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    world economic forum Annual Report 2007 world economic forum Annual Report 2007 Document Transcript

    • World Economic Forum Annual Report 2006/2007
    •  World Economic Forum Annual Report 2006/2007 This report is available online at www.weforum.org
    •  World Economic Forum Annual Report 2006/2007 Contents 0 Executive Chairman’s statement 06 Our major successes and achievements 08 New strategic endeavours 0 Shaping the global agenda 4 Shaping the regional agenda 0 Shaping the industry agenda 4 Building public–private partnerships 8 Creating knowledge networks 3 Engaging our communities and constituencies 35 Working with our members and partners 38 Our organization 40 The Forum community 4 World Economic Forum USA 44 Our financial results 45 Our mission and values The World Economic Forum is an independent international organization committed to improving the state of the world by engaging leaders in partnerships to shape global, regional and industry agendas.
    •  World Economic Forum Annual Report 2006/2007 Professor Klaus Schwab, Founder and Executive Chairman of the World Economic Forum
    • 3 World Economic Forum Annual Report 2006/2007 Executive expertise and influence were as assured, and Once again the World Economic Forum has invaluable to members, as those of our regional shown itself to be an innovative, dynamic Chairman’s and global perspectives. and insightful organization. Acting as a statement catalyst for global change, we have delivered In this context, I’m pleased that the concept of concrete results that reinforce our mission to Professor Klaus Schwab Corporate Global Citizenship is evolving from a improve the state of the world. We achieved poorly understood slogan to a key principle and this at a time when we continue to expand strategic cornerstone of responsible businesses. and evolve to meet the changing needs of Corporations have not only a licence to operate our partners and members worldwide. in a global space, but also a ‘civic duty’ to contribute to the sustainable health of this global 2006/2007 saw a number of key strategic space in cooperation with governments and civil challenges and opportunities – many of which society. It is for this reason that Corporate Global we share with our members. We have continued Citizenship remains at the very heart of the to work closely with our members and partners Forum’s activities. as well as with other key stakeholders from government and civil society in our mission to The increased engagement of members shape the global agenda in a positive way. As demonstrates the value they place in the Forum part of this mission we have all had to address and its continuing evolution. In 2006/2007, I am the increasing prominence of Asia in the global very pleased to report, our number of Strategic economy and polity. In addition we have a range Partners increased by 18%, as further member of emerging global companies that will take their companies signalled their closer commitment place in the global economy in the near future. to the Forum by joining the programme. We have also addressed the growing importance of online communities both in the One-third of our staff, in 14 sector teams, are way we do business, how the Forum itself now dedicated industry experts and, in 2007, our works, and the way we conduct our lives. North American office, World Economic Forum And we have continued to give prominence to USA, became firmly established as the global identifying and understanding a new generation headquarters for our Centre for Global Industries of global leaders. and for our Industry Partners programme, thus developing unbeatable strategic perspectives The Forum shares with all its members and and a platform to support the concerted action partners a responsibility and an obligation to of our diverse stakeholders. Our Industry reduce its impact on the environment and search Partnership community continues to grow. We for sustainable solutions. As part of this focus, increased the number of active members working in a number of tight-knit communities on a range this year the Forum is sending all members a of industry and cross-industry projects by 95%. condensed print version of this annual report, while offering the full version on our website at www.weforum.org/annualreport. We hope that The Forum’s international expansion with an you understand and welcome this move. The established office in Beijing and now new annual report is also available in Arabic, Chinese, premises for our New York headquarters, and the French, German, Japanese and Spanish. Inaugural Annual Meeting of the New Champions, this year in Dalian in China, has extended our Shaping the global agenda: footprint but has not diminished the Forum’s a new global alliance cohesion and unity of purpose. We remain one For many years, the Forum was a relatively organization, with a common mission and culture. lone voice in its passionate advocacy of a multistakeholder approach to global issues. Asia and the rise of the New Champions British Prime Minister Tony Blair, whom I was It has become an established fact that the rising delighted to welcome as a member of our economies of Asia are poised to equal those of Foundation Board in June, captured this the West, revolutionizing the traditional economic truth particularly eloquently at this year’s order. Building relationships and understanding Annual Meeting. between the ‘old’ and ‘new’ economies and business leaders is essential for the future Mr Blair said: “Nations, even the most great, prosperity and stability of both. are realizing that they cannot pursue their narrow national interests without invoking broader global The Forum has a long and successful history values. They are obliged to recognize that of engagement in Asia, and in China and India interdependence is the defining characteristic in particular, where we have had a major impact of the early twenty-first century. The shifting in integrating those countries into the global power equation is, in part, obviously about system. We are therefore perfectly placed to emerging new powers; but it is equally about the be a powerful platform for interaction and fact that power over global issues can only be cooperation between the emerging and effectively wielded today by global alliances, in established economies. This is something the turn based on global values.” Forum has sought to do for many years but it’s clear that this must become a central strategic The key role of business in this ‘global alliance’ goal for the Forum as it must be for many of our is becoming increasingly apparent. In 2006/2007, member companies. The Inaugural Annual the Forum acted to ensure that our business Meeting of the New Champions in Dalian, China
    • 4 World Economic Forum Annual Report 2006/2007 Executive (6–8 September 2007) brings together emerging I am also delighted to report that our emphasis global companies – we call them the ‘New on discovering and developing new young Chairman’s Champions’ – with today’s leaders to shape leaders is reflected in the participants at Davos statement tomorrow’s business landscape. This inaugural – demonstrating the Forum’s success in meeting creates a powerful platform for connecting with – and our continuing relevance interaction and collaboration between traditional to – rising generations of leaders. Professor Klaus Schwab and new actors, between East and West, by continued bringing together far beyond 1,000 top We are also proud of our efforts to improve the participants. Our close and long-term relationship representation of women leaders both at our with the Chinese Government, particularly meetings and in the wider business community. represented by the NDRC, the National I’m particularly happy that we have doubled Development and Reform Commission, was key the representation of women leaders at the to the establishment of the Dalian meeting and Annual Meeting in the last five years. future meetings of the New Champions, as well Providing a platform for dialogue as the operational success of our office in Beijing. and action Online communities and the Once again our Annual Meeting in Davos, our WELCOM project regional events, and our year-round activities As part of this emerging new world, the virtual and programmes supported and complemented communities that the Web has enabled are each other. The Annual Meeting, held under becoming an increasingly important global the apposite theme ‘Shaping the Global resource – and a vital complement to the Agenda: The Shifting Power Equation’, brought understanding and relationships forged by face- together 2,400 global decision-makers to to-face interaction. They are changing the way examine the implications of moves in economic we do business and the way we interact as and political power, climate change and individuals. They have also changed the way changing community models, particularly virtual we at the Forum work. ones. And our regional meetings were also a key driver of regional integrations. In the In partnership with a number of major global Middle East, despite all the setbacks and companies, we made great progress in developing negative developments, the Forum endeavours WELCOM – the World Electronic Community of to maintain a spirit of hope and reconciliation. the World Economic Forum. Developed on a Web 2.0 basis and incorporating videoconferencing We’ve also introduced in the past year a new capability, WELCOM aims to become the world’s feature which has been welcomed by all those most comprehensive platform and online tool for who took part: exclusive in-depth dialogue with global CEOs and political leaders. It will enable top leaders – such as the recent roundtable we business leaders, both from established and organized with Chancellor Merkel and her developing economies, to build their knowledge, cabinet and in Russia in June with President understanding and relationships and allow Putin and his two first deputy prime ministers. them to stay abreast of the rapidly changing Annual and Regional Meetings commercial environment. The significant outcomes of the Annual Perhaps more importantly, WELCOM will allow Meeting included: a completely new approach to tackling global The announcement of a new international challenges by providing an integrated platform. partnership to establish an accepted framework And we have already decided that the first big for climate risk-related corporate reporting global issue we will address will be water The establishment of an alliance of leading shortage and water management. companies to bring power to villages in sub- Saharan Africa The Forum has always led the field in utilizing An agreement by several global development new technology. WELCOM continues this trend banks to support our Partnering Against and, after it is rolled out at the Annual Meeting Corruption Initiative. in 2008, we are confident that this exciting tool will prove invaluable to members. Our regional events, which attracted increasing numbers of members from all stakeholder groups, Working with tomorrow’s leaders also delivered tangible results. These included: The baby boom generation that shaped the The announcement, at the World Economic second half of the twentieth century is retiring. Forum on the Middle East, in Jordan, of a The future belongs to a new generation, inspired US$ 10 billion initiative to promote youth by different influences, values and goals. education and a knowledge-based society in the region The Forum is intent on understanding and An insightful meeting between 80 international harnessing the strengths, talent and vision of this business leader members and German generation. Our sister organization, the Forum of Chancellor Angela Merkel, as part of a series Young Global Leaders, is a key avenue to this of informal meetings in Europe, to complement group. The group now includes over 660 of the our regional meeting in Turkey world’s most dynamic and capable under-40 year The launch of the Alliance for a Green olds, drawn from 90 countries and representing Revolution in Africa, to tackle the challenges business, government, civil society, academia faced by millions of farmers in the region, at the and the arts. World Economic Forum on Africa in Cape Town.
    • 5 World Economic Forum Annual Report 2006/2007 Public–Private Partnerships Here are the regional meetings organized by the Our members, meanwhile, continued to show the World Economic Forum this year: benefits of public–private partnerships in numerous Forum-backed programmes around the world. 10 –11 September 2006 China Business Summit, Beijing, China Our Global Health Initiative, for example, 15 –16 November 2006 Germany Meeting, harnessed the influence and expertise of major Berlin, Germany companies in the fight against AIDS, TB and 23 –24 November 2006 World Economic malaria. In one initiative, the Beyond Big Business Forum in Turkey, Partnership, firms such as Eskom, Heineken, Istanbul Standard Chartered Bank, Unilever and 26–28 November 2006 India Economic Volkswagen joined forces with their suppliers to Summit, New Delhi provide HIV/AIDS awareness, prevention and 9 –10 April 2007 Arab World treatment programmes. Our Global Education Competitiveness Initiative, meanwhile, built on its 2006 launch of Roundtable, Doha, Partnerships for Education (PfE), which engages Qatar leading educationalists in promoting the role of 25 –26 April 2007 World Economic Forum public–private partnerships, by signing a formal on Latin America, partnership with UNESCO to implement PfE. Santiago de Chile 18 –20 May 2007 World Economic Forum We strongly believe that businesses must be good on the Middle East, global corporate citizens and make a positive Dead Sea, Jordan contribution to society. As well as encouraging 9 –10 June 2007 World Economic Forum multinational companies to act this way, via our Russia CEO partnership with the Schwab Foundation for Social Roundtable, Entrepreneurship we also back enterprises that St Petersburg have a more overt social focus. This year, the 13 –15 June 2007 World Economic Forum foundation ran 30 national competitions for the on Africa, Cape Town, ‘Social Entrepreneur of the Year’ award, screening South Africa 2,500 candidates and conducting 150 site visits. 24 –25 June 2007 World Economic Forum The winners joined the growing community of on East Asia, Singapore Schwab Foundation entrepreneurs. Risks, Competitiveness and Scenarios I am pleased to report that our members’ All through the year, our activities give business continued commitment and ever closer leaders the tools to do a better job. For example, engagement with the Forum contributed to a good our ability to act as a ‘hub’ for the best minds – financial year while still allowing for significant from academia to business and from government investment in the strategic priorities of the new to media – enables us to provide invaluable WELCOM platform and the inaugural meeting of strategic insights. the New Champions. We also now have plans in hand for the extension of our headquarters to bring Our Global Risk Network continued to lead the all our staff in Geneva back under one roof. The agenda in risk identification and analysis, amid construction should begin early 2009. rising concern over such international issues as climate change and the security of energy supply. Looking ahead, the future will be characterized In 2007, following a series of workshops, the both by great business opportunities and by Network identified 23 core global risks, outlining significant political and economic risks. The their conclusions in the Global Risks 2007 report. Forum will continue to bring strategic insights of both the ‘good’ and the ‘bad’ to members’ The Forum’s Global Competitiveness Network attention: wise, effective leadership requires a continued to assist policy-makers in creating true understanding of the bigger picture. And in drivers for growth by examining how nations and this respect I am pleased that we have added to regions as well as industries can achieve sustained the range of talents and capabilities of our staff prosperity. In September 2006, we launched the with our Global Leadership Fellows programme, 27th Global Competitiveness Report, covering a which allows us to do so many complex things record 125 economies providing critical insights to the satisfaction of the most demanding on over 100 competitiveness variables. We also international public. launched our first ever Travel & Tourism Competitiveness Report. The dedication and engagement of our members and of our staff were what made 2006/07 another Our highly respected Scenario Planning team successful year for the Forum. I would like to thank presented three major scenarios at the Annual you very much for your continued commitment. Meeting 2007, examining: how the Gulf Cooperation Council countries could develop; the potential impact of the convergence of IT, telecoms, media and entertainment; and how technology, innovation and regulation could transform access to, and delivery of, financial services. Professor Klaus Schwab Founder and Executive Chairman
    • 6 World Economic Forum Annual Report 2006/2007 Our major successes and achievements 3 companies representing more than US$ 500 billion in annual turnover have signed up to Partnering Against Corruption – Principles for Countering Bribery, from the World Economic Forum Partnering Against Corruption Initiative (PACI).
    •  World Economic Forum Annual Report 2006/2007 Global Agenda The World Economic Forum is committed The World Economic Forum launched the to improving the state of the world by Israeli-Palestinian Business Council, a key The World Economic Forum’s Global Education engaging leaders from the public and private group of Palestinian and Israeli CEOs who are Initiative has expanded from country initiatives in sectors and from wider civil society in committed to advancing the relationship between Jordan, India and Egypt – which are reaching over partnerships to shape the global, regional the two business communities and, ultimately, 2,550,000 students – to the global scale. Along and industry agendas. Here are some of assist the region to move towards durable peace with UNESCO, the Global Education Initiative the year’s highlights. and coexistence. launched the ‘Partnerships for Education’ with the purpose of helping developing countries find An initial 70,000 people in Lesotho and the multinational and local corporate partners with Democratic Republic of Congo are due to receive capabilities relevant to their efforts to provide all electricity as part of the World Economic Forum’s children with a basic education. Energy Poverty Alliance. This is a private sector initiative of Forum member companies that The Forum’s Global Health Initiative is the delivers business expertise and best practices largest public–private sector network in health. to reduce energy poverty. The three initiating Results from 2006/2007 include: partners are British Columbia Hydro and Power – India Business Alliance to Stop TB – 4,000,000 Authority (Canada), Eskom (South Africa) and people were reached through workplace and Vattenfall (Sweden). community programmes delivered by Reliance, Aditya Birla, Jubilant Organosys, Eli Lilly, the World The World Economic Forum launched the Health Organization, the Global Partnership to first index specifically analysing the investment Stop TB and the Ministry of Health of India. environment for infrastructure. Covering 12 – China Health Alliance – 5,000,000 people, economies in Latin America and the Caribbean, who are employees of partner companies, are the study, Benchmarking National expected to receive education, testing and Attractiveness for Private Investment in Latin treatment. Partner firms are Adidas, Standard American Infrastructure, assesses the main Chartered Bank, Swire Beverages, Pfizer, drivers of private investment in infrastructure the UN and the Chinese Government. projects for ports, airports, roads and electricity. – Beyond Big Business Partnership – Around 50,000 people received lifesaving HIV/AIDS Industry Agenda awareness, prevention and treatment-intervention programmes delivered by Eskom, Heineken, Standard Chartered Bank, Unilever and 123 companies representing more than Volkswagen who worked with a selection of US$ 500 billion in annual turnover have signed their suppliers and the GHI. up to Partnering Against Corruption – Principles for Countering Bribery (PACI Over 30 companies and other partners including Principles). Over the past year, PACI significantly NGOs and the Government of Kenya have joined deepened its credibility: the heads of the together to fight hunger in Siaya, the poorest district multilateral development banks, the International in Kenya. It is the first project of the World Finance Corporation and the Inter-American Economic Forum’s Business Alliance Against Investment Corporation agreed to work with Chronic Hunger to develop a model for business PACI on individual pilot programmes to advance partnership to reduce hunger which can be scaled anti-corruption efforts. The heads of the Big up and adapted to other regions. Four Accounting firms (Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers) agreed World Economic Forum Industry Partners from to work with the PACI and together will explore many sectors began a collaboration with the G8 the development of a framework for companies Gleneagles Dialogue on Climate Change, Clean to benefit from independent reviews of their Energy and Sustainable Development to develop anti-bribery programmes. recommendations for governments regarding ways to construct a long-term climate policy The World Economic Forum launched the framework to transform energy systems as well as first-ever Travel & Tourism Competitiveness opportunities in the near term to increase market Report, measuring the factors that make financing and consumer demand for low carbon it attractive to develop the industry for 124 products through better public–private cooperation. countries. The report is a joint effort led by the Industry Partners of the Aviation, Travel and Tourism Industry Partnership Programme Regional Agenda and the Global Competitiveness Network. His Highness Sheikh Mohammed Bin Rashid The World Economic Forum’s Working Towards Al Maktoum, Vice-President and Prime Minister Wellness Initiative aims to stimulate greater of the United Arab Emirates and Ruler of Dubai, business engagement in the global fight against launched the Mohammed Bin Rashid Al chronic disease through employee wellness. Maktoum Foundation to promote human development with a US$ 10 billion endowment at The Women Leaders Programme increased the World Economic Forum on the Middle East. the participation of women in the Annual Meeting from 8% in 2002 to 17% in 2007.
    • 8 World Economic Forum Annual Report 2006/2007 New strategic endeavours Our inspiration to be a member of the Community of Global Growth Companies is to mesh with like-minded companies such as ours – companies that firmly believe in providing innovative business models and operating model discontinuity to change the world and to create competitive advantage for themselves and for their clients. Participating in the Inaugural Annual Meeting of the New Champions gives us the opportunity to be among a network of such companies that can work in closer consonance and partnership. Phaneesh Murthy CEO and MD, igate Global Solutions, India
    •  World Economic Forum Annual Report 2006/2007 The New Champions WELCOM The Forum remains an effective catalyst for global change. To support our mission ‘The Shifting Power Equation’ was the framework The World Economic Forum firmly believes in we have launched a number of significant for discussions in Davos, but it is also the the power of collaborative wisdom and action projects that support our strategic vision, strategic imperative behind the creation of generated by combining face-to-face and virtual and ensure that we continue to engage the Community of Global Growth Companies. interaction. WELCOM – the World Electronic our members and partners. In the past year Power shifts occur only when ‘New Champions’ Community of the World Economic Forum – the Forum has focused on two primary succeed in both challenging the status quo and creates a unique online community which strategic endeavours: the identification forcing change. Therefore early engagement of functions as an advanced collaborative platform and development of a new generation such leaders and innovators is critical if the World for 10,000 of the world’s top leaders. It is based of global leaders, the ‘New Champions’, Economic Forum is to retain its leadership in on the latest videoconferencing capabilities and the launch of WELCOM, an advanced shaping global, regional and industry agendas. and will provide a unique global governance electronic communication system, which tool to address the challenges of our globally will serve as an invaluable tool for members The new Community of Global Growth interconnected, fast-paced world. and partners to help shape agendas. Companies comprises the ‘New Champions’ from industry that will in fact be shaping the It offers business, government and intellectual future. Its members will interact with current leaders a powerful resource to shape global, foundation members to understand, and to regional and industrial agendas through a state- leverage, the forces transforming the business of-the-art technology platform. Developed on world, reordering societies worldwide and a Web 2.0 basis, in partnership with the world’s creating fast-growth economies. leading technology companies, the platform will provide an unprecedented opportunity The designation of the city of Dalian, China, for both established companies and the New as the host of the Inaugural Annual Meeting of Champions to learn from each other and the New Champions symbolizes the growing establish ties of cooperation and partnership. economic influence of Asia globally. In addition to the top 500 emerging companies, the The initiative is the latest milestone in the meeting in Dalian includes leaders from the Forum’s history of embracing technological world’s most competitive cities and fastest innovation to improve its offering to members. growing regions. The future will also be represented as the Community of Young Global Leaders will gather for their annual meeting. With a strong international media presence, coupled with innovators from the Web 2.0 world, the rise of these New Champions will be explored across all its dimensions.
    • 0 World Economic Forum Annual Report 2006/2007 Annual Meeting The World Economic Forum operates on Shaping The World Economic Forum Annual Meeting many levels, addressing global, regional the global 2007 again demonstrated the Forum’s vital and industry agendas, although much of role in bringing together global leaders from our activity is on a worldwide scale. Working agenda different regions and sectors to address key in concert with our members and partners international issues. and other key stakeholders, our initiatives have a positive impact on the global Change was a dominant theme of this year’s community. At the World Economic Forum’s Meeting, which was held under the banner: Annual Meeting in Davos each year, we sit ‘Shaping the Global Agenda: The Shifting Power down with our partners to frame the global Equation’. It proved a powerful theme, striking agenda, highlight the challenges of the a chord with the 2,400 participants, and coming year and work on solutions to some reflecting a potent mix of concern and optimism. of the world’s complex problems. In this sense, the Annual Meeting is the focus of The continued moves in economic and the work that the Forum does throughout geopolitical power to emerging economies the year. and resource-rich nations; the recognition of the pressing need to address climate change; and the implications of new community models, often virtual in nature, gave leaders much to discuss and digest. Optimism over the state of the global economy and the growth opportunities ahead was matched by concern over the need to adjust to a new, as-yet undefined, geopolitical landscape. Whether on the G8 agenda, or that of the global business community, there was general agreement on both priorities and the shape that responses will need to take. Tzipi Livni, Vice-Prime Minister and Minister of Foreign Affairs of Israel and Mahmoud Abbas, President of the Palestinian National Authority, at the 2007 Annual Meeting in Davos
    •  World Economic Forum Annual Report 2006/2007 The Forum has always believed that global the International Emissions Trading Association, issues can only be resolved if diverse groups the World Economic Forum Global Greenhouse work together. It was encouraging to hear from Gas Register and the World Resources Institute. participant after participant that this idea, once CDSB member organizations have agreed to considered novel, is now seen as the logical align their core requests for information from route to deliver effective and lasting solutions. companies to ensure that they report climate change-related information in a standardized It was climate change, though, that dominated way. It is expected that this will make for easier the Annual Meeting 2007. Through a series of comparative analysis by investors, managers 17 sessions related to global warming, the and the public. world’s top academics, business leaders, NGO representatives, UN agency chiefs, politicians A number of other significant projects emerged and many others joined together in advancing from the meeting, including the establishment of the discussion and exploring practical an alliance of leading companies to bring power opportunities to make progress through to villages in sub-Saharan Africa. The first partnership. project will focus on Lesotho. To underscore the deepening commitment of In the ongoing fight against global corruption, the business sector to engage other groups in the presidents of the World Bank, the African addressing this issue, a new international Development Bank, the Asian Development Bank, partnership was announced. Called the Climate the European Bank for Reconstruction and Disclosure Standards Board (CDSB), it is made Development and the executive director of the up of seven organizations which will work International Finance Corporation agreed to lend together to establish a generally accepted their support for the Partnering Against Corruption framework for climate risk-related reporting by Initiative (PACI). Acting on their recognition of the corporations. Founding members include the role the private sector can play in guiding policy California Climate Action Registry, Carbon and assisting governments, they agreed to pilot a Disclosure Project, Ceres, the Climate Group, country-specific anti-corruption implementation The Forum offers a unique opportunity for global leaders to listen, learn and lead. It provides insights into shared challenges through constructive dialogue, as well as the tools and networks needed to act on those learnings. It helped us to act more quickly on micro-insurance and deepened our understanding of our role in the climate change debate. The Forum’s engaged collaborative spirit is what allows it to have such an impact, and makes it a vital development tool for global leaders. I know I have benefited from the opportunity to participate in Forum activities. James J. Schiro Group CEO, Zurich Financial Services, Switzerland
    •  World Economic Forum Annual Report 2006/2007 Shaping the global agenda continued We recognize the responsibilities we share with governments, community groups and NGOs for the provision of the basic building blocks of community development: clean water, jobs, nutrition and a healthy environment. Because there are no simple, unilateral solutions for these issues, the World Economic Forum’s power to convene those of us who can ensure the sustainability of all our communities is critical for building understanding, respect, trust and partnership. E. Neville Isdell Chairman and CEO, The Coca-Cola Company, USA
    • 3 World Economic Forum Annual Report 2006/2007 programme, and a sector-specific structural of future Annual Meetings. With this in mind, reform initiative that will promote fair competition the Forum is currently researching how the and transparency. Additionally, the world’s four latest communications technologies can largest accounting firms agreed to lend their be utilized for the benefit of its participants support through the development of a framework and the wider global audience. for companies to benefit from independent Open Forum Davos 00 reviews of their anti-bribery programmes. For the fifth consecutive year, we opened There was a notable consensus that the Forum our doors to the general public, via the Open and its partners in both business and civil Forum. Co-organized with the Federation of society have a responsibility to promote open Swiss Protestant Churches, the Open Forum discussion on globalization. Greater is a series of sessions held in conjunction with understanding is needed of its advantages the Annual Meeting. and how its negative effects can be reduced. As President and Chief Executive Officer of More than 2,400 people took part in seven Renault, France, and President and Chief sessions. Participants came from all walks of Executive Officer of Nissan, Japan, Carlos life, including business, civil society and the local Ghosn, said: “Most people who are hurt or who Davos population. This year they included a think they are hurt by globalization know it. Most group of students from Geneva’s international who benefit do not know it”. This is something school, one of whom served as a panellist in we are keen to pursue in the coming year. an Open Forum session. The activity at this year’s Annual Meeting The debates and discussions provided reached a far wider audience thanks to the participants with insights on globalization latest technological innovations. These included and the impact of some of its consequences. real-time webcasts of our key sessions, regular Individual sessions addressed issues such as podcasts, commentaries written and sent out CEO salaries, development aid and its results, by bloggers and even discussions among sustainable energy consumption, managing participants on SecondLife, the popular Web- access to oil, multiculturalism, the role of based virtual community. This was particularly religions in society and the impact of brands. appropriate to this year’s Meeting, given that Discussions between the public and panellists social networking and the implications of the allowed for in-depth conversations. rise of the virtual world were at the forefront of many of the discussions. The Forum is keen Panellists of this year’s Open Forum included to continue developing its knowledge of the Prime Minister of Pakistan, Shaukat Aziz; community building and recognizes that new Group Chief Executive of global advertising trends in technology will influence the style giant WPP, Sir Martin Sorrell; and the Archbishop of Dublin, Diarmuid Martin. ,400 participants, from 0 countries, including 5 heads of state were at the Annual Meeting 00.
    • 4 World Economic Forum Annual Report 2006/2007 Shaping Over the past 12 months, the World In some cases we introduced smaller and less Economic Forum initiated a succession formal gatherings, to facilitate dialogue between the of high-level regional gatherings aimed key leaders. In others, we organized larger regional at mobilizing key business, government, roundtable meetings to achieve broader academic and social groups. Major events discussions between greater representations of agenda in China, India, Singapore, Jordan, Turkey, regional groups. Overall, the aim was to achieve South Africa and Chile focused on putting greater knowledge, understanding and action programmes into action that would deliver plans for the key challenges affecting the regions. tangible results at the regional level. Asia Asia continues to reorder economic, political and social relationships, underscoring its emergence as one of the key areas of ‘The Shifting Power Equation’, which was reflected in the strong presence of top Asian leaders at the Annual Meeting in Davos. The World Economic Forum recognized the 40th anniversary of ASEAN (Association of South-East Asian Nations) in welcoming three heads of state from ASEAN nations to the Annual Meeting in Davos. Gloria Macapagal- Arroyo, President of the Philippines, and the Chair of ASEAN at that time, spoke of the bold steps forward made by ASEAN at its recent annual meeting. HM King Abdullah Il Ibn Hussein of the Hashemite Kingdom of Jordan, gave the opening address at the World Economic Forum on the Middle East in Jordan
    • 5 World Economic Forum Annual Report 2006/2007 For the first time in the Forum’s history, the authorities. Three possible scenarios were Prime Minister of Vietnam, Nguyen Tan Dung, projected for China for the next 20 years, varying participated in the Annual Meeting, following his from sluggish development to robust economic country’s entry as the newest member of the growth. The aim of the report was to provide an World Trade Organization. He spoke about the analysis of how China’s future development may factors which have driven Vietnam to become the affect global growth, geopolitics, resources second fastest growing economy in the world. allocation and trade and investment. The Prime Minister of Malaysia, Abdullah Ahmad Badawi, made a special address on establishing The 22nd India Economic Summit took place in greater understanding in a multicultural world. November 2006 in Delhi. Taking as its theme ‘Meeting New Expectations’, the meeting in Delhi In September 2006, the 26th China Business was an effective platform in shaping India’s growth Summit in Beijing was held. The theme of the agenda on various topics across vertical and meeting, ‘Sustainable Growth through Innovation: horizontal axes of the economy. Discussions were China’s Creative Imperative’ clearly spelled out the organized under four key pillars: Infrastructure, top priority for China, as it aims to achieve a Managing Growth, Risk Management, and State new level of economic development. The Summit and National Competitiveness. attracted over 600 participants, representing business executives, senior government officials For the first time, Sonia Gandhi, Chairperson as well as top experts and media leaders from of the United Progressive Alliance and President China and around the world. of the Indian National Congress, attended the meeting. She presented the 2006 India Social During the meeting, the full report on ‘China Entrepreneur of the Year Award to Vikram Akula and the World: Scenarios to 2025’ was released, of SKS Microfinance, who improved the lives of with contributions from more than 100 leading millions in rural India, through the use of microcredit. 0,000 people have been provided with electricity in Africa through the Forum’s Energy Poverty Alliance.
    • 6 World Economic Forum Annual Report 2006/2007 Shaping the regional agenda continued The World Economic Forum is a crucial platform that allows people like me to meet with other business leaders to share knowledge and understanding. The Forum’s meetings address the right issues in an extremely comprehensive manner. Moreover the Forum provides the opportunity to meet the public and private sectors simultaneously. Public-private partnerships are essential and both sectors understand that we cannot move forward unless we unite in addressing the issues that affect us all. Putting our minds and hands together to find common solutions is the only way forward. Fadi Ghandour Founder and CEO, Aramex International, Jordan
    •  World Economic Forum Annual Report 2006/2007 Linking the leadership imperatives to Asia’s The Forum launched the third Arab World spectacular growth was the main focus of this Competitiveness Report during the Arab World year’s World Economic Forum on East Asia in Competitiveness Roundtable held in Doha, Qatar Singapore. Under the banner ‘The Leadership in April. The meeting provided a platform for Imperative for an Asian Century’, the meeting advancing the reform agenda across the Arab brought together 300 top decision-makers from world and analysed three emerging sectors of 26 countries to examine how the region views Arab economies: travel and tourism, healthcare its leadership roles and to analyse the priorities and insurance services. for its industry and regional agendas. On the eve of the Philippines’ handover of the ASEAN The Arab Business Council (ABC), recognized Chair to Singapore, the meeting’s participants as the voice of the Arab business community included Gloria Macapagal-Arroyo, President and an initiative of the Forum, continued to build of the Philippines; Lee Hsien-Loong, Prime the capacity of National Competitiveness Minister of Singapore; Yi Gang, Assistant Councils throughout the Arab world. The ABC Governor of the Bank of China; and Masatoshi supported the Egypt Education Initiative, which Wakabayashi, Minister of Environment of Japan. aims to improve the delivery of education through public–private partnerships, and The Arab World During the year, the opposition Democratic Competitiveness Report. It also initiated and Party of Japan established a Davos Caucus financed a trade study looking at US–Middle East with 34 Diet members, which follows the Davos trade agreements and how they can be Caucus established last year in the ruling Liberal optimized for the region as a whole. Democratic Party. Additionally, in light of Japan’s 2008 G8 Presidency, Klaus Schwab met with The May 2007 World Economic Forum on Prime Minister Shinzo Abe and five senior cabinet the Middle East was held in Jordan under the ministers during an official visit to Tokyo. patronage of His Majesty King Abdullah II. Under the banner ‘Putting Diversity to Work’, the The World Economic Forum’s recognition of Asia’s programme for the Jordan meeting was structured dynamic impact in shaping the global, regional around three sub-themes: Industries of the Future; and industry agendas is further reflected by the Peace, Stability and International Relations; and fact that the Forum chose Dalian, China, as the Society and Change. Participants explored how location for its Inaugural Annual Meeting of the to leverage the region’s diversity in pursuit of New Champions, in September 2007. development and how to manage the tensions arising from difference in order to promote peace. Middle East 2007 was another troubled year for much of The Israeli-Palestinian Business Council (IPBC) was the Middle East but despite the precarious established by a key group of Palestinian and Israeli geopolitical environment many economies have chief executives, to advance the relationship grown faster than in the previous three decades. between the two business communities and assist The Forum strove to maintain an adequate the region in moving towards lasting peace and balance that addresses an extremely sensitive coexistence. We also saw significant engagement political environment and places the appropriate of senior Iranian leaders, which created further emphasis also on sustaining the growth opportunities to address tensions in the region. momentum in the Arab world. The meeting was a successful platform for dialogue between key participants from Iraq, Iran and the The World Economic Forum Annual Meeting in United States. Davos provided further opportunities to restart negotiations to end the Israeli-Palestinian conflict At the meeting Sheikh Mohammed Bin Rashid by bringing together some of the region’s leading Al Maktoum, Vice-President and Prime Minister policy-makers, including Israeli Foreign Minister, of the United Arab Emirates, and Ruler of Dubai, Tzipi Livni, Palestinian President Mahmoud Abbas, established the ‘Mohammed Bin Rashid Al former Israeli Prime Minister and new President, Maktoum Foundation’ for human development Shimon Peres, and King Abdullah of Jordan. with an endowment of US$ 10 billion. The goal of this institution is to contribute to a brighter future An important focus of the Annual Meeting was in the Middle East by promoting youth education the launch of the ‘Gulf Cooperation Council and a knowledge-based society. It goes to the Scenarios to 2025’. This exercise explored three heart of what the World Economic Forum aims to possible evolutions of the GCC in terms of its promote in the region, and we expect to work geopolitical stability and leadership capacity to closely with the Foundation in the coming years. implement effective governance and reforms. Europe Together with key regional partners, the Forum developed in-depth scenarios for Bahrain, Saudi More than 400 participants from 45 nations Arabia and the United Arab Emirates. In several gathered in Istanbul for the World Economic high-profile sessions on the future of the region, Forum in Turkey. participants explored how to bridge the road- block for Arab Israeli peace, the emergence of Under the banner ‘Connecting Regions – Creating a financial hub in the Gulf and the development New Opportunities’, discussions included Turkey’s of new urban models. current EU negotiation process, and an assessment
    • 8 World Economic Forum Annual Report 2006/2007 Shaping the regional agenda continued More than any individual project alone, we feel that working with the Forum matters because it enables collaboration and dialogue among a variety of different actors. No one entity has the answers to the dilemmas of our world, but multiple organizations working together from multiple angles have a much better chance at addressing them. Tarek Sultan Al-Essa Chairman and Managing Director, Agility, Kuwait
    •  World Economic Forum Annual Report 2006/2007 of its competitive advantages and emerging how, with US$ 200 million in funding and a fully business opportunities. The country’s role in operational secretariat in Dar es Salaam, it is about bridging civilizations and its geopolitical to take its first steps in removing obstacles to importance in mitigating Europe’s risks both domestic and foreign investments across Africa. helped towards defining Turkey’s strategic role The Development Bank of Southern Africa, for Europe and the wider region. meanwhile, agreed to join the Forum’s Energy Poverty Alliance, as part of a drive to provide basic Our European activities aim to complement the electricity to African citizens, and committed to Annual Meeting with smaller targeted meetings hosting the Energy Poverty Action Management in the region. These events serve two main Unit at its offices in Midrand, South Africa. objectives, the first of which is to create larger Latin America roundtables, such as the Istanbul meeting, to shape the regional agenda of “Emerging Europe”. In April 2007, more than 400 people from 30 The second is to provide small, informal get- countries gathered in Santiago de Chile for the togethers with the leaders of newly elected second World Economic Forum on Latin America. governments. For example, on 15 November, over Taking as its theme ‘The Power of a Positive 80 international business leaders met German Regional Agenda’, participants included Chilean Chancellor Angela Merkel. Discussions included President Michelle Bachelet and Brazilian President Germany’s domestic reform programme, the EU Luiz Inacio Lula da Silva. presidency and the priorities that would define its G8 presidency. The Forum plans similar follow-up A key outcome of the meeting was ‘The Santiago meetings with the new governments of other Consensus’, a list of clear priorities and objectives major European countries. aimed at helping to shape a clear and positive regional agenda to boost economic growth and In what proved to be a hugely valuable interaction, more equitable income distribution. The initiative Forum members had the opportunity to follow focuses on education, environmental responsibility, up specific discussions with the German Vice- investment in innovation, the creation of efficient tax Chancellor, Franz Müntefering, as well as with the systems, and infrastructure development. Minister of Health, Ulla Schmidt, and the Minister of Economics and Technology, Michael Glos. The Forum also released two landmark studies on the region. The first, Benchmarking National The Annual Meeting 2007 was again characterized Attractiveness for Private Investment in Latin by a strong European participation, with Chancellor American Infrastructure, mapped out the quality Merkel opening the meeting and UK Prime Minister of the infrastructure of 12 Latin American nations Tony Blair heading the closing plenary. Among the and the factors that determine which countries are many other regional delegations this year, there was more attractive for private infrastructure investment. strong participation from Russia, headed by the The second study, Latin America@Risk, analysed First Deputy Prime Minister, Dmitry Medvedev. the main risks that the region faces. Africa Additionally, we published a book of technical The theme of this year’s World Economic Forum essays on Brazil: Priorities for Action: Economic on Africa meeting in Cape Town, ‘Raising the Bar’, Growth and Income Distribution. This was a underscored the need for the continent’s leaders to response to the ‘10 Priorities for Action’ established remain focused on long-term sustainable growth. in 2006. North America In recent years, Africa has seen a shift of focus from risk, crisis and poverty to a more structured North American participants continue to influence emphasis on how to sustain growth, enhance and contribute to the development of the global investment opportunities and integrate the agenda. Over a dozen prominent US Senators continent into the global economy. In a year and Congressmen as well as delegations from when the continent’s GDP is forecast to reach the United States and Canada attended the 7%, the June meeting emphasized the need for Annual Meeting in Davos and various other Africa to build on this positive momentum. regional events. The meeting saw the launch of a number of The Annual Meeting remains the centrepiece high-profile initiatives, including the Forum’s for reviewing the North American agenda. Africa Competitiveness Report 2007, which In 2007 US Senator John McCain discussed recommended building capacity and filling the challenges of US leadership; US Trade the widening skills gap to underpin continued Representative Susan Schwab participated in growth. Other launches included: a number of discussions on Trade; US Secretary of Homeland Security Michael Chertoff discussed The Alliance for a Green Revolution in Africa, global risks including disaster risk reduction and chaired by former UN Secretary-General Kofi mitigation; and Premier of Quebec Jean Charest Annan, to tackle the challenges holding back spoke about climate change. hundreds of millions of small-scale farmers The Africa Enterprise Challenge Fund, inaugurated Canada and the United States also played key roles by Baroness Amos, Leader of the UK House of in shaping the global agenda at our regional Lords, which aims to unlock Africa’s potential by meetings; discussions included important issues providing match-funding for business innovations. such as developing India–US relations, trade with Asia, the US war in Iraq and the role of North One year after it was launched at our last Africa America in promoting prosperity in neighbouring meeting, the Investment Climate Facility reported Latin America.
    • 0 World Economic Forum Annual Report 2006/2007 Shaping Industry partners programme The strong engagement of our members An initiative of the Centre for Global Industries, and partners is integral to what we do. In the industry our Industry Partnership Programme exists 2006/2007, by working closely with both agenda to engage the global companies in the Forum’s new and existing corporate champions we activities at the industry level. It operates in continued to make real progress towards conjunction with the World Economic Forum our mission. USA, whose New York offices serve as the worldwide headquarters for the Centre for Global Industries. Industry Partners are select member companies of the World Economic Forum who strongly support our commitment to improving the state of the world. The unparalleled convening power of the Forum brings these companies together to contribute to an evolving portfolio of task forces and to actively participate in several modules. By July 2007, 184 companies had joined the Industry Partnership Programme across 17 industry sectors. Four such areas – energy, financial services, IT and the investors sector – have already achieved the critical mass of 20 or more companies needed to broadly represent the global industry. We remain confident of reaching our goal of 300 commitments across all sectors by the end of 2008. Vinton Cerf, one of the inventors of the Internet with Dan Elron of Accenture and Ben Verwaayen of British Telecom, at the IT and Telecommunications Governors Meeting
    •  World Economic Forum Annual Report 2006/2007 In addition to joining a highly successful series of comprehensive annual survey conducted by the Governors Meetings during the Annual Meeting Forum, together with its network of Partner in Davos, our Industry Partners have been active Institutes in the countries covered by the report. in a number of other key areas. For example, Industry Partners of the financial services, IT and Energy security and climate change are a top telecoms industries commissioned the Forum priority for our Energy Industry Partners. According to launch a scenario analysis, aimed at exploring to the International Energy Authority (IEA), society how technology will transform financial services is not investing enough to renew and expand its up to 2020. The scenarios draw on the views energy infrastructure. To address this, our Energy of over 150 practitioners and experts from IT, Security Roundtable seeks to create dialogue telecoms and financial services. They examine between relevant groups. For example, a meeting issues such as the development of emerging was held between sector leaders and the Russian technologies, trust in cyber security, the role Government earlier this year. of specialized new players and broadening access to financial services. In the context of the Gleneagles Dialogue, we provided business input to the G8, with We also published our first-ever Travel & Tourism recommendations on the future climate Competitiveness Index (TTCI), based on work framework. Specific recommendations included mandated by our aviation, travel and tourism (T&T) a focus on linking mayors with energy companies Industry Partners. Covering 124 countries, the to improve energy efficiency in cities; splitting the report provides unique data on many relevant wheat from the chaff in the context of biofuels; qualitative institutional and business environment and developing Energy Poverty Alliances to issues. The TTCI uses a combination of data from electrify off-grid villages in sub-Saharan Africa. publicly available sources, international T&T institutions and experts. It also draws on the results of the Executive Opinion Survey, a I’m fortunate to be heavily involved with the Information Technologies and Telecommunications Governors, who are focused on helping to bring technology to high-growth markets around the world. On a regional basis, I’m happy to say that the IT Governors have played roles in a variety of pilot programmes and technology trials in Brazil, Africa, India, the Middle East and other regions. Hector Ruiz Chairman and CEO, AMD, USA
    •  World Economic Forum Annual Report 2006/2007 Shaping the industry agenda continued ABB is involved with the World Economic Forum in a number of ways where we feel our experience can make a real difference. We are participating, for example, in the Forum’s Engineering and Construction Industry Partnership to identify critical issues facing our industry and to develop responses together with other like-minded companies. ABB has made ‘zero tolerance’ of breaches of its ethical guidelines a hallmark of the way it operates around the world and we are supporting that commitment by participating in the Forum’s Partnering Against Corruption Initiative (PACI). Fred Kindle President and CEO, ABB, Switzerland
    • 3 World Economic Forum Annual Report 2006/2007 Community of Global Growth In November 2006, IBC members were Companies (GGC) given the opportunity to meet with German Our Community of Global Growth Companies – Chancellor Angela Merkel and in June 2007 they or New Champions – is a cross-industry group met with Russian President Vladimir Putin, at the of businesses with the clear potential to become Forum’s CEO Roundtable in St Petersburg. leaders in the global economy. Technology Pioneers Such companies have demonstrated leadership ‘The Shifting Power Equation’, the main theme in a particular industry and have the aspiration from the Annual Meeting 2007, continues to and ability to become leading international players. drive our Technology Pioneers programme, They are expanding outside their traditional with a significant change in innovation models. boundaries, have demonstrated leadership in a particular industry and are experiencing strong We moved away from a vertically integrated growth rates, have outstanding executive model in favour of a more open and flexible leadership and typically have revenues between approach, where organizations with different US$ 100 million and US$ 5 billion depending on skill sets can participate in innovation networks the industry and region. to co-develop new products and services. The Inaugural Annual Meeting of the New As the Technology Pioneers ‘class of 2007’ Champions in Dalian, China, is the community’s showed, this new model is enabling innovation flagship event. It brings together the CEOs of to become more geographically dispersed. GGCs, World Economic Forum members and We witnessed a huge increase in nominations, partners, international government leaders and especially from India, China and ASEAN nations. the heads of the world’s most competitive cities Our final group included 13 nations, resulting and fastest-growing regions. It also includes in perhaps the strongest-ever group of Web 2.0 experts, members of the Forum’s Technology Pioneers. Community of Young Global Leaders and international media representatives. In 2006, we welcomed two new partners – Accel Partners and BT – to the Technology Throughout the year a portfolio of tailor-made Pioneers programme. Together with fellow events based on “Experience Exchange and partner, Deloitte Touche Tohmatsu, the three Conversation” with a leading global CEO brings companies were instrumental in increasing the community together with world leaders. global awareness of the programme. Often held in conjunction with the Forum’s regional meetings, these occasions allow Partnering against corruption today’s global industry leaders to share insights Now in its third year, the Forum’s Partnering and experiences with rising corporate powers Against Corruption Initiative (PACI) continues on key business issues such as branding, talent to win corporate support towards its goal management and leadership. of ending global corruption and bribery. International Business Council (IBC) PACI now has the backing of more than 120 The International Business Council (IBC) is signatory companies. In 2007, the heads of the a well-established community of 100 highly multilateral development banks, the International respected and influential chief executives from Finance Corporation and the Inter-American all industries and regions. They come together Investment Corporation agreed to work with twice a year for informal, private exchanges PACI on individual pilot programmes to advance on key global issues. our global anti-corruption efforts. The business case for engaging in public–private Together with its signatories, the initiative has partnerships was the main theme of the made substantial progress in achieving summer meeting in August 2006, providing corporate commitment to the PACI Principles. IBC members with the opportunity to share It has developed a set of tools to support the their experiences in this critical area. execution and evaluation of anti-corruption programmes by companies and strengthened At the winter meeting, in January 2007, there its members’ platform for sharing their was an in-depth discussion on the implications experience of the implementation process. and economics of climate change. It was PACI plans to launch another mechanism to followed by two individual dialogues with Dmitry highlight those signatories that have advanced Medvedev, First Deputy Prime Minister of the their programmes and monitoring mechanisms Russian Federation, and Gordon Brown, then since becoming involved. UK Chancellor of the Exchequer, now British Prime Minister. The initiative showcased its work in high-level sessions at the Forum’s Annual Meeting in On the first day of its winter meeting, the IBC Davos. It also presented to the OECD Working unanimously endorsed the Doha development Group on Bribery, the International Chamber round. They said the move underlines the of Commerce Commission on Anti-Corruption, responsibility of all decision-makers and political and the State Parties Meeting of the United leaders for relevant, constructive and timely Nations Convention Against Corruption. action to deliver a successful Doha round.
    • 4 World Economic Forum Annual Report 2006/2007 Building The Forum’s Centre for Public–Private Progress was made in the ongoing battle against Partnership continued to see strong the spread of HIV/AIDS. Companies involved in our public- engagement from industry across a number Global Health Initiative (GHI) launched a new effort private of critical global issues. In particular we saw in partnership with the Chinese Ministry of Health. the start of a major collaboration on climate This brought together a group of multinational and partnerships change. This involved many of the Forum’s Chinese companies, with a combined workforce of Industry Partners working with the G8 5 million. They also devised ground-breaking new Gleneagles ‘Dialogue on Climate Change, models for corporate engagement in strengthening Clean Energy and Sustainable Development’. public health systems in Africa and extending HIV/AIDS and TB best practice to supply chains. With sustainability high on the global agenda, companies in our Food and Beverage Industry Partners programme began a new partnership to create sustainable agricultural value chains in Africa through a pilot project in Kenya. We also saw major developments in our Information Technology and Telecommunications Industry Partners programme. The Forum’s International Monetary Convention Project, meanwhile, issued its final report following two years of public–private roundtable meetings on the future of the international monetary system. Gleneagles Dialogue Over the past year the Forum has significantly increased the engagement of the business Partners of the Rajasthan Education Initiative at a school in Jaipur, Rajasthan. They interact with teachers and students at schools with newly installed computers and other IT infrastructure.
    • 5 World Economic Forum Annual Report 2006/2007 community in initiatives to combat climate change. meeting on financing clean energy with the The centerpiece activity for our industry partner multilateral development banks and the G8 members is their engagement in the G8 +5 governments. More than 35 of the Forum’s governments’ Gleneagles Action Plan. This is Industry Partners took part in the event, which an informal government–business dialogue on included a keynote speech delivered by Gordon climate change, clean energy and sustainable Brown, now the UK Prime Minister. The workshop development, designed to develop long-term has catalysed a series of public–private working policies to manage climate change. The Forum groups on clean energy finance which will report invited the World Business Council for Sustainable their ideas back to the World Bank–IMF Annual Development to also collaborate on this Meeting in October 2007. engagement process. In May 2007, more than 80 of the Forum’s Industry As part of this dialogue, a number of high-level Partners gathered for the first in a series of broad public–private work streams are now under way, climate change policy discussions with a range working on policy ideas, north-to-south finance, of environmental policy experts, including Yvo De and practical steps towards reducing carbon Boer, the Executive Secretary of the UNFCCC. emissions in the short run. Outcomes from these Global Health Initiative working groups will be announced at the G8 leaders meeting in Hokkaido, Japan, in July 2008. It was a strong year for the Global Health Initiative (GHI). Our efforts to encourage the business There have been some significant developments community to play a critical role in finding solutions already. For example: to the problems of AIDS, TB and malaria have At the Forum’s Annual Meeting in Davos, January delivered impressive results. 2007, over 40 CEOs, international NGO heads, political leaders and other climate change experts One initiative, the Beyond Big Business Partnership, were convened within a workshop environment, saw participation from large global companies such to help develop the project focus and activities. as Eskom, Heineken, Standard Chartered Bank, In March 2007, the Forum co-hosted a major Unilever and Volkswagen. With support from the 4m In 006 the India Business Alliance to Stop TB reached a total of 4 million people with a combination of workplace and community programmes.
    • 6 World Economic Forum Annual Report 2006/2007 Building GHI, each company joined forces with some of its suppliers in Africa to reach approximately 50,000 public- people with lifesaving HIV/AIDS awareness, private prevention and treatment-intervention programmes. partnerships In India, Reliance Industries, Aditya Birla, Jubilant Organosys and Eli Lilly joined the India Business continued Alliance to Stop TB (IBA). In a classic example of public–private partnership in action, these companies worked with the World Health Organization, the Global Partnership to Stop TB and India’s Ministry of Health to help the IBA reach a total of 4 million people with a combination of workplace and community programmes. The China Health Alliance (CHA) saw Adidas, Standard Chartered Bank, Swire Beverages and Pfizer work with the UN and the Chinese Government on tackling HIV/AIDS and tuberculosis. Launched in September 2006, the CHA commits to providing advocacy and education on these diseases and access to testing and treatment to employees of engaged companies and a select number of their suppliers, with a special emphasis on migrant workers. Up to 5 million people could be reached at full scale-up if all engaged companies and their suppliers reach all of their employees, including their families and dependants. The World Economic Forum’s meetings play an influential role as one of the world’s most effective sensing systems for future trends and developments. The World Economic Forum also has a proven record for enabling and facilitating the dialogue between the West and the Islamic world across countries, religions and ideologies. I am deeply concerned about the potential business implications of the conflicts in the Middle East. Globalized conflicts may disrupt global capitalism. But in the long run, I hope that capitalism will prove to be the more convincing choice. Hans-Paul Bürkner President and CEO, The Boston Consulting Group, Germany
    •  World Economic Forum Annual Report 2006/2007 June 2006 brought the launch of a GHI white paper and agriculture partners, such as the Food and called From Funding to Action: Strengthening Agriculture Organization, the Organization for Healthcare Systems in Sub-Saharan Africa, the first Economic Co-operation and Development of its kind to highlight the potential role of business (OECD), Global Water Partnership and the in this area. The GHI is currently working in International Water Management Institute. partnership with Merck & Co., Becton Dickinson, Other environmental Initiatives Sudler & Hennessey, Accenture, AMREF and UNAIDS to develop a project that will demonstrate Other related environmental initiatives are also the report’s findings in practice. under way, with the explicit aim of ensuring the Forum’s green activities are not focused Global Education Initiative on climate change alone. These include work Education is vital to the continued development on biofuels, sustainable cities, tourism, and and improvement of global communities. The joint industry-specific efforts with the aviation, only way to achieve this successfully is to bring IT and finance sectors. business, government and social groups together Disaster Resource Network through multistakeholder partnerships to help deliver education initiatives and reforms. With thankfully few major catastrophes affecting the world in 2006, our Disaster Resource Network The number of strategic partners supporting (DRN) was able to focus on building local capacity the Forum’s Global Education Initiative (GEI) and the civil infrastructure dimensions of disaster has doubled over the past year and now includes response operations. globally recognized names such as AMD, Cisco, Goldman Sachs, HP, Intel and Microsoft. In one such partnership, DRN-Mexico, together with leaders from the country’s engineering and In 2006 we launched the Partnerships for construction sectors, are currently working to Education (PfE), which focuses on engaging increase Mexico’s emergency response capabilities. key education leaders around the world in understanding, sharing and promoting the role of DRN-Mexico has assembled a team of 60 Public–Private Partnerships (PPPs) in education on volunteers from organizations such as Empresas a global scale. In this regard, a formal partnership ICA SAB de CV (ICA), Marhnos, Siemens-Mexico with UNESCO was signed in January 2007 and and Cámara Mexicana de la Industria de la related work is ongoing with the international Construcción. ICA, which is a consortium of development and bilateral donor community. Mexican construction companies, will act as the corporate lead sponsor of the initiative. The team Our country-specific activities continued to make will form the core of a pool of engineering and progress in Jordan, India and Egypt. Significantly, in construction experts who, in the emergency November 2006, we handed over formal phase of a disaster, will conduct rapid-response management of the Jordan Education Initiative (JEI) infrastructure damage assessments. – which supports students and trains teachers in the public education system – to the country’s The volunteer members of Mexico’s Emergency government, three years after its launch, as Engineering-Construction Team are expected scheduled. We now expect the JEI to continue its to complete their training and field exercises success in developing PPP education models, in preparation for the launch of operations in under the leadership of HM Queen Rania of Jordan. early 2008. www.drnglobal.org Water Initiative Council of 00 Leaders: The Forum will publish the outcomes of its Water West-Islamic World Dialogue (C-00) Initiative by the end of this year. This will be the culmination of a three-year effort which has focused The Forum’s C-100 community focused its efforts on developing public–private partnerships in India on two key subjects. The first was ‘Discourse’, and South Africa. which aims to create deeper dialogue between the West and the Islamic world. The second was During this time, high-level multistakeholder the development of the ‘Annual Report on West- networks for water have been set up in partnership Islamic Dialogue’, which provides a reference point with the New Partnership for Africa’s Development for faith, government, business, civil and academic (NEPAD) Business Foundation in South Africa and leaders in identifying pressing issues. with the Confederation of Indian Industry in India. A series of innovative projects have been designed During the year, the Forum’s Religious Leaders as a result, with very favourable reactions from community was integrated into the C-100 water experts in the public, private and in meetings in Turkey, Davos and Jordan. development sector communities. Moreover, a C-100 session was organized at the Annual Meeting 2007 on ‘Rules for a Global A new, high-level water project, with a focus on Neighbourhood in a Multicultural World’, in the economics and politics of reforming water which leaders from religion, education and policy for agriculture, has also begun this year. government agreed that politics was failing This has been championed by Nestlé and the to find solutions for the compelling issues Coca-Cola Company, together with expert water confronting peace and democracy.
    • 8 World Economic Forum Annual Report 2006/2007 Creating It has never been more important for Driving forward collaboration between business, governments, business and civil groups government and civil groups is one of the primary knowledge to work together. In an increasingly complex, goals of the World Economic Forum. Our Strategic networks integrated and networked world, situations Insight teams work throughout the year to ensure change quickly, and the ability to make cross-party participation around the major issues of the right decisions regarding the future global competitiveness, risk and scenario planning. can only come from regular dialogue and Global Competitiveness Network communication with all key stakeholders. Our expertise on international benchmarking continued to grow as we carried out a number of wide-ranging projects aimed at furthering the process of economic development. The Global Competitiveness Network (GCN) acts as a platform for discussion and debate for the business community, government, academia, international organizations and civil society. It provides invaluable insights into the policies, institutions and factors affecting national competitiveness. Our primary role is to examine how national economies might achieve sustained economic growth and long-term prosperity, thereby stimulating the necessary strategies to attain these objectives. In September 2006, the 27th edition of the annual flagship publication, The Global Competitiveness Report, was released. The report has long been the top international reference guide John Thain, CEO, NYSE Euronext, USA, speaking at the Finance Governors Meeting, at the 2007 Annual Meeting in Davos
    •  World Economic Forum Annual Report 2006/2007 the world and provides the most updated data, for measures of competitiveness, providing critical rankings and analysis of industry competitiveness insights to the business community and policy- in 124 industrialized and emerging economies. makers. This year’s report covers a record 125 It also features the latest thinking and research economies, up from 117 last year, and presents from the industry’s most prominent figures. comprehensive data on over 100 variables on competitiveness. We anticipate the T&T report to act as a powerful tool for industry members to enter into informed The GCN also carries out a number of dialogue with policy-makers, and to identify areas competitiveness studies at regional and industry for potential reform. A number of workshops are levels, such as the Lisbon Review 2006, published now being carried out in developing countries, in November. This is the third in a biennial series with the aim of improving prospects for the sector. assessing the progress made by European Union member countries in the far-reaching goals of the In March 2007, the GCN launched the sixth annual EU’s Lisbon Strategy of economic and structural Global Information Technology Report, which reforms. The study highlights the extent of the assesses the economic impact of information and progress still needed to transform the EU into “the communication technology (ICT). Being an active most competitive and dynamic knowledge-based force in the digital revolution and leveraging the economy in the world” by 2010. latest technological advances for development, it is now widely recognized as a key driver of a The first-ever Travel & Tourism Competitiveness nation’s competitiveness. The report remains the Report was launched in March 2007. This project most comprehensive and respected international assesses the industry’s competitiveness within the assessment of the preparedness of countries context of the Forum’s Aviation, Travel and Tourism to capture the benefits of participating in the Industry Partnership programme. One of the world’s networked economy. largest economic activities, Travel & Tourism (T&T) is the main industry in many countries, as well as the The third Arab World Competitiveness Report fastest-growing economic sector in terms of foreign 2007 aims to identify tangible solutions to the exchange earnings. The report measures and constraints that limit faster growth in the region. analyses the drivers of T&T competitiveness around 5 The Global Competitiveness Report 2006–2007 included a record 5 economies worldwide covering all regions and accounting for over 8% of world GDP.
    • 30 World Economic Forum Annual Report 2006/2007 Creating The competitive performance of Arab world countries is compared with international peers, knowledge highlighting the great diversity of economies networks in the region. The report includes proposed strategies for enhancing the competitiveness of selected sectors that have been identified continued as potential engines of growth. These include healthcare, travel and tourism, information and communication technologies, insurance and transport and logistics. The report provided the basis for public–private dialogue at the Forum’s Arab World Competitiveness Roundtable in Doha in April 2007. We issued the fourth edition of The Africa Competitiveness Report 2007 (ACR) at the World Economic Forum on Africa in Cape Town in June. The publication marks a new level of cooperation in Africa. It is the first report on the region’s business environment to leverage the combined knowledge and expertise within the African Development Bank, the World Bank and the World Economic Forum. As such, it presents a unified vision and a mapping of the policy challenges which countries on the continent may address as a foundation for sustainable growth and prosperity. Merrill Lynch has worked closely with the Forum on a number of initiatives. As a participant in the Finance Governors programme, we explored the interplay among financial markets and the forces impacting global markets. As part of the Global Risks Network, we discussed how best to address the structural risks embedded in the financial system. These discussions allow us to hear a variety of perspectives on important issues and that’s valuable to the Forum, to Merrill Lynch and to the industry as a whole. Gregory Fleming Executive Vice-President and President, Global Markets and Investment Banking, Merrill Lynch, USA
    • 3 World Economic Forum Annual Report 2006/2007 The GCN continues to collaborate with over 140 European exposure to global issues, while partner institutes around the world. The network India@Risk highlighted six key dangers to of Partner Institutes consists typically of research continued human and economic development or academic institutes located in each country on the sub-continent. covered by the competitiveness report series. We Scenario planning also work closely with key Forum members and partners, which this year included FedEx, Gallup The World Economic Forum’s Scenario Planning International, Microsoft and Cisco. team presented three major scenarios at the Annual Meeting in Davos. Global Risk Network Now in its third year, the Forum’s Global Risk ‘The Gulf Cooperation Council (GCC) countries Network (GRN) continues to grow in stature amid and the World: Scenarios to 2025’ examined mounting concern over climate change, energy how the region could develop over the next 18 insecurity, geopolitical instability and potential years. It raised key questions over the ability of economic upheaval. GCC countries to implement necessary reforms, and how they could maintain order and stability We organized a series of workshops in London in the face of regional uncertainty. and New York to identify and discuss how to reduce the impact of these key risks. With input Following workshops involving over 150 experts from groups of business, academic and policy- and participants, three scenarios for the GCC making experts on economics, the environment, region were developed: ‘Oasis’, ‘Sandstorm’ and societal change and geopolitics, we identified ‘The Fertile Gulf’. Four themes emerged as being a list of 23 ‘core’ global risks. We also analysed crucial to the future of GCC countries: education, the associated trends, likelihood and potential innovation, leadership and governance. severity of impact of these risks, and attempted to characterize the correlation between them and ‘The Digital Ecosystem – Convergence between the complex scenarios in which they could IT, Telecoms, Media and Entertainment: Scenarios emerge. Most of these issues are likely to increase to 2015’, the second scenario publication, over the next decade, while the institutional examined the shape and size of the space capacity to manage them is lagging behind. emerging from the convergence of the Information Technology, Telecommunications, and Media and The findings of the workshops were published Entertainment industries. User empowerment, in the Global Risks 2007 report, which received market structure, regulation and intellectual property extensive global media coverage. The report’s rights were among the major factors shaping recommendations included institutional innovations this evolution. such as the development of flexible, fast-moving coalitions of companies and countries and the Three scenarios, ‘Safe Havens’, ‘Middle creation of a country risk officer to allow the public Kingdoms’ and ‘Youniverse’ were developed sector to manage a risk in a more balanced and in cooperation with the Industry Partners as well less politicized fashion. as over 100 academic, social, government and business leaders. The GRN also helped the Forum’s industry communities deepen their insight into the mitigation ‘Technology and Innovation in Financial of global risks. Two specialist sessions – one in Services: Scenarios to 2020’ was a product of London on avian influenza and one in New York on cross-industry cooperation with financial services, natural catastrophes – each brought together more IT and telecoms industries. The focus was on than 100 strategy officers from the Forum’s Industry how technology, innovation and regulation may Partner companies. The latter has since grown into transform access to and delivery of financial a multistakeholder dialogue on Disaster Risk services by the year 2020. Reduction, in partnership with the World Bank, the United Nations and the United States Department Through the scenario workshops and interviews of Homeland Security. Additional work produced comprising over 150 practitioners, three scenarios, projects on water risks with the food and beverage ‘Global Ivy League’, ‘Next Frontier’ and ‘Innovation industry and information-sharing with the aviation, Islands’, were created. travel and tourism sectors. These three scenario projects, together with our During the year, the GRN also launched the previous work on China, India and Russia, provide Region@Risk series, exploring the regional contexts an excellent basis for ongoing dialogue within in which global risks emerge. Europe@Risk the Industry Partnership programme, the Annual analysed the potential role of Turkey in reducing Meeting and the Forum’s regional meetings.
    • 3 World Economic Forum Annual Report 2006/2007 Engaging our The Forum of Young Global Leaders Our communities of members and partner Our Young Global Leaders (YGL) continue to companies are vital in driving forward the communities make a significant contribution to the Forum’s activities of the Forum. Their participation and communities, programmes and initiatives. With and interaction, with both the Forum and the new class of 2007 joining in January, the each other, are fundamental to our mission constituencies community now has over 660 members from 90 of improving the state of the world. different countries. They are drawn from the fields of business, government, civil society, academia and the arts, and are all under the age of 40. The YGL community has developed several exciting new dimensions, particularly in the areas of leadership, policy insight and regional development. For example, in partnership with Harvard’s John F. Kennedy School of Government, it is launching ‘Global Leadership for the 21st Century’. The initiative aims to help YGLs better understand issues of global concern, create a vision for a better future and put forward innovative solutions to translate their vision into immediate action. Supported by David Rubenstein, Managing Director of the Carlyle Group, and William George, author of Authentic Leadership and member of the board of the World Economic Forum USA, the partnership will create one of the world’s foremost executive education leadership programmes. Over 100 YGLs met in Washington DC in April 2007 for the US Policy Roundtable, hosted by HM Queen Rania of the Hashemite Kingdom of Jordan, with Young Global Leaders in a school during a visit to celebrate Dignity Day
    • 33 World Economic Forum Annual Report 2006/2007 Dina Habib Powell, Assistant US Secretary As well as the above, throughout the year, the of State for Educational and Cultural Affairs, Young Global Leaders continued to build the and former Jordanian Ambassador to the US, momentum behind task forces in the fields of Karim Kawar, President of the Kawar Group health, education, global governance and of Companies. Key topics included climate security, and the environment. change as a priority for the US Government, The Schwab Foundation for Social the increasing importance of public–private Entrepreneurship partnerships to support foreign diplomacy, and the need for reform of international organizations. The Forum works closely with the Schwab Foundation for Social Entrepreneurship to The Young Global Leaders also played active roles showcase successful social innovators who at the Forum’s regional meetings. YGL Linda have combined business principles with a public Rottenberg, Co-Founder and Chief Executive purpose. Together we have created a unique Officer of Endeavor Global, USA, co-chaired the platform upon which these visionary pragmatists World Economic Forum on the Middle East 2007; can come together with business, public, media and YGL Malvinder M. Singh, Chief Executive and cultural leaders. The aim is to establish Officer and Managing Director of Ranbaxy concrete initiatives that transform social and Laboratories, India, co-chaired the Forum’s Africa environmental challenges and create sustainable meeting in Cape Town in June 2007. livelihoods for the poor and excluded. Moreover, at the meeting in Santiago de Chile, Both social entrepreneurs and Forum members YGLs worked side by side with beneficiaries have seen significant benefits from this close and other volunteers to construct two homes working relationship. Entrepreneurs have been in one of Santiago’s poorest areas. And at the able to mobilize millions of dollars of investment World Economic Forum on the Middle East in for their operations, and companies have gained Jordan, YGLs accompanied HM Queen Rania market intelligence, enhanced their brand of Jordan on a ‘Dignity Day’ visit to Al-Jubaiha value and increased their ability to attract Secondary School for Girls in Amman. and retain talent. The World Economic Forum has the ability to convene the very best leaders and share the best ideas to overcome the hurdles that currently restrict the impact that entrepreneurs have on their communities. Linda Rottenberg Co-Founder and CEO, Endeavor Global, USA
    • 34 World Economic Forum Annual Report 2006/2007 Engaging our The Foundation searches and selects members platform for peer exchanges among the opinion of its community in collaboration with media shapers in media, the World Economic Forum communities and business partners all over the world. As well created the International Media Council. This and as identifying candidates at a global level, the newly created community met for its inaugural Foundation runs 30 national competitions for the gathering on the occasion of the Annual constituencies ‘Social Entrepreneur of the Year’ award. In 2006 Meeting 2007 in Davos; prominent digital the Foundation screened 2,500 candidates and media shapers from all over the world continued conducted in-depth due diligence site visits on led an interactive debate with their peers approximately 150 individuals. The winners were from traditional media on the challenges selected by national juries drawn from the and opportunities posed by the new wave country’s business and thought leaders and went of citizen journalism (participatory media). on to join the growing community of Schwab Stakeholders and NGOs Foundation social entrepreneurs. Civil society organizations continue to Women Leaders Programme occupy a central position within the Forum’s Our Women Leaders Programme (WLP) is multistakeholder platform. The unique expertise committed to promoting women’s leadership and far-reaching influence of these groups, and the issues affecting their lives globally. which include NGOs, labour unions, religious This was demonstrated during the year by, communities and philanthropic foundations, for example, specific WLP activities at our make them valuable collaborators in many regional meetings in Turkey, the Middle East and of our initiatives and programmes. Latin America. More generally, female leaders actively participated in all our regional meetings, At both the Annual Meeting and our regional while the ratio of women at our Annual Meeting meetings, leaders of major civil society in Davos increased to 17%. organizations played significant roles in helping to define the global and regional agendas. In 2006, the WLP also launched its second Global Gender Gap Report, a benchmarking NGOs remain particularly active in Forum tool which ranks 115 countries according to the work-streams and multistakeholder partnership size of the gap between the sexes. This covered projects. They bring their specialist knowledge critical areas such as political empowerment, and experience to bear on a number of key health, education and economic participation. topics, including education, the environment and humanitarian relief. Utilizing the full potential of women in society Forum faculties is vital in enhancing a country’s human resources pool and boosting competitiveness. The Faculty is one of our richest sources of To this end, the report functions as a tool for intellectual capital. Its members include many of identifying existing strengths and weaknesses the world’s most distinguished thinkers, experts, of countries. It also acts as a catalyst for scientists, commentators and cultural leaders. creating opportunities to learn from countries which have been successful in promoting the Faculty members contribute to the identification role of women. of issues and development of content for regional events and the Annual Meeting; Additionally, the Women Leaders Programme participate in discussions at our events; and continues to reach out to the appropriate policy- assist in workshops, Governors Meetings makers to ensure effective dissemination of, and Industry Partners activities. and action around, the information revealed by the study. The activities of the Global Competitiveness Network, the Global Risk Network and Business International Media Council (IMC) Insight/Strategic Planning also benefit greatly With the objective to offer an informal, neutral from the support of the Forum Faculty. ,000 families in India and Pakistan were able to move from makeshift tents and crowded camps to specially designed transitional shelters provided by the World Economic Forum’s Disaster Resource Network and its partners.
    • 35 World Economic Forum Annual Report 2006/2007 Working with Members The Forum recognizes that working with our Our 1,000 member companies are at the heart members and partners is essential to helping our members of all our activities and provide invaluable us find truly sustainable solutions to improve and partners support to our mission. the state of the world. They also provide an endless source of hope and positive energy Achieving balance in membership from all major which helps to keep our vision alive. industries and regions is crucial to our continuing success. In 2006/2007, we increased the number of our major multinational members by more than 15%. Conversely, one-third of our members continue to come from emerging economies, which provides the Forum with a truly global business perspective and allows business leaders from these economies to participate in the international business arena. We experienced record participation by members in all Forum activities, including the Annual Meeting. Overall, more than 60% of member companies engaged in an event or initiative led by the World Economic Forum other than the Davos Annual Meeting, reinforcing our commitment of being a member-driven organization. Business leaders trying to construct a company model, at a WorkSpace session of the Annual Meeting 2007 in Davos
    • 36 World Economic Forum Annual Report 2006/2007 Working with Over the past year, we selected the following new members to join the Forum community: our members and partners 3i Group, Actis Capital, Adani Group, Adobe Systems, Adolf Würth, Aflac Japan, Africa Israel Investments, Alibaba.com, continued All Nippon Airways (ANA), Alpha Technologies, Amdocs, Amec, Arup Group, Ashok Leyland, Aviva, Best Buy Co., Braskem, China Construction Bank, Chinese Petroleum Corporation, Chunghwa Telecom (CHT), Cleveland Clinic, CNP Assurances, Confederation of British Industry (CBI), Daiwa Securities Group, Dimensional Fund Advisors, EGL (Elektrizitäts-Gesellschaft Laufenburg), Elcoteq, Etihad Etisalat, Eurocash, Federation of German Industries (BDI), FIBA (International Basketball Federation), Fiba Holding, Franz Haniel & Cie, Government Savings Bank, Grupo Nueva, HCL Technologies, Index Ventures, Industrial Union of Donbass (IUD), International Road Transport Union (IRU), Japan Post Corporation, Johnson & Johnson, Kaiser Permanente, Kleiner, Perkins, Caufield & Byers (KPCB), Kohlberg Kravis Roberts, MBK Partners, Medtronic, Mitsubishi Chemical Corporation, Mitsui & Co., Beyond meeting the smartest and most influential people in business and society, as Strategic Partners, WPP develops important insights into the latest global trends and issues affecting our clients’ businesses and our own. We then provide feedback to our companies and their people so all benefit. Our partnership with the Forum has grown from attending the Annual Meeting to becoming a Strategic Partner in 2005. We are now actively involved in steering the debates and support the Forum where we can add the most value – especially where there are programmes that can make a difference in today’s and tomorrow’s world. Sir Martin Sorrell Group Chief Executive, WPP, United Kingdom
    • 3 World Economic Forum Annual Report 2006/2007 NBC Universal, News Corporation, Norske Credit Suisse, Deloitte, Deutsche Bank, Skogindustrier, Novo Nordisk, Novatek, Deutsche Post World Net, Dubai Holding, OC Oerlikon Management, Odebrecht, DuPont, E*TRADE, Ernst & Young, Fluor Paltel Group, Perella Weinberg Partners, Corporation, Goldman Sachs, Google, HP, Permira Advisers, Providence Equity Partners, Infosys Technologies, Intel Corporation, Sabanci Holding, Sanyo Electric Co., JPMorgan Chase, KPMG, Kudelski Group, Saudi Oger, Silversea Cruises Group, Lehman Brothers, Manpower, Marsh & Sojitz Corporation, SONATEL (Société McLennan Companies (MMC), McKinsey & Nationale des Télécommunications du Company, Merck & Co., Merrill Lynch, Sénégal), SPARX Group, Suzlon Energy, METRO Group, Microsoft Corporation, System Capital Management, Takeda Morgan Stanley, NASDAQ, Nestlé, Nike, Pharmaceutical Company, Teck Cominco, NYSE Group, PepsiCo, Petronas, Pfizer, TiVo, Tokyo Electric Power Company (TEPCO), PricewaterhouseCoopers, Reliance Tokyo Electron, Travelport, Tullett Prebon, Industries, Reuters, Roland Berger Strategy Türk Telekom, Uralkali, UTStarcom, Consultants, Saudi Basic Industries VinaCapital Group, Ziff Brothers Investment. Corporation (SABIC), Siemens, SK Group, Swiss Re, UBS, Unilever, VimpelCom, Strategic Partners Volkswagen, WPP, Xenel Group, Zurich Financial Services. Our Strategic Partners comprise some of the world’s leading corporate citizens and Industry partners provide essential leadership in support of the Forum’s mission. Now in its second successful year, our Industry Partners programme continues In 2006/2007, the number of Strategic Partners to gather momentum and new members. increased to 71, as further member companies There are now 197 partnerships, representing signalled their commitment to the Forum by 184 companies, some of whom have joined joining the programme. This year saw particularly multiple industry programmes. These Industry significant involvement from emerging markets, Partners have joined the programme from such as Russia (VimpelCom), Malaysia (Petronas) a broad range of business sectors including and South Korea (SK Group). construction, aviation, technology, tourism, food and beverage, engineering and The Strategic Partners are a key force in our financial services. activities and communities, at global, regional and industry levels. They help shape our Industry Partners play an active role in a initiatives, projects and task forces and give number of our projects, meeting and engaging intellectual guidance through the participation with key decision-makers on the most pressing of their most senior executives on steering global issues. They have also commissioned boards and advisory groups. us to produce insights and reports across a range of key industries including travel and Their considerable financial support and in-kind tourism, financial services, information services – including the provision of dedicated technologies, telecommunications and energy. staff to assist with our operations – allows the Global Growth Companies Forum to deliver its programmes and advance worldwide economic and social progress. The Forum’s Community of Global Growth Companies are drawn from those with the As part of their role, the Strategic Partners potential to become leaders in the global provide significant insights to the Annual Meeting economy within the next five years. These in Davos. They are also active participants at ‘New Champions’ have the aspiration and our regional meetings and are closely involved ability to become true global champions in governing the communities and corporate and are experiencing growth rates exceeding global citizenship initiatives of the Forum. 15% year-on-year with revenues of between US$ 100 million and US$ 5 billion. On 30 June 2007 our Strategic Partners included: The Inaugural Annual Meeting of the New ABB, ABN AMRO Bank, Accel Partners, Champions in Dalian, China, is the Community’s Accenture, Alcan, Alcoa, AMD, American flagship event, bringing together growing International Group Inc. (AIG), Apax global names such as Chinese IT firm, Partners, Audi, Avaya, Bahrain Economic Neusoft Group; life sciences specialist, Development Board, Bain & Company, Qiagen of Germany; US biopharmaceutical Barclays, Bombardier, Booz Allen Hamilton, firm, Cephelon; green fuels company, The Boston Consulting Group, BP, BT, CA, Praj Industries; YES Bank, from India; and Cisco, Citigroup, The Coca-Cola Company, Lebanese technology firm, MDS Holdings.
    • 38 World Economic Forum Annual Report 2006/2007 Our The Managing Board The Managing Board acts as the executive body organization of the Foundation. It ensures that activities fulfil the mission of the World Economic Forum and acts as its representative to outside parties. In 2006/2007, the Managing Board consisted of: Klaus Schwab, Executive Chairman (1) Jean-Pierre Rosso, Chairman, World Economic Forum USA (2) André Schneider (3) Richard Samans (4) Peter Torreele (5) Michael Obermayer (until 10 February 2007) For more information about the Managing Board, visit www.weforum.org/leadershipteam The Foundation Board The Foundation Board is responsible for maintaining business and public confidence by ensuring an exemplary standard of governance throughout the Forum. It acts as the Board of Trustees and guardian of the Forum’s mission, values and brand. Board members are individuals with unique leadership experience from business, politics, academia and civil society. They do not represent any personal or professional interests, but solely  3 5  4
    • 3 World Economic Forum Annual Report 2006/2007 those of the Foundation. Membership criteria Maurice Lévy include integrity, global vision, leadership experience Nandan Nilekani and engagement in world affairs. Ivan Pictet HM Queen Rania of the Hashemite Kingdom The Board’s role encompasses supervising the of Jordan activities of the Foundation and its bodies; Peter Sutherland managing the statutory dispositions of the Forum; Heizo Takenaka appointing new members; approving the strategic Ernesto Zedillo direction of the Forum; defining the roles of the Managing Board and committees; and approving For more information about the Foundation Board, visit www.weforum.org/foundationboard the annual report, the annual accounts and the Foundation’s budget. Structure The committees of the Foundation Board The Forum’s structure consists of six core At its January meeting, the Foundation Board departments: the Centre for Global Industries, revised its statutes and restructured its committees: Regional Agenda Teams, the Centre for The Audit Committee ensures compliance with Public–Private Partnerships, Strategic Insight all financial, accounting and control processes Teams, Communications, and Events and in accordance with global best practice and Resources Management. the principles of good corporate governance The Strategy Committee acts as a sounding Centre for Global Industries board to the Managing Board in elaborating Our Centre for Global Industries is based in the Forum’s plans. In particular it reviews the New York and is responsible for managing strategies related to partnerships and relations with the global communities of business memberships of the Forum leaders drawn from around 15 industry sectors. The Programme Committee monitors the mission It is committed to fostering engagement between orientation of all the Forum’s activities. Forum members through the Industry Partnerships programme. The chairmen of each of the above committees (together with the executive chairman and the Regional Agenda Teams secretary of the Foundation Board) make up the The Regional Agenda teams deliver value to Executive Committee of the Foundation Board. members and potential members via a series Their task is to prepare and execute the decisions of regional and national meetings. The department of the Foundation Board and oversee the activities has six teams who focus on key regional and global of the Foundation and its bodies. trends to develop an understanding of how they affect an increasingly interconnected world. To engage Foundation Board members even more into the governance process, the rule was Centre for Public–Private Partnerships introduced that each member of the Board has The Centre for Public–Private Partnerships was to serve on at least one committee. created by the World Economic Forum to broaden the application of public–private partnerships to In its January 2007 meeting, Ivan Pictet, Managing some of the world’s most pressing problems. Partner of Pictet & Cie Private Bankers, and Heizo The Centre consolidates all of our task forces Takenaka, Director, Global Security Research and initiatives and is a comprehensive resource Institute, Keio University, and a former member for companies seeking to engage with the public of the Japanese Government, were unanimously sector to tackle global issues. elected new members of the Board. Strategic Insight Teams During the same Board meeting, Heinrich von The Strategic Insight teams work with the Forum’s Pierer and Nobuyuki Idei, whose three terms of network of communities, such as business three years each had come to an end, did not seek leaders, NGOs and policy-makers to create re-election. The Board expressed its great relevant strategic insight. The department has appreciation for their engagement and friendship. four core teams, focusing on the global agenda, On 28 June 2007, the World Economic Forum scenarios, economics and competitiveness, announced that former UK Prime Minister Tony Blair and global challenges. has joined the Foundation Board. Communications On 1 July 2007, the Foundation Board consisted The Communications department consists of three of the following members: teams, focusing on the World Economic Forum’s Klaus Schwab, Executive Chairman website, publications and media relations. The three Josef Ackermann, Vice-Chairman teams work together to publicize the Forum’s work Kurt Alig, Secretary and to explain to both members and non-members Tony Blair how it delivers on its mission. Peter Brabeck-Letmathe Lord Carey of Clifton Events and Resources Management Victor L.L. Chu Each year we bring together thousands of decision- Flavio Cotti makers at World Economic Forum meetings Michael S. Dell and regional meetings to address the most crucial Niall FitzGerald issues facing mankind. To maintain quality and Orit Gadiesh effectiveness, we have a team with unique Carlos Ghosn knowledge and experience in developing such Rajat Gupta high-calibre events.
    • 40 World Economic Forum Annual Report 2006/2007 The Our people The skills, knowledge and dedication of our Forum people are essential to the success of the community Forum. In 2006/2007, to meet the growing needs of our mission and strategy, we recruited a number of new employees. Our headcount today stands at 277, compared with 229 for the previous year. Our Global Leadership Fellows programme continued to develop. We saw the first group of 47 Fellows successfully enter their second-year programme, while a second group, composed of 32 people, joined us in autumn 2006 to start their first year. We also continued to attract extremely skilled, motivated and internationally trained people to the Forum and its activities, thus reflecting our diverse, multistakeholder focus. Currently, our staff represents 51 nationalities, of whom 57% are women and 82% are graduates, with 7% holding a PhD. The average age of our team is now 36. Global Leadership Fellows Now in its third year, our Master’s Programme in Global Leadership continues to draw highly skilled young professionals. To date, we have
    • 4 World Economic Forum Annual Report 2006/2007 almost 90 Fellows working throughout the Nationality various Forum departments. They are utilizing American 28 their skills and experience to engage with Argentinian 2 leaders to shape the global agenda. Australian 4 Belgian 3 Under the guidance of a new dean, Professor Brazilian 1 Gilbert Probst, the programme structure British 24 now consists of two years of academic courses with a third year dedicated to project Canadian 7 work, leadership workshops, coaching Chinese 5 and mentorship. Croatian 1 Danish 2 Over the past year, Fellows have attended Dutch 10 courses in a broad range of subjects, Egyptian 1 including decision-making, strategy, philosophy, Ethiopian 2 international relations, coaching and executive Finnish 1 communication. These classes were taught by leading lecturers and tutors drawn French 20 from our Academic Partners, which are German 22 INSEAD, Columbia University and London Greek 1 Business School. Guatemalan 1 Hungarian 2 We are confident that the experience these Indian 6 Fellows have gained from the Forum’s Irish 4 programme will position them to become successful and responsible global leaders Italian 11 in the future. Japanese 4 Kenyan 2 World Economic Forum, China Latvian 1 China’s emerging global leadership and Lebanese 2 influence are becoming increasingly important Malagasy 1 to the business world, not least to Forum Malaysian 1 members and partners. In return, in 2006/2007, the Chinese Government showed its recognition Mexican 3 of the importance of the World Economic Forum Moroccan 3 to global and national affairs by making it the Nepalese 1 first-ever international foundation to be legally New Zealander 1 recognized and registered in China. Nigerian 1 Norwegian 1 Through our Beijing Representative Office, we Pakistani 2 are developing and deepening our relationships with the National Development and Reform Polish 3 Commission, the Ministry of Foreign Affairs, Portuguese 1 the Ministry of Commerce, State Council Romanian 3 Information Office and other key Chinese Russian 2 Government ministries. In addition to the Singaporean 2 national government, the Forum has established Slovak 1 or strengthened relationships with other key South African 4 bodies including key provincial and municipal governments, the China Council for Promotion South Korean 1 of International Trade and national academic Spanish 10 and media organizations. Sri Lankan 1 Swedish 7 With a full-time staff of five, our Beijing office Swiss 52 has seamlessly integrated with the Forum’s Thai 1 operations in Geneva and New York. The Beijing Tunisian 2 team supports outreach to Chinese Forum members, potential members and Global Ukrainian 1 Growth Companies. This has resulted in an Venezuelan 1 additional 10 companies (including Global Growth Companies) joining the World Economic Average age 36 Forum’s communities and activities since September 2006. The China-based team has created a solid foundation for the Inaugural Annual Meeting of the New Champions, the first of which is held in Dalian, China. We will continue to expand our activities in China with the development of the Centre for Global Growth Companies and the increased engagement of Global Growth Companies on a global basis.
    • 4 World Economic Forum Annual Report 2006/2007 World The World Economic Forum USA has seen The World Economic Forum USA (‘Forum USA’) a period of exceptional growth since starting is the North American affiliate of the World Economic operations in 2006. Over this fiscal year, it Economic Forum, which was founded in December Forum USA has moved into its own fully operational 2005 and serves as the global headquarters for offices in mid-Manhattan, has seen the the Centre for Global Industries. The initial drive number of employees grow from four to to establish a presence in North America stemmed over 25 and has almost doubled the number from the desire to better serve our key members of industry partnerships across the Centre and partners, coupled with the objective of better for Global Industries to 197. integrating industry and other expertise into our growing organization. On both of these fronts, our ambitious expectations have been surpassed. At the beginning of this fiscal year in July 2006, Forum USA was still in its infancy, with four employees using borrowed office space from Partner companies. Just one year later, we are proud to relay that we are occupying our new office space in mid-town Manhattan with 25 full-time staff. As expected, the expanding team in New York includes new full-time colleagues with considerable industry experience as well as temporary employees from Partner companies on secondment. These new team members are complemented by several experienced World Economic Forum employees who have crossed the Atlantic to help establish operations in the USA. Klaus Schwab, staff and friends of the World Economic Forum USA ring the New York Stock Exchange Closing Bell
    • 43 World Economic Forum Annual Report 2006/2007 Our team today truly mirrors the involvement programme, including some which have of the corporate world into our activities. Our subscribed to multiple partnerships. flagship Industry Partnership programme, under which we serve companies from both our New For more information, please refer to: www.weforum.org/forumusa York and Geneva offices, boasts 197 partnerships as of July 2007 – an increase of over 80% from the previous year. These The Board of Directors of the World Economic partners span 17 industries, including five Forum USA oversees the overall business and industry groups which were based out of North affairs of the organization. It currently comprises: America during 2006–07: Banking & Capital Jean-Pierre Rosso (Chairman) Markets; Healthcare; Insurance & Asset Alfred Berkeley Management; Investors; and Media & William George Entertainment. As of July, global responsibility Rajat Gupta for an additional five industries has been Joe Schoendorf transitioned to NY as well: Automotive; Aviation, Kevin Steinberg (Corporate Secretary). Travel & Tourism; Transportation Services; Food and Beverage; and Retail & Consumer Goods. Day-to-day operations for the Forum USA are led by a Management Committee comprised of Over the past year, the Centre for Global its officers, which serves as its executive body. Industries has convened dozens of sessions in These officers are: New York and globally, ranging from structured John Moavenzadeh meetings of multiple stakeholders to smaller, Sarita Nayyar informal CEO dinners. Working groups on Jean-Pierre Rosso subjects varying from Partnering Against Kevin Steinberg. Corruption to addressing the ramifications of the Globalization of Alternative Investments have In addition to the above officers, as of 1 July led to publications, public commitments from the World Economic Forum USA employed participating companies, and practical solutions 25 full-time staff. to pressing societal imperatives such as our Working Towards Wellness effort. For more information about the Board, officers or staff, please go to www.weforum.org/usa/ leadershipteam Financial results Jean-Pierre Rosso The Forum USA’s financial results for the 2006– Chairman, Centre for Global Industries 2007 year have been consistent with its budget, resulting in a net loss of US$ 776,043 off from The World Economic Forum USA is an US$ 7,253,854 in revenues, despite significant independent non-profit organization committed startup expenses and investments. All Forum to improving the state of the world by engaging USA financials are reported in US dollars, industry leaders in partnerships to shape global, consistent with US GAAP. regional and industry agendas. The Forum USA’s primary source of financial Incorporated in December 2005 as a non-profit support is membership/partnership dues paid business league based in New York, the World by the Forum’s Industry Partners and Industry Economic Forum USA is impartial and not-for- Associates. In addition, the Forum USA received profit; it is tied to no political, partisan or national an initial loan of working capital from the World interests. The Forum USA is an affiliate of the Economic Forum, which it expects to repay in World Economic Forum, and its relationship is June 2008. governed by an affiliation agreement, which is a contractual agreement under which the Forum The Forum USA’s financial results are audited by USA coordinates with the World Economic PricewaterhouseCoopers who examine both the Forum when conducting its activities. The Forum balance sheet and accounts. The 2006–2007 USA’s application for recognition of exemption figures follow: from income taxes under §501(c)6 of the US Internal Revenue Service code is currently Year 2006/2007 pending approval. 7,253,854 Total income* out of which The World Economic Forum USA’s New York members’ fees 0 offices serve as the global headquarters for the participation fees 0 Centre for Global Industries. The Centre for Global Industries’ primary focus is the Industry partnership 6,109,192 Partnership programme, which is aimed at other income 1,144,662 engaging global companies in the Forum’s 8,029,897 Total expenditure activities at the industry level. This programme out of which enables participating corporations to contribute personnel costs 3,229,731 to an evolving portfolio of task forces and engage in specific meetings for designated office costs 500,504 senior executives. To date, 197 industry activity related costs 4,299,662 partnerships have been signed representing (776,043) Surplus 184 companies which have formally joined the *all key figures in US$
    • 44 World Economic Forum Annual Report 2006/2007 Our Our financial results through cost contributions and that projects are In 2006/2007, we achieved strong financial supported by income from partnership contracts. financial results as income from all our initiatives and The Forum may accept grants, donations, results activities continued to grow. We did not touch legacies and other contributions or subsidies that our reserve funds during the year, despite are consistent with its purpose of ‘integrating investing a significant sum in the launch of our leaders from business, politics and society at large Global Growth Companies. The most notable into a community for global action committed to revenue drivers continued to be the growing improving the state of the world and the well-being number of Forum members choosing to become and prosperity of human society’. The World partners and participating in our activities. In total, Economic Forum makes no payments to political this trend added Sfr. 2,769,846 to our reserves. personalities, parties or other organizations and This figure was also due to important cost avoids involvement in national politics. reductions and efficiencies we achieved during the year. In finance, as throughout our Auditors organization, we aim for excellence and most The World Economic Forum’s financial results efficient use of the funds received. are audited by PricewaterhouseCoopers, who examine the balance sheet and accounts. Financial policy The annual report, as well as all institutional The World Economic Forum’s financial policy documents, are submitted to the Swiss states that membership fees in principle should Federal Government, which in law acts cover operational costs, that events are funded as the supervisory body for the Foundation. 2002/2003 2003/2004 2004/2005 2005/2006 Year 2006/2007 66,454,727 74,058,911 83,336,839 104,766,543 114,574,874 Total income* out of which members’ fees 25,530,325 25,137,257 26,546,382 26,410,294 27,763,874 participation fees 21,465,398 20,543,108 20,824,213 27,063,138 30,160,303 partnership 17,390,452 24,552,385 31,035,927 44,668,943 50,881,934 66,454,522 72,307,790 82,083,503 102,735,578 111,805,027 Total expenditure out of which personnel costs 26,584,768 29,620,236 35,723,308 40,035,452 47,887,856 office costs 8,360,352 9,044,738 9,253,213 12,537,175 11,884,632 activity-related costs 31,509,401 33,642,815 37,106,982 42,732,347 52,032,539 Surplus to be added to the 205 1,751,121 1,253,336 2,030,965 2,769,846 Foundation capital 12,114,958 13,866,079 15,119,415 17,150,380 19,920,227 Foundation capital Total staff full time 130 134 162 204 247 out of which seconded by Forum members 4 5 5 7 8 part time 28 28 31 25 30 *all key figures in Swiss francs
    • 45 World Economic Forum Annual Report 2006/2007 Our ensures substance in the form of strategic insights The World Economic Forum is an and, where relevant, platforms for joint action. To independent international organization mission carry out its mission, the World Economic Forum committed to improving the state of the and has developed an integrated value chain by world by engaging leaders in partnerships to involving world leaders in communities, inspiring shape global, regional and industry agendas. values them with strategic insights and enabling them through initiatives. Incorporated by Professor Klaus Schwab as a Our vision for the World Economic Forum is foundation in 1971, and based in Geneva, threefold. To be: Switzerland, the World Economic Forum is impartial and not-for-profit; it is tied to no political, partisan The foremost organization which builds and or national interests. energizes leading global communities Our culture combines the best elements of The creative force shaping global, regional and entrepreneurship with those of public service. industry strategies for its communities Thus, our motto is ‘entrepreneurship in the global public interest’. The catalyst of choice for its communities when undertaking global initiatives to improve the state We cultivate public trust by never compromising of the world. our institutional integrity. We constantly strive to win the respect of our members and constituents by The World Economic Forum enjoys unique global ensuring everything we undertake is ‘first in class’. positioning by recognizing and responding to We can serve our communities best by making two developments: ourselves a role model for a highly interactive, open and fast learning community. The world’s key challenges cannot be met by governments, business or civil society alone Our mission is best realized through activities which promote economic and social In a world characterized by complexity, fragility development. We believe that economic progress and ever-greater synchronicity, strategic insights without social development is not sustainable, cannot be passively acquired. They are best while social development without economic developed through continuous interaction with progress is not feasible. peers and with the most knowledgeable people in the field (learning communities). In addition to convening world leaders, the Forum aims to involve them in living communities of For more information see www. weforum.org common interest and purpose. The Forum Schwab Social Entrepreneur Bunker Roy, Founder and Director of the Barefoot College, builds the capacity and confidence of illiterate and semi-literate unemployed rural youth to be “barefoot” professionals. Reaching over 500,000 poor rural families, Barefoot College solar engineers have installed solar photovoltaic home lighting systems and fabricated solar lanterns across 10 Indian states.
    • Designed and edited by Wardour Publishing & Design Photos by R. Kalvar (Magnum); Swiss Image World Economic Forum 91- 93 route de la Capite CH – 1223 Cologny/Geneva Switzerland Tel.: +41 (0) 22 869 1212 Fax: +41 (0) 22 786 2744 E-mail: contact@weforum.org www.weforum.org The annual report is available electronically at www.weforum.org/annualreport – also in Arabic, Chinese, French, German, Japanese and Spanish versions.