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  • 1. Annual Report 2002/2003 Building trust, peace and reconciliation
  • 2. Queen Rania of Jordan, member of the World Economic Forum Foundation Board, visits a school information technology lab as part of her project to computerize education. The project introduces IT to students and enhances Jordan’s human resources by equipping the people with the necessary skills to compete in the global economy. Foundation Board members Klaus Schwab, Executive Chairman of the Foundation Board William I. M. Turner, Chairman and CEO, Exsultate Inc., Canada; Vice-Chairman of the Foundation Board Josef Ackermann, Spokesman of the Board and Chairman of the Group Executive Committee, Deutsche Bank AG, Germany; Vice-Chairman of the Foundation Board Kurt Alig, Chairman, Arcadia Treuhand AG, Switzerland; Secretary of the Foundation Board Peter Brabeck-Letmathe, CEO, Nestlé SA, Switzerland Lord Carey of Clifton, Former Archbishop of Canterbury, UK Victor L. L. Chu, Chairman and CEO, First Eastern Investment Group, Hong Kong SAR (appointed: 21 August 2003) Flavio Cotti, Former President of Switzerland Michael S. Dell, Chairman of the Board and CEO, Dell Computer Corporation, USA Niall FitzGerald, Chairman, Unilever Plc, UK Rajat Gupta, Senior Partner, Worldwide, McKinsey & Company Inc., USA Nobuyuki Idei, Chairman and CEO, Sony Corporation, Japan Caio Koch-Weser, Secretary of State of Finance of Germany Henry A. McKinnell, Chairman and CEO, Pfizer Inc., USA Heinrich von Pierer, President and CEO, Siemens AG, Germany H.M. Queen Rania of the Hashemite Kingdom of Jordan Peter D. Sutherland, Chairman of Goldman Sachs International; Chairman of British Petroleum Company Plc, UK Ernesto Zedillo Ponce de Leon, Director, Yale Center for the Study of Globalization; former President of Mexico
  • 3. The World Economic Forum is the foremost global community of business, political, intellectual and other leaders of society committed to improving the state of the world Contents The Executive Chairman’s statement 2 Annual Meeting 4 Extraordinary Annual Meeting 8 The regional agenda 10 Task forces and initiatives 14 Our members and partners 21 Our communities and constituencies 23 Our people 26 Our organization 28 Our financial results 34 Our mission and values 36 www.weforum.org Pictured on the cover from top left are: Supachai Panitchpakdi, Director-General of the World Trade Organization; Luiz Inácio Lula da Silva, President of Brazil; King Abdullah II of Jordan, and US Secretary of State Colin Powell 1
  • 4. The Executive Chairman’s statement Building trust, peace and reconciliation 2002/2003 was another challenging year for the Extraordinary Annual Meeting in Jordan, in June international community, as war in Iraq, instability 2003, proved this truth once again. in the Middle East region and financial volatility continued to threaten global stability. Against this The Extraordinary Annual Meeting provided a timely troubled background, the members, partners opportunity for world leaders to come together and and staff of the World Economic Forum worked progress towards reconciliation and reconstruction, hard towards our goal of improving the state of in the immediate aftermath of the Iraq war. the world. As is customary with World Economic Forum events, The Annual Meeting 2003, which returned to the Extraordinary Annual Meeting established Davos after the 2002 sojourn in New York, again relationships and communication channels that will demonstrated how the World Economic Forum endure far beyond the meeting room. In particular, acts as a platform for addressing challenging ideas the establishment of the Arab Business Council and as a prompt to delivering timely approaches created an important forum for a community to major global issues. destined to play an integral part in shaping the future prosperity and security of the Middle East. Significant outcomes included: • The launch of the World Economic Forum Global Such Extraordinary Annual Meeting milestones, Governance Initiative to evaluate progress towards along with those achieved at the Annual Meeting the UN Millennium Declaration goals 2003 and our regional summits, emphasized • The news that US company, Pharmacia the continuing relevance of the World Economic Corporation, was to expand access to drugs for Forum in addressing complex issues faced by the world’s poorest people, particularly in regard the global community. to HIV/AIDS medication • The announcement by the Bill and Melinda Gates Our summits are just one of the ways we deliver Foundation of a US$ 200 million donation to value to the senior business leaders that constitute establish the Grand Challenges in Global Health our membership. In 2002/03, we continued to offer Initiative, to research diseases that are a particular structured assistance to help CEOs excel across blight to the developing world their key fields of responsibility. For instance, our internal team, supported by industry and academic In today’s increasingly complex and interlinked experts, provided dedicated support in such areas world, global leaders can only resolve major issues as crisis management, corporate citizenship, global and gain strategic understanding by working competitiveness and motivational techniques. together. The World Economic Forum’s 2
  • 5. His Majesty King Abdullah II of Jordan, left, and Kofi Annan, Secretary-General of the UN, centre, with Klaus Schwab It is testimony to the value we provide to our In particular, we will continue to provide strategic members that, during the year, additional key advantage, by virtue of our role as one of the members signalled their greater commitment world’s leading strategic insight bodies. to the World Economic Forum by becoming strategic partners. Our determination to increase the value we provide is all part of our commitment to improving the state The World Economic Forum enhanced its of the world. We believe this will be best achieved credibility as an initiator of private-public through activities which promote economic and partnerships with the August 2003 appointment social development: a path that requires the active of Philippe Bourguignon to the Managing Board. collaboration of all stakeholders in society. Having Philippe, whose previous roles included being built a unique position of trust, over three decades, chairman and CEO of both Club Méditerranée and at the heart of the world’s leadership communities, Euro Disney, brings huge international experience we believe we are in the best position to bring in corporate development. these stakeholders closer together, both intellectually and geographically. We owe it to our members – and the wider world – to continue Our finances remained stable during the year, finding better and better ways of doing just that. despite the effect of a tough economic climate on our members. In the year, our income dropped by 8% to Sfr. 66,454,727, largely reflecting the With the Forum so firmly at the centre of world return to more customary levels of participation in events, it gives me great pleasure to report that the Annual Meeting, after the hugely increased the Foundation Board has entrusted me to build number of participants in New York. further on our success and to use the next five years to transform the Forum into the leading To ensure that the World Economic Forum remains organization dealing with the challenges of the a sustainable and unique organization for its 21st century. members, in 2002/2003, the Managing and Foundation Boards invested a significant amount of time determining how the organization could improve its services. The resulting strategic plan will be outlined during the next 12 months. www.weforum.org The World Economic Forum will continue to Klaus Schwab develop its offering, as a means of ensuring its Founder and Executive Chairman, members achieve outstanding performance. The World Economic Forum 3
  • 6. Annual Meeting, back in Davos Loyola de Palacio, Vice-President of the European Commission, during a session on the volatility of oil prices In 2003, the World Economic Forum’s Annual Meeting returned to its home in Davos, Switzerland, following its relocation to New York the previous year in the aftermath of the terrorist attacks of September 11. The Davos Meeting was convened in a climate of global uncertainty that had seen the breakdown of trust in many sectors of society. There was little confidence in the ability of public institutions to govern effectively for the global common good and a lack of trust in business’s accountability towards society. There was also rising uncertainty about the consequences of a military conflict with Iraq and over the prospects for the recovery and sustained growth of the global economy. A citizen wears an ‘I love WEF’ sign in his hat during the Annual Meeting 2003 in Davos For six days, 2,311 participants, including 24 heads of state and the chief executives of many of the world’s most influential companies, held Ratio of Annual Meeting participants 2003 discussions around the theme of Building Trust. They focused on the key topics of trust and NGOs values, security and geopolitics, global Religious leaders Global Leaders for Tomorrow governance, prospects for the global economy Technology Pioneers Academia and corporate challenges. Other constituents Our ability to bring together leaders from business, Media Fellows/ government, academia, the media and civil society Leaders provided a unique platform for dialogue. Among Business the participants were high level representatives from 99 countries, with more than a quarter Public figures coming from the developing world. They included 4
  • 7. Luiz Inácio Lula da Silva, President of Brazil, addresses Irene Khan, Secretary-General, Amnesty International, UK, Annual Meeting participants during a discussion on identifying priorities 34 religious leaders, 72 NGO representatives, “We need a global development strategy that 172 academic experts, 226 public figures and 268 integrates competition and efficiency with leading editors. For the first time the media group equality of opportunities and solidarity. We need, included famous editorial cartoonists whose piercing and we must link together, economic and social art has a significant effect on public opinion. policies,” he said. “It is vital that we build a world economic order that can The crisis in Iraq dominated much of the discussion and eventually led to the convening satisfy the yearnings of those billions of people who are of the Extraordinary Annual Meeting in Jordan. Post-war reconstruction in Afghanistan was today excluded from the extraordinary scientific and also high on the agenda, with the participation of Abdullah Abdullah, Afghan Minister of technological advances that mankind has achieved.” Foreign Affairs. President Luiz Inácio Lula da Silva of Brazil, at the Annual Meeting 2003 The presence in Davos of a US delegation led by Secretary of State Colin Powell and leading In the global corporate arena, trust in large representatives from the Middle East was a clear companies has been severely eroded by recent demonstration of the World Economic Forum’s corporate scandals. During the Annual Meeting unique ability to bring leaders together to seek the results of a survey of signatories of the Joint alternative solutions to global problems. CEO Statement on Corporate Citizenship, launched in New York in 2002, were unveiled. While the Middle East was a major topic, the Annual Meeting was a focal point for discussions The results revealed a shift in corporate behaviour, on the challenges facing the emerging regional with many companies seeking to further integrate powers. New Brazilian president Luiz Inácio Lula ethical behaviour into their business practices. da Silva spoke for many developing nations when The survey of CEOs from 16 countries and 18 he called for international trade agreements to give industry sectors also found that many companies them greater access to developed markets. have now established board-level committees to lead their corporate citizenship strategies. From among a strong South American group, www.weforum.org President Vicente Fox of Mexico called on participants to exercise ‘economic citizenship’. 5
  • 8. Annual Meeting Heizo Takenaka, Japanese Minister of State for Financial Services, Economic and Fiscal Policy, during a session on putting the Japanese economy back on track • The Bill and Melinda Gates Foundation While the Annual Meeting was once again a announced a US$ 200 million grant to establish catalyst for discussion, it also provided the the Grand Challenges in Global Health Initiative, launching pad for significant practical actions a partnership with the US National Institutes of to tackle global issues: Health. The grant will increase research into diseases that cause millions of deaths in the • The World Economic Forum launched the Global developing world Governance Initiative to evaluate progress in the global effort to implement the ambitious • As part of efforts to improve economic and economic, social and environmental goals set social prospects in Africa, more than 50 out in the United Nations Millennium Declaration companies operating in the region signed covenants pledging to follow good corporate “Social and economic Darwinism destroys trust in governance and promote ethical practices one another and demoralizes society. The long fight • Religious leaders from different faiths shared for individual freedoms has ultimately resulted in a messages of tolerance during a session on coexistence. They agreed that there is no boundless egoism.” intrinsic reason for people of different religions to be in conflict Pascal Couchepin, President of the Swiss Confederation, at the Annual Meeting 2003 For more about the Annual Meeting 2003 visit www.weforum.org/annualmeeting • Pharmacia Corporation, a US-based pharmaceutical company, announced the launch of a pilot model for expanding access to medicines for the poorest populations in the developing world. The not-for-profit programme, in partnership with the International Dispensary Association Foundation, will increase access to medicines for HIV/AIDS 6
  • 9. The World Economic Forum continues to seek dialogue with responsible anti-globalization groups. These anti-globalization demonstrators expressed their views outside the Annual Meeting 2003 Open Forum Davos 2003 The staging of the Open Forum Davos reflected a desire to make a ‘living bridge’ between the Thousands of Davos citizens participated in the first main Annual Meeting, critical NGOs and the ever series of World Economic Forum public debates. local community, as a means of making the World Economic Forum’s mission more accessible The inaugural Open Forum Davos ran alongside and transparent. the Annual Meeting 2003. It was co-organized by the World Economic Forum and civic society Two peaceful demonstrations, by members of the groups, including churches, fair trade organizations Open Forum Davos audience, occurred during the and the Swiss Red Cross. course of the programme. One group staged a silent protest, with placards, against globalization The programme of seven debates provided and the role of multinational companies, while the an open platform for frank discussion around second group read out a critical statement during challenging aspects of globalization, with topics a debate on migration. ranging from ‘Can Globalization be Ethical?’ to ‘Are Children’s Rights Merely for Show?’ The Open Forum Davos is set to become a regular feature of the Annual Meeting, with next year’s The free debates were attended by more than debates being around the theme of Globalization 2,000 people, including local schoolchildren, and Deglobalization for the Benefit of the Poorest. participating as part of their civic education syllabus. The sessions, which took place in a Davos school hall, were held in German and French, with simultaneous translation. Speakers were nominated by both the World Economic Forum and the participating NGOs. They included leading international figures, such as Peter Brabeck-Letmathe, CEO of Nestlé, and Alec Erwin, South African Minister of Trade and Industry. www.weforum.org 7
  • 10. Extraordinary Annual Meeting in Jordan Paul Bremer, US Chief Administrator in Iraq, was among a high-level US delegation that took part in the World Economic Forum’s Extraordinary Annual Meeting in Jordan As the aftermath of war in Iraq threatened to destabilize an already volatile Middle East, the World Economic Forum convened its first ever Extraordinary Annual Meeting to provide a platform for peace and reconciliation. Based on the theme Visions of a Shared Future, the meeting took place beside the Dead Sea, in Jordan, under the patronage of His Majesty King Abdullah II and brought together more than 1,200 business, political, religious, cultural and other leaders from 65 countries. The US delegation included Secretary of State Colin Powell, US Chief Administrator in Iraq Paul Bremer, and Richard Lugar, Chairman of the US Senate Foreign Relations Committee. Jordan was chosen to host the event because of Salam Fayyad, Minister of Finance of the Palestinian Authority, listens to the speech of Shimon Peres (on screen), former Prime Minister of its location in the heart of the Middle East and its Israel, during the session 'Israel-Palestine: A Vision for the Future’ reputation as a regional leader in political and social reform. It has a peace treaty with Israel and maintains Extraordinary Annual Meeting participants friendly relations with its neighbours. This made it the ideal location for leaders to come together to seek NGOs solutions to tense issues such as the future of Iraq, Religious leaders Global Leaders for Tomorrow Arab-Israeli relations and prospects for democratic Technology Pioneers Academia reform and economic development. Other constituents Despite being arranged in just eight weeks, the Media Fellows/ Extraordinary Annual Meeting created political Leaders momentum for change. Among the practical steps taken was the decision to create the Council of 100 Business Leaders, composed of senior business, religious, Public figures political, media and opinion leaders from the West and the Islamic world who are dedicated to strengthening ties and understanding between the two societies. 8
  • 11. Andrew Natsios, left, Administrator, US Agency for International The Quartet: Kofi Annan, UN Secretary-General; Colin Powell, US Development, and the late Sergio Vieira de Mello, Special Secretary of State; Igor Ivanov, Minister of Foreign Affairs, Russian Representative of the UN Secretary-General Federation, and EU High Representative Javier Solana Madariaga Another significant development was the launch The summit also provided a platform for the foreign of a US-Middle East Free Trade Area, a region- ministers of Israel, the Palestinian Authority, Jordan wide agreement to open trade both with the US and Egypt to present their visions for the future of and between Arab nations. the region. “The summit demonstrated that the effort to build Building on the participation of a strong Arab presence at the Annual Meeting in Davos, a better world must begin with a joint endeavour to the Arab Business Council was launched to proactively support responsible reform and more redefine the values that we share. As was discussed liberal economic policies. during the summit, peace is paramount to business The World Economic Forum believes such initiatives in the region and business is paramount to peace.” are needed to begin to address the economic challenges that are currently facing the region. Kofi Annan, UN Secretary-General, following the Extraordinary Annual Meeting Despite economic growth, incomes have stagnated following a rapid increase in the population. The region missed out on the boom in foreign direct Although many obstacles to peace and prosperity investment (FDI) in the 1990s and now only remain, the Extraordinary Annual Meeting provided accounts for 1% of FDI. Such factors now threaten a unique platform for leaders from across the prospects for improved social welfare. region and the world to discuss their differences and, following the disruption of the Iraqi war, to To reinforce efforts to achieve a lasting peace begin planning a more prosperous and secure between Israel and Palestine, attempts were made future for the Middle East. to broaden support for the Roadmap for Peace, that had earlier been endorsed by the For more about the Extraordinary Annual Meeting Quartet of the US, European Union, Russia and visit www.weforum.org/annualmeetingjordan the United Nations. www.weforum.org 9
  • 12. South African President Thabo Mbeki, right, listens to the Chief Executive Officer of Ashanti Goldfields, Sam Jonah, during the last plenary session of the Africa Economic Summit in June 2003, in Durban. 10
  • 13. The regional agenda Encouraging economic and social development Our regional agenda focuses on high priority issues manufacturing industries, financial services, energy relevant to members operating around the world. and geopolitics. It identified the challenges that the In close cooperation with our regional partners, nation must overcome to succeed. The India we continued to pursue a programme to encourage Advisory Council continued to promote the each region’s economic and social development. achievements and progress made in the country. Its enlargement to include non-Indian members, In 2002/2003, the World Economic Forum summits including European, American and Chinese leaders, in Europe, the Middle East, Africa, East Asia and Latin has increased the council’s global influence. For America brought together thousands of leaders to further information, visit www.weforum.org/india define, discuss and advance the key issues in their “I believe Asia’s future rests upon its ability to harmonize the regions. We also convened specific country-related meetings in Brazil and India. region’s diversified characteristics and to develop a sense of Asia Pacific and China unity and, at the same time, a sense of interdependence.” Our East Asia Economic Summit 2002, in Kuala Lumpur, Malaysia was a launch pad for dialogue, Thaksin Shinwatra, Prime Minister of Thailand, East Asia Economic Summit initiatives and commitments on key issues facing the region. The summit’s themes included business In 2002/2003, China remained one of the world’s most challenges, competitiveness, diversity, regional impressive economic performers, enjoying sustained integration, governance and growth. See growth, improved competitiveness and a steady www.weforum.org/eastasia increase in foreign direct investment. However, economic activity in the Asia Pacific and China region To further address the challenges posed in the future was severely disrupted by uncertainty surrounding the by the increasingly complex nature of Asian business spread of Severe Acute Respiratory Syndrome (SARS), and diplomacy the summit saw the launch of a which also had the effect of forcing us to postpone our community of New Asian Leaders. This group of China Business Summit. outstanding young leaders from business, government, civil society and academia are committed to economic In Japan, deflation remained a major problem and and social development in the region. At a retreat in the country continued to struggle with the challenges Seoul in 2003 the New Asian Leaders met to review of globalization. The Japanese sub-group of the New www.weforum.org their ‘Blueprints for a New Asia’ and discussed their Asian Leaders presented their blueprint for change plans with Korean President Roh Moo-Hyun. at the Annual Meeting 2003. Their suggestions included the deregulation of unproductive industries The India Economic Summit 2002 focused on to improve competitiveness. economic reforms, trade and investment, 11
  • 14. The regional agenda Africa and the Middle East To improve the competitiveness of Arab nations and to build a broad-based tier with the West, the The World Economic Forum continued to play a key Extraordinary Annual Meeting in Jordan became the role in building business support for the New launch pad for the creation of the Arab Business Partnership for Africa’s Development (NEPAD), and Council and the Council of 100 Leaders. its alignment of politicians, business and civil society behind an ambitious economic and social Despite such efforts, the difficulties in the region were development programme. further highlighted in August 2003 when a car bomb “A lot of the world is sceptical about us, believing that attack on the UN headquarters in Baghdad killed 22 people. In a tremendous loss, Sergio Vieira de Mello, we Africans are not serious about ourselves. We have a participant in the Extraordinary Annual Meeting and special representative of the United Nations Secretary- to prove that the will to implement the NEPAD is there.” General in Iraq, was killed in the explosion. Thabo Mbeki, President of South Africa, Africa Economic Summit 2003 Europe The NEPAD’s first projects included the E-Schools At both the European Economic Summit in Initiative, which was launched at the Africa Economic Salzburg and our Annual Meeting in Davos we Summit in Durban with the aim of giving the continent’s brought together leaders from business, politics children the skills they need to prosper in today’s and civil society from the European Union and the information society. See www.weforum.org/africa accession countries to discuss the challenges for the enlarged region. They focused on integrating such The Durban Summit also saw the launch of a drug emerging regions as South East Europe into development collaboration between the Medicines mainstream economic activity. To support this goal we for Malaria Venture and GlaxoSmithKline, while the convened our first South-East Europe Meeting in Global Alliance for Improved Nutrition announced plans Athens. Around 300 business and political leaders to bring food fortified with vitamins and minerals to from 31 countries, including seven heads of state, some developing countries. There was a further participated. We also sought to involve Russia in the encouraging development at the Annual Meeting in future of Europe, promoting dialogue between Russian Davos when 50 companies operating in Africa pledged and European leaders. to follow good corporate governance and promote ethical business practices. 2002/2003 was also notable for strengthening links between Turkey and the World Economic Forum. Against a background of war in Iraq and continued A large delegation took part in the Annual Meeting tension between Israel and the Palestinians, the 2003, including the then prime minister Abdullah Gul World Economic Forum continued to seek solutions and Recep Tayyip Erdogan, Chairman of the AK Parti, to the region’s social and economic challenges. The who later went on to become prime minister. Turkey World Economic Forum’s 2002/2003 Arab World was also represented at ministerial level at the Competitiveness Report revealed that growth South-East Europe Meeting. had stagnated since the 1980s. Noting the North America implications of the steep rise in population, the report stressed the need for job creation and improved The US economy remained the main engine for education systems. global economic growth driven by innovative technology, as explored in the World Economic We held the first Arab World Competitiveness Forum 2002/2003 Global Competitiveness Meeting in Geneva in September 2002. Over 250 Report. At the same time that the Iraq war caused business and political leaders from the region, as well tension around the world, the World Economic Forum as selected multinational corporations and international provided a vital platform for engagement with the US organizations, took part. During the event, Arab administration, enabling global leaders to share a business leaders pledged 20% of their corporate frank exchange of views on the conflict and on social citizenship or philanthropy budgets to projects aimed and economic issues. at bridging the digital divide between the region and the world’s most developed nations. 12
  • 15. The US demonstrated its commitment to continuing Following the election of Luiz Inácio Lula da Silva as dialogue on both security and the economy at the President of Brazil, the World Economic Forum Annual Meeting, when Secretary of State Colin Powell focused on the challenges facing the country. The led a delegation that included five senior members of Brazil Competitiveness Meeting in São Paulo, the administration, among whom was John Ashcroft, in June 2003, provided business and other leaders Attorney-General, US Department of Justice. At the with an opportunity to meet the new Brazilian Extraordinary Annual Meeting in Jordan, Secretary of Government, to assess the main economic and State Powell was joined by US trade representative social challenges and to develop strategies to Robert Zoellick. improve competitiveness. The meeting produced recommendations for the country in the key areas The profile of the World Economic Forum remained of macroeconomic policies, governance, the legal high in the US following our decision to hold the framework, and technology and innovation. Annual Meeting 2002 in New York. The success of the Extraordinary Annual Meeting further reinforced We continued to expand our engagement with leaders the credibility of our mission with business, in Latin America and for the first time welcomed five government, civil society and the media. regional heads of state to the Annual Meeting 2003 in Davos: Eduardo Duhalde, President of Argentina; Latin America Vicente Fox, President of Mexico; Luiz Inácio Lula da At the Latin America Business Summit in Rio Silva, President of Brazil; Alvaro Uribe, President of de Janeiro in November 2002, 400 participants from Colombia and Alejandro Toledo, President of Peru. business, civil society, academia and government made key policy recommendations on how Latin For more information on Latin America, see America could return to growth. www.weforum.org/latinamerica During the summit more than 100 institutions signed the Private Sector Declaration, which committed them to enhancing the institutional environment, improving social conditions and increasing national competitiveness. Many leaders also called for greater access to developed world markets. Towards European reintegration Thirty one countries, from Croatia to Turkey, were that institutional reform is represented at the first ever World Economic Forum vital for economic South-East Europe Meeting, held in Athens in success. Greece and May 2003. Ireland were cited as role models for successful On the agenda for around 300 participants were growth backed by discussions about the region’s prospects, and an EU involvement. appeal to speed up the process permitting reform- Zoran Zivkovic, Prime Minister, Serbia; Boris Trajkovski, minded Balkan states to apply for EU membership. Many participants took President, FYR Macedonia; George Papandreou, Foreign The meeting included a call to the EU and the the opportunity to pay Minister, Greece; Fatos Nano, Prime Minister, Albania; Stjepan Mesic, President, Croatia, and Milo Djukanovic, international community to build on the remarkable tribute to Zoran Djindjic, Prime Minister, Montenegro, at the Athens summit economic and political achievements in the region over the Serbian Prime the past four years. Participants pointed to the fact Minister assassinated on www.weforum.org that the process of European reintegration presents 12 March 2003. Balkan leaders pledged to keep his an opportunity for the region to build a common future spirit and vision alive. Zoran Zivkovic, Prime Minister – although this depends on regional cooperation of Serbia, said that Mr Djindjic had laid the foundations underpinned by international support. A session of many institutions and his European vision would be entitled ‘How can the region catch up?’ suggested realized after his death. 13
  • 16. Elderly people are leading longer, healthier and more fulfilled lives, with many choosing to study in their later years. But, as a growing number of citizens enter their third age, who will fund their retirement? The World Economic Forum’s Pension Systems Readiness Initiative is assessing how well OECD countries will cope with their ageing populations. 14
  • 17. Task forces and initiatives An integrated approach to global challenges Global Health Initiative The diversity of our membership provides a Diseases such as HIV/AIDS, tuberculosis and unique platform for the discussion, coordination and malaria kill millions of people every year and development of practical projects dedicated to damage the economic and social prospects of improving the state of the world. Our task forces and countries across the developing world. The private initiatives form an integral part of this mission by sector is a key player in the fight against diseases. acting as vehicles for sharing knowledge, views and Companies can bring significant resources of skills, resources among all involved stakeholders and implementation and access to at risk populations mapping scenarios for decision-makers. that complement the activities of the public sector and civil society. Pension Systems Readiness Initiative Increased life expectancy, the impending retirement “Almost every global business has something it can and of the baby boom generation and a falling retirement age are creating unsustainable pressures should contribute to organizations on the front lines of on public and private pension systems. Although this is a global problem, many countries are the global public health crisis.” approaching the issues of ageing and pension reform in an isolated manner. Rajat Gupta, Senior Partner, Worldwide, McKinsey & Company Inc., USA The Pension Systems Readiness Initiative brings The Global Health Initiative is a collaboration together leaders from the financial services and between the World Economic Forum’s member employment sectors and other interested bodies, companies, such key United Nations agencies such as senior citizen groups, labour unions and as the Joint United Nations Programme on governments. As a first step, they will compile HIV/AIDS (UNAIDS), and the World Health extensive cross-country information to assess Organization’s (WHO) Stop Tuberculosis and Roll the readiness of Organization for Economic Back Malaria programmes. Cooperation and Development (OECD) countries to face the reality of ageing populations and the pressure this will place on their pension systems, economies and future generations. It is intended that this analytical tool will shed light on the www.weforum.org strengths and weaknesses of various national approaches and act as a catalyst for change. For further information on the Pensions Systems Readiness Initiative, see www.weforum.org 15
  • 18. Task forces and initiatives The initiative coordinates the private sector In 2003/2004 the Global Health Initiative will interaction with the Board of the Global Fund to seek to increase private sector involvement Fight AIDS, Tuberculosis and Malaria, working to at country-level, complementing such global increase private sector engagement in these programmes as the US Presidential Emergency public-private partnerships. It seeks to: Plan for AIDS Relief and the WHO strategy to • Develop tools for businesses to promote ensure three million people have access to good policy and practices within workforces retroviral drugs by 2005. For further information, and communities see www.weforum.org/globalhealth • Foster partnerships to develop policies and programmes E-learning Initiative • Expand corporate advocacy The Jordan Education Initiative is an e-learning pilot project, involving the national government and In 2002/2003, we expanded Global Health Initiative World Economic Forum member companies, that activities in individual countries, linking companies aims to deliver e-learning to Jordanian citizens. It with each other, with non-governmental brings together leaders from the information organizations and with governments in the worst technology and telecommunications industries to affected nations. improve education in the kingdom. Companies began to play a greater part in the The project provides young people with an fight against the diseases, developing infrastructure environment that enables them to pursue and introducing education for their employees, their goals through a process of learning and much of which can be expanded to include entire self-determination. communities. Through the efforts of many companies, hundreds of thousands of people now Ninety-six schools are piloting the project in have access to life-saving medicines and care. Jordan. They will serve as a test bed of how information and communications technology can “We must not only increase public awareness about the benefit schools and their pupils. Though focused on developing education, the plan also offers an challenges the world is facing in relation to water, but we opportunity to develop the local information technology industry. must also change the way the water issue is perceived: from being a driver of conflict to being a catalyst The initiative supports the government vision of building a knowledge economy by providing lifelong for collaboration.” learning opportunities for all its citizens. For further information on the E-learning Initiative, see Klaus Töpfer, Executive Director, United Nations Environment Programme, www.weforum.org at the launch of the World Economic Forum Water Initiative, June 2003 Water Initiative Achievements of the initiative in 2002/2003 Ensuring water resources are managed effectively included: is one of the key global challenges. In 2003, the • Working with the World Bank and UNAIDS to World Economic Forum, in association with the bring businesses from 15 countries, with high United Nations Environment Programme (UNEP), rates of HIV, together in Zambia to share launched the Water Initiative to improve the corporate best practice in tackling AIDS quality and quantity of water for both businesses and communities. • Publishing workplace guidelines on dealing with tuberculosis in partnership with the WHO and Initiative members include leading businesses, non- International Labour Organization. These governmental organizations and governments who guidelines seek to help companies tackle the seek to share best practice and create partnerships disease and are available online at for the management of water and watersheds (that www.weforum.org/globalhealth is, the area that drains to a common waterway, such as a lake, estuary or ocean). 16
  • 19. The Water Initiative aims to encourage private The initiative involves partners from the business sector participation in the maintenance of and environmental arenas, including WWF (the watersheds and to put water management at the World Wildlife Fund), World Resources Institute, forefront of economic development. It will serve as Pew Center on Global Climate Change, World an incubator for public-private partnerships that Business Council on Sustainable Development, address the importance of watershed World Energy Council, the International Emissions management, both for business needs and the Trading Association and BrasilConnects. For further environment. The initiative will also contribute to a information on the Global Greenhouse Gas Register better understanding of how to structure the costs Initiative, see www.weforum.org/ghg of environmental services, and establish and promote best practice in the management of Global Governance Initiative watersheds. For more information, see The World Economic Forum launched a Global www.weforum.org/water Governance Initiative at the Annual Meeting 2003, to monitor progress towards the ambitious Global Greenhouse Gas Register economic, social and environmental goals of the In consultation with companies, environmental United Nations Millennium Declaration. organizations and governments, the World Economic Forum launched a multistakeholder The initiative involves seven international groups partnership to design and operate a global of experts, each dedicated to evaluating the effort register of voluntary corporate greenhouse gas and cooperation among the key players seeking reduction targets. By creating a global emission to achieve these goals. Targets set out in the inventory and register, where data and commitments declaration range from halving the number of on greenhouse gas emissions can be recorded, we people living in poverty by 2015 to finding ways seek to encourage more companies to take early to eliminate war and the dangers posed by the action to measure their emissions and set their own dissemination of weapons of mass destruction. reduction targets. Global Information Technology Report Preparing for a networked society The Global Information Technology Report is part of use of technology by all the World Economic Forum’s commitment to helping three stakeholder groups. countries achieve optimum economic performance The US slipped to second and overcome barriers to success. place, due to its less competitive performance in In 2002/2003, the comprehensive report assessed terms of connectivity and 82 economies around the globe to get a clear diffusion of technology. picture of their readiness for the networked world. Singapore was third, but ranked higher in terms of Countries were rated according to a Networked government and regulatory Readiness Index (NRI). This measures their degree of backing for IT. Brazil and Finland is leading the way in information technology preparedness to capture the benefits of a networked Estonia also scored well economy according to three factors: market for government support, while Germany topped the conditions, including political and regulatory framework league for IT usage by businesses. www.weforum.org and infrastructure; the readiness of three stakeholder groups – individuals, business and government; and The NRI was produced in partnership with INSEAD the actual usage of IT. and the World Bank Information for Development Programme (which addresses obstacles facing Finland took first place in the index, reflecting good developing countries in the information-driven world). 17
  • 20. Task forces and initiatives The initiative steering committee convened for the The survey, which questioned chief executives first time during the Annual Meeting and will publish from 18 industry sectors and 16 countries, its first annual report in 2004. It will assess the showed that companies are treating corporate steps being taken by governments, civil society, citizenship more strategically than in the past and the private sector and international organizations are linking it to business practices. It also found to meet the targets, which have the support of that citizenship strategy is now increasingly driven 189 governments. at board level. “Let us try to understand each other. We want peace. In the survey, 90 per cent of CEOs listed the internal communication of values and policies So let us do it together, the Jordanians, the Palestinians, as a key tool in embedding corporate citizenship. the Egyptians, all of us – to have a better future for the Although managing reputation and brand equity were selected as the most important factors for children of our region.” making the business case for corporate citizenship, attracting, motivating and retaining Silvan Shalom, Deputy Prime Minister and Minister of Foreign Affairs of Israel, employees came close behind. For more on the at the Extraordinary Annual Meeting Global Corporate Citizenship Initiative, see Global Corporate Governance Dialogue www.weforum.org/corporatecitizenship In line with the global focus on corporate governance, the World Economic Forum is Council of 100 Leaders planning a series of high-level workshops at its The Council of 100 Leaders seeks to be the regional summits and the Annual Meeting. These foremost community of senior business, political, will take advantage of their setting in different religious, media and opinion leaders from the regions to explore the international and cross- West and the Islamic world who are dedicated cultural dimensions of corporate governance. For to strengthening ties between the two societies. further information on the Global Governance Members of the council met for the first time Initiative, see www.weforum.org/globalgovernance at the Extraordinary Annual Meeting in Jordan in 2003 to develop a framework for the initiative, Global Corporate Citizenship Initiative which will be formally launched at the The World Economic Forum’s Global Corporate Annual Meeting 2004. Citizenship Initiative is working to increase business engagement in, and support for, corporate The council’s mission is to foster a culture of citizenship. It involves 40 member companies and respect and cooperation between the two representatives from other concerned organizations. traditions and so overcome the current tension and mistrust. It seeks to establish a dialogue In preparation for the Annual Meeting 2003, the through a shared commitment to universal values initiative conducted a survey of chief executives and goals, together with a programme of joint who had signed the Joint CEO Statement on action that will bring clear practical results, Corporate Citizenship, which was launched in transformational change and cooperation. For New York in January 2002. further information, see www.weforum.org/c100 18
  • 21. Global Competitiveness Programme concludes that Finland is the country most The Global Competitiveness Programme aims to prepared to capture fully the benefits of the act as a catalyst for economic policy change, by networked economy. assisting governments in identifying impediments to growth and in designing strategies to achieve In 2002/2003, the World Economic Forum published sustained economic progress. In 2002/2003, we the first Arab World Competitiveness Report. It published a series of reports and held regional showed how growth in the Middle East has stagnated and national workshops under the Global since the 1980s and why, despite its natural Competitiveness Programme umbrella. resources, the region has failed to capture a greater proportion of international trade and capital flow. The programme’s flagship publication, the Global Competitiveness Report, was created by Klaus The competitiveness sessions and workshops Schwab in 1979. It is the most authoritative and held during the Annual Meeting and the regional comprehensive assessment of the comparative summits provided an opportunity for leaders from strengths and weaknesses of national economies. business, government, academia, international In 2002/2003, the report showed that nations organizations and civil society to debate key must improve their governance systems if they competitiveness issues, drawing on information are to remain competitive. from the reports. However, the programme’s Global Information The World Economic Forum also gave Technology Report 2002/2003 found that fortunes presentations around the world to research were reversed in the IT sector where Finland institutes and governments keen to strengthen ranked first in terms of readiness for the networked their economies. For further information, see world and the US slipped to second place. It www.weforum.org/gcp Arab Business Council Building growth in the Middle East More than 50 The council is committed to promoting global best leading companies, practice in the Arab business sector, and has adopted in association with stringent standards on accounting, corporate social the World Economic responsibility and combating corruption and bribery. Forum, have united to form the Arab It will also advise the World Economic Forum on issues Business Council. of key importance to the Arab world for inclusion in the agenda of the Annual Meeting. The formation of the council at the The council will seek to take advantage of the Extraordinary opportunities offered by the new US-Arab Free Annual Meeting Trade Agreement that has been proposed by the Shafiq Gabr, in Jordan is a US administration to provide a platform for Chairman of the Arab Business Council response to the challenges of slow growth, weak sustained growth. investment and perceived instability in the Middle East. Two international private sector meetings are planned The new council’s seven-member executive committee for the 2003/2004 financial year in order to open www.weforum.org is ready to work with governments to enhance dialogue with governments and business sectors in the competitiveness in the region, establish constructive US and the European Union. dialogue with business leaders in the most developed countries, and integrate the Arab world more effectively into the global economy. 19
  • 22. The United States remains the powerhouse of the global economy, according to the World Economic Forum’s Global Competitiveness Report 2002/2003. 20
  • 23. Our members and partners Entrepreneurship in the global public interest The World Economic Forum brings together major Netcom Corporation Ltd, Computerland SA, businesses to work with all stakeholders in civil Cotecna Inspection SA, Dow Chemical Company, society to promote economic and social Dubai Development and Investment Authority, development. Our members and partners represent Empresa Periodistica El Mercurio SAP, Eurazeo, all sectors and regions of the global community. Exel Plc, Findus AB, Forrester Research Inc., France Telecom, Gemplus International SA, Georgetown University, Hellenic Members Telecommunications Organization SA, ICICI Bank Although our members are drawn from the world’s top 1,000 companies, we reserve 35% of places Ltd, Imax Corporation, Industrial and Commercial for those from the developing world. Our members Bank of China, Ingram Micro Inc., Institute of help guide our work, and provide financial and International Finance, Invensys Plc, Investissement in-kind support to develop our activities. They Québec, Italtel SpA, J. & W. Seligman & Co. Inc., benefit through their involvement in our events, KT Corporation, La Poste, Lloyd’s of London, communities and initiatives. Malaysia Airlines, Manugistics Group Inc., Millennium Pharmaceuticals Inc., Mohammed Our members represent a diverse range of Abdulmohsin Al-Kharafi & Sons WLL, Moore experience and opinions. They come from 25 Capital Management, National Commercial Bank, different industry sectors and are based in every NetJets, Oil and Natural Gas Corporation Ltd, part of the world. This is why the World Economic Pacific Basin Economic Council, Petrol Ofisi AS, Forum is a neutral organization which does not Portugal Telecom SGPS, SA, Quantum make public statements on behalf of its members. Corporation, Renaissance Re Holdings Ltd, Royal Jordanian Airlines (ALIA), SAS Institute, Sealed Air During 2002/2003, the following companies were Corp., Shenzhen Development Bank Co. Ltd, accepted as members of the World Economic Forum: Siemens Corporation, Silver Lake Partners, Star Activision Inc., AEA Investors Inc., Aegis Group Group Ltd, Supreme Economic Council, Taiwan Plc, African Rainbow Minerals Gold (ARMgold), Power Company, Telecom Italia Mobile (TIM) SpA, Akin, Gump, Strauss, Hauer & Feld LLP, Alshaya The Bear Stearns Companies Inc., The Group, An-Nahar Group, Autostrade SpA, Banca Shorenstein Company LLC, The Timberland Intesa SpA, Bank of China, Bolsa de Mercadorias Company, Underwriters Laboratories Inc., Union www.weforum.org & Futuros (BM&F), Brasil Telecom SA, British Bank of Nigeria Plc, United States Postal Service Columbia Lottery Corporation (BCLC), BUPA and the Youssef El-Khereiji Group of Companies. (British United Provident Association), Business Objects SA, CH2M HILL Companies Ltd, China 21
  • 24. Our members and partners Co-chairs of the Annual Meeting: Junichi Ujiie, President and CEO, Nomura Holdings, Japan; Bertrand Collomb, Chairman and CEO, Lafarge, France; Henry A. McKinnell, Chairman and CEO, Pfizer, USA; Philip M. Condit, Chairman and CEO, The Boeing Company, Partners USA (also co-chair of the Extraordinary Annual Meeting) Our strategic partners are key companies that are particularly deeply involved in the activity of the World Economic Forum. They ensure the agenda reflects business concerns, help launch our task forces and initiatives and provide people for specific projects, to serve on steering committees or take project management responsibilities. They also contribute significant financial resources. There was a special partners meeting in spring 2003, to test our strategy. “Stimulating faster economic growth in developing countries is essential to enable sustained global economic growth. It is in the mutual interest of developed and developing nations. It is also key to sharing the Four of the co-chairs of the Extraordinary Annual Meeting: Peter benefits of global growth more equitably.” Brabeck-Letmathe, Vice-Chairman and CEO, Nestlé, Switzerland; William R. Rhodes, Chairman, Citicorp and Citibank and Senior Vice-Chairman, Citigroup, USA; Khalid A. Alireza, Chairman, International Business Council trade task force statement, March 2003 Xenel/Saudi Cable Company, Saudi Arabia; Carly Fiorina, Chairman and CEO, HP, USA As of 30 June 2003, our strategic partners were: Membership development ABB, Accel Partners, Accenture, Apax Partners, A.T. The World Economic Forum’s members encompass Kearney, Audi, Bain & Company, Barco, The Boeing not only the largest companies in the world but also Company, Bombardier, Booz Allen Hamilton, BP, Cisco those that are regional and industry leaders. Our Systems, The Coca-Cola Company, Deloitte Touche membership criteria remain strict and, during Tohmatsu, DHL, Ernst & Young, HP, IBM Corporation, 2002/2003, the World Economic Forum not only KPMG, Kudelski Group, McKinsey & Co., Merck & Co. welcomed 91 new members but also refused Inc., Merrill Lynch, Microsoft Corporation, Nestlé, membership to companies that did not meet our PepsiCo, Pfizer, PricewaterhouseCoopers, Sara Lee criteria. Despite the difficult economic conditions we Corporation, Siemens, UBS and Volkswagen. enjoyed the support of 15 new partners in 2002/2003. Several of these were previously members who had decided to strengthen their ties with the World Economic Forum. 22
  • 25. Our communities and constituencies The special commitment of the business community Communities Industry Governors Industry Governors’ groups are made up of CEOs A key part of World Economic Forum activity is selected from influential companies within a range of the creation of communities of member and partner industry sectors. These fall under the general companies. We have developed specific expertise and categories of basic industries, communications and capabilities to foster and support these communities technology, consumer goods and health, and financial and to encourage interaction between them whenever services and transportation. The Governors aim to relevant and worthwhile. provide informal, efficient frameworks for an exchange of opinions on global issues of concern to specific sectors. They provide intellectual stewardship to our The International Business Council efforts, such as industry-specific initiatives and task The International Business Council (IBC) consists of forces and industry-targeted sessions and events. 100 highly influential, concerned and committed chief executives. It identifies and addresses globally relevant “We appeal to governments to use their power and to business issues and acts as an advisory body, providing intellectual stewardship to the World fully commit to establishing security and lasting peace Economic Forum. In 2003, the IBC created a task in the whole of the Middle East.” force of four members, Niall FitzGerald, Peter Brabeck- Letmathe, Josef Ackermann and Henry A. McKinnell, Peter Brabeck-Letmathe, Vice-Chairman and CEO, Nestlé, on behalf which was given the responsibility of elaborating its policy on trade. Its statement calling for significant of the International Business Council Trade Task Force, at the Extraordinary breakthroughs in the Cancun Ministerial Meeting of Annual Meeting the World Trade Organization was sent to the heads of state of the G-8 nations. At the Annual Meeting 2003, the Governors met to discuss the global issues facing such sectors as the At the Extraordinary Annual Meeting in Jordan the IBC mining and metals industries, healthcare and released a statement on the commitment of business professional services. These discussions were to the peace process, appealing to governments to preceded by a series of preparatory meetings to use their power and influence to establish peace confirm the Governors’ agenda. Preparatory meetings throughout the Middle East. IBC steering committees for the chemicals, energy, communications and for Asia and for healthcare met for the first time in technology, finance, aerospace, travel and tourism, www.weforum.org Davos in January 2003 with the aim of giving strategic and logistics and transportation sectors were held in guidance to the World Economic Forum. Following a Geneva. A similar meeting for the engineering and debate at its summer meeting, the IBC developed a construction industry was held in London and another statement on corporate governance for use by for the automotive sector took place in Paris. members in discussions with officials and regulators. 23
  • 26. Our communities and constituencies Jonathan Zapiro, Editorial Cartoonist, South Africa, at the Annual Meeting 2003 Constituencies The Forum Fellows are at the cutting edge of their The World Economic Forum’s constituencies are disciplines. They contribute ideas, in-depth knowledge, individuals and organizations that are drawn from new ways of tackling problems and sound advice all sectors of society and represent a rich source of throughout the year. While some fellows are drawn expertise and information. into activities only when their expertise is required, around 50 constitute the core of the community and Advisory Groups are heavily involved on a regular basis. Our Advisory Groups range from religious leaders to non-governmental organizations, from academic Global Leaders for Tomorrow institutions to trade unions. In 2002/2003, a new group The Global Leaders for Tomorrow (GLT) programme was created representing philanthropic bodies called is designed to bring together young leaders from the Global Foundation Leaders’ Advisory Group. The fields ranging from the arts and media to business purpose of the Advisory Groups is to assist other key and politics – what they have in common is a stakeholders in the global economy to engage in, visionary approach. The object is to provide a fresh and help shape, World Economic Forum activities. view of global issues, and to think creatively. The members propose task forces and initiatives that support our mission of improving the state of the “There is immense unrest, injustice and inequity in our world. In 2003, they focused on such issues as access to water, the characteristics that make strong women world. These circumstances demand the emergence of leaders and measuring the impact of philanthropy. a new breed of moral leaders who are committed to The GLT community’s annual summit was based on developing innovative, sustainable and tailored the theme of Leadership: Yesterday, Today and Tomorrow and examined how attitudes to leadership approaches to addressing the most pressing problems.” have changed in the last decade. Many GLTs were also active participants in the Annual Meeting 2003 Ndidi Okonkwo Nwuneli, Founder, LEAP Africa, Nigeria, in Davos. Global Leader for Tomorrow 2003 Forum Fellows This year 100 new members were selected, marking Intellectual capital is very important to the World the community’s tenth anniversary. Many earlier GLTs Economic Forum and much of it is provided by our have gone on to become household names, including Forum Fellows, a group of around 1,500 scientists and Bill Gates, Chairman of Microsoft Corporation, Tony experts from a variety of fields. Blair, Prime Minister of the UK, and the composer and singer Bono. 24
  • 27. Technology Pioneers We continued to seek constructive dialogue with The Technology Pioneers programme has matured anti-globalization groups, participating in meetings significantly since it was established in 2000. Members with the World Social Forum. of this community represent the cream of global talent in the fields of information technology, biotechnology Social Entrepreneurs and renewable energy. Their aim is to provide The Schwab Foundation for Social Entrepreneurship alternatives to accepted wisdom, as well as to keep consists of about 70 individuals and organizations that the World Economic Forum informed about emerging use innovation to create social value, with wealth technologies likely to have an impact on how business creation as a means to that end. and society operate. The Foundation was created by Klaus and Hilde In 2002/2003, 40 new Technology Pioneers were Schwab in 1999. It is independent but works selected from among the chief executives of the most closely with the World Economic Forum to innovative technology companies in the world. For provide a global platform to promote the benefits the first time, Technology Pioneers formed part of the of social entrepreneurship. official Annual Meeting programme, and their sessions on IT, biotechnology and energy were well attended Members of this community are united by their and stimulated lively debate. From 2004, this commitment to working for the public good, whether heightened profile will be extended to include an through profit-making or not-for-profit organizations. annual Technology Pioneer event at a regional summit. Social Entrepreneurs are pioneers and innovators. They challenge the usual or ‘inevitable’ and identify Dialogue with NGOs pattern-breaking approaches to resolve seemingly In 2002/2003, the World Economic Forum continued intractable problems, using new processes, services, to build strong relationships with non-governmental products or new ways of combining proven practice. organizations (NGOs) and sought to integrate their views into its activities. NGOs played an active part in The vast majority of Social Entrepreneurs are educated our regional events, 72 took part in the Annual professionals, such as medical doctors, engineers, Meeting and many were involved in our initiatives and scientists, economists, management specialists and task forces. For example, WWF has worked with us lawyers. Their commitment to creating social value on environmental issues while Amnesty International colours the way they use their expertise and talents. and Oxfam contributed to the World Economic Forum’s 2003 Global Agenda Monitor. Social Entrepreneurship Empowering African businesswomen Gisèle Yitamben is one of the outstanding individuals Yitamben carried out a study for the African in the Schwab Foundation for Social Entrepreneurship Development Bank in 1986, which revealed that women network. Her Association pour le Soutien et l'Appui à entrepreneurs in Africa had no access to credit. Their la Femme Entrepreneur (ASAFE) provides business businesses were too small and they could not provide training and collateral. Moreover, in Cameroon a combination of development services, discriminatory traditional laws and a lack of government alternative financing support prevented women’s economic empowerment. and access to e-commerce for ASAFE strives to enable women entrepreneurs to seize thousands of women emerging opportunities, building competency www.weforum.org entrepreneurs in in management, bookkeeping and marketing. Many Cameroon, Guinea, of its 5,000 members have created flourishing micro- Benin, Chad and the enterprises. Using information and communication Democratic Republic technology, ASAFE has brought its entrepreneurs Social entrepreneur of Congo. closer together and connected them to larger markets. Gisèle Yitamben 25
  • 28. The Forum blends the best of the private and public sectors to create a unique culture, boosted by the dynamism and youthfulness of a multicultural staff. 26
  • 29. Our people Our people: a wealth of diversity and talent The World Economic Forum’s reputation depends Nationality Numbers Age Group Numbers on its values, its ability to generate knowledge and strategic insight, and the skills and expertise American 22 20 to 24 1 of its staff. Armenian 1 25 to 29 44 Australian 3 30 to 34 47 In 2002/2003, our people continued to reflect Belgian 1 35 to 39 22 the international nature of our organization, Brazilian 3 40 to 44 14 with representatives of 32 different nationalities. British 7 45 to 49 8 This cultural diversity was invaluable as we sought Canadian 4 50 to 54 7 to work with our partners and members around Chinese 1 55 to 59 8 the world. Cypriot 1 60 to 64 7 Costa Rican 1 65 or older 1 Danish 2 The World Economic Forum continued to be Dutch 2 Total 159 a young, talented organization with the average Finnish 1 age of our people being 36 years. However, it French 22 is important to balance the fresh thinking that German 12 comes with youth with the experience of those Indian 1 who have spent many years working in the Iranian 1 international business and governmental arena. Irish 2 This blend of experience can be seen in the Italian 9 breakdown in ages of our staff. The skills and Ivorian 1 high qualifications of our staff is clear from Malagasy 1 the fact that two-thirds of the 159 people who Malaysian 1 Mexican 1 work for the World Economic Forum hold Moroccan 2 university degrees. New Zealander 1 Norwegian 3 The remuneration policy in 2002/2003 continued to Polish 1 reconcile our status as a not-for-profit foundation South African 1 with our aim of attracting the best people. www.weforum.org Spanish 4 Swedish 3 We also continued to encourage staff to take part Swiss 43 in external social, cultural and sporting activities Thai 1 provided there was no conflict of interest. Nationalities 32 27
  • 30. Our organization World class governance The World Economic Forum is striving towards a The membership criteria include integrity, global world-class corporate governance system. vision, leadership experience and participation in world affairs. In 2002/2003, we completed the dual implementation of a new system of corporate The Foundation Board members for the year governance, which is rooted in our operational and 2003/2004 are: strategic approach. • Klaus Schwab, Executive Chairman • William I. M. Turner, Vice-Chairman We will continue to review and adapt the World • Josef Ackermann, Vice-Chairman Economic Forum organization to ensure we remain • Kurt Alig, Secretary responsive to the needs of our stakeholders. • Peter Brabeck-Letmathe • Lord Carey of Clifton • Victor L. L. Chu “Global governance should not be based on rules or • Flavio Cotti power. It should be based on values.” • Michael S. Dell • Niall FitzGerald Bertrand Collomb, Chairman and CEO, Lafarge, France, at the Annual Meeting 2003 • Rajat Gupta • Nobuyuki Idei • Caio Koch-Weser The Foundation Board • Henry A. McKinnell The Foundation Board is currently made up • Heinrich von Pierer of 18 eminent individuals from business, politics, • H.M. Queen Rania of the Hashemite Kingdom academia and civil society, each serving a of Jordan three-year term. • Peter D. Sutherland • Ernesto Zedillo Ponce de Leon The Board acts as the guardian of the World Economic Forum’s mission, values and brand, At the Foundation Board meeting of 21 August 2003, inspiring business and public confidence through an members accepted the resignation of Graça Machel, exemplary standard of governance. This includes: who stepped down due to other commitments. managing the statutes of the World Economic Forum and its institutions; defining the powers of the Committees and of the Managing Board; appointing new members; reviewing fund applications; and determining and monitoring the execution of the World Economic Forum’s strategies. 28
  • 31. The Committees of the Foundation Board The Centre for Regional Strategies The Foundation Board appoints four committees The Centre for Regional Strategies (CRS) provides from among its members: members and constituents with a series of • The Executive Committee prepares the decisions outcome-oriented summits in markets of major of the Foundation Board and oversees the strategic interest. It builds regional and national Managing Board communities of leaders drawn from business, • The Audit Committee ensures compliance with politics, academia, religion, media and other areas all financial, accounting and control processes of civil society who share the World Economic • The Evaluation and Remuneration Committee Forum’s mission. recommends candidates for positions on the Managing Board and monitors their performance The regional summits allow members and • The Mission Compliance Committee reviews participants to share, face-to-face, information and Forum policies, strategies and activities in light insights on key developments and trends of regional of its mission significance. They also give the issues an audience which extends to all stakeholders of global society. Practice Structure CRS works closely with both CGA and CGI, with In 2002/2003 the World Economic Forum the regional summits serving as a platform for the organized its work into three integrated practices. World Economic Forum’s global initiatives. The Centre for the Global Agenda An evolving structure The Centre for the Global Agenda (CGA) monitors To better serve our members and constituents, we and analyses global issues to provide content for are evolving the practice structure described above. the World Economic Forum’s annual, regional, country and industry meetings. It stimulates In the coming year, we will reshape the organization thinking and dialogue by organizing task forces to further improve our ability to: build and energize and other initiatives involving different regions, the top global communities; convene world leaders intellectual disciplines and stakeholders in the in the highest level meetings and interaction; serve world economy. as the creative force shaping global, regional and industry agendas, and enable world leaders to take The CGA also manages the World Economic joint action through global initiatives and Forum’s engagement with its constituencies, partnerships. The adapted structure will be built including the academic and scientific communities, around groups dedicated to each of these business trade bodies, international organizations, objectives and will continue to operate in an labour leaders, non-governmental organizations, integrated and seamless manner. religious leaders, Technology Pioneers and Global Leaders for Tomorrow. For more information, see www.weforum.org/globalagendamonitor The Centre for Global Industries The Centre for Global Industries (CGI) handles relations with the World Economic Forum’s membership. The CGI is organized into five broad industry groupings, to allow the development of expertise and special relationships with members, covering: basic industries, communications and technology, consumer goods and health, financial services and mobility industries. www.weforum.org 29
  • 32. Our organization The 2002/03 World Economic Forum Managing Board. From right, José María Figueres, Philippe Bourguignon, Klaus Schwab, Frédéric Sicre, Rick Samans, André Schneider and Michel Ogrizek The Managing Board Positions held: General Manager, Fibers of Central The Managing Board acts as the executive body America, 1980-84. President of the San Cristobal of the Foundation. It ensures that activities fulfil the Agroindustrial Group from 1984-87. Minister of Foreign mission of the World Economic Forum and acts as its Trade for Costa Rica, 1987-88, becoming the Minister of Agriculture from 1988-90 and President of Costa representative to outside parties. The Managing Board Rica from 1994-98. Joined the World Economic Forum members for the year 2003/2004 are as follows: in 2000 as Managing Director. Additional posts held: President of the Board of Leadership in Environment Klaus Schwab and Development (LEAD), Member of the Board of Executive Chairman and Founder, aged 65 Directors: World Resources Institute (WRI), Stockholm Qualifications: Swiss Federal Institute of Technology Environment Institute (SEI). and the Universities of Fribourg and Harvard. Degrees include Doctorates in Mechanical Engineering and in Philippe Bourguignon** Economics (summa cum laude). Taught business Senior Managing Director, aged 55 policy since 1969 and has been a Professor at the Qualifications: Master in Economics, University of University of Geneva since 1972. Author of several Aix-en-Provence and a postgraduate diploma from books, the yearly Global Competitiveness Report the Institut d'Administration des Entreprises, Paris. (since 1979) and many other publications. Founded Positions held: Set up vacation hotels in Africa and the World Economic Forum in 1971 as a not-for-profit the West Indies, 1971-74. He worked for Accor foundation, building it into the foremost global Group for 14 years: 1974-76, Vice-President, partnership of business, political, intellectual and other Development, Asia & the Middle East; 1978-84, leaders of society committed to improving the state of Executive Vice-President, North America; 1984-88, the world. Recipient of numerous academic and President, Accor/Pacific. In 1988 he joined Disney international and national honours for initiatives Development Co., Los Angeles; 1992, promoted to undertaken in the spirit of entrepreneurship in the President, Euro Disney, Chairman and CEO, Euro global public interest and for peace and reconciliation Disney and Executive Vice-President, Walt Disney efforts in several regions. Company Europe. He was Chairman and CEO of Club Meditérranée 1997-2003. In August 2003 he José María Figueres* became Managing Director of the World Economic Senior Managing Director, aged 49 Forum. He is a board member of eBay, Dexia and Qualifications: Bachelor’s Degree in Engineering in Aspen-France Institute. 1979. Joined the United States Military Academy (USMA) at West Point in 1991 followed by MPA, Kennedy School of Public Administration, Harvard University. 30
  • 33. Frédéric Sicre André Schneider Managing Director, Regional Strategy, aged 39 Managing Director, Chief Operations Officer, aged 44 Qualifications: BA in Literature, Villanova University, Qualifications: Classical Orchestra Musician; Diploma, Philadelphia, Pennsylvania, USA. Positions held: Richard Strauss Konservatorium, Munich. PhD in managing a communication centre within the NATO Computer Science, University of Geneva. Positions organization, Germany. Programmer, News held: the Philharmonic Orchestra of Berlin; the Reporter for Radio Geneva Information and KTFM Staatsheater Kassel; the Symphony Orchestra of the radio stations, 1982-84. Joined the World Radio Saarland; the Lucerne International Festival Economic Forum in 1989. In 2000, he became Orchestra. Researcher in parallel computers for the Managing Director with direct responsibility for the European Community; various positions held with IBM, Centre for Regional Strategies. including: Product Developer; Consultant and Principal, IBM Consulting Group; Consultant for various Rick Samans*** companies and organizations; Speaker on IT-related Director, Global Issues, aged 45 topics. Joined the World Economic Forum in 1998, Qualifications: BA in Economics and French from Tufts appointed Director of Knowledge Management and University and a Masters in International Affairs from an Associate Member of the Managing Board in 2000 Columbia University. Positions held: Corporate Lending and a member of the Managing Board from Officer, Credit Lyonnais USA, New York from 1981-84. January 2003. Legislative Assistant to a member of the House Committee on Ways and Means from 1985-88. Michel Ogrizek*** Professional Staff Member and Senior Legislative Director, Communications, aged 56 Assistant to the Chairman, Senate Banking Qualifications: Medical Doctor, University of Paris, Committee; International Affairs Fellow, Council on 1974. Positions held: Chief Medical Officer at the Foreign Relations, London and Washington DC from French Ministry of Cooperation from 1975-82. 1988-91. Associate Director and Staff Director for the Research Associate in the Department of Cultural Subcouncil on Capital Allocation, Competitiveness Anthropology and post-doctoral studies at Berkeley, Policy Council, 1993-96. Economic Policy Adviser to 1982-83. Medical and Public Affairs Director, Africa the Senate Minority Leader from 1996-99. Special Region and Medical Director, Canada, at Warner Assistant to the US President, for International Lambert from 1983-87. Médecins Sans Frontières Economic Policy, 1999-2001. Joined the World trainer. From 1987-91, Director, Burson-Marsteller, Economic Forum in 2001 as Director, Global Issues France. President and CEO, Hill & Knowlton, France, and as an Associate Member of the Managing Board. and Head, Eurosciences, from 1991-95. From 1995- 97, President and CEO for Europe and Board member, Edelman Public Relations Group. Global Head of Corporate Relations, Unilever from 1997- 2000. Global Head, Marketing & Communications and Managing Director, UBS Warburg from 2000-02. Joined the World Economic Forum in mid-2002 as Director of Communications and as an Associate Member of the Managing Board. *Appointed Co-Chief Executive Officer in October 2003. **Joined the Managing Board in August 2003 and appointed Co-Chief Executive Officer in October 2003. www.weforum.org ***Appointed Managing Director in August 2003. 31
  • 34. Our organization Sharing knowledge Information technology and • Tablet PCs being introduced in the members’ knowledge management lounges, to complement 90 fixed electronic In 2002/2003, the World Economic Forum continued terminals or ‘kiosks’ to develop its IT resources, for the benefit of its • An enhanced ‘Davos Companion’. This year, this members and staff and the global public. hand-held, iPAC version of the printed programme, participants’ booklet and guide, At the Annual Meeting 2003, to enhance integration, included an integrated LAN card, making it thinner interaction and knowledge sharing, participants were and lighter. In another new departure, following the again supported by the latest technological systems, Annual Meeting, almost one third of the 2,000 provided in partnership with leading IT companies. companions distributed were donated to aid projects in Uganda and India. “I remember the CEO of General Electric saying if investors In June, the World Economic Forum faced the wanted a financial report the size of the New York City phone challenge of providing IT resources, at short notice, for the very different environment of the Extraordinary book, then that’s what they would get. Most of us don’t want Annual Meeting in Jordan. The task was executed successfully, with 150 PCs flown to Jordan, that amount. What we want is a small amount of information, to establish the required IT infrastructure. but we want good information.” Aside from these high-profile events, we continued to enhance our all-year-round IT offering. Members Constance Ford, Economics Editor, The Wall Street Journal, at the Annual Meeting benefited from such additional services as Building on the IT of previous Annual Meetings, improved private spaces for key virtual innovations for 2003 included: communities, including the IBC and Governors, • Improved ‘smart’ security badges. The badges, and more detailed online information. which carry a microprocessor and antenna that enable communication with the main computing To further improve our transparency, we also system, were this year overprinted with different increased the information on our public website. types of ink. This visual security complemented For example, we provided more information on the electronic security provided by the chip our Global Competitiveness Programme reports • Consolidating all Annual Meeting information into and on our initiatives. a simple, easy-to-use platform on the World Economic Forum website 32
  • 35. Online World Economic Forum staff hard at work at the Annual Meeting 2003 in Davos The number of visits to our sites continued to rise. In 2002/2003, for the first time, the media presence In January 2003, there were one million page views, included many of the world’s leading editorial up from 250,000 the previous January. Over the full cartoonists. As both journalists and artists, they year, there were seven million page views, over one wield a peerless impact and influence on their million visits. audiences, reflecting and even shaping public perception of global leaders and issues. They brought a unique perspective to our efforts to Looking forward, we will continue to develop our engage dialogue during this year’s Annual Meeting, IT capability, to enhance the experience of everyone Extraordinary Annual Meeting and regional summits. who interfaces electronically with the World Economic Forum. Our close working relationship with the media across the globe demonstrates our openness and Communications transparency. Ongoing media programmes In 2002/2003, extensive – and largely positive – throughout the year reinforced this relationship which media coverage brought World Economic Forum is based on trust and credibility. Notable international activities to millions of people around the globe. partnerships with press groups included editorial cooperation with Newsweek at the global level and The Annual Meeting and the Extraordinary Annual Time in Europe, the Middle East and Africa. Meeting were the key focus of media attention. For example, live BBC World broadcasts from both Partnerships meetings opened the events to almost half a billion The World Economic Forum also seeks partnerships television viewers and radio listeners. The peace and with like-minded institutions. It has, for example, reconciliation summit in Jordan attracted significant NGO consultative status with the Economic and numbers of both the Israeli and Arab media, with Social Council of the United Nations and works satellite television network Al-Jazeera broadcasting closely with the Prince of Wales International three hours of coverage per day. Business Leaders Forum and the World Business Council for Sustainable Development. This level of media attention is due to the international stature of our membership and the significance of topics and initiatives. It also reflects the World Economic Forum’s commitment to www.weforum.org building partnerships with the world’s media. Twenty per cent of participants at our events are editors attending not, as elsewhere, as reporters only but as full and active stakeholders. 33
  • 36. Our financial results In 2002/2003, despite a tough economic and Auditors geopolitical climate, the World Economic Forum’s The World Economic Forum’s financial results are financial base remained robust. audited by PricewaterhouseCoopers who examine the balance sheet and accounts. The annual By keeping costs below last year, we partly offset a report, as well as all institutional documents, are lower level of incoming revenue. The latter followed submitted to the Swiss Federal Government, which the SARS-related cancellation of the planned Asia acts as the supervisory body of the Foundation. Economic Summit and the postponement of the China Business Summit; the straitened finances of some of our members and, following the exceptional circumstances of the Annual Meeting 2002 in New Total Income 1998 – 2003 York, a return to the customary participation levels at figures in Swiss francs this year’s event. Financial policy The World Economic Forum’s financial policy states that membership fees should cover operational costs, that events are funded through cost contributions and that projects are supported by income from partnership contracts. The World Economic Forum may accept grants, donations, legacies and other contributions or 63,806,052 51,306,002 61,100,642 72,195,453 66,454,727 subsidies that are consistent with its purpose of ‘integrating leaders from business, politics and society at large into a community for global action committed to improving the state of the world and 1998/ 1999/ 2000/ 2001/ 2002/ the well-being and prosperity of human society’. 1999 2000 2001 2002 2003 The World Economic Forum makes no payments to The financial year’s figures reflect the special partnership nature of the Annual Meeting 2002 in New York and the SARS-related political personalities, parties or other organizations cancellation/postponement of two significant Asian summits in 2003. and avoids involvement in internal politics. 34
  • 37. Key figures Year 1998/1999 1999/2000 2000/2001 2001/2002 2002/2003 Total income* 51,306,002 61,100,642 63,806,052 72,195,453 66,454,727 out of which members’ fees 20,915,531 22,106,920 23,588,125 24,965,367 25,530,325 participation fees 26,972,981 21,465,398 partnership 18,946,940 17,390,452 Total expenditure 50,380,441 59,416,135 63,556,294 69,077,008 66,454,522 out of which personnel costs 27,097,659 26,584,768 office costs 10,642,445 8,360,352 activity-related costs 31,336,904 31,509,401 Surplus to be added to the Foundation capital 925,560 1,684,507 249,759 3,118,445 205 Foundation capital 7,062,041 8,746,549 8,996,308 12,114,753 12,114,958 Total staff Full time 68 81 125 139 130 out of which are seconded by Forum members 4 4 Part time 24 22 22 28 28 * all key figures in Swiss francs www.weforum.org 35
  • 38. Our mission and values The World Economic Forum is the foremost global The World Economic Forum enjoys unique global community of business, political, intellectual and positioning by recognizing and responding to two other leaders of society committed to improving the new developments: state of the world. • The world’s key challenges cannot be met by Our mission is best realized through activities governments, business or civil society alone which promote economic and social development. • In a world characterized by complexity, fragility We believe that economic progress without social and ever greater synchronicity, strategic insights development is not sustainable, while social cannot be passively acquired. They are best development without economic progress is not developed through continuous interaction with feasible. Our motto is thus ‘entrepreneurship in peers and with the most knowledgeable people the global public interest’. in the field (learning communities) In addition to convening world leaders, the Forum is committed to involving them in living communities of common interest and purpose. The Forum ensures substance in the form of strategic insights and, where relevant, platforms for joint action. To carry out its mission, the World Economic Forum has developed an integrated value chain by involving world leaders in communities, inspiring them with strategic insights and enabling them through initiatives. Our vision for the World Economic Forum is threefold. To be: • The foremost organization which builds and energizes leading global communities • The creative force shaping global, regional and industry strategies for its communities • The catalyst of choice for its communities when undertaking global initiatives to improve the state of the world 36
  • 39. The Forum’s Global Health Initiative helps mobilize the private sector in the fight against HIV/AIDS. Pictured, Ian Robertson, BMW South Africa’s managing director, is publicly tested at an on-site medical facility, to encourage employees to learn their HIV status without fear of discrimination. Photo credit: BMW South Africa 37
  • 40. Designed and edited by Wardour Communications Contact details: World Economic Forum 91-93 route de la Capite CH-1223 Cologny/Geneva Switzerland Telephone +41 (0)22 869 1212 Fax +41 (0)22 786 2744 e-mail: contact@weforum.org www.weforum.org