations compete for influence with other states.

And first up, China and the U.S. and how they support opposite sides of the two Koreas.

Well, after that, we're going to head to Afghanistan, where an international conference centered on foreign troop withdrawal is now focusing its shift -- or certainly a shift in focus to what role India or Pakistan might play once NATO forces leave Afghanistan.

Also this hour, severe flooding in China, but there's also freezing temperatures in South America, while the mercury soars in Europe.

Is there a connection?

We explore that for you.

And do remember, if you've got any comments on that or any of the other stories that we're following on the show, do Tweet me. I'm on atbeckycnn. You can also get in touch with the team through the Web site,

Well, first up tonight, new sanctions with a new focus. U.S. measures against North Korea include targeting the nation's elite. Hillary Clinton made the announcement in South Korea, on the latest stop on her tour of Asia.


ANDERSON: (voice-over): From Washington to Islamabad, where she announced an aid package worth hundreds of millions of dollars, then it was onwards to Kabul, where she attended an international donor conference.

Next stop, Seoul, where U.S. Secretary of State Hillary Clinton has announced tough new sanctions against North Korea.

CLINTON: First, we will implement new country specific sanctions aimed at North Korea's sale and procurement of arms and related material and the procurement of luxury goods and other illicit activities.

ANDERSON: These new sanctions are in response to the sinking of a warship in an attacks that's left relations between the two Koreas in tatters. Forty-six sailors were killed when a South Korean warship was torpedoed and sank. A multinational investigation found North Korea responsible. But Pyongyang denies any connection.

China, North Korea's largest trading partner, has stopped short of condemning its communist ally for the incident. But on Wednesday, U.S. Defense Secretary Robert Gates gave this warning.

ROBERT GATES, SECRETARY OF DEFENSE: There has been some indication over the last number of months that as a succession process gets underway in the North, that -- that there might be provocations and particularly since the sinking of the Cheonan.

So I think it is something that we have to look at very closely. We have to keep it in mind and -- and be very vigilant.

ANDERSON: The comments come after Mrs. Clinton and U.S. Defense Secretary Robert Gates visited the demilitarized zone between North and South Korea in a show of support for Seoul following the sinking of the Cheonan. Growing unease in the region is being exacerbated by the decision to hold joint US-South Korean naval exercises in the Yellow Sea. Now, Washington says the military drill will still go ahead, but on the other side of the Korean Peninsula.


ANDERSON: All right, well, I want to explore reactions now in the U.S. and in China.

Jill Dougherty is in Washington for you tonight.

Let's start with Eunice Yoon on China's stake in the Koreas.


EUNICE YOON, CNN CORRESPONDENT (voice-over): There has been no immediate reaction from China on the new U.S. sanctions on North Korea. However, historically, Beijing has protested or kept silent when the international community, including the U.S., has taken steps to pressure or punish Pyongyang. After the sinking of a South Korean warship earlier this year, China was accused of stalling on a United Nations Security Council statement condemning the attack. And just this week, the Chinese government has objected to special military exercises between the U.S. and South Korea planned for next week.

China is a close ally and trading partner with North Korea and is often seen as a key player in negotiations with Pyongyang.

JILL DOUGHERTY, CNN FOREIGN AFFAIRS CORRESPONDENT: The State Department, in its briefing Wednesday, said that it already, in effect, had those sanctions on the shelf, but the secretary decided to take them out and use them while she was in South Korea.

However, details are still to come over the next two weeks, we're told. The purpose is that they want North Korea to take responsibility for the sinking of a naval vessel in March and, of course, to continue to put pressure on the North because of its nuclear program.

Another thing the United States is hoping is that other nations will join them in these sanctions.

Jill Dougherty, CNN, the State Department.


ANDERSON: OK, that's the view, then, from Beijing and from Washington. And while the U.S. presses Pyongyang on its arms dealing, there is another battle brewing, and that is this -- the struggle for global influence between China and the United States.

Well, CONNECT THE WORLD panelist Gordon Chang joining me from CNN's bureau in New York.

Sanctions, sanctions and more sanctions -- do they have any teeth?

GORDON CHANG, CONNECT THE WORLD PANELIST: No. I actually don't know. We don't know until Secretary Clinton takes these sanctions off the shelf.

But the question we have to ask is, after four months after the sinking of a South Korean frigate, why aren't these sanctions in place already?

The U.N. should have put them in place. And since it didn't, the United States should have done this immediately.

ANDERSON: And that's a really good point. And it takes me to my next question. You've alluded to the U.N. there, an organization which plays a big role and hopes to play a bigger one, one assumes, going forward in the world of diplomacy. It seems to me, though, that we are seeing the waning of the influence of diplomacy in the world and the rise in the influence of spheres of global influence, as it were.

Am I right in saying that?

CHANG: I think you absolutely are. When you look at the Korean Peninsula, you know, the United States has been talking to the North Koreans about their nuclear program since the early 1990s. And it's really gone nowhere. And that's why we see more and more sanctions being put into place, because there's a feeling that the North Koreans cannot be talked out of their nuclear program.

And then you look at China. China has really done a lot to keep North Korea in the game. And now it's trying to push the U.S. Navy out of Asia by making sure that the American carriers and naval vessels stay out of the Yellow Sea and the South China Sea.

ANDERSON: Gordon, we've been getting strong reaction to this story on the blog -- hundreds of responses so far. Let me just get some of them for the viewers. Many of you expressing skepticism.

Diesel2u writes: "Oh, boy, sanctions, like the other 50 sanctions they had against them worked."

They haven't, have they?

But svscnn tells us: "I'm not a big fan of sanctions. But it's a little different this time. These are primarily targeted on North Korea's 5,000 elites. Those elites will be unhappy about this negative impact on their financial resources."

And, Gordon, staterights writing in to us tonight, believes there is always someone out there willing to sell them what they need or buy what they are selling and we cannot stop it. This is so dumb it is funny."

If we are seeing the wane of a diplomatic effort around the world and the rise of this sort of, you know, who should I work with regionally in order to -- to make things work, who should we be watching as the great powers going forward?

CHANG: Well, I think that in the Korean Peninsula, we've really got to see what the smaller powers -- what South Korea and Japan are willing to do, and, to a lesser extent, Russia. We know what the United States and China feel. But we've got to really see how these other countries align themselves, because if they do align, for instance, with the United States, it could make life very difficult for North Korea and for China, as well.

ANDERSON: So are trips like Hillary Clinton's trip worth it, do you say?

CHANG: Well, I think they're worth it if they actually would lead to, for instance, South Korea more closely aligning with Japan and the United States on these issues. But, you know, what we have seen so far -- and this is sort of paradoxical -- and that is that the South Koreans have been taking a much tougher line against North Korea. And it's the United States slowly coming into position with South Korea.

And so this molding process, I think, is very important for the forces aligned against North Korea to come up with a common position.

ANDERSON: Fascinating stuff.

And we're going to continue this narrative as we move through the show.

For now, Gordon Chang, one of your big thinkers on this show.

And as I said, we rely on you to connect the dots on these stories. Do keep writing in to the Web site, Don't forget to let us know where you are writing in from. We love to hear from you.

All right, well the Koreas are not the only strategic region where we are seeing a struggle for influence. Next up, we investigate Afghanistan and two of its neighbors, archrivals who each share a deep stake in Afghanistan's fate.

That coming up here on CONNECT THE WORLD.


ANDERSON: Well, the U.N. secretary-general says Afghanistan will take the lead in determining its own future. And that could be critical for two of its neighbors who have a vital stake in that future and volatile relations with each other. That is India and Pakistan.

Dozens of delegates from around the world attended an international peace conference in Kabul this week. Among them, U.S. Secretary of State Hillary Clinton and the British foreign secretary, William Hague. Also at the conference, India's external affairs minister, S.M. Krishna. New Delhi plays host to U.S. envoy -- special envoy, Richard Holbrooke, today. Topping the agenda for him, India's role in helping stabilize Afghanistan.

Well, recent talks between India and Pakistan in Islamabad could also help out here. New Delhi and Islamabad are jockeying for influence in Afghanistan and using aid projects and trade deals to do it.

Well, Afghanistan is cementing ties with Pakistan and India, two long time rivals with each other, of course.

Well, what will that mean for the region?

In a moment, I want to talk to the former Pakistani ambassador to the U.K., Akbar Ahmed. He's going to join me live in the studio.

First, though, I spoke earlier to Shashi Thardor.

He's India's former junior foreign minister.

And I asked him what the motivation is for Richard Holbrooke's visit to India right now.

And this is what he told me.


SHASHI THARDOR, M.P. INDIAN PARLIAMENT: Well, look, you know, the U.S. has always consistently been anxious to keep India informed about what it's doing in Afghanistan. And we're very grateful that Washington appreciates that India has a serious stake in what happens in that country.

We have, as you know, we have a -- a longstanding relationship with Afghanistan. It's been a country which, for a long time, has had close diplomatic relations with India. And we're sorry to discover we have some of the same Muslims. When our embassy was attacked in Kabul not once, but twice, more Afghans died than Indians. And Afghan intelligence and Afghan security services have been very conscious of the fact that there are common threats to both our countries.

So we have a legitimate interest in what the U.S. seeks to accomplish there and we're very happy to hear about what the U.S. is doing.

ANDERSON: Shashi, you allude to India's serious stake in Afghanistan.

Does India understand Pakistan's concerns about its investments in Afghanistan?

THARDOR: Our entire presence in Afghanistan has no military dimension. It is entirely about development assistance. We have spent, already, over $1.3 billion U.S. By far, our largest development assistance program anywhere in the world is in Afghanistan. We've allocated $2 billion. If Kabul has 24 hours of electricity today, it's because Indian engineers were brave enough to construct power lines at 3,000 meters height to bring that electricity to Kabul.

We have constructed roads. We've repaired hospitals. We have set up clinics. We have created schools for girls and we're in the process of building the Afghan parliament.

So everything we're doing is about helping the Afghan people and Afghan society. We have no political, military or other aspirations in Afghanistan, unlike, I'm sorry to say, our neighbors across the border.

ANDERSON: Well, if that's the case, what does Islamabad have to fear?

THARDOR: Well, we would like them very much to stop fearing. I mean, the fact is that what Pakistan tends to do, I'm afraid, because of the extraordinary influence of the military in their country, is to invent the bogey of an Indian threat in order to justify their own military's rather extravagant use of their nation's plentiful resources. It's -- it's a rather sad story. There is no threat from India for the simple reason that Pakistan has absolutely nothing that India wants. We just want to live in peace with our neighbors. We are there to help Afghanistan because we don't want to see it falling under the Medieval rule of the Taliban again.

But we have absolutely no desire to thwart any of the legitimate aspirations of Pakistan. Obviously, we are there on the basis of a bilateral relationship with Afghanistan, nothing to do with Pakistan whatsoever.


ANDERSON: All right, this show is about joining the dots, so let's get some more perspective on this now from Pakistan, which, of course, is also building up a strategic partnership with Afghanistan. Pakistan's foreign minister calls his country and Afghanistan brothers.

Akbar Ahmed, the former Pakistani ambassador to the U.K., joining me now from Washington.

You heard there from Shashi. He says Islamabad is inventing the bogey of an Indian threat. He says India has no political aspirations in Afghanistan and he wishes that Pakistan would stop worrying about India.

Do you think that he's lying here?

AKBAR AHMED, FORMER PAKISTANI AMBASSADOR TO UK: Becky, I wish that, too. I pray for a day when India and Pakistan have normal relations, when they can live as good neighbors. I've been advocating peace and dialogue and friendship for a long time.

But the reality is that a lot of Pakistanis do have, as Shashi has pointed out, a lot of fears, subconscious, perhaps, of Indian domination in the subcontinent. And, therefore, Afghanistan, for a lot of military strategists, becomes vital, because they see it in terms of strategic depth, which means that if there's a situation where the Pakistan Army is pushed back toward the western frontier, they would have Afghanistan to fall back to.

Therefore, an government -- a government or a party in power in Kabul allied to Pakistan becomes critical for these thinkers. And, therefore, they supported the Taliban in the 1990s. And once again they are fishing in troubled waters, like they accuse the Indians of doing in Afghanistan today.

ANDERSON: Akbar, my sense is, then, this, that you've got a roving diplomat in Richard Holbrooke who's on his way to India. He's got the -- with whatever his motivation is, which is effectively, I think -- I mean I think I'm right in saying to get India to try and persuade India to -- to stop sort of using its significant sticks that it has -- and that's Shashi's words, not mine -- in Afghanistan in order to make Islamabad feel better about this.

But this is diplomacy at work, which appears to me almost passe these days, when we look at these spheres of global influence and regional influence.

Who plays the most important role in this region going forward?

AHMED: A very interesting question, Becky. This can be answered on several levels.

On one level, I would answer Pakistan, because Pakistan has a border with Afghanistan, a long border, a troubled border and sometimes it doesn't seem to exist. It just disappears. I've been in charge of many of those areas and I can vouch for it. Pakistan also shares ethnic links with Afghanistan. There are many tribes in Baluchistan, in the frontier province of Pakistan, which live on both sides of the border. They straddle the border, for example, the Wazir tribe is in Waziristan and across the border in Afghanistan.

And then the trade. All the supplies to Afghanistan on by road, by rail, go through Pakistan. Karachi is a vital port for Pakistan, but it's also for Afghanistan.

On another level, you have the bigger powers. You have China, very interested in Afghanistan; Iran, very interested in Afghanistan; and, of course, now, America and the superpowers.

So you can answer that question on several levels. Afghanistan is a very, very important part of Asia today.

ANDERSON: Let's go back to Richard Holbrooke's trip there.

What is he going to gain out of his narrative with India?

And perhaps let me reverse into that?

What do you think his narrative is with India at present and what do you think he's going to get out of it?

AHMED: Very simple, Becky. His aim -- and remember, he's the ambassador for Afghanistan and Pakistan, not India. But every time he is in negotiation or just calls for dialogue with Pakistan, the issue of Kashmir and relations with India comes up. So, therefore, he really is in India to calm the situation, from India's point of view, try to explain the situation, from Pakistan's point of view, and continue to create a situation where India and Pakistan have some legitimate dialogue, some discussion.

So therefore, the focus of Pakistan and Pakistan's army remains on its western borders, where it can vent upon the Taliban, which, in turn, relieves the pressure on Afghanistan and American troops there.

So his purpose there is subtle. It's discrete and it's diplomatic. But it be -- the focus, really, is what's happening in Afghanistan, not so much between India and Pakistan.

ANDERSON: Yes, fascinating stuff.

Always a pleasure.

One of our big thinkers on this show, the former Pakistani ambassador to the U.K., Akbar Ahmed, joining you as an expert witness on this story this evening.

Let's move on, shall we?

For decades, Colombia has been fighting anti-government rebels. Now, it's picking a fight with its neighbor. You're going to hear what the country has to say about the insurgents and Venezuela.



I'm Becky Anderson in London for you.

Now, on Thursday, in Washington, Colombia and Venezuela will go head- to-head at a meeting of the Organization of American States. Colombia says it has proof that its neighbor, Venezuela, is harboring anti-Colombian rebels just across the border.

Well, our senior Latin American affairs editor, Rafael Romo, joining us now to try and unravel this story for you from the CNN Center -- Rafael.

RAFAEL ROMO, SENIOR LATIN AMERICAN AFFAIRS EDITOR: It's a very difficult situation for both countries, Becky. Venezuela recalled its ambassador to Colombia after the accusations were made. The conflict comes at a moment when Colombia is trying to focus on a peaceful and orderly transition of power after holding elections earlier this year.


ROMO (voice-over): The guerilla has, for decades, been a headache for the Colombian government and in the last few years, the cause for tensions with neighboring Venezuela. Those tensions reached a new height recently, when Cesar Velasquez (ph), a spokesman for the Colombian government, accused Venezuela of harboring in its territory guerilla leaders he mentioned by name. But President Chavez reacted angrily to the accusations.

"I'm not going to fall into provocations," President Chavez said. "I know President Uribe is desperate. He's leaving. However, not falling into provocations doesn't mean that we will remain silent when we are being attacked."

Colombia's defense minister says that it's crucial for his country that the alleged presence of what he called Colombian terrorists in Venezuela is investigated before relations between the two countries can go back to normal. Tensions between the presidents of Venezuela and Colombia grew in 2008 after the death of guerilla leader Raul Reyes in a Colombian operation in Ecuador denounced at the time by the Venezuelan president.

Fernando Gerbasi is the former Venezuelan ambassador to Colombia.

He says that President Chavez has had an ambiguous policy regarding Colombian guerillas and blames that policy for the strained relations between the two countries. Colombian exports to Venezuela have fallen to their lowest level in a decade.


ANDERSON: Rafael, help our viewers out here, because some of them will be aware that there have been accusations between the two countries before.

So what is different this time, do you think?

ROMO: Well, the main difference this time, Becky, is that Colombia, for the first time, is saying that they have evidence, that they have videos, that they have physical evidence that there is a camp of the FARC, the FARC guerillas of Colombia in Venezuelan territory. That would change everything. And there's supposed to be a hearing tomorrow of the OAS, the Organization of American States, to hear that evidence and to see if other countries would give it any weight -- Becky.

ANDERSON: All right, I get that.

What is the role, then, of the United States in this dispute?

ROMO: Well, it has been in the middle of the dispute between the two countries, with Venezuela saying that the United States has a presence -- a military presence in seven military bases in Colombia for strategic purposes. The United States saying that it's just helping Colombia in its war against drugs -- Beck -- Becky.

ANDERSON: Rafael Romo, our Latin affairs editor, for you from the CNN Center on what is a confusing but he did well to unravel it for you -- a confusing story out there. But joining the dots for you on that today.

Well, while sunbathers try and cool off in Russia, in Argentina, many are bundled up in coats just trying to keep warm -- just two examples of the extreme weather that we are seeing around the world.

That we're going to take a look at, up next.


ANDERSON: At just about 29 minutes past 9:00 in London, you are back with CONNECT THE WORLD.

I'm Becky Anderson.

Coming up, sweltering temperatures on one side of the world; storms and freezing cold weather on the other. We're going to take a look at the two extremes for you this evening.

Plus, pampering your pooches even in a recession -- pet lovers apparently are slashing the cash. Our theme week on pets continues.

And he has discovered lots of treasures, but now we are digging into his life. Our Connector of the Day, Egypt's own Indiana Jones, Mr. Zahi Hawass.

Those stories ahead in the next 30 minutes.

First, I want to get you a very quick check of the headlines here on CNN.

US Secretary of State Hillary Clinton has announced tougher U.S. sanctions against North Korea. She and American Defense Secretary Robert Gates were in South Korea, where they toured the demilitarized zone between the two Koreas. The new measures are aimed at keeping Pyongyang from buying and selling arms.

Well, a departing U.N. official has issued a scathing memo slamming her boss' job performance. Inga-Britt Ahlenius condemned Secretary-General Ban Ki-moon's abilities as a leader. She said Mr. Ban is leading the U.N. into irrelevance. Mr. Ban's chief of staff, though, replies that he was still early in his term, and he'd emphasized transparency and accountability.

Insurgents beheaded six Afghan policemen on Tuesday after overrunning a military checkpoint. The attack took place in the northern Baghlan province. Military officials say police held off the insurgents' attacks on a school and a clinic before the beheading. NATO's International Security Assistance Force condemned the killings as brutal.

We've witnessed some extreme weather conditions around the world over the past few days, and it's got many of you running for cover. Here in Europe, temperatures soaring, and people are scouting out shade. In China and South America, things are different. Many are seeking shelter from tropical storms or extreme cold. So what is going on? Guillermo is with you now standing by at the International Weather Center to tell us more.

Come on, this is wild out there, isn't it?

GUILLERMO ARDUINO, CNN METEOROLOGISI: What if I tell you that we have cyclone about to make landfall in China now? And here we have it. This is Hainan. This is Hong Kong. And hours from now, we'll have this tropical storm going into a terrain that is already flooded.

Severe floods, and we can show some video now of the severe floods in China. This is the Three Gorges Dam as it's releasing water because there's so much pressure because of the amount of water that we have there. The rain was such that now, unprecedented volume of water is being released. Hubei province, Sichuan province, all the way into the other coast. Chongqing, bit city, another example of devastation going on.

Well, now, in addition to this, you see those cities here are farther north from where the cyclone is making landfall. But those areas in the south are full of humidity, so it is going to have an impact on those provinces, too.

Lucky for us, the cyclone is going to dissipate before it reaches those lands. Very shy of typhoon status.

Back to the main floods in China. These are the ten provinces that we have that have a very close relationship with the Yangtze River. Here it goes from west and, of course, it goes into the east here. And as it does so, it's flooding these areas, because it's overwhelmed with the amount of water.

These are the numbers that we're dealing with, Becky, right now. Thirty-eight million people affected, and these are the economic damages that this flood is bringing about.

At the same time, we know that this is seasonal. We see rains at this time of the year. It's provided by this stationary boundary. That aside, look at the satellite picture is fizzling out a little bit, then it comes back and it brings more rain. But on top of that, we get the tropical cyclone.

So, that's China. This is the Sichuan province, this is the Hubei province. I'm going to show you where the Three Gorges Dam is in here. We have three tributaries for this Yangtze River that are adding more pressure to the water. But now, we will see what happens into Wuhan here. This other city on the other side of the Three Gorges Dam, and John Vause will be there reporting on Thursday.

All right. So that's concerning what's going on in China. Also, you see what's happening -- an idea of what the Three Gorges Dam is. You see one side of the river, and the other side.

But let's go now to South America. I want to show you a video coming from Peru and Argentina. I believe this is Peru -- Argentina, yes. And we see -- oh, Peru. Extremely cold conditions because of a polar air mass that is coming from the south.

Let's transition to Argentina now. There we go. Same thing, even farther south. What's happening in here is that we have -- the southern hemisphere is in the winter time. So we see the cold air coming and invading the entire continent here with very cold conditions. And we saw it in the winter in northern Europe, remember? These are the current temps as we speak in South America.

Now, let's show our viewers a little bit of what's going on with Europe with the sweltering heat. This is Russia, I understand. And we have Moscow with 12 degrees above average, and records that have been beaten because of the severity of the heat.

We have another one from Bulgaria farther south. So you see, we can expect more heat there in Bulgaria. This is the reason. We have air that is coming from the south in here, a blocking high, high pressure center bringing these temps that, at times, are tying the records or they are above those temperatures mark way in other seasons.

But, you see, it is going to remain, Becky. Especially in here in the east. We have a little bit of a break of the summer heat into the north with some rain showers all the way to Scandinavia. But most of Europe under severe heat still.

ANDERSON: All right. So, the pictures out of China are absolutely unbelievable. I get the cold to a certain extent in South America. And I've seen the sort of weather conditions that we're seeing in Europe before, those these are pretty profound. Is there, though, a connection between what is happening in these three areas?

ARDUINO: I don't think so. I think it's meteorological coincidence. Seasonal at the same time. Perhaps La Nina, this phenomenon that happens in the eastern Pacific, it is causing an impact all across the world. So, we mess in the world in one area, and it has an effect all over the world. All over the planet. I do not think, honestly, there's a connection.

ANDERSON: All right. Thank you for that. Amazing stuff there. That's your weather, extreme weather conditions around the world. You are with CONNECT THE WORLD. I'm Becky Anderson.

Coming up, our series on pet ownership continues. We're going to show you the extreme measures that some American owners pay to pamper their furry friends. That up next, here on CNN.


ANDERSON: All this week on the show, we are putting pets in the spotlight. We began on Monday with a look at the carbon paw print of our furry friends. We told you how feeding our pets could actually increase greenhouse gasses, taking a bite out of the precious global resources.

Tuesday's report from China was also a bit troubling, with a look at the country's appetite for cat and dog meat. It might make some people cringe, but there, man's best friend is a common sight, I'm afraid, in restaurants as the main course.

Most pet owners would never dream of putting Fido on a plate, would we? In fact, while the recession is hitting a lot of businesses, one industry that's proving largely recession-proof is the pet industry.

Take a look at these numbers. Americans are expected to spend nearly $48 billion on taking care of their pets this year. That's up $2 billion since last year.

In the UK, the pet food industry was up 10 percent in 2009 to more than $3 billion. Indians used to make homemade meals for their pets. Now more people are buying prepared food, the industry up 10 percent there as well. The region with by far the largest growth in the pet industry is eastern Europe. It saw about 75 percent growth rate over the last five years.

And here's the latest trend for you, it's in China. Designer dogs like this Tibetan mastiff are what the rich apparently are spending their money on. Purebreds can run $44,000. That's a lot of money, isn't it?

For some people, just the idea of parting with those pets is quite painful, and that has led to a booming business of five-star hotels that cater to dogs, posh doggie daycare, and even human-quality dog food. Take a look at this.


GARY SCHWEIKERT, GENERAL MANAGER, JUMEIRAH ESSEX HOUSE: The program began because we've noticed an uptick in the number of people who were traveling with their dogs recently. Eighteen percent of travelers bring their pets with them on vacation, especially in the summer months.

Since we noticed this uptick, we thought we would do something very special and create a canine program that was above standard. Comfortable, very safe products for our hotel dogs to use. The dog treats are also prepared in our kitchen, made of only human-quality ingredients.

KERRY HEFFERNAN, EXECUTIVE CHEF, JUMEIRAH ESSEX HOUSE: What we did was get an organic pork belly and cooked it and smoked it ourselves to have bacon-quality, but without all the nitrates and the salt, and then we render a lot of the fat out. What we do is, we brush it with a little egg white as well. So they're getting a great treat that's got human-quality ingredients that's also healthy for the dog.

DALE VAN PAMELEN, CO-OWNER, DOG SPA: When you can't really go somewhere with your pet that you just have to go, you really would like your pet to stay -- you're on vacation -- your pet to stay at a place that it's going to enjoy. You want your pet to have a vacation, too.

Overnight boarding becomes a bit expensive because you're looking at $60 a night. And then you're looking at a bath or a groom on the end. If you have a 15-day stay, that goes over a thousand dollars.

This room is our massage therapy room. The massage is generally like $65, $70 an hour. It's based on Shiatsu, it's a thing called TTouch, where they start at the spine, the back of the neck, and work downward and then down the extremities.

People who bring their dog every day for daycare, we'll give an unlimited package that's $600 or $700, depending on the size of the dog. You can leave your dog here from seven in the morning until ten at night, be fed twice, be walked a couple of times, and have the dog play all day inside an air-conditioned, climate-controlled place being watched by people all day long.


Your pets are like your children. You wouldn't skimp on spending for your children, you want to make sure that they have the best. And this is definitely like my kid.

UNIDENTIFIED FEMALE SPEAKER: They're wonderful companions and she's almost like part of the family. I don't go overboard and buy dresses and things like that.

MARK DRENDEL, CO-OWNER, CANINE STYLES: This is a little polo shirt, and then this is the matching tennis dress.

We do a birthday dog bone, which has a little hole in the middle, and you stick the candle and light the candle. Everybody can stand around and sing "Happy Birthday" to the dog, and then blow it out.

One of those things that we brought in this past year were little leopard dresses for the dogs, which are very, very cute. And then it has a matching little leopard vest for the boy dog. So, very adorable, perfect for the New Year's Eve cocktail party and you want your dog to come and be dressed up, too.


ANDERSON: This is just wrong, isn't it? My next guest, though, says that this is such a growing trend that many pet owners think of themselves as pet parents. Lee Linthicum monitors the pet product industry for Euromonitor International. He's here with me in the studio to talk about the booming business.

And while we were watching that, you just told me, they do a Prozac for dogs, which is beef-flavored, am I right?

LEE LINTHICUM, EUROMONITOR INTERNATIONAL: That's right, yes, that's correct. It's true. But again, it speaks to this whole idea of not just pet owners, but pet parents. And so, people are spending on their pets as they would do a child.

ANDERSON: And you are seeing an industry which is effectively recession-proof at this point, are you?

LINTHICUM: Effectively. I don't think it's fair to say anything is recession-proof per se. But the pet care industry is certainly the most recession-resistant if not being that, if not fully recession-proof.

ANDERSON: And what we are seeing as well is a move and a growth in areas that we never saw, sort of pet parenting, or an obsession with pets before. Am I right in saying that?

LINTHICUM: Yes, that's true. Obviously, in America is still the biggest pet food market and always will be. In an $80 billion market, it's worth about $24, $25 billion.

But we're seeing lots of growth coming from the likes of China, from India, from Brazil. And not just the basic end of the market, your value- minded kibbles and bits. But the high-end, premium stuff you see here in the UK or in the US. And, again, it's all done with that ethos of pet parenthood, not just pet ownership.

ANDERSON: What do you expect in the future from these emerging markets? You've suggested it's a growth market. Are we just completely obsessed in the western hemisphere. And aren't we to believe that we'll never see that same obsession elsewhere?

LINTHICUM: No, I think we're seeing truly worldwide. This issue of pet parenthood, pet humanization, call it what you will. It's truly becoming a global phenomenon. Obviously, it's perhaps the most established in the US and UK for certain. But in Brazil we see strong growth. Brazil by 2015 at current growth rates will be the second-biggest pet market in the world, ahead of Japan. Behind the US, but ahead of Japan. And we all know how pet-crazy the Japanese are.

Likewise, strong gains of more than $2 billion in Russia over the next five years. Gains of a half billion dollars in China. This is obviously big business. And there's lots of opportunities to have.

ANDERSON: And who's making money out of it? I understand those who are creating pet food, I guess? Manufacturing and selling pet food. Who else is making money?

LINTHICUM: The pet food manufacturers for certain, but also the pet accessories. And not just cat litter and leads and leashes and even betting. Things like pet clothing, pet cosmetics, pet health care, pet dietary supplements. You may have seen in the news this pet salon in China where they dye the dogs to look like panda bears and tigers and other animals. And people love this.

For people, it's a status symbol in some ways. We say, "Hey, look. We're rich, we're affluent, we can afford this. I'm going to show that we can." But it's also just a massive form of entertainment and again, lavishing on the pets as they would do a child.

ANDERSON: Have you got pets?

LINTHICUM: We have two cats, yes.

ANDERSON: Two cats.


ANDERSON: But you don't lavish anything on them, do you? You feed them --

LINTHICUM: We feed them well, we let them go outside, but we're not buying the Gucci for my Poochie. And hope that they have no mental health problems so they don't need the beef-flavored Prozac.

ANDERSON: My goodness. A pleasure to have you.

LINTHICUM: Thank you very much.

ANDERSON: Thank you very much, indeed, for joining us.

I want to take a moment to talk about a new CONNECT THE WORLD initiative at this point that is clearly striking a chord with many of you. It involves human trafficking. Now, for the next ten weeks, we are going to follow Siddharth Kara, a Harvard researcher who specializes in and has written extensively about the subject. Now, he'll be traveling throughout south Asia, describing what he sees in a blog exclusive to You can read his first entry where he lays out his plans.

A couple of the comments we're already seeing. Yuveth writes, "It is a sickening subject, but one that does need to be seriously addressed."

Havaligi says, "Hope your work will help us find ways to deal with such injustices."

It's really important to us as network, this. And each Thursday, we're going to speak with Siddharth, get more on what he's seen, and get his responses to your questions and comments. So do stay tuned. Do log on. Do join in the conversation. This is your show, and this is your story.

Zahi Hawass has unearthed Egyptian tombs and treasures. Now, we are digging into his life and work. He's a real-life Indiana Jones. He's your Connector of the Day. He'll be answering your questions, up next.



ANDERSON (voice-over): He's been described as a modern-day Indiana Jones. And he's one of the most famous people in Egypt. But, one thing is certain. Archaeologist Zahi Hawass is a man who loves his job.

ZAHI HAWASS, ARCHAEOLOGIST: I found my love, archaeology.

ANDERSON (voice-over): An untiring promoter of Egypt's past, Hawass is the head of Egypt's Supreme Council of Antiquities. In his role, he's worked tirelessly to regain artifacts taken by the west during centuries of Imperial plundering. And, in 2006, was named one of "Time's" Top 100 Most Influential People on Earth.

He's repatriated thousands of objects, and he's responsible for every monument in the country.

HAWASS: The face of Egypt was explained before by foreigners only. No Egyptians in the field of archaeology used to promote Egypt.

ANDERSON (voice-over): As tourism employs more than 10 percent of the Egyptian workforce, Hawass's role is invaluable to the economy. Big passion for a big job. Zahi Hawass is your Connector of the Day.


ANDERSON: And he has unearthed some of civilization's most important historical relics, and now it's time to discover just a little bit more about you. He's just launched a new TV show, and when I caught up with your Connector a little earlier, I began by asking him about that.


HAWASS: I think this show will capture the hearts of everyone. Because this is the first time that you really show the real archaeology. And people can see me yelling at my assistants, it doesn't mean that I'm abusing them. It means that I teach them, and they teach me. And at the end, the viewer can understand and can learn from all of us.

ANDERSON (on camera): Are you being accused, Zahi, of forbidding archaeologists from announcing their own finds in the past? Too domineering. You're talking -- they're alluding to that. How do you feel about that? How do you defend yourself?

HAWASS: I do not really think at all it's true. All my work, I announce it beautifully to the public. I feel that the public should share what I'm doing. And I think, before, what I did, people believe and people came out to this place and they built the pyramids. And I'm not the only one who's working in Egypt. There's over 200 foreign expeditions excavating in Egypt.

ANDERSON: All right, let's get on to some of the viewer questions. There are some great ones for you today. Eric from Salt Lake City in Utah, he says, "You really are the face of modern Egyptology." He says, "There have been many controversial theories, for example, about the Sphinx. Its age, its purpose." He says, "What are your gut feelings?"

HAWASS: I want to tell you one thing. Six months ago, the water table began to rise in front of the Sphinx. We had to drill underneath the Sphinx. And where the drill was angled, for about 85 feet, more than 25 meters, and there was nothing underneath the Sphinx. The age of the Sphinx, dated to Khafre, the builder of the second pyramid at Giza.

ANDERSON: And when was that?

HAWASS: And that was 4500 years ago. Nothing about 10,000 years old at all. All these theories has no basic scientific evidence at all.

ANDERSON: Question from Jose Vera in Mexico. He says, "Do you think the lost pyramids will ever be found?"

HAWASS: No. I mean, all the mystery about the pyramid, we've been excavating around it, we found the tombs of the pyramid builders, we are looking next month to find what's behind the doors that we found. We're sending a robot with an English team to reveal the secrets of these doors in the pyramids. That's really what we're missing about the pyramids.

ANDERSON: Listen, we've got a question from Paulina here. She says, "A lot of people --" I'm just listening to you, it's fascinating stuff. She says, "A lot of people compare you to Indiana Jones. Do you see yourself living that sort of life?"

HAWASS: I really live in archaeology, and all my life is action, discovering a tomb, discovering a pyramid, taking a pylon out of the water, and it's why people look at me today like this. I do not mind, to be Indiana Jones.

ANDERSON: Zahi, it sounds like the dream job. Is it all that it is cracked up to be.

HAWASS: It's a beautiful job. To live in the past, and to reveal the secrets of the past. Can you believe when you meet King Tut for the first time, and you saw his golden face. My heart trembled. When you excavate a tomb and you find a statue. When you take the sand out, you discover a pyramid. That is the most beautiful thing that anyone can see on Earth. Revealing the secrets of the past.

ANDERSON: Sure. David Chagall has written to us with a question for you. He says, "What have the Egyptians learned from history?"

HAWASS: We learn from history one important thing. The Egyptians believed in the quest for immortality. They built the pyramids and they made incredible things because of the belief in Ma'at. Ma'at was the goddess of justice and truth.

Today, we have to believe in justice and truth.

ANDERSON: You're particularly passionate, I know, about getting Egyptian antiquities returned. Are you having any luck in that area?

HAWASS: I do. I returned until now 5,000 pieces back to Egypt. And we are in the process of returning important pieces this coming week.

Also, at the same time, I believe that the bust of Nefertiti, Rosetta Stone in the British Museum, and others. For pieces, their home should be Egypt. And that's what I'm fighting -- to bring them back to Egypt.

ANDERSON: Right. A question from Chris De Jong on that very point. He said, "Give Egypt's uncertain political future and rising violence from, for example, the Muslim Brotherhood," he says, "Isn't it safer to leave the antiquities where they are for the time being?"

HAWASS: No, I really think that Egypt has the right, not to return everything. I'm not after what's in the British Museum or in the Metropolitan Museum in New York City or London. I am after what has been stolen from Egypt. Egypt has the right for this. And anyone who steals -- who can buy any stolen artifacts, this is a crime. And this is what I'm doing right now.

ANDERSON: What is, do you think, the greatest archaeological find in Egypt today? Is it the pyramids?

HAWASS: My favorite discovery is two things. Number one, the Valley of the Golden Mummies. And number two, actually, when they revealed the family of Tutankhamun. And now, I'm trying to look for the mummy of Queen Nefertiti.


ANDERSON: And if he finds it, my goodness, we'll know about it. He's a great guy.

Tomorrow's Connector, Britain's former prime minister for a decade. During his time in office, Tony Blair helped broker a peace agreement in Northern Ireland. He also took the UK to war in Iraq. Well, since leaving Downing Street, Mr. Blair has served as an international envoy to the Middle East. He has also created the Tony Blair Faith Foundation, an organization seeking to promote respect between major world religions.

This is your part of the show. What would you like to ask Mr. Blair? Start sending in your questions, head to We're going to take a look at them all, I'll get as many of them into the interview as I can with Tony Blair tomorrow.

Tonight, we'll be right back.


ANDERSON: Let's go through the lens for you this evening. We are bringing you some local traditions from all over the globe in tonight's World in Pictures.

First up, in Durban, South Africa, hundreds of people tried to catch sardines earlier today. Each year, schools of the tasty fish stretch hundreds of kilometers, attracting locals and tourists, dolphins and sharks as well to the area.

Huntsmen in traditional costume gathered in Peterborough, England today for the Festival of Hunting. It's the greatest gathering of hounds in the country, with over 1500 hounds from 100 packs.

A very different pursuit was enjoyed a bit further south in England. This young boy posed for the camera from an old Bugatti sports car at the Salon Prive Luxury and Supercar Event in London. Isn't he lovely?

And finally, an annual tradition in Brussels, as Princess Mathilde and Crown Prince Philippe of Belgium attend the military parade on Belgium National Day. Not sure why they get into this World in Pictures anyway. Nice picture, isn't it? And their tradition -- oh, that's it. It was all about traditions live and well in our World in Pictures this evening.

Now, before we go, some of your thoughts on our top story. Got a lot of e-mails and tweets coming in here. The United States has slapped new sanctions on North Korea to try and stop the Communist dictatorship from buying and selling arms. Well, lots of you sounding off at the website.

Someone by the name of Mannytee89 says, "Like every other sanction placed on North Korea, this one won't change anything. It is just a waste of time."

Blogger zbzbzbzbzbzb writes, "I don't understand why the US is trying to get in the middle of all of this? South Korea can figure this out on their own."

And KM42 says, "Provocation from North Korea has been going on for a very long time." He said, "With the exception of the pending change in leadership, nothing really points to this being any different."

Do get your voice heard on CNN. Do head to the website,, or @beckycnn. That is your world connected this evening. Don't go anywhere, though. "BackStory" is up next, right after this quick check of the headlines.